LCH.Clearnet’s Longden Leaves CDSClear, Wells Takes Over

LCH.Clearnet Group Ltd., the world's largest clearinghouse for interest-rate swaps, said the chief executive officer of its CDSClear unit, Charlie Longden, has left.

Longden, one of the four business heads at the clearinghouse, ran the credit-default-swap business. The executive decided to leave to seek a new challenge, Kamyar Naficy, a spokesman for LCH, said, declining to comment further. Gavin Wells, the CEO of the company’s ForexClear service, will take on responsibility for the CDS business.

London Stock Exchange Group Plc (LSE) became the majority owner of the clearinghouse in May and now owns 57.8 percent of the London-based company. LCH’s chairman said in September that the business has room to cut costs in technology and overlapping systems after being acquired. Ian Axe, LCH’s former CEO, left earlier this year.

LCH appointed Longden as CEO of CDSClear in 2011, hiring him from Markit Group Ltd., where he was managing director of fixed income. He has spent more than 20 years in credit markets including spells at ABN AMRO Bank NV and Royal Bank of Scotland Group Plc, according to LCH.

Wells, who runs the currency-clearing business at LCH, is a Citigroup Inc. (C) veteran and a former officer in the Royal Artillery. Michael Davie will continue to run SwapClear, the interest-rate-swap business, and LCH’s U.K. business, London-based Naficy said. Alberto Pravettoni remains chief executive of LCH’s Repo and Exchanges business.

Clearinghouses operate as central counterparties for every buy and sell order executed by their members, who post collateral, reducing the threat from a trader’s default.

Longden couldn’t immediately be reached for comment.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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