UPDATE 1-UK clearing house, warn on Irish debt -FT

* Warning of more cash to trade Irish sov. bonds

* Chile could withdraw $6 bln pension assets

(Adds further details)

DUBLIN, Nov 5 (BestGrowthStock) – London clearing house LCH.Clearnet
has told members they might be required to deposit more cash to
trade in Irish sovereign bonds, the Financial Times reported on

Also the Chilean government has put the country’s fund
management industry on watch, the FT said in a separate report.

The newspaper said the clearing house’s warning was widely
interpreted as a signal the organisation will act next week.

Such a curb would be a blow to the Irish debt market and
comes amid rising worries on the fragility of the eurozone’s
peripheral economies.

Ireland said on Thursday it was planning to push through
spending cuts and tax hikes totalling 6 billion euros ($8.49
billion) next year, the toughest budget in the country’s
history, in a last-ditch effort to convince investors it is not
on the verge of financial meltdown. [ID:nLDE6A3168]

The country’s public debt, due mainly to the bailout of its
reckless banking system which will cost 50 billion euros, has
also triggered a regulatory mechanism that could result in the
withdrawal of just under $6 billion Chilean pension assets.

The Irish fund management industry is seen as one of the
most sophisticated and dynamic in Europe.

Dublin competes with Luxemburg for management, tax, and
administration business. Data published by Lipper earlier this
week said assets serviced in Ireland grew by about 7 percent in
the year to June. [ID:nLDE6A01NY]
($1=.7071 Euro)
(Reporting by Carmel Crimmins and Cecilia Valente; Editing by
Jon Loades-Carter)

UPDATE 1-UK clearing house, warn on Irish debt -FT