LCH.Clearnet and the European Multilateral Clearing Facility (EMCF) have signed a master link agreement to achieve interoperability by November 2009.
In November trading participants on Chi-X and BATS Europe will be able to choose where their UK and Swiss equity trades are cleared.
The announcement follows an announcement in May 2009 when EMCF and LCH.Clearnet signed a memorandum of understanding outlining their commitment to interoperate with each other.
May also saw European trading platform BATS Europe replace European EMCF with LCH.Clearnet Ltd for UK and Swiss stocks. EMCF CEO Jan Booij said at the time that EMCF would speed up its interoperability work.
Wayne Eagle, Director, Equity services at LCH.Clearnet said of the master link agreement: “We have made excellent progress since we first announced our plans to interoperate with EMCF only four months ago. Our aim is to deliver the benefits of clearing interoperability as soon as possible and in signing this agreement, we are another step closer.”
Jan Booij said: “Clearing interoperability will create a more open and transparent clearing process, and offer much greater choice for clients. This is an important step for the industry.
The arrangement between LCH.Clearnet and EMCF is in line with the Access and Interoperability Guidelines within the European Code of Conduct and is subject to regulatory approval.