BNP Paribas Announces Clearing Capability on LSE's IOB

BNP Paribas Securities Services has successfully launched clearing services on the LSE's International Order Book
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BNP Paribas Securities Services has successfully launched clearing services on the LSE’s International Order Book.

The services provided are part of the bank’s Clearsuite solutions package which delivers flexible products to any new and incumbent trading venues.

The IOB offers specialist investors access to international markets via Depositary Receipts (DRs) from 46 countries. Trading on the IOB has grown rapidly since its inception; the value traded on the service has more than quadrupled in the last five years, reaching USD 246.2 billion in 2008.

LCH Clearnet Ltd will act as the Central Counterparty Participant (CCP) to clear 50 of the most liquid depositary receipt stocks listed on the IOB.

One of the first clients BNP Paribas is offering this service to is Panmure Gordon & Co (Panmure). Nick Cook, Executive Director, Panmure said: “The introduction of a CCP for IOB stocks provides post-trade anonymity and improved settlement netting facilities in conjunction with the risk benefits achieved from exposure to a CCP. BNP Paribas’ detailed knowledge of the ever-changing market infrastructure segment and the extension of its existing global clearing member services have allowed Panmure to participate from the first day of the CCP facility.”

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