EuroCCP to Clear LSE Trades

European Central Counterparty (EuroCCP) will start to now clear trades executed on the London Stock Exchange (LSE), once legal, connectivity and operational arrangements have been finalized between the relevant parties and regulatory approvals have been received.
By Jake Safane(2147484770)
European Central Counterparty (EuroCCP) will start to now clear trades executed on the London Stock Exchange (LSE), once legal, connectivity and operational arrangements have been finalized between the relevant parties and regulatory approvals have been received.

Firms that use EuroCCP to clear U.K. equities trades executed on Aquis, BATS Chi-X, Equiduct, GETMatched, Sigma-X, SmartPool, Turquoise and UBS MTF will now be able to direct LSE trades to EuroCCP and save at least 50% on settlement costs, according to EuroCCP. The CCP will be able to use cross-platform netting so that all trades in the same U.K. stock, regardless of where they are executed, can be netted with LSE trades into a single settlement obligation; EuroCCP expects this capability to be functional in the third quarter of this year.

EuroCCP also has interoperability arrangements in place with the incumbent clearers for LSE—LCH.Clearnet and SIX x-clear.

“Many market participants have been waiting to have more choice in where they clear trades executed on London Stock Exchange,” says Diana Chan, CEO of EuroCCP. “The addition of EuroCCP to the central counterparties already available will bring the benefits of more competition together with reduced costs.”

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