LCH.Clearnet, the European central counterparty, is reducing their clearing fees. These reductions will come into effect on 1 July 2007.
The tariff restructuring programme began in November 2006, seeing LCH.Clearnet’s EquityClear service reduce its clearing fees to its members by an average of 11.5 percent for trades executed on the London Stock Exchange SETS and SETSmm platforms and by 6 percent for trades executed on virt-x. From 1 January 2007, LCH.Clearnet SA reduced its clearing fees by an average of 15 percent for trades executed on Euronext cash markets. These equity clearing fee reductions were also accompanied by clearing fee reductions in financial and equity derivatives markets.
From 1 July 2007, the tariff restructuring program will be extended further. The LCH.Clearnet clearing fee in respect of trades executed on the London Stock Exchange SETS and SETSmm platforms and all virt-x trades will be harmonised and reduced by an average of 23 percent, taking overall reductions since the start of the programme to over 30 percent. This does not include fees for CREST CCP services for UK and Irish trades, which remain separate.
LCH.Clearnet also intends to deliver additional clearing fee reductions on Euronext cash equity markets, and will announce a revised tariff as soon as possible.
“I am delighted to announce these latest reductions in LCH.Clearnet clearing tariffs, which further emphasise not only our determination to drive fees downwards whilst maintaining high quality clearing services, but also constitute a substantial contribution to increased value in the market,” says Roger Liddell, the Chief Executive of LCH.Clearnet Group.