LCH.Clearnet has issued formal requests under the Code of Conduct to both Deutsche Boerse and Borsa Italiana for full interoperability with Eurex Clearing and Cassa di Compensazione e Garanzia respectively.
Implementation of these links will enable users of those markets to consolidate clearing of cash equities traded on four separate European markets – London Stock Exchange, virt-x, Deutsche Boerse and Borsa Italiana – at LCH.Clearnet Ltd, and deliver the choice of central counterparty (CCP) demanded by users in fulfilment of the Code’s intentions.
“These initiatives should demonstrate that peer-to-peer clearing links, where neither CCP pays the other ongoing fees, can be established across Europe, and will enable us to complete the development of a similar arrangement with x-clear for the London Stock Exchange,” says Roger Liddell, Group Chief Executive at LCH.Clearnet.