LCH.Clearnet has signed a memorandum of understanding with the European Multilateral Clearing Facility (EMCF) to introduce a user-choice clearing model.
The agreement will enable trading participants on Chi-X and BATS Europe to select the clearing house of their choice.
The benefit to LCH.Clearnet will be through economies of scale. By trading higher volumes, LCH.Clearnet has states that clearing fees may be as low as GBP0.01
The deal 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.
The clearing house, currently reviewing a bid from a consortium of banks, led by ICAP, has had a successful few months .
LCH.Clearnet has been appointed to offer competitive clearing for Turquoise, the independent pan-European equity trading platform. LCH.Clearnet has also won the clearing business for NYSE Arca Europe and BATS Europe, started clearing iron ore swaps and has signed a memorandum of understanding with Chi-X Europe to offer CCP services.