LCH.Clearnet SA will provide clearing services to Galaxy, the upcoming multilateral trading facility (MTF) owned and operated by TradingScreen for trading euro-denominated bonds.
LCH.Clearnet will deliver an automated and fully integrated solution from trading through clearing to settlement. The firm says settlement instructions will be processed through the major International Central Securities Depositories (ICSDs) and European national Central Securities Depositories (CSDs), and the services use of existing connectivity will facilitate implementation and adoption by clients and enable them to clear a new asset class using their current arrangements.
The Paris-based Cassiopeia Committee, which certified the Galaxy MTF, seeks to explore ways of introducing secondary corporate bond platforms in Europe and address market demands to improve transparency, liquidity, post-trade services and reporting.
We have worked closely with Galaxy to provide our expertise to the Cassiopeia initiative to enhance transparency and certainty in the euro-denominated bonds markets, in line with regulators aims to reduce systemic risk by bringing more OTC products into clearing, says Christophe Hmon, chief executive of LCH.Clearnet SA. This offering complements LCH.Clearnets clearing arrangements with Cassiopeia MTFs for corporate bonds and further reduces risk in the euro-denominated bond markets.
Galaxy is set to launch in June, subject to regulatory approval.
As one of the leading financial technology provider to financial markets, we are delighted to bring our know how to this European initiative and to work with LCH.Clearnet SA to bring to our buy-side and sell-side clients the capability to centralize their clearing with a well-established clearing house, says Galaxy CEO Jean-Philippe Mal. By working together with LCH.Clearnet we will deliver a completely integrated, highly efficient workflow from low latency price distribution, electronic execution and position monitoring to risk free clearing and settlement straight through processing that is not currently available for OTC transactions.
(CG)