London Stock Exchange To Switch From LCH.Clearnet To Eurex Clearing, Says London Times

The Times of London says today it has “learnt” that the London Stock Exchange (LSE) is “close to transferring its clearing business from London Clearing House to Deutsche Borse.” No sources are cited, though it is known that the LSE has held talks with Deutsche Borse about using Eurex Clearing as CCP for its SETS order driven equity market. It is also known to have spoken with the DTCC, parent of the National Securities Clearing Corporation in New York and owner of a European CCP service it put on ice last year after finding no takers. LCH.Clearnet have sought to reassure the LSE with a promise of price cuts and a seat on the board of the merged companies. The issue is fraught with political tensions, as a decision by LSE to appoint a Deutsche Borse subsidiary as CCP would inevitably be seen as a snub to Euronext, and as moving the London equity market closer to the Germans.