Xavier Rolet, the CEO of the London Stock Exchange (LSE), has stepped down from the board of clearer LCH.Clearnet. LCH.Clearnet provides clearing services for all order book trades in stocks, ETFs and ETCs on the LSE.
Rolet told LCH.Clearnet that he was too busy to attend board meetings. An LCH.Clearnet spokesperson declined to comment on relations between Rolet and LCH.Clearnet.
Only NYSE Euronext and the London Metal Exchange have an automatic right for a position on LCH.Clearnets board.
A spokesperson from the LSE had no comment.
Rolet has been critical of LCH.Clearnet since becoming CEO in 2009. Early in 2010 Rolet issued plans to review its relationship with the clearer. Unlike Deutsche Borse, its main rival, the LSE does not own extensive post trade services. However, in 2007 the LSE bought Borsa Italiana, along with clearing house Cassa di Compensazione & Garanzia.
Many expect the LSE to develop Cassa di Compensazione & Garanzia as a clearing house, mirroring moves taken by rival NYSE Euronext.
In May 2010 NYSE Euronext announced plans to sever its existing clearing arrangement with LCH.Clearnet and to launch two new clearing houses in London and Paris by late 2012, severing its existing clearing arrangement with LCH.Clearnet.
LCH.Clearnet has been busy diversifying its business offering. Michael Davie, previously CFO of global sales and marketing at J.P.Morgan, has been appointed to the new role of CEO of SwapClear, LCH.Clearnets interest rate swap (IRS) clearing subsidiary, signalling LCH.Clearnets intent to corner the U.S. IRS clearing market. In June 2010, LCH.Clearnet announced it would offer SwapClear to U.S. clients by late 2010.
LCH.Clearnet has also recently launched clearing services for Spanish government bonds and repos, and announced that it had started constructing a clearing service for the over-the-counter wholesale London gold market in a joint initiative with the London Metal Exchange. In June the firm also became the first to clear over-the-counter (OTC) container freight swap agreements, and 50 year interest swap trades have been cleared for the first time by SwapClear.