31 March 2015

LCH.Clearnet in discussions to acquire IDCG from Nasdaq OMX

24 April 2012  |  5840 views  |  1 US flag

European clearing house LCH.Clearnet has confirmed that it is in discussions to acquire International Derivatives Clearing Group (IDCG) from Nasdaq OMX as it bids to grow its interest rate swaps business in the US.

The acquisition - which will see LCH.Clearnet become the sole owner of IDCG and Nasdaq OMX become a shareholder in the European clearer - is subject to negotiations.

LCH.Clearnet already operates interest rate swap clearing in the US through its SwapClear service.

Michael Davie, chief executive of SwapClear, says: "LCH.Clearnet Group is committed to providing end-users with a broad range of clearing services for their over-the-counter trades. This strategic acquisition would complement our US offering, where we are seeing accelerating client take-up for the SwapClear service."

To date, the SwapClear service has cleared a total client notional of more than $686 billion.

LCH.Clearnet has been working with New York Portfolio Clearing (NYPC), The Depository Trust & Clearing Corporation (DTCC) and Nyse Euronext (NYX) to explore expanding the existing combined "one-pot" cross-margining arrangement to include interest rate swaps cleared by SwapClear, creating more opportunities for market participants to benefit from margin netting and offsetting.

LCH.Clearnet says the acquisition of IDCG would be "further evidence" of its commitment to the US market.

Comments: (1)

A Finextra member | 24 April, 2012, 14:15

Very good news and more consolidation needed please. Great to hear that the Clearers are talking about cross margining and i hope we see evidence of agreement and operations soon

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

26 March, 2012
09 March, 2012
09 March, 2011
23 June, 2010
30 June, 2009
27 May, 2009
07 April, 2009
03 February, 2009
14 October, 2008

Related company news


Top topics

Most viewed Most shared
Banking has reached a digital tipping poin...
10700 views comments | 57 tweets | 33 linkedin
Europe sets the pace as fintech investment...
6026 views comments | 29 tweets | 20 linkedin
UK online banking fraud losses soar 48%
5433 views comments | 16 tweets | 17 linkedin
Future Money Focus: Mariano Belinky, Santa...
5191 views comments | 12 tweets | 12 linkedin
Google preps Gmail bill payment feature
5001 views comments | 15 tweets | 12 linkedin

Featured job

to $175k base, double OTE, benefits
New York City, NY (USA)

Find your next job