The London Stock Exchange has signed an agreement with Clearnet to provide the central counterparty for a new bespoke equity trading service in Dutch securities.
The move follows last month's announcemet by Deutsche Börse that it is to expand the number of Dutch securities available for trading on Xetra from eight to 25 and slash clearing fees by 60% to the same level as German stocks. Both the LSE and the German exchange have been actively courting Dutch brokers who have expressed disatisfaction with the level of service provided to their market by Euronext.
The LSE's new service, which is based on the Exchange's electronic order book Sets, will use the Dutch market's existing post trade market infrastructure, with Clearing21 providing the central counterparty services. The service will be launched, subject to FSA regulatory approval, in the first quarter of 2004.
Further details, including pricing, will be forthcoming next week at two kick-off events in Amsterdam and London.
Commenting on the proposal, Clara Furse, chief executive of the London Stock Exchange, states: "We have spent considerable time talking to firms active in the Dutch market in an effort to understand and, ultimately, meet their specific requirements for a bespoke market offering. The market wants competition. This is an important step in moving forward Europe’s capital markets."
Patrice Renault, chief executive of Clearnet, says: "Clearnet intends to provide services to multiple exchanges. Our members will be thus offered the opportunity to increase the benefits of their post trading rationalisation across several markets."