Clearing House consolidation is via intraoperability

The first Post-Trade Forum hosted by the London Stock Exchange, got off to a cracking start with an ‘First Class’ panel representing a cross-industry focus, debating in forthright style, the future of European Clearing Houses. The panel included Kevin Milne, Director of Post-Trade Services, London Stock Exchange, Anthony Belchambers, CEO, FOA, Henry Raschen, Head of Regulatory & Industry Affairs for Europe, HSBC Securities Services, with the keynote delivered by Dr. Iain Saville, CBE, well known doyen of UK post-trade operations, project leader and deliverer from 1993-1996 of modern day CREST settlement.

The panel set about the debate with gusto and laid out all the current issues and challenges facing financial services firms and market infrastructure organisations. This stimulated a constant flow of questions from a packed audience of industry experts from leading firms and suppliers; one of the questions posed was the importance of ‘risk factor or cost factor’, when choosing a Clearing House, with the risk factor winning by an overwhelming majority.

Many questions were raised concerning the future picture of clearing in Europe, but the debate established that a continuous march towards building a risk free and low cost clearing structure for Europe is well underway.

Whilst the panel concurred on a number of points, there were also significant differences, reflecting those in the market. The audience were presented with the not insignificant challenges that still lie ahead and gained a significant insight into the workings of the central decision makers in Europe.

The debate, carried out under the Chatham House Rule, allowed a free ranging discussion and lively interaction with all, [including, I suspect, the panel], gaining richly from their attendance. A full synopsis of this debate will be published and made available to all attendees and the members of the Post Trade Forum on LinkedIn.