28 September 2016
Business Intelligence: A Tech Revolution for the Evolution in Compliance

LCH.Clearnet calls on Germany and Milan to open markets under new clearing code

09 August 2007  |  8623 views  |  0 EU keyboard

LCH.Clearnet is to test a new voluntary code for improving transparency in European securities markets by issuing formal requests to both Deutsche Börse and Borsa Italiana for full interoperability with Eurex Clearing and Cassa di Compensazione e Garanzia respectively.

LCH.Clearnet says implementation of the links will enable market participants to consolidate clearing of cash equities traded on four separate European markets - London Stock Exchange, virt-x, Deutsche Börse and Borsa Italiana - at LCH.Clearnet, and deliver the choice of central counterparty (CCP) demanded by users in line with industry-agreed guidelines.

The clearing house says the extension of its services to Germany and Italy will help lower unit costs, thus giving scope for further fee reductions across all markets.

Roger Liddell, group chief executive at LCH.Clearnet, says: "We look forward to working with both Deutsche Börse and Borsa Italiana on these initiatives and we are confident that access will be swiftly granted. These initiatives should demonstrate that peer-to-peer clearing links, where neither CCP pays the other ongoing fees, can be established across Europe, and will enable us to complete the development of a similar arrangement with x-clear for the London Stock Exchange."

The creation of the guidelines follows steps taken at the end of 2006 to lower corss-border trading costs and improve price transparency and was formally endorsed by the European Commission last month. The next phase of the Code, to be implemented by the end of 2007, involves unbundling services and separating the accounts of each service segment. This is largely aimed at the practices of siloed operators such as Deutsche Börse and Borsa Italiana, which operate vertically integrated models for trade execution, clearing and settlement.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

Nyse Euronext gets EUR399m from LCH.Clearnet stock sale

Nyse Euronext gets EUR399m from LCH.Clearnet stock sale

30 July 2007  |  4843 views  |  0 comments
New clearing code to abolish cross-border barriers

New clearing code to abolish cross-border barriers

04 July 2007  |  6224 views  |  0 comments
Deutsche Börse implements first step of clearing and settlement code

Deutsche Börse implements first step of clearing and settlement code

14 December 2006  |  5855 views  |  0 comments
European exchanges agree clearing and settlement code

European exchanges agree clearing and settlement code

01 November 2006  |  9598 views  |  0 comments
European Commission to lay down the law on clearing and settlement

European Commission to lay down the law on clearing and settlement

10 July 2006  |  6386 views  |  0 comments
LSE teams with SIS x-clear to offer choice of clearing services

LSE teams with SIS x-clear to offer choice of clearing services

24 May 2006  |  8571 views  |  0 comments
Patchy progress for G30 clearing and settlement reforms

Patchy progress for G30 clearing and settlement reforms

24 May 2006  |  4734 views  |  0 comments
EU threatens clearing and settlement legislation

EU threatens clearing and settlement legislation

07 March 2006  |  6949 views  |  0 comments
Commission in clearing and settlement talks with top bankers

Commission in clearing and settlement talks with top bankers

22 February 2006  |  7164 views  |  0 comments
European market users call for break-up of siloed exchanges

European market users call for break-up of siloed exchanges

20 February 2006  |  8836 views  |  0 comments
Study calls for consolidated clearing services in Europe

Study calls for consolidated clearing services in Europe

08 December 2005  |  9472 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.smartstream-stp.com Visit VocaLink.com

Who is commenting?

A Finextra member Finextra Member Commented on: PSD2 - opportunities,...
A Finextra member Finextra Member Commented on: R3 banks use Intel dis...

Top topics

Most viewed Most shared
RBS tests demonstrate ability of Ethereum to support a national domestic payments systemRBS tests demonstrate ability of Ethereum...
13973 views comments | 55 tweets | 47 linkedin
Swift beware: Ripple signs banks to global payments steering groupSwift beware: Ripple signs banks to global...
8684 views comments | 32 tweets | 17 linkedin
Banks clubbing together to tackle KYCBanks clubbing together to tackle KYC
7292 views comments | 3 tweets | 8 linkedin
Brexit offers exciting opportunities for growthBrexit offers exciting opportunities for g...
7170 views comments | 4 tweets | 3 linkedin
FCA to kickstart sandbox with 24 applicantsFCA to kickstart sandbox with 24 applicant...
7165 views comments | 33 tweets | 15 linkedin

Featured job

Find your next job