25 September 2016
Visit colt.net

LME proposal for self-clearing jolts LCH.Clearnet

03 May 2011  |  6985 views  |  0 London Swiss Re building

The London Metal Exchange has announced proposals to consider building its own clearing house, jolting its current supplier LCH.Clearnet.

In a circular to members, the LME said a move to self-clearing would be accretive to earnings. "We have reached the point at which deeper examination of the issues requires some discussion in the public arena," the notice continued.

The announcement came as surprise to LCH.Clearnet, which currently conducts clearing operations for the Exchange.

In a statement, the London-based clearer noted its long relationship with the LME and market participants, adding: "LCH.Clearnet has not received notice from the LME or indeed any indication regarding the likely timeframe."

Ian Axe, chief executive of LCH.Clearnet says: "We value our relationship with the LME and shall continue to provide the LME and its members with an excellent service and the benefit of our unique experience in clearing for this complex market - we are a leader in commodities clearing globally. Market participants tell us they are looking for proven, efficient and consolidated clearing offerings. LCH.Clearnet is best placed to continue to deliver this."

The LME's move adds to the pressure on LCH.Clearnet, which is facing increasing competition from new entrants to the European markets and the loss of some of its biggest contracts. Nyse Euronext Liffe, for instance, announced plans to conduct self-clearing in May last year, and the London Stock Exchange is also believed to be considering its options.

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

LCH.Clearnet rejects ICE bid reports

LCH.Clearnet rejects ICE bid reports

22 November 2010  |  10598 views  |  0 comments
LCH.Clearnet slashes fees as post-trade competition heats up

LCH.Clearnet slashes fees as post-trade competition heats up

31 August 2010  |  7286 views  |  1 comments
LCH.Clearnet shareholders approve buyout

LCH.Clearnet shareholders approve buyout

15 October 2009  |  6508 views  |  0 comments
LCH.Clearnet slashes clearing costs

LCH.Clearnet slashes clearing costs

01 May 2009  |  8144 views  |  0 comments
LSE pulls out of LCH.Clearnet consortium

LSE pulls out of LCH.Clearnet consortium

13 March 2009  |  8252 views  |  0 comments
UBS to switch clearing to SIS X-Clear

UBS to switch clearing to SIS X-Clear

03 December 2008  |  7784 views  |  0 comments
Liffe to self-clear from Q1 next year

Liffe to self-clear from Q1 next year

31 October 2008  |  8128 views  |  0 comments
LSE pursues competitive clearing model

LSE pursues competitive clearing model

24 September 2008  |  9017 views  |  0 comments
Liffe confirms clearing house plan

Liffe confirms clearing house plan

26 March 2008  |  6886 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreFind out moreVisit i2cinc.com

Top topics

Most viewed Most shared
Co-habitation with banks key to fintech futureCo-habitation with banks key to fintech fu...
13466 views comments | 34 tweets | 34 linkedin
hands typing furiouslyGoogle's Larry Page buys a 'major global b...
12841 views 0 | 31 tweets | 25 linkedin
RBS tests demonstrate ability of Ethereum to support a national domestic payments systemRBS tests demonstrate ability of Ethereum...
10882 views comments | 43 tweets | 28 linkedin
Banks test blockchain for reference data managementBanks test blockchain for reference data m...
8318 views comments | 16 tweets | 25 linkedin
Deutsche Bank teams up with accelerator to back fintech startupsDeutsche Bank teams up with accelerator to...
7031 views comments | 12 tweets | 5 linkedin

Featured job

Find your next job