22 June 2017
Visit cib.db.com

LCH.Clearnet in discussions to acquire IDCG from Nasdaq OMX

24 April 2012  |  6374 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
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)

Finextra news in your inbox

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

Related stories

Nasdaq OMX suspends plans for competitive clearing

Nasdaq OMX suspends plans for competitive clearing

26 March 2012  |  6826 views  |  0 comments
London Stock Exchange agrees deal to take control of LCH.Clearnet

London Stock Exchange agrees deal to take control of LCH.Clearnet

09 March 2012  |  7896 views  |  1 comments
Nasdaq OMX to build Nordic clearing house for interest rate swaps

Nasdaq OMX to build Nordic clearing house for interest rate swaps

23 June 2010  |  12421 views  |  0 comments
Bank of New York Mellon takes stake in clearing counterparty IDCG

Bank of New York Mellon takes stake in clearing counterparty IDCG

30 June 2009  |  25176 views  |  0 comments
LCH.Clearnet to extend SwapClear to hedge funds and asset managers

LCH.Clearnet to extend SwapClear to hedge funds and asset managers

27 May 2009  |  5926 views  |  0 comments
LCH.Clearnet recruits BarCap's Joe Reilly to lead SwapClear

LCH.Clearnet recruits BarCap's Joe Reilly to lead SwapClear

07 April 2009  |  10908 views  |  0 comments
HSBC and JPMorgan join SwapClear; DTCC hits back at LCH.Clearnet critics

HSBC and JPMorgan join SwapClear; DTCC hits back at LCH.Clearnet critics

03 February 2009  |  9053 views  |  0 comments
Nasdaq clearing service to compete with DTCC

Nasdaq clearing service to compete with DTCC

14 October 2008  |  9226 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit dh.comvisit www.www.fisglobal.comvisit www.niceactimize.com

Top topics

Most viewed Most shared
Santander's Openbank relaunched as 100% digital bankSantander's Openbank relaunched as 100% di...
15786 views comments | 48 tweets | 61 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
8291 views comments | 17 tweets | 26 linkedin
Live: EBAday 2017, day twoLive: EBAday 2017, day two
7709 views comments | 4 tweets | 5 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
7276 views comments | 8 tweets | 25 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
7129 views comments | 3 tweets | 4 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job