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

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

The London Stock Exchange has inked a deal with SIS x-clear that will allow its customers to choose whether to clear trades through the Swiss central counterparty or through LCH.Clearnet, currently the sole clearing provider for the exchange's equity business.

The LSE says it was approached by SIS x-clear last winter with a proposal for competitive clearing. The UK exchange has now signed a letter of intent with SIS x-clear to provide member firms with a choice of clearing provider for equity trades.

LSE says the deal will deliver additional benefits to the market through competition in clearing services by introducing an independent, user-owned, user-governed and not-for-profit alternative provider.

Chris Gibson-Smith, LSE chairman, says securing efficient post-trade services on a pan-European level is a pre-requisite to the creation of a single market for financial services.

"We are deeply committed to a horizontal model, where exchanges do not hold an economic interest in the provision of clearing and settlement services. It is this model, and our philosophy, that allows us to offer choice and competition in UK equity clearing through an independent and user-owned organisation such as SIS x-clear," says Gibson-Smith.

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