23 October 2017
Register now

SIS x-clear vows to undercut LCH.Clearnet

02 June 2006  |  7282 views  |  0 globe

Following its deal to provide clearing services for the LSE, Swiss central counterparty SIS x-clear says it is determined to undercut fees charged by LCH.Clearnet, currently the sole clearing provider for the London exchange's equity business.

The LSE said last week that it had inked a deal with SIS x-clear that will give its customers a choice of clearing venues through the Swiss central counterparty or through LCH.Clearnet.

According to a Financial Times report, a price war is now set to erupt between the rival clearing houses.

Peter Sami, chief executive of SIS Group, told FT reporters that SIS x-clear will be cheaper than LCH.Clearnet, although he declined to indicate by how much the Swiss firm would undercut LCH.Clearnet fees.

SIS x-clear is expected to start clearing LSE trades in the first quarter of next year. Sami says the company's aim is a 10% market share at the start and increasing thereafter.

SIS currently handles about 65% of trades on the London-based Virt-x electronic platform, with LCH handling the remainder. A 10% share of LSE trading would be roughly equivalent to SIS's current volume on Virt-x, says the FT report.

Last month a European Commission report criticised the lack of competition in EU securities clearing and settlement. But the report, which looked at competition in cross-border clearing services, found that the LSE has some of the lowest clearing costs of any exchange through its contract with LCH, although Borsa Italiana was found to have the lowest trading costs.

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

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  |  8940 views  |  0 comments
SIS x-clear cuts clearing fees

SIS x-clear cuts clearing fees

12 February 2004  |  2918 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Register nowvisit www.vasco.comvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
16882 views comments | 20 tweets | 34 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
14220 views comments | 22 tweets | 30 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10447 views comments | 12 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
10108 views comments | 13 tweets | 10 linkedin

Featured job

Find your next job