23 October 2017
visit www.atos.net

LCH.Clearnet ditches IT integration project

21 July 2006  |  11319 views  |  0 London - Big Ben

European clearing house LCH.Clearnet is to write off EUR47.8 million in capitalised technology costs as it pulls the plug on an "over-complex" IT integration project that has already claimed the jobs of a number of top executives.

The clearing house says it is ditching the 'generic clearing systems' (GCS) project, which was intended to integrate disparate clearing platforms within the company, because it is not "economically or technically viable".

The project was initiated following the merger between London Clearing House and Paris-based Clearnet in 2003, and would have resulted in the development of a single, integrated IT platform across all markets and securities, with consequent lower costs for customers.

Three years on from the merger, none of the projected savings have been achieved.

Concerns over the pace of the project resulted in a boardroom rift between former group CEO David Hardy and the company's directors and customers, which resulted in Hardy quitting his post earlier this month.

Last year LCH.Clearnet was forced to write off EUR20.1m in technology costs for the integration project. The company says further work completed in June 2006 concluded that the further development of GCS was not viable. An impairment charge of EUR47.8 million will be reported in the group's half year results.

Commenting on the decision, Chris Tupker, chairman of LCH.Clearnet, says: "It is very disappointing that the GCS project has not after all been able to deliver the solutions that had been anticipated. However, the nature of the GCS design resulted in an over-complex solution both in terms of on-going production support, operability and development.

"This is the right decision to take: our short term focus will now be on the development of our existing systems."

Tupker says new group CEO Roger Liddell is now preparing a long-term IT strategy for the company.

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 names Roger Liddell group CEO

LCH.Clearnet names Roger Liddell group CEO

20 July 2006  |  7297 views  |  0 comments
SIS x-clear vows to undercut LCH.Clearnet

SIS x-clear vows to undercut LCH.Clearnet

02 June 2006  |  7282 views  |  0 comments
Merger-related IT costs eat into LCH.Clearnet gains

Merger-related IT costs eat into LCH.Clearnet gains

01 September 2004  |  3875 views  |  0 comments
LCH and Clearnet announce merger

LCH and Clearnet announce merger

25 June 2003  |  10621 views  |  0 comments | 1 tweets

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
17142 views comments | 21 tweets | 35 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
14340 views comments | 22 tweets | 30 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10523 views comments | 12 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
10130 views comments | 13 tweets | 10 linkedin

Featured job

New York, NY - USA (some flexibility on location)

Find your next job