22 August 2017
visit www.avoka.com

London Stock Exchange forges Euroclear settlement deal

12 December 2001  |  3642 views  |  0 London Stock Exchange

The London Stock Exchange is to provide an alternative to Crest settlement for UK stocks through a link between London Clearing House and Euroclear.

The three organisations say they will be consulting with customers and users over the coming weeks and will launch the service in the second half of 2002.

Clara Furse, LSE chief executive, says the new service will increase choice and competition for settlement services, and should help reduce costs for cross-border transactions.

She comments: "We are of the firm view that a relationship with Euroclear should make access to the Exchange more attractive for a larger number of non-UK member firms. We strongly believe that trading counterparties must have a choice in settlement location for their stock exchange trades. We also want to encourage transparent and fair competition, and horizontal consolidation among service providers."

News of the deal comes days after Euroclear lost out in a two-way bid battle with Deutsche Borse for control of rival European clearing and settlement agency, Clearstream. The Frankfurt exchange is adopting an alternative 'vertically integrated' model for European trading and settlement.

The new tripartite arrangement between LSE, Euroclear and LCH will encompass trading, clearing and settlement for both UK and non-UK securities, with an initial focus on Sets trades flowing through LCH prior to settling at Euroclear.

Euroclear already has links with UK depository CrestCo for settlement transfer and established procedures to collect UK stamp duties and report such collections to the Inland Revenue.

Pierre Francotte, chief executive of Euroclear Bank, says the arrangement should be particularly attractive to firms seeking to centralise their activities across European markets. "This should also make it possible for firms to reduce their transaction costs for cross-border settlement and to generate internal back-office savings," he adds.


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

Clearstream board approves Deutsche Borse takeover

Clearstream board approves Deutsche Borse takeover

10 December 2001  |  3160 views  |  0 comments
Clearstream set to reject rival bids - FT

Clearstream set to reject rival bids - FT

06 December 2001  |  2789 views  |  0 comments
EuroCCP ready for cross-border clearing at Nasdaq

EuroCCP ready for cross-border clearing at Nasdaq

03 December 2001  |  3377 views  |  0 comments
Clearnet delays Belgian CCP switch

Clearnet delays Belgian CCP switch

26 November 2001  |  3044 views  |  0 comments
London Clearing House names Robins and Pritchard as non-execs

London Clearing House names Robins and Pritchard as non-execs

23 November 2001  |  2941 views  |  0 comments
Euroclear adopts Swift messaging; Nordea completes B2B payment trials

Euroclear adopts Swift messaging; Nordea completes B2B payment trials

19 November 2001  |  5602 views  |  0 comments
Nasdaq Europe links with Berlin Stock Exchange

Nasdaq Europe links with Berlin Stock Exchange

14 November 2001  |  2903 views  |  0 comments
Clearstream and Euroclear extend bridge links

Clearstream and Euroclear extend bridge links

13 November 2001  |  5158 views  |  0 comments
London Stock Exchange explores alliance opportunities

London Stock Exchange explores alliance opportunities

06 November 2001  |  2881 views  |  0 comments
ECB to develop industry standards for clearing and settlement

ECB to develop industry standards for clearing and settlement

25 October 2001  |  3428 views  |  0 comments
Furse confirms LSE entry to Crest network market

Furse confirms LSE entry to Crest network market

22 October 2001  |  3297 views  |  0 comments
Cruickshank calls for exchange clearing reform

Cruickshank calls for exchange clearing reform

19 October 2001  |  3077 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.dorsum.eudownload the paper nowvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
12576 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11158 views comments | 22 tweets | 34 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10332 views 0 | 6 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10294 views comments | 10 tweets | 8 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10241 views comments | 21 tweets | 34 linkedin