LCH.Clearnet today announced the launch of its new service in clearing over-the-counter contracts for UK NBP gas and UK peak and base load power contracts.
The launch of this platform-independent clearing service will allow the benefits of central counterparty services – removal of counterparty credit risk, multi-lateral netting, improved operational efficiency and STP – to be brought to this expanding marketplace.
David Hardy, Group Chief Executive, said: "The launch of CCP services to the OTC UK gas and power markets represents an important step in the ongoing expansion of LCH.Clearnet’s services in the European energy markets."
He added: "In responding to customer demand for the provision of platform-independent clearing services, LCH.Clearnet will continue to broaden the range of contracts cleared across commodity and energy markets."
Chris Leeds, Chairman of the Power Traders Forum, said: "The introduction of independent clearing and the consequential removal of counterparty credit risk will support continued market growth, and allow new customers to participate in these markets."