LCH.Clearnet is pleased to announce the launch today of Settlement Connect to Dutch equity markets. This follows the successful rollout of Settlement Connect to the French and Belgian equity markets in March and April this year.
Settlement Connect represents a major step forward in the integration of European capital markets. This service helps LCH.Clearnet in its aim of delivering reduced costs for the markets it serves.
Members are now no longer required to be connected to different local legacy systems for interfacing into settlement for the Belgian, Dutch and French equity markets.
Settlement Connect replaces the legacy multiple interfaces (LCP, CNS and ISB) used to communicate with each local settlement platform. It establishes a single link from CLEARING 21® to the Euroclear Platform Interface, facilitating the routing of settlement instructions either to the local Central Securities Depositories - CIK Belgium, Euroclear France and Euroclear Nederland - or to Euroclear Bank. The Settlement Connect module could in the future be extended to other settlement platforms. The enriched functionality of Settlement Connect enables seamless clearing of trades, executed on multiple exchanges, through a single interface from LCH.Clearnet into a settlement location and through settlement partners of members’ choice.
Settlement Connect also enables market participants to further harmonise clearing practices in terms of account structures, fails management, use of Power of Attorney, etc.
Patrice Renault, Chief Executive of LCH.Clearnet SA , said: "LCH.Clearnet has held the view from the outset that Settlement Connect would deliver real change to the post-trade market infrastructure, offering our members choice, flexibility and value." He added: "LCH.Clearnet has sought to adopt best clearing practice across the markets involved, and although this has required some change for members in the short term, we believe that the resulting business efficiencies will unlock greater value for our members in particular and for the markets as a whole."