JP Morgan today announced its GlobeClear business provides clearance services to support members of the London Stock Exchange's electronic International Order Book (IOB), following the introduction of LCH.Clearnet as a central counterparty (CCP) for 50 of the most liquid securities traded on IOB.
On March 30, the first trading day with LCH.Clearnet acting as CCP for IOB trades, J.P. Morgan became one of the first general clearing members to enable its clients to trade through the new IOB clearing model. J.P. Morgan's GlobeClear business currently acts as a general clearing member for 11 clients that trade on the electronic IOB. J.P. Morgan's GlobeClear business also supports a significant number of clients who trade IOB securities on a bilateral basis
As announced in December by the London Stock Exchange, LCH.Clearnet is now the central counterparty (CCP) for 50 of the most heavily traded Depositary Receipt securities accessible through IOB, which used to settle directly between counterparties without a CCP. Other securities outside of the LSE's list of fifty will continue to be cleared bilaterally.
Alex Dockx, global product executive of GlobeClear, said: "We are delighted to extend our clearing services to clients trading the CCP-eligible securities on the LSE's International Order Book. Despite the short timeframe for implementation, GlobeClear has successfully supported all its existing clients without any disruption to their trading activity. Our expertise and broad coverage of exchanges and CCPs across Europe provides clients with a single clearing solution, which can be rapidly extended for any new venues."