LCH.Clearnet Limited (LCH.Clearnet), the leading independent clearing house, will begin clearing Irish Securities for Bats Europe, a wholly-owned subsidiary of BATS Global Markets, on 22 January 2010, subject to regulatory approval.
LCH.Clearnet will be the sole clearing provider for all Irish-listed securities available for trading on BATS Europe. Providing a centralised clearing facility will introduce significant advantages to the market; reducing concerns over counterparty risk, increasing trading capacity and providing post trade anonymity.
LCH.Clearnet's EquityClear service offers industry-leading risk management services for multiple platforms, providing exceptional levels of protection to clearing members. In July 2009 a new tariff structure was introduced with fees as low as 1p per trade.
BATS Europe, launched in October 2008, currently supports trading in approximately 1,200 securities from markets including the UK, France, Holland, Germany, Italy, Belgium, Switzerland, and Nordic countries. The MTF has over 8% market share in FTSE 100 securities, and over 4% market share across Europe.
Wayne Eagle, director of equity services, LCH.Clearnet said: "We welcome this opportunity to offer this service to BATS Europe participants. Our objective is to continue to expand the range of products cleared and we look forward to working with BATS to achieve this."
Mark Hemsley, chief executive of BATS Europe, said: "We're pleased to enter this agreement with LCH.Clearnet and look forward to working together. As always, we will continue to stress the fact that the needs of our customers remain our primary driver in selecting partners and we will continue to prioritise the preferences of our customers in Europe just as we do in the U.S."