LCH.Clearnet to clear for Nyse BondMatch

Source: LCH.Clearnet

LCH.Clearnet SA (LCH.Clearnet) today announces the launch of a clearing service* to support the "Cassiopeia" Multilateral Trading Facility (MTF) for corporate bonds, Nyse BondMatch, in 2011.

The 'Cassiopeia Committee' was formed in 2010 to explore ways of introducing secondary corporate bond platforms in Europe, addressing market demands to improve transparency, liquidity, post-trade services and reporting in the euro-denominated corporate bond market.

NYSE BondMatch, NYSE Euronext's MTF, responded to the specifications issued by the Cassiopeia Committee on 26 April 2010, and has chosen LCH.Clearnet to manage clearing of bonds traded on the platforms. The offer will encompass all euro-denominated international corporate, financial and covered bonds.

LCH.Clearnet will deliver an automated and fully integrated solution from trading through clearing to settlement. The settlement instructions will be processed through the major International Central Securities Depositories (ICSDs) and European national Central Securities Depositories (CSDs). Amongst other advantages, clients will benefit from reduced counterparty risk exposure and multilateral netting.

Commenting on the initiative, Christophe Hémon, Chief Executive of LCH.Clearnet SA said: "LCH.Clearnet is happy to provide its expertise to the "Cassiopeia" initiative to enhance transparency and guarantee the euro-denominated corporate bonds markets, in line with regulators' willingness to reduce systemic risk by bringing more OTC products into clearing. Whilst benefiting from synergies of the cash equity's business existing interfaces and processes, this new service will enable our clients to develop their business."
*Subject to regulatory approval

 

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