LCH.Clearnet and Nyse Euronext ink continental listed derivatives clearing deal

Source: LCH.Clearnet SA

LCH.Clearnet SA, the Paris-based clearing house of LCH.Clearnet Group Ltd, and Nyse Euronext today announced they have signed a new five-year contract for LCH.Clearnet SA to clear Nyse Euronext's continental listed derivatives until December 2018.

It replaces the current clearing services terms and contract, which were due to expire on 31 March 2014.

The agreement allows customers to maintain their existing trading and clearing connectivity and infrastructure, while enjoying high service quality and quicker, more responsive, customer-driven innovation. This will be achieved through significantly enhanced cooperation and coordination between both parties, embedded in a new agreement shaped by new commercial and governance terms.

Christophe Hémon, Chief Executive of LCH.Clearnet SA, said: "Stability is important for our members in this evolving regulatory environment and we are delighted to continue clearing NYSE Euronext's continental European derivatives business. Our new agreement will provide continuity, while allowing us to work more closely with NYSE Euronext to improve service for customers, and continue to offer industry leading risk management capabilities in a secure and highly regulated environment."

Roland Bellegarde, Group EVP for European Equities and Equity derivatives at NYSE Euronext, added: "This is a long-term commitment that means our customers can both maintain and invest in their infrastructure with certainty, accessing a robust, well-regulated clearing house within the Eurozone. The new terms pave the way for even closer cooperation between LCH.Clearnet and NYSE Euronext, which will allow us to bring new trading and clearing products and services to market responsively, quickly and in a safe environment, helping our customers to cope with the current and future challenges of regulation in derivatives."

He added: "This new contract is a key milestone in the ongoing dialogue with European regulators and policymakers to ensure that new legislation and regulatory standards that may be implemented deliver systemically safer and better risk-managed markets, and continue to allow innovation, investment and competition in Europe's market infrastructure."& 

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