The London Stock Exchange (LSE) has signed a new clearing services agreement with the London Clearing House (LCH), bringing to an end a period of intense competition with Eurex for the contract.Under the terms of the agreement, LCH will reduce its fees for trades on the LSE by 25%. This will come into effect from January 2004. The LSE has also negotiated the contract without a lock-in period, preferring a 12-month notice period. Officials hope this will help to preserve the competitive climate that has brought about the reduction in costs.
In addition, Euronext has ceded a seat on the board of LCH Clearnet to the LSE, in order to ensure a greater level of neutrality of the board at the clearing house.
The merger of the LCH with Clearnet had provided the stimulus for new contract negotiations. Clara Furse, chief executive officer of the LSE, said the merger had changed the landscape into one of for-profit central counterparties. “We are grateful for the support of our customers that enabled us to achieve substantially improved terms for them and for the exchange,” she said.
More on Clearing
But monopoly or duopoly inefficient, BNY Mellon says
The German company was among the first CCPs to comply with Emir
US regulator will pursue a quicker route to exempt foreign CCPs
CCPs shouldn't fight calls for extra capital, says Sprecher
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.