London Clearing House (LCH) and Clearnet finalised their
long-awaited merger on 22 December, making good on their
commitment to complete the deal by the end of 2003.
Regulatory issues mean the merged entity, LCH Clearnet, will
continue to operate two central counterparties supported by
separate guarantee funds. However, by consolidating management
and technology, the company aims to deliver what it terms a
"virtual single ccp" with significant margin and collateral
savings for users. The planned integration, which will see all
derivatives cleared on the Clearing 21 system, is scheduled to
take three to four years.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.