Intercontinental Exchange (ICE) is planning to set up its
own European clearinghouse by 2008 as part of a strategy "to
offer clearing services through wholly-owned clearing
businesses in the US and the UK".
The announcement would appear to be a death knell for LCH
Clearnet (LCH-C)'s relationship with the US exchange. LCH-C
currently clears futures and OTC business for the Atlanta-based
A spokesperson for LCH-C spoke of its "disappointment" over
ICE's decision. He added, "The decision on clearing is not
simply one that can be taken by the exchange and must be
discussed among its members. We feel sure [members] will wish
to examine this decision with due care. We will examine the
situation further as details emerge."
Another veteran source agreed that some of ICE's members,
especially those in the UK, may feel umbrage over ICE's
decision. "Some might well feel that they don't want to move
away from the security and stability they have with LCH-C," he
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