NYSE Euronext’s decision to stop using LCH.Clearnet and create two new clearing houses of its own will lead to a substantial change in the European clearing landscape, and will feed into the interoperability debate .
NYSE Euronext’s decision to stop using
LCH.Clearnet and create two new clearing houses of its own will
lead to a substantial change in the European derivatives
clearing landscape, and will feed into the debate about
The Financial Services Authority is in the process of
reviewing interoperability between clearing houses in the UK.
Interoperability means giving exchange users the right to
choose where their trades are cleared. They might then choose
to use a central counterparty (CCP) in their domestic market,
for example, rather than having to use the clearing house
favoured by the exchange.
A market participant sympathetic to LCH.Clearnet argued that
NYSE’s move was meant to enable it to control
clearing for all trades on its platforms. "It’s
about competitive advantage," said the source, "about control
of clearing, and about control of what’s traded on
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