LCH SA connects to Cboe Europe for equities clearing
October 6, 2020
- LCH SA offers clearing of all Euronext stocks traded on Cboe Europe’s UK order books
- Clearing available via the “Preferred CCP” model
- Market participants benefit from the efficiencies of consolidating activity at one CCP
LCH SA, a leading global clearing house, today announced that its EquityClear service is providing clearing services for Cboe Europe, one of the largest pan-European equities exchanges by value-traded. Under the ‘Preferred CCP’ model, market participants trading Euronext securities via Cboe Europe’s UK order books, BXE and CXE, are now able to select LCH SA as their clearing house.
The ‘Preferred CCP’ model enables Cboe Europe participants to clear through LCH SA provided that both counterparties to the trade have elected LCH SA as their preferred CCP for Euronext securities. This allows members to consolidate their clearing activity for those securities through one clearing house and benefit from increased netting, lower settlement costs and greater operational and margin efficiencies.
Christophe Hémon, CEO, LCH SA, said: “We’re delighted to have connected our EquityClear service to Cboe Europe. This is the latest milestone in our strategy to expand the number of equities trading venues available to our clearing members. Our clearing members are now able to benefit from greater netting opportunities and efficiencies by choosing to consolidate their clearing at LCH SA.”
David Howson, President, Cboe Europe, said: “We’re pleased to be working with LCH SA to widen the choice of clearing venues available to our customers. This demonstrates our commitment to open access and competitve clearing in European equities, and we look forward to continuing our collaboration to provide this important post trade service to our customers.”
LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.
As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK and France and with offices in the United States and the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives. LCH also serves the non-cleared derivatives market through LCH SwapAgent, a new service which extends the efficiencies and infrastructure of clearing to the market, without acting as a central counterparty.
LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.
Further information on LCH can be found at www.lch.com
To view this announcement in French, please download the PDF.