EuroCCP is to begin clearing trades on London Stock Exchange (LSE) later this month, meaning market participants will now be able to choose from all three of Europe’s interoperable central counterparties (CCPs).
In May this year the two firms confirmed they would be working together to offer additional clearing choice to LSE members after technical and legal considerations had been resolved.
EuroCCP will join LCH.Clearnet and SIX x-Clear in providing clearing for London Stock Exchange equity trades from 26 October.
Currently, members using the LSE Customer Development Service are able to use EuroCCP’s participant code EMCFNL2A to test connectivity.
Following May’s announcement, EuroCCP CEO Diana Chan said the move will bring increased competition and reduced costs to UK equity trading and enable market participants to benefit from increased netting capabilities.