LCH and X-clear to clear on Goldman’s Sigma

MTF will go interoperable with extended clearing options which LCH and X-clear say will improve netting opportunities.

Goldman Sachs’ multilateral trading facility, Sigma X MTF, has added LCH and Six x-clear as interoperable clearing options for clients.

Both clearing houses will be available to use from July 2016 for cash equities clearing on the Sigma X platform, which Goldman Sachs has operated since 2011.

LCH said the deal means it now offers clearing across 17 active interoperable European equities venues, and said the deal with Goldman will offer clients improved netting capabilities and opportunities to cut cost. Six x-clear also highlighted the benefits for clients to be able to further consolidate their trading activities though a single clearing house.

Cécile Nagel, global head of equities and commodities at LCH, said: “This is a real milestone for EquityClear. We’re proud to be clearing for SIGMA X MTF and this latest addition builds on the significant extension of market and venue coverage we’ve achieved in the past 18 months. Open access is at the heart of LCH’s business model and our equities clearing members can benefit from further cost and operational efficiency as well as improved risk management by consolidating their activity into one CCP.”

David Shrimpton, head of market structure, EMEA equities, Goldman Sachs, added:  “We continue to enhance SIGMA X MTF to meet the future needs of our clients and trading participants as the equities trading model evolves ahead of MiFID II implementation. Interoperability is a key part of the post-trade market infrastructure and we’re pleased to offer a choice of CCPs for SIGMA X MTF.”