LCH.Clearnet and Börse Berlin Equiduct Trading have signed an agreement to implement CCP services for transactions executed on the Börse Berlin Equiduct Trading platform for liquid European equities.
Börse Berlin Equiduct Trading says it will provide, subject to regulatory approval, a pan-European regulated market offering cross-border trading services and market data from mid-2008.
The platform will offer its participants the ability to clear and settle trades in domestic post-trade locations, and ensure that the post-trade cost of a transaction is at least as low as on the local domestic exchange, according to Börse Berlin.
LCH.Clearnet says it will allow its clearing members to benefit from synergies between the Equiduct Trading market and NYSE Euronext markets.
"This agreement with Börse Berlin Equiduct Trading underlines our desire and capacity to clear new markets and to respond to new initiatives introduced by the Markets in Financial Instruments Directive (MiFID)," explains Christophe Hémon, CEO, LCH.Clearnet.
"LCH.Clearnet will be the first CCP to be connected to our platform," notes Willy Van Stappen, COO, Börse Berlin Equiduct Trading. "LCH.Clearnet's experience and commitment to the cash clearing business together with its technology will bring our participants the possibility to leverage existing clearing member relationships, legal frameworks and connections," he continues.