Liffe, the international derivatives market of NYSE Euronext, has announced that, following approval from the board of LCH.Clearnet Group, it is to negotiate a new contract with LCH.Clearnet that will enable it to manage its London clearing operations directly.
Liffe’s proposal will create a new central counterparty, LiffeClear, for the exchange, with LCH.Clearnet continuing to provide risk management and guarantee functions for the market. As a result Liffe believes it will be able to develop its service to customers further and compete on a level footing with other futures exchanges that own their own clearing houses.
“I am very pleased that the board of LCH.Clearnet has agreed to this important change,” said Hugh Freedberg, group executive vice president and head of global derivatives at NYSE Euronext, in a statement. “The direct relationship that LiffeClear will give us with our clearing customers will enable us to invest in additional post-trade services. We are looking forward to concluding our negotiations of a new mutually beneficial relationship with LCH.Clearnet.”