Millennium to develop clearing tech for LCH

LCH technology upgrade will improve efficiency and risk management capabilities.

MillenniumIT has confirmed it is developing new technology for clearing house LCH in one of the biggest projects it has undertaken so far.

While both companies are part of the London Stock Exchange Group they are operated independently. The LCH project is likely to be Millennium’s biggest since it developed London Stock Exchange’s trading platform.

The new technology will be used for clearing and risk management, with real-time, cross-asset portfolio risk management capabilities. Millennium said LCH will benefit from greater operational resilience and reduced running costs.

Mack Gill, CEO of MillenniumIT, said post-trade businesses have generally lagged behind the rest of the industry in adopting new technology standards, but are now moving to upgrade their technology to deal with new regulatory and business challenges.

“This is a real paradigm shift for clearing houses, moving away from old methods such as batch processing towards intra-day and real-time which will increase efficiency and enhance risk management,” Gill said.

LCH’s CEO, Suneel Bakhshi, said the introduction of the new platform will enable the development of new clearing services for customers. The firms have not disclosed a date for the project’s completion but said it has already been extensively discussed between the two for some time.