Nasdaq OMX Europe, the pan-European multilateral trading facility (MTF) owned by global exchange group Nasdaq OMX, has appointed UK clearing house LCH.Clearnet Ltd as a central counterparty (CCP).
From early Q1 next year, LCH Clearnet’s EquityClear service will process the roughly 1,000 European blue-chip stocks currently traded on Nasdaq OMX Europe. The deal will allow Nasdaq OMX Europe’s trading participants to choose between LCH.Clearnet and European Multilateral Clearing Facility (EMCF), the MTF’s incumbent CCP.
LCH.Clearnet Ltd and EMCF signed an interoperability agreement that comes into force on 2 November, initially for UK and Swiss equities.
“NEURO fully supports the progress of interoperability between clearing firms in Europe,” said Charlotte Crosswell, president of Nasdaq OMX Europe, in a statement. “Through this new agreement with LCH.Clearnet, our customers will be able to benefit from increased competitive choice on the post-trade side of their transactions.”
Wayne Eagle, director, equity services, LCH.Clearnet added, “Customers want real choice in clearing and we are delighted to compete on the basis of the quality of our service and competitive pricing structure. We look forward to working with Nasdaq OMX in building NEURO’s future success.”
The interoperability agreement between LCH.Clearnet and EMCF is one of several signed in the past 12 months. Swiss clearing house SIX x-clear started interoperating with LCH.Clearnet Ltd on 12 December last year and signed an agreement to link with EMCF this February. EMCF, x-clear and pan-European clearer EuroCCP have committed to link on 29 January next year to clear for Nasdaq OMX’s Nordic exchanges.
LCH.Clearnet Ltd, the UK subsidiary of the LCH.Clearnet group, is the incumbent CCP for the London Stock Exchange. Its French sister company, LCH.Clearnet SA, clears for NYSE Euronext’s European exchanges.
In addition to Nasdaq OMX Europe, EMCF currently clears for MTFs Chi-X Europe, BATS Europe, Quote MTF and Burgundy as well as Nasdaq OMX’s Nordic exchanges. EMCF is 22%-owned by Nasdaq OMX.