Societe Generale Securities Services (SGSS) has announced it will use LCH.Clearnet as the main clearer for its pan-European interoperable cash equities business.
The move is intended to cut costs and streamline operations when clearing for clients. LCH.Clearnet added that the deal reflects a trend among financial institutions to utilise a single CCP connection for interoperable clearing in order to drive greater efficiency in cash equity clearing.
“We’re committed to improving efficiency for our members and the wider market. Consolidation brings multiple benefits to members in terms of cost savings and improving risk management processes,” said LCH.Clearnet’s global head of equities, Cécile Nagel.
SGSS will be able to optimise cash equity clearing for clients by streamlining default fund contributions and margin payments through LCH.Clearner and cut clearing and settlement costs due to cross-venue trade netting, as well as reducing reconciliations and reporting.
LCH.Clearnet said an increased drive to make clearing operations more efficient has seen its interoperable volume increase by 50% over the past 18 months.