Market participants now have a choice of clearer when accessing Turquoise, the pan-European multilateral trading facility (MTF) owned by the London Stock Exchange (LSE), as clearing house LCH.Clearnet has launched interoperable clearing across 17 countries for the venue.
Turquoise had previously announced plans to offer clearing choice, following similar offerings by rival MTFs BATS Europe and Chi-X Europe. LCH.Clearnet has offered clearing house interoperability since 2003 with a clearing service for SIX Swiss Exchange, via SIX x-clear.
The ability to select from a range of clearers allows market participants to consolidate their flows with the clearing house of their choice, thereby reducing the overall cost of trading. Adrian Farnham, CEO of Turquoise, said he believed interoperability would help drive post-trade efficiencies in the European cash equity market.
“Choice of clearer allows customers to select the clearing house that best meets their requirements and results in lower costs and greater efficiencies,” said Wayne Eagle, executive director, equity services at LCH.Clearnet.
Turquoise ultimately plans to offer members the ability to clear trades using either EuroCCP, the MTF’s incumbent clearer, SIX x-clear, LCH.Clearnet or Cassa di Compensazione e Garanzia, the Italian clearing house acquired by the LSE as part of its takeover of Borsa Italiana in 2007. The LSE is also currently in negotiations to buy LCH.Clearnet, although the group refused to comment on the timeline for closing the deal.
BATS Europe was the first MTF to introduce clearing choice, launching its preferred interoperable model in June this year. Chi-X Europe plans to launch four-way interoperability from next year.