LCH.Clearnet SA and Börse Berlin Equiduct Trading are pleased to announce the signature of the Preliminary Agreement to implement CCP services for transactions executed on the Börse Berlin Equiduct Trading platform for liquid European equities.
Börse Berlin Equiduct Trading will provide, from mid-2008, a pan-European regulated market offering cross-border trading services and market data. The market-segment Equiduct Trading is subject to the state-monitored and regulated Börse Berlin. Equiduct Trading will be divided into several geographical segments, each following the trading schedule and characteristics of their home market and giving access to the local post-trade CCP environment.
Equiduct Trading's business model will then offer its participants the ability to clear and settle trades in domestic post-trade locations; it will ensure that the post-trade cost of a transaction is at least as low as on the local domestic exchange.
LCH.Clearnet SA will allow its clearing members to benefit from synergies between the Equiduct Trading market and NYSE Euronext markets. Offsetting at risk management and settlement levels will be set up and will lead to substantial economies.
The launch of the service, subject to regulatory approval, is expected to take place by the end of the first semester 2008.
Commenting on the initiative, Christophe Hémon, LCH.Clearnet SA's CEO said: "We welcome this agreement with Börse Berlin Equiduct Trading, which underlines our desire and capacity to clear new markets and to respond to new initiatives introduced by the Markets in Financial Instruments Directive (MiFID). It demonstrates our determination to deliver benefits to our clients."
Willy Van Stappen, Börse Berlin Equiduct Trading's COO, added:
"LCH.Clearnet SA will be the first CCP to be connected to our platform. LCH.Clearnet's experience and commitment to cash clearing business together with its proven technology will bring our participants the possibility to leverage existing clearing member relationships, legal frameworks and connections."