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LCH.Clearnet and NYSE Euronext reach agreement on cash equity clearing

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LCH.Clearnet SA, the Paris-based clearing house of LCH.Clearnet Group, and NYSE Euronext have reached an agreement on the main terms and conditions of a six year clearing contract with respect to NYSE Euronext’s continental cash equities markets.


The parties are currently reviewing the technical elements and are in the process of finalising the agreement.

The agreement is expected to commence on 1 January 2013 and will run through 2018. The new contract would then replace the existing contract that was due to end on 31 December 2013 for cash equity transactions.

The contract, once signed, would enable LCH.Clearnet SA to further reduce clearing fees for clearing members. Fees will be reduced from EUR0.05 to EUR0.04 for blue chips stocks.

Christophe Hémon, chief executive of LCH.Clearnet SA, says: “We are delighted to continue providing clearing services for NYSE Euronext by extending our long-standing relationship. This is testament to our industry-leading risk management and the choice it brings to clients and financial market participants.”

Roland Bellegarde, group EVP for European equities and equity derivatives at NYSE Euronext, says: “We are pleased to have negotiated the main terms of an agreement with LCH.Clearnet SA which would allow our customers to maintain their infrastructure with their existing clearing house. This six year agreement, once in place, will contribute towards ensuring that market participants have access to a robust, regulated and organised clearing house. Following our negotiations with LCH.Clearnet SA, clearing costs are expected to decrease 20 per cent for blue chips, the largest segment of the cash equity clearing business.”
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