LCH RepoClear welcomes Clearstream as its first clearing member from Luxembourg
10 December 2020 Luxembourg
Image: Alex Tihonov/adobe.stock.com
Clearstream has become the first organisation from Luxembourg to become a clearing member at LCH RepoClear service to gain access to the large UK pool of cleared debt at the London Stock Exchange’s central counterparty (CCP).
LCH RepoClear, which offers clearing for UK government bonds and repos, operates an open-access model, connecting to multiple trading venues and International Central Securities Depository’s (ICSD).
This approach provides its clearing members with a choice of where to execute and settle its trades.
Clearstream is also the first ICSD to access repo clearing at LCH and will also benefit from the liquidity and risk management efficiencies of central clearing. By joining the service, Clearstream is able to access the large UK pool of cleared debt at LCH.
Bruce Kellaway, global head of rates, securities and collateral at LCH, says: “This is an important development in our international growth story. We look forward to continuing to support our international members in accessing the liquidity they require in the sterling market.”
Elsewhere, LCH’s EquityClear service is now providing clearing services for Cboe Europe, one of the largest pan-European equities exchanges by value-trading.
The partnership follows confirmation that LCH’s UK entity will be one of three clearinghouses to be recognised by the EU as third-country CCP from January 2021, following the conclusion of Brexit.
The three UK CCPs will be eligible to provide services in the EU after the end of the transition period following the withdrawal of the UK from the EU on 31 December 2020.
LCH RepoClear, which offers clearing for UK government bonds and repos, operates an open-access model, connecting to multiple trading venues and International Central Securities Depository’s (ICSD).
This approach provides its clearing members with a choice of where to execute and settle its trades.
Clearstream is also the first ICSD to access repo clearing at LCH and will also benefit from the liquidity and risk management efficiencies of central clearing. By joining the service, Clearstream is able to access the large UK pool of cleared debt at LCH.
Bruce Kellaway, global head of rates, securities and collateral at LCH, says: “This is an important development in our international growth story. We look forward to continuing to support our international members in accessing the liquidity they require in the sterling market.”
Elsewhere, LCH’s EquityClear service is now providing clearing services for Cboe Europe, one of the largest pan-European equities exchanges by value-trading.
The partnership follows confirmation that LCH’s UK entity will be one of three clearinghouses to be recognised by the EU as third-country CCP from January 2021, following the conclusion of Brexit.
The three UK CCPs will be eligible to provide services in the EU after the end of the transition period following the withdrawal of the UK from the EU on 31 December 2020.
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