London Stock Exchange offers choice of clearing provider

Yesterday the London Stock Exchange (LSE) announced that it has signed a letter of intent with SIS x-clear AG to provide member firms with a choice of clearing provider for equity trades.

The new arrangement would allow customers to choose whether to clear through SIS x-clear or through LCH.Clearnet, currently the sole clearing provider for LSE's equity business. LSE expects to deliver additional benefits to the market through competition in clearing services by introducing an independent, user-owned, user-governed and not-for-profit alternative provider.

Subject to final agreement, LSE proposes to offer the ability to clear through SIS x-clear during the first half of 2007. Development costs for member firms will be minimised by using existing legal and technology infrastructure where possible. Trades will continue to settle in CREST.

Source: London Stock Exchange

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