LCH.Clearnet Group Limited - Statement re NYSE Euronext's European clearing strategy

LCH.Clearnet Group Limited - Statement re NYSE Euronext's European clearing strategy and long term continuation of cash equity clearing


LCH.Clearnet Group Limited ("LCH.Clearnet") notes today's announcement by NYSE Euronext regarding its European clearing strategy. LCH.Clearnet confirms that it has held constructive preliminary discussions with NYSE Euronext regarding its current intentions with respect to the clearing arrangements of its cash equities and derivatives businesses.

LCH.Clearnet welcomes NYSE Euronext's intention to agree a long term clearing arrangement with LCH.Clearnet with respect to its continental regulated cash equities markets, demonstrating its continued support for LCHClearnet's open-access horizontal model. This would replace the existing contract (for which a termination notice had initially been served in May 2010, and the contract extended until December 2013) with a new long term arrangement.

With regard to NYSE Euronext's intentions regarding the clearing of its continental derivatives business. NYSE Euronext initially served a termination notice for this business in May 2010 and, in 2011, extended the contract until June 2013. NYSE Euronext has now confirmed its intention to extend further the contract to the end of the first quarter of 2014, subject to regulatory approvals and confirmation of precise timings.

LCH.Clearnet notes NYSE Euronext's intention to serve notice regarding NYSE Liffe's London derivatives business, for which LCH.Clearnet has provided an outsourced banking, guarantee and default management role since NYSE Euronext internalised the business in 2009.

LCH.Clearnet welcomes the clarification of NYSE Euronext's intentions, as well as its support for LCH.Clearnet's open-access horizontal model and recognition of its importance to clients and financial market participants.

Ian Axe, CEO of LCH.Clearnet said: "LCH.Clearnet will work collaboratively with NYSE Euronext, clients, market participants and regulators to ensure a smooth transition and continuation of clearing services. We wish NYSE Euronext every success in its clearing strategy and look forward to continuing to serve NYSE Euronext as a key long term client and clearing member in cash equities."