LCH.CLEARNET PLANS TO LAUNCH EUROZONE CDS CLEARING SERVICES

Posted February 17, 2009

PARIS – LCH.Clearnet plans to launch clearing services for credit default swaps (CDS) in the Eurozone by December, subject to regulatory approval. The service will be managed by Paris-based LCH.Clearnet SA, which is a Eurozone bank and regulated by the Banque de France.

“We are leveraging expertise from across the group to deliver the benefits of clearing to the Eurozone CDS market,” says Christophe Hémon, Chief Executive, LCH.Clearnet SA. “We look forward to continuing to work with the European market to deliver innovative clearing solutions. Clearing is a highly effective means of reducing counterparty risk in any market and there is a real appetite within the Eurozone for a CDS clearing service.”

LCH.Clearnet currently clears about 50 percent of the $140 trillion global interbank interest rate swap market. In December 2008, LCH.Clearnet’s London operation was the first clearing house to launch CDS clearing for European indices, in association with Liffe. LCH.Clearnet’s plans to launch CDS clearing are a response to regulator and market demand, according to the company, and a demonstration of the firm's commitment to offer market leading clearing solutions in Europe.