LCH.CLEARNET, EUROCLEAR COLLABORATE ON COST SAVINGS AND EFFICIENCIES

Posted September 29, 2009

BRUSSELS and LONDON – LCH.Clearnet Group and Euroclear have announced a collaborative initiative to save costs and provide operational efficiencies for clients through LCH.Clearnet’s cash securities clearing business and Euroclear’s custody and settlement capabilities.

“We are delighted to be working with Euroclear to find ways of increasing efficiencies and reducing costs in the European post-trade environment,” says Roger Liddell, Chief Executive, LCH.Clearnet. “As user-owned, user-governed organizations, both companies are dedicated to serving the needs of their users and maximizing efficiencies for their benefit.”

Together, the entities are analyzing how Euroclear’s harmonized custody, corporate action and settlement processing capabilities can support the ongoing market-practice harmonization of cash securities clearing at LCH.Clearnet. Both groups intend to explore further opportunities to deliver cost benefits to clients across Europe.

“Accordingly, Euroclear currently intends to redeem its 15.8 percent stake in LCH.Clearnet,” says Pierre Francotte, Chief Executive Officer of Euroclear. “Euroclear remains committed to delivering greater post-trade efficiencies to mutual clients by ensuring seamless interaction between clearing and settlement.”