Euronext confirms migration of derivatives clearing to Italy in 2024
Shift of Euronext listed derivatives and commodities markets is the final step of its European expansion plan
16 January 2023 - 23:50
byHuw Jones
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
The Euronext stock exchange in Paris, France, September 30 2022. Picture: BENOIT TESSIER/REUTERS
London — Pan-European stock exchange Euronext will shift clearing of derivatives trading to its new clearing arm in Italy by the third quarter of 2024, it said on Monday, to compete directly with London Stock Exchange Group (LSEG) and Cboe Global Markets.
Euronext clears its derivatives transactions at LCH, owned by LSEG, but wants to build up its own in-house clearing operation, in tune with EU efforts to deepen the bloc's capital market after Brexit.
“Euronext confirms it expects to migrate the listed financial derivatives and commodities markets of Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Oslo Bors and Euronext Paris from LCH to Euronext Clearing by Q3 2024,” the exchange said in a statement.
It had already announced that Italy would become the default centre for clearing its stock transactions by the end of 2023.
The migration of Euronext listed derivatives and commodities markets is the final step of the European expansion of Euronext Clearing set up as part of Euronext “Growth for Impact 2024” strategic plan.
Under EU “open access” rules, customers can continue to clear their Euronext share trades at rivals such as LCH or Cboe if they want to.
“We are very confident we will capture the bulk of our cash equities clearing,” Anthony Attia, Euronext global head of primary markets and post trade, said.
Clearing equities and derivatives in one centre will build “critical mass” to allow customers to net across positions, Attia said.
Euronext, which obtained its own clearing house as part of its acquisition of Borsa Italiana in Milan, owns just over 11% of LCH, a stake LSEG now has an option to buy. Attia said the stake was worth about €66.8m.
LSEG had no comment on whether it would buy the stake.
Separately, LSEG confirmed its agreement with Euronext on clearing financial and commodity derivatives would terminate next year but said LCH SA would remain “strategically important”.
LCH clears the majority of the Eurozone repo market and euro credit derivatives market in addition to many European equity market venues, LSEG said.
“We look forward to continuing to provide clearing services to our global customers, who benefit from access to our multi-asset offering,” LSEG added.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Euronext confirms migration of derivatives clearing to Italy in 2024
Shift of Euronext listed derivatives and commodities markets is the final step of its European expansion plan
London — Pan-European stock exchange Euronext will shift clearing of derivatives trading to its new clearing arm in Italy by the third quarter of 2024, it said on Monday, to compete directly with London Stock Exchange Group (LSEG) and Cboe Global Markets.
Euronext clears its derivatives transactions at LCH, owned by LSEG, but wants to build up its own in-house clearing operation, in tune with EU efforts to deepen the bloc's capital market after Brexit.
“Euronext confirms it expects to migrate the listed financial derivatives and commodities markets of Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Oslo Bors and Euronext Paris from LCH to Euronext Clearing by Q3 2024,” the exchange said in a statement.
It had already announced that Italy would become the default centre for clearing its stock transactions by the end of 2023.
The migration of Euronext listed derivatives and commodities markets is the final step of the European expansion of Euronext Clearing set up as part of Euronext “Growth for Impact 2024” strategic plan.
Under EU “open access” rules, customers can continue to clear their Euronext share trades at rivals such as LCH or Cboe if they want to.
“We are very confident we will capture the bulk of our cash equities clearing,” Anthony Attia, Euronext global head of primary markets and post trade, said.
Clearing equities and derivatives in one centre will build “critical mass” to allow customers to net across positions, Attia said.
Euronext, which obtained its own clearing house as part of its acquisition of Borsa Italiana in Milan, owns just over 11% of LCH, a stake LSEG now has an option to buy. Attia said the stake was worth about €66.8m.
LSEG had no comment on whether it would buy the stake.
Separately, LSEG confirmed its agreement with Euronext on clearing financial and commodity derivatives would terminate next year but said LCH SA would remain “strategically important”.
LCH clears the majority of the Eurozone repo market and euro credit derivatives market in addition to many European equity market venues, LSEG said.
“We look forward to continuing to provide clearing services to our global customers, who benefit from access to our multi-asset offering,” LSEG added.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
JSE appoints new CFO
Cape Town Stock Exchange eyes quadrupled growth by end of financial year
London Stock Exchange to shut loss-making derivatives exchange
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.