The Exchange uses central counterparties (CCPs) as shown in the table below.
|
Market |
SETS and SETSqx |
DTS |
IOB* |
|
CCP |
LCH.Clearnet Ltd and SIX x-clear AG |
LCH Clearnet SA |
LCH.Clearnet Ltd |
* The IOB clearing service will be launched in 2009. See www.londonstockexchange.com/iob for more information.
Detailed information about the markets covered by CCPs can be found in the TradElect parameters document that can be downloaded from http://www.londonstockexchange.com/en-gb/products/membershiptrading/tradingservices/
A list of the equities cleared by LCH.Clearnet Ltd can be found a http://www.lchclearnet.com/data_downloads/ltd/era.asp
Choice of CCP
The Exchange has introduced a choice of CCP for equity trades on the SETS and SETSqx market. Customers can choose to clear their trades through either LCH.Clearnet Ltd or SIX x-Clear AG. It does not matter whether the trading counterparty is using the same or a different CCP.
The approach used is consistent with the European Code of Conduct for Clearing and Settlement’s peer-to-peer interoperability model.
An overview of how competitive clearing works is provided by the Service Description for competitive clearing. Further details are available from LCH.Clearnet Ltd and SIX x-Clear AG websites.
Access to cleared markets
London Stock Exchange members that wish to trade on a cleared order book have to complete the relevant CCP Static Data Forms that can be found at the top of this page.
A list of GCMs can be found at http://www.londonstockexchange.com/en-gb/products/membershiptrading/Clearing+and+Settlement/clearing.htm.
Members should also review the relevant sections of the Exchange’s rulebook as well as those of their chosen CCP.
Further information
Further information about central counterparty processing can be found at the Euroclear UK and Ireland (https://www.euroclear.com/site/public/EUI), LCH.Clearnet Ltd (http://www.lchclearnet.com/cash_equities/lse/) and SIX x-Clear AG (http://www.ccp.sisclear.com/ccp/index.htm) websites.