Equities contracts cleared with LCH in London will be possible to settle at Clearstream Banking, one of Europe’s two international CSDs, following a newly announced collaboration agreement. 

The new connection makes settlement through Clearstream available for LCH-cleared transactions in instruments including all global depository receipts listed on London Stock Exchange’s International Order Book – as well as all internationally settled exchange-traded products (ETPs) such as funds (ETFs), notes (ETNs) and commodities (ETCs) listed on the exchange’s ETP trading service. 

Clearstream’s press release refers to growing popularity both for global depository receipts and ETPs. In the first quarter of this year, the global depository receipts showed an average daily trading turnover of $570 million on London Stock Exchange’s International Order Book. Representatives of both companies praise the idea of multiple partnerships and increasing interoperability, for the benefit of market efficiency. 

PostTrade 360 Nordic 2024

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