Competitive Clearing for LSE
In May 2006, SIS x-clear AG and the London Stock Exchange (LSE) signed a letter of intent to provide LSE members with a choice of clearing provider for equity trades. In the course of the year, the LSE members will be able to choose between SIS x-clear and LCH.Clearnet (LCH), the sole clearing agency up to now. The project creates a truly competitive situation, entailing lower prices and enhanced services. SIS x-clear's scope of services will match LCH's right from the start.
Proposals from clients on how to improve or expand the service will be considered before the actual implementation, if possible. The project moreover aims to minimise adjustment costs and risks of market participants. Competitive Clearing increases price and clearing transparency and is in sync with European consolidation initiatives.