The London and Paris-based clearinghouse says that as of Oct. 1, it will offer free equity clearing for members which clear over 150,000 trades a day; those are typically high frequency traders with large volume business. The clearinghouse will also introduce discounts for members clearing over 50,000 and 75,000 trades a day. For example, members clearing about 60,000 trades a day will be charged 1 pence per trade instead of three pence per trade.
The
Both EuroCCP and EMCF are clearly looking to shore up their stronghold in the European clearing arena. Amsterdam-based EMCF is owned by
LCH.Clearnet, which clears trades for the LSE, Euronext stock markets, and plenty of derivative markets, is faced with the defection of two key clients –
The LSE’s fee reductions were welcomed by Kevin Milne, director of post-trade services at the LSE. "In combination with our own ongoing tariff cuts, this move will further reduce the overall cost of trading for our major clients and make the service more compelling," Milne said.
LCH.Clearnet’s latest fee cuts aren’t the first time the clearinghouse has opted to slash its tariffs. In February, the clearinghouse announced that it had posted a net loss of $124.2 million in 2009 largely dud to fee cuts and reduced growth projections. “In cash equities we have responded to an increase in competition by reducing our fees,” said Roger Liddell, LCH.Clearnet’s former group chief executive, in a statement at that time. Due to the impact of the fee reductions on future revenues the LSE took an “impairment” charge of 393.4 million euros ($610.2 million).