Euronext to migrate derivatives and commodities markets from LCH to Euronext Clearing

Rick Steves

“This will significantly contribute to achieve the €100 million 2024 targeted run-rate annual synergies related to the Borsa Italiana Group acquisition.”

Euronext has announced that the European expansion of multi-asset clearing house, Euronext Clearing, to Euronext derivatives markets is planned for Q3 2024.

Euronext completed the acquisition of CC&G, later rebranded to Euronext Clearing, in April 2021. Now that it directly manages its clearing activities, the pan-European exchange operator decided to internalize the clearing activity of its cash and derivatives flows, today operated by third-party providers.

As a result, Euronext Clearing will become Euronext’s clearing house of choice for cash equity, listed derivatives, and commodities markets.

Euronext will migrate the listed financial derivatives and commodities markets of Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Oslo Børs and Euronext Paris from LCH SA to Euronext Clearing by Q3 2024. Euronext Clearing already clears Euronext Milan listed derivatives.

Euronext will pay a termination fee of approximately €36.03 million to LCH SA. Following the notification of the early termination of the Agreement, LCH Group has the option to buy back Euronext’s 11.1% stake in LCH SA.

Euronext becomes  a major player in the post-trade space

Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said: “We are pleased to announce that the migration of Euronext derivatives clearing activities to Euronext Clearing is planned for Q3 2024, a few months after the migration of Euronext cash clearing activities. Combined with the successful migration of the Core Data Centre to Bergamo in June 2022 and the planned migration of the Borsa Italiana capital markets to Optiq in 2023, the expansion of our clearing activities is a major step towards the delivery our ‘Growth for Impact 2024’ strategic plan. This will significantly contribute to achieve the €100 million 2024 targeted run-rate annual synergies related to the Borsa Italiana Group acquisition.

“Euronext has profoundly transformed itself over the past five years and is uniquely positioned to become the leading European market infrastructure. Euronext is now the leading listing venue and the largest liquidity pool in Europe, thanks to its single trading platform. The expansion of Euronext Clearing to Euronext markets is another significant transformational milestone, allowing Euronext to manage the entire trading value chain, and become a major player in the post-trade space.

“We look forward to completing these strategic milestones in the coming months. I would like to thank all the Euronext teams that have already been working on these key projects for more than a year and that will be critical to the delivery of these projects. I would like to thank LCH SA for the great collaboration during the past years.”

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