LCH Group has entered into an agreement to buy back Euronext’s holding in LCH SA following the early termination of the derivatives clearing arrangement between Euronext and the Paris-based clearing house.
With this announcement, LCH Group will acquire Euronext’s 11.1 per cent stake in LCH SA for €111 million, with the buy back expected to be finalised in early July.
The price of this share purchase was determined by an independent valuation agent, with the relevant financial authorities informed about the proposed deal.
This share buy back results from the termination of Euronext’s derivatives clearing arrangement with LCH SA, which was announced in January this year.
The two parties to the transaction indicate that they are committed to cooperating to deliver an orderly migration of clearing activity from LCH SA to Euronext Clearing.
This development follows Euronext’s purchase of CC&G, the Milan-based clearing house, from LSE Group in April 2021, which it has subsequently rebranded as Euronext Clearing. It also acquired Borsa Italiana and Monte Titoli from LSEG, respectively the trading and central securities depository components of the Italian capital markets value chain.
It has also migrated its core data centre from Basildon, in Essex UK, to Bergamo near Milan, with Borsa Italiana capital markets migrating its trading activity to Euronext’s proprietary trading platform Optiq.
In January of this year, Euronext confirmed that it intends to extend the coverage provided by Euronext Clearing to Euronext derivatives and commodities markets from Q3 2024.
Euronext Clearing appointed Roberto Pecora as its new chief executive and general manager in May 2023.
