LCH.Clearnet acquires IDCG
21 August 2012 London
Image: Shutterstock
LCH.Clearnet Group has acquired International Derivatives Clearing Group (IDCG) from the Nasdaq OMX Group.
The acquisition will improve LCH.Clearnet’s range of clearing solutions, and enable it to operate a US-based central counterparty. It also reinforces LCH.Clearnet’s presence in the US marketplace, where it already operates interest rate swap clearing through its SwapClear service.
IDCG will become a US subsidiary of LCH.Clearnet and be renamed LCH.Clearnet US, launching in Q4 2012. As part of the deal, Nasdaq OMX has been given a stake in LCH.Clearnet of 3.7 percent.
Ian Axe, chief executive of LCH.Clearnet, said: "This transaction is a strategic move to expand our US footprint and provide clients with additional flexibility and choice. It underscores our continued commitment to a horizontal clearing model for a global marketplace."
“We look forward to continuing to grow and develop our strategic relationship with NASDAQ OMX in the future."
Eric Noll, executive vice president of transaction services for the US and UK at Nasdaq OMX, said: “The deal demonstrates our support of open and horizontal models in a global financial ecosystem, where firms are looking for clearing solutions to alleviate their capital burden."
“We’re thrilled to continue our work as a shareholder of LCH.Clearnet and as strategic partner in the European listed derivatives space.”
In June this year, LCH.Clearnet’s clearing service SwapClear surpassed the $1 trillion mark in buy-side client notional volumes.
Speaking at the time, Ray Kahn, the head of OTC derivatives clearing at Barclays, which uses SwapClear's services, said: “Every month this year we’ve seen an increase in the number of clients initiating their clearing process. Those buy-side participants who move to a clearing environment early are able to optimise their infrastructure and begin reaping the benefits of centralised clearing ahead of regulatory deadlines.”
The acquisition will improve LCH.Clearnet’s range of clearing solutions, and enable it to operate a US-based central counterparty. It also reinforces LCH.Clearnet’s presence in the US marketplace, where it already operates interest rate swap clearing through its SwapClear service.
IDCG will become a US subsidiary of LCH.Clearnet and be renamed LCH.Clearnet US, launching in Q4 2012. As part of the deal, Nasdaq OMX has been given a stake in LCH.Clearnet of 3.7 percent.
Ian Axe, chief executive of LCH.Clearnet, said: "This transaction is a strategic move to expand our US footprint and provide clients with additional flexibility and choice. It underscores our continued commitment to a horizontal clearing model for a global marketplace."
“We look forward to continuing to grow and develop our strategic relationship with NASDAQ OMX in the future."
Eric Noll, executive vice president of transaction services for the US and UK at Nasdaq OMX, said: “The deal demonstrates our support of open and horizontal models in a global financial ecosystem, where firms are looking for clearing solutions to alleviate their capital burden."
“We’re thrilled to continue our work as a shareholder of LCH.Clearnet and as strategic partner in the European listed derivatives space.”
In June this year, LCH.Clearnet’s clearing service SwapClear surpassed the $1 trillion mark in buy-side client notional volumes.
Speaking at the time, Ray Kahn, the head of OTC derivatives clearing at Barclays, which uses SwapClear's services, said: “Every month this year we’ve seen an increase in the number of clients initiating their clearing process. Those buy-side participants who move to a clearing environment early are able to optimise their infrastructure and begin reaping the benefits of centralised clearing ahead of regulatory deadlines.”
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