LCH.Clearnet Acquires International Derivatives Clearing Group

LCH.Clearnet has announced that it has acquired sole ownership of International Derivatives Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Group, LLC (“IDCG”) from The NASDAQ OMX Group and certain other investors.

The Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term will enable LCH.Clearnet to operate a U.S. domiciled CCP, subject to regulatory approval, will further enhance the range and choice of its clearing solutions and will facilitate its cross-product margining initiative with NYPC, DTCC and NYSE Euronext. The transaction reinforces LCH.Clearnet’s commitment to the U.S. marketplace, where it already operates IRS clearing through its market-leading SwapClear service.

Under the terms of the transaction, LCH.Clearnet issued to NASDAQ OMX ordinary shares of LCH.Clearnet valued at €19 per share resulting in NASDAQ OMX having a pro forma ownership of 3.7% in LCH.Clearnet. IDCG became a U.S. subsidiary of LCH.Clearnet and was renamed LCH.Clearnet (US) LLC. The planned U.S. domiciled operating entity will be named LCH.Clearnet LLC and is expected to launch in the fourth quarter 2012 subject to regulatory approvals. U.S. clients can continue to use LCH.Clearnet Limited for clearing as well as LCH.Clearnet LLC.

Commenting on the announcement, 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 U.S. and U.K. 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.”

LCH recently launched a new FX clearing service called ForexClear. The new service aims to mitigate counterparty risk a problem highlighted after the Lehman debacle. The service accepts non deliverable currencies including; BRL, RUB, INR, CNY & KRW.