LCH.Clearnet, Chi-X Europe Launch CFD Clearing Service

LCH.Clearnet and Chi-X Europe, the largest pan-European equities exchange, announced they're teaming to launch a contract-for-difference clearing service for institutional investors this week.

The firms said the service is designed to complement a push by regulators to have over-the-counter trades cleared, and to provided institutional investors an added layer of protection when dealing with counterparties.

The CFD service will initially cover blue chip U.K. equities but will be expanded to include further U.K. and continental European equities at a later date, the companies added.

"LCH.Clearnet has long sought to reduce risk in OTC markets by developing clearing solutions which compliment existing market practices," Wayne Eagle, the director of EquityClear at LCH.Clearnet said in a statement. "This unique offering provides real choice to participants and addresses buy-side concerns around OTC counterparty risk."

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio