Euronext and LCH’s French clearing arm renew long-term derivatives clearing agreement, swap minority stake

Euronext and LCH’s Paris-based clearing arm have renewed a long-term agreement, which covers the clearing of financial and commodity derivatives for a period of 10 years. It provides continuity of clearing services for members, saving the cost and disruption associated with a migration at a time where client bandwidth is stretched due to MiFID II implementation and Brexit planning.

Euronext entered into definitive agreements to swap its current 2.3% stake in LCH Group for an 11.1% stake in LCH SA. This transaction is subject to regulatory review and is expected to close in the next few months. Euronext will recognize a net capital gain following the share swap of around €24m. This transaction will strengthen the long-standing relationship between Euronext and LCH SA, and cement the strategic future of LCH SA.

Read the release

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