Market:	Cash
Products:	Bonds
Date:	17 December 2010

Launch of a new corporate bonds clearing service

LCH.Clearnet SA is pleased to announce the launch of a clearing service to support “Cassiopeia” multilateral trading facilities (MTFs) for corporate bonds in 2011.

Context

European Cassiopeia Committee has expressed the need to improve transparency in the euro-denominated bond market, liquidity, post-trade services and reporting.

In response to this, LCH.Clearnet SA is launching a new clearing service to support Cassiopeia approved MTFs on the Cash Equity clearing system.

Approach and scope

Following the approval by Cassiopeia Committee of the offers of MTS, TradingScreen, NYSE Euronext, involving LCH.Clearnet SA, Euroclear and Clearstream groups:

• NYSE BondMatch®, the first among the three new MTFs, will be launched to trade euro-denominated international corporate, financial and covered bonds and,

• LCH.Clearnet SA will be the central counterparty and will process the settlement instructions through the major National and International Central Securities Depositories (CSDs).

A presentation of the post trade service scheme for “Cassiopeia” MTFs for corporate bonds is available here.

Next steps and planning

Documentation, including the service description and the on boarding details, will be provided in January 2011.

The clearing service for corporate bonds will be available on the External User Acceptance (EUA) test platform in February 2011 and the production launch of the service is expected to be in March 2011.

If you are interested in extending your existing membership or would like to apply, please fill in the form attached to this communication and return it to [email protected].

For further information, please contact:

Your LCH.Clearnet SA Product Implementation manager:

Mykael Lemosle: +33 (0) 1 70 37 65 27 – [email protected] 
or
your account manager.

Customer and Market Management LCH.Clearnet SA

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