LCH.Clearnet to clear for Cleartrade Exchange

LONDON, 07 February 2011

LCH.Clearnet Ltd (LCH.Clearnet), the world’s leading independent clearing house, is set to clear for Cleartrade Exchange*, the first regulated execution venue for OTC cleared freight and commodity derivatives.

For the first time, screen traded OTC freight and commodity derivatives will be processed real time into clearing.  Transactions will be fed directly to LCH.Clearnet, significantly cutting the clearing cycle from half an hour down to a fraction of a second.

Isabella Kurek-Smith, Director at LCH.Clearnet said: “We have worked closely with Cleartrade Exchange to integrate our robust technologies, bringing a significantly faster and more efficient clearing process for these growing OTC markets. The introduction of screen trading, coupled with direct clearing, will lead to increased transparency and liquidity.”

Richard Baker, Managing Director at Cleartrade Exchange said “We have a strong partnership with LCH.Clearnet and are pleased to have integrated our respective technologies for efficient trade flow with such an important industry player. This is a significant move for the OTC commodities market.”

Cleartrade Exchange provides participants in freight and commodity markets with electronic order input, management and processing of OTC swaps into nominated clearing houses such as LCH.Clearnet.

*subject to regulatory approval

To view the press release as a pdf click here

Contacts 

About Cleartrade

Cleartrade Exchange is an electronic global marketplace for OTC freight and commodity derivatives and is regulated by the Monetary Authority of Singapore (MAS). Cleartrade Exchange is a Recognised Market Operator (RMO) and clients include traders, brokers, banks and clearing houses. The company provides a specialised order management and processing platform, developed for the freight and commodity derivatives markets. Cleartrade Exchange provides value-added services to market participants enabling order management and reconciliation and straight-through-processing to clearing houses. Cleartrade Exchange is incorporated in Singapore. For more information, visit: www.thecleartrade.com

About LCH.Clearnet

LCH.Clearnet is the leading independent clearing house group, serving major international exchanges and platforms, as well as a range of OTC markets.  It clears a broad range of asset classes including: securities, exchange traded derivatives, energy, freight, interbank interest rate swaps, credit default swaps and euro and sterling denominated bonds and repos; and  works closely with market participants and exchanges to identify and develop clearing services for new asset classes.