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| Market: | Cash |
| Products: | Corporate Bonds |
| Date: | 22 June 2011 |
New Corporate bonds clearing service NYSE BondMatchTM go live on Monday 11 July
Launch production platform
LCH.Clearnet SA is pleased to inform clients that the NYSE BondMatch™ clearing service go-live will take place on Monday 11 July for instruments with the following characteristics:
- Euro-denominated International Corporate, Financial and Covered Bonds;
- Issues with an outstanding amount above €500 million;
- Issues with S&P rating of BBB or above.
NYSE BondMatchTM, the Multilateral Trading Facility (MTF) is owned and operated by NYSE Euronext and is built to meet the specifications issued by the Cassiopeia Committee in April 2010.
The introduction of clearing by LCH.Clearnet SA to the euro-denominated bonds market enables participants to mitigate counterparty risk and benefit from straight-through processing efficiencies, and is in line with regulators’ demands to bring more OTC products into clearing.
Interbolsa, Euroclear (ESES) and Euroclear Bank will carry out the settlement processes according to the current Continuous Net Settlement principle.
In a second step, LCH.Clearnet, intends to extent the new corporate bond clearing settlement to Clearstream Banking Luxembourg; investigations are on-going on this matter.
Testing
The testing platform has been open for clients to facilitate end to end testing with NYSE BondMatchTM, Interbolsa and Euroclear since end of May. Testing has been successfully completed by all parties and Clearing Members.
The External User Acceptance platform will remain open for clients to continue the tests and to allow new clients to join the new corporate bond service.
Launch principles
The referential data will be broadcast as of Monday 27 June.
Transactions on the NYSE BondMatch platform will be integrated in the real-time clearing session as from Monday 11 July. The NYSE-BondMatchTM activity will be integrated for the first time in the batch reporting in the evening.
The NYSE BondMatchTM activity is integrated in the current flows and reporting, with no impacts to the structure of the flows and reports. For clients already active on the cash clearing system for other markets, the testing and on-boarding processes are easy and very quick. More information relating to technical and clearing principles is available on the website.
http://www.lchclearnet.com/member_notices/flash_infos/equities/cassiopeia/2011-01-21.asp
If you are interested in extending your existing membership or would like to apply, please contact us.
For further information, please contact:
Your LCH.Clearnet SA Product Implementation manager:
Jean-Bertrand Lesparre: +33 (0) 1 70 37 66 46 – [email protected]
or
your account manager.
Customer and Market Management LCH.Clearnet SA