SIX Swiss Exchange and Nasdaq OMX Group Inc.’s Nordic exchanges are widening the clearing options available to their customers, a move proponents say will increase competition and lower prices.
SIX will allow European Central Counterparty NV to clear trades on the Swiss stock market, according to a statement on Thursday. Trading parties will be able to choose from EuroCCP and the existing clearing firms LCH.Clearnet Ltd. and SIX x-clear AG.
Clearinghouses ensure that once a deal has been agreed, it will be honored, even if one of the parties goes bust.
Likewise, Nasdaq said it has given the green light to SIX x-clear and LCH.Clearnet to clear transactions on its Stockholm, Helsinki and Copenhagen venues. They will interoperate with EuroCCP, Nasdaq’s existing clearing partner.
Neither SIX nor Nasdaq provided a timeframe and the agreements require regulatory approval. Plans for EuroCCP to clear London Stock Exchange trades were delayed in March by regulators.
LCH.Clearnet, majority owned by London Stock Exchange Group, is the main clearinghouse for the LSE.