Sunday, November 27, 2022

Stock Markets: "EU Brings Clearing In-House Amid Push to Reduce Reliance on London"

From, November 27:

Formed by the merger of several European Union (EU) stock exchanges at the turn of the 21st century, Euronext can trace its origins back to some of the world’s first bourses, formed in Bruges, Antwerp and Amsterdam between the 13th and 17th centuries.

In that light, it has a heritage that predates the likes of Nasdaq and the New York Stock Exchange (NYSE) by several hundred years. Even the London Stock Exchange Group (LSEG) pales in comparison, with the U.K. exchange only founded in 1801.

Incidentally, that year also witnessed the inception of the Brussels Stock Exchange, which together with its peers in Amsterdam and Paris would unite to create Euronext much later in 2002. Since then, exchanges in Dublin, Lisbon, Oslo and Milan have joined the club.

To further strengthen the pan-European stock exchange, Euronext, which has long relied on LSEG’s clearing house LCH to clear trades in Paris, announced in a Q3 earnings statement earlier this month that customers will be able to clear all share trades at its Italian arm from the end of 2023. Derivatives clearing on the platform will follow in 2024.

The latest member of the Euronext family, Milan’s Borsa Italiana was acquired by LSEG last year as part of the latter’s efforts to gain regulatory approval for its $27 billion purchase of data provider Refinitiv. As part of that deal, Euronext gained the multiasset clearing house CC&G, thus significantly enhancing its in-house clearing ability....