Press Release
| Contact: | Pierre-Dominique Renard
|
Michael March – Director, Corporate Communications
|
Continuous Net Settlement Launched for the Paris Equity Market
Paris, 13 April 2005
LCH.Clearnet is pleased to announce the launch of Continuous Net Settlement for the Paris equity market. This follows the successful rollout of Settlement Connect to the French, Belgian and Dutch equity markets during 2004 and brings to completion the harmonisation of settlement links in the French, Belgian and Dutch equity markets.
Settlement Connect was launched in the French equity market in two phases. The first phase replaced the legacy interface, ISB, with the new Settlement Connect common module, and the second phase harmonised existing clearing practices with the introduction of CNS.
This new launch represents a major step forward in the integration of European capital markets, and will help LCH.Clearnet in its aim of delivering reduced costs to the markets it serves.
Settlement Connect removed the need for members to be connected to different local legacy systems for interfacing into settlement for the Belgian, Dutch and French equity markets.
With the introduction of CNS in Paris, LCH.Clearnet SA has rationalised the fails management process and harmonised member reporting across all three trading locations. Fails are netted with new positions in the same product which are then aggregated to generate a single new settlement instruction. Corporate Events on fails are now managed centrally at the LCH.Clearnet SA level.
Christophe Hémon, Chief Executive of LCH.Clearnet SA, said: “In improving our netting rate and centralising our fails management, LCH.Clearnet has gone one step further in the optimisation and rationalisation of our processes, bringing further efficiencies to the markets we serve. ”