London / Paris – BNP Paribas Securities Services (‘BNP Paribas’) has successfully launched clearing services on the LSE’s International Order Book (‘IOB’). The services provided are part of the bank’s Clearsuite® solutions package which delivers flexible products to any new and incumbent trading venues.
The IOB offers specialist investors easy and cost efficient access to international markets via Depositary Receipts (‘DRs’) from 46 countries. Trading on the IOB has grown rapidly since its inception; the value traded on the service has more than quadrupled in the last five years, reaching USD 246.2 billion in 2008. LCH Clearnet Ltd will act as the Central Counterparty Participant (‘CCP’) to clear 50 of the most liquid depositary receipt stocks listed on the IOB.
One of the first clients BNP Paribas is offering this service to is Panmure Gordon & Co (‘Panmure’). Nick Cook, Executive Director, Panmure said: “The introduction of a CCP for IOB stocks provides post-trade anonymity and improved settlement netting facilities in conjunction with the risk benefits achieved from exposure to a CCP. BNP Paribas’ detailed knowledge of the ever-changing market infrastructure segment and the extension of its existing global clearing member services have allowed Panmure to participate from the first day of the CCP facility.”
Alan Cameron, Head of Clearing, Settlement and Custody Client Solutions said: “Clearsuite® clients benefit from a panel of flexible products and solutions that simplify the access to all trading platforms and CCPs. We understand the difficulties our clients are facing in view of new market infrastructure initiatives as well as navigating the current market conditions. Clearsuite® has, therefore, been developed to provide our clients with solutions for all their post-trade needs, allowing them to focus on their core expertise.”
Shani Halstead, Corporate Communications, London +44 (0)20 7595 2436