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London Stock Exchange expands stocks clearing in Paris -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Signage outside London Stock Exchange’s entrance in London, Britain. August 23, 2018. REUTERS/Peter Nicholls

LONDON, Reuters – On Thursday the London Stock Exchange (LSEG), expanded its Paris-based clearing services as it adjusts for a post-Brexit environment in which Britain’s financial system is increasingly isolated from Europe.

LSEG stated that its LCH unit in Paris was connected to Cboe Europe, an Amsterdam-based trading platform, and Aquis Exchange in Paris for clearing share trades.

Clearing guarantees transactions can be completed regardless of whether one side or the other loses.

According to the EU, market participants located in the bloc are not allowed to use clearinghouses such as LCH’s UK operations in London after June 2025. This is in order to expand clearing capacity in the bloc.

LCH Paris will be able to connect with two different trading platforms within the bloc, which is important as LCH faces losing business due to Euronext, the pan-European stock exchange.

Euronext stated that LCH will be abandoned in Paris by Euronext to facilitate clearing trades. Instead, it will use the Italian clearing house it acquired after it purchased Borsa Italiana from LSEG.

Euronext stated that it does not want to continue to depend on LCH Paris because LCH is controlled by an outside group.

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