The process of trading



The Group's Involvement

Electronic trading

Computerised systems for matching buy and sell orders of financial instruments, such as equities, bonds and derivatives.

  • Equities – London and   Italian trading platforms and Turquoise pan-European & US trading

  • ETFs, ETCs – London and Italian trading platforms

  • Bonds – MTS, MOT, ORB and EuroTLX

  • Derivatives – LSE Derivatives, IDEM, IDEX and AGREX

Post Trade


After a trade has been matched, usually by a trading system, it is cleared by a Central counterparty (CCP) who stands in the middle of a trade as the buyer to every seller and the seller to every buyer. If either party defaults on the trade, the CCP   owns the defaulter’s risk and becomes accountable for its liabilities. During the life of a trade, or that of a portfolio of trades, CCPs process all cash flows and continuously mark the trade or book to market, calling variation and initial margin in relation to prevailing risk of the overall portfolio.

LCH.Clearnet acts as a CCP for LSE equities, derivatives and bonds, Turquoise equities and MTS bonds. LCH.Clearnet also clears commodities and for global OTC derivatives and non-Group venues. It has clearing houses in the UK, France and USA.

CC&G acts as a CCP for Italian cash equities, derivatives and fixed income. CC&G also clears OTC trades and non-Group venues.


Settlement is the process of delivering title to the financial instrument to the buyer against payment to the seller. For equities, this normally takes place three days after the trade. Netted settlement reduces a large number of positions to a single position/payment. Settlement operates both for transactions through a trading system and those completed over the counter (OTC).

Monte Titoli operates the X-TRM and EXPRESS II systems, which cover Italian pre-settlement and   settlement, creating netted settlement instructions, making the actual payments and delivering securities.


A custodian or Central Securities Depositary (CSD) undertakes the safekeeping and administration of securities on behalf of issuers and investors.

Monte Titoli provides Italian custody services for financial instruments such as equities and bonds,  whether dematerialised or in paper form. De-materialised securities are those that can be held without the need for paper certificates.

globeSettle S.A. the Group's recently established CSD based in Luxembourg.