globeSettle selected as collateral location venue by LCH.Clearnet Ltd and CC&G
Clearing members will be able to choose to place collateral with globeSettle
Offers Clearing members a straight through collateral and custody solution
Contributes to CCPs client segregation model
globeSettle received regulatory approval to start operations in May 2014
London Stock Exchange Group’s new central securities depository (CSD), globeSettle, has been selected by LCH.Clearnet Ltd and CC&G as an additional securities collateral location for their members. The agreement will allow clients and members of both central counterparties (CCPs) to benefit from a straight through collateral and custody solution creating a new pool of collateral liquidity in Europe. Under EMIR, CCPs are required to hold collateral securities posted as margin at a securities settlement system. globeSettle is currently working with the Luxembourg regulators in order to achieve this second authorisation.
Alessandro Di Michele, Chairman, globeSettle said: “As part of a global Group strategy, we are delighted that LCH.Clearnet Ltd and CC&G will be the first joiners at globeSettle appointing us as a collateral location venue, which will help improve operational efficiencies for its clients and members whilst reducing risk.
“globeSettle will expand the scope of LSEG’s settlement and custody services. Our commitment to operate an open-access model enables us to assist a broad range of customers meet the new requirements arising from on-going financial regulatory change. In particular we believe that through our platform operating in real time 22 hours out of 24, we can bring a significant change in the operating strategies of brokers, asset managers and investment banks, allowing global operators to really think and act globally both at Treasury and investment level.”
In July 2013, the Group confirmed plans to launch a new central securities depository (CSD) business, based in Luxembourg. In May, the new CSD, globeSettle, was granted a licence as a Professional of the Luxembourg Financial Sector and received regulatory approval to start operations from the Ministry of Finance and CSSF. globeSettle remains on track to commence operations in summer 2014. As previously announced globeSettle will provide settlement, custody and asset servicing for J.P. Morgan’s international collateral management division.
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For further information:
Lucie Holloway +44 (0)20 7797 1222
Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.
The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.
Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.
The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.
London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 30 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.
Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.
Further information on London Stock Exchange Group can be found at: www.lseg.com