Euronext to switch derivatives clearing to Italy in 2024

Euronext currently clears derivatives transactions at LCH SA owned by London Stock Exchange Group. However, the exchange wants to establish its own clearing operation in line with European Union efforts for a deeper capital market. The exchange released a statement confirming that it plans to move the listed financial derivatives markets and commodities markets of Euronext Amsterdam and Euronext Brussels from LCH SA into Euronext Clearing by quarter three 2024. Customers can clear Euronext share trades at other rivals like LCH and Cboe under EU 'open-access' rules. Anthony Attia (Euronext global head for primary markets and post-trade), stated that "we are very confident" we will capture the bulk cash equities clearing. Euronext, which acquired its clearing house in Milan as part of the acquisition of Borsa Italiana, now owns less than 11% of LCH SA. LSEG has an option to purchase this stake. Attia stated that the stake was worth approximately 66.8 million Euros ($72.2 Million). Separately, LSEG confirmed that its agreement with Euronext regarding clearing financial and commodity derivatives would end next year, but stated LCH SA would still be "strategically significant". LSEG stated that LCH SA is responsible for clearing the largest part of the Eurozone repo and Euro credit derivatives markets, as well as many European equity market venues. ($1 = 0.9249 Euros) (Reporting by Huw James; Editing By David Goodman & Mark Potter) Huw Jones