Copying and distributing are prohibited without permission of the publisher
LCH.Clearnet acquisition to expand US footprint
26 April 2012
LCH.Clearnet Group has signed a non-binding agreement with International Derivatives Clearing Group
International Derivatives Clearing Group
LCH.Clearnet Group has signed a non-binding agreement with International Derivatives Clearing Group, and The NASDAQ OMX Group, regarding the acquisition of IDCG.
The transaction would represent the latest move by LCH.Clearnet Group facilitate its recently announced US cross-margining initiative.
LCH.Clearnet already operates interest rate swap clearing in the US through its market-leading SwapClear service. The acquisition of IDCG would provide buy-side participants with more choice.
“The acquisition of IDCG remains subject to negotiations and certain conditions including entering into a definitive agreement and there can be no certainty that the transaction will proceed,” said LCH.Clearnet in a statement.
It is envisaged that if the transaction proceeds LCH.Clearnet Group would become the sole owner of IDCG and NASDAQ OMX would become a shareholder of LCH.Clearnet Group.
The acquisition of IDCG would be a natural expansion of LCH.Clearnet’s horizontal clearing model, joining the existing “one-pot” cross-margining arrangement between New York Portfolio Clearing, The Depository Trust & Clearing Corporation and NYSE Euronext.