LCH.Clearnet Ltd (LCH.Clearnet) has gone live with Europe’s first clearing service for contracts-for-difference (CFDs). LCH.Clearnet acts as the central counterparty to LMAX, the new multilateral trading facility for retail customers. The initial offering includes Equity Indices, Commodities & Interest Rate contracts.
CFDs are cleared through LCH.Clearnet’s EquityClear service. The centrally cleared CFD has all the standard CFD benefits, including the ability to hedge or leverage a position and reduced counterparty risk.
Against the backdrop of global regulatory developments, the launch highlights LCH.Clearnet’s unique ability to leverage its extensive risk management and clearing capabilities across multiple asset classes, both listed and OTC.
Alberto Pravettoni, Managing Director, LCH.Clearnet Ltd said: “Being the first in Europe to launch clearing for CFDs demonstrates our ability to deliver innovative products. Following a successful launch, we look forward to developing this ground-breaking new service.”