Newedge announces enhancements to clearing and execution model

Paris/London, 13 December 2012 – Newedge, a global leader in multi-asset brokerage, execution and clearing, today announced it is considering a project to enhance its competitiveness in the new market environment and regulatory framework.

This project intends to bolster the firm’s position as market leader, both through a leading worldwide clearing platform for major derivatives asset classes as well as through first-class financial products execution capabilities, offering access to wide liquidity pools.

The project aims to:

  • simplify business activities and geographical footprint, with a focus on its existing core strengths,
  • streamline the firm’s operational model to enhance process efficiency, risk management and cost control,
  • separate financial futures & options execution and clearing into two distinct entities to allocate capital more effectively and provide a clearer client proposition.

“The listed derivatives industry is at a turning point,” said Nicolas Breteau, Chief Executive Officer of Newedge. “The pace and significance of change – driven by regulation, economic and market headwinds, and developing client needs – is set to continue.”

“The plan presented today follows a strategic review of our business and is a measured, informed response to the challenges facing the industry. It will create a firm that is leaner, more agile and client-centric, and will set the foundations for a sustainable future. We are entering the next chapter in Newedge’s development, and can see emerging from the current challenges great potential for growth, in such areas as OTC clearing.”

Crédit Agricole Corporate and Investment Bank and Societe Generale, Newedge’s joint shareholders, fully endorse the strategy proposed by Newedge management. Both shareholders are committed to supporting Newedge in its successful implementation of the project, which would reinforce the firm’s position as an industry leader.

This announcement today follows a Newedge board meeting and a presentation to the employee representative bodies (Works Council) in France. 

The plan is subject to a number of conditions including information and/or consultation of local employee representative bodies and the customary approval of regulators.

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