London Stock Exchange expands stocks clearing in Paris

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LSEG said its LCH arm in the French capital was now connected to rival trading platforms Cboe Europe in Amsterdam and Aquis Exchange in Paris to clear their share trades.

Clearing ensures transactions are completed even if one side of a trade goes bust.

The EU has said market participants based in the bloc will not be allowed to use clearing houses like LCH’s UK operation in London after June 2025 as it seeks to build up clearing capacity inside the bloc.

Connecting with two trading platforms inside the bloc will help bring in more volume to LCH in Paris as it faces a loss of business from pan-European exchange Euronext.

Euronext has said it will ditch LCH in Paris for clearing its trades by 2024, instead using its Italian clearing house acquired when it bought Borsa Italiana group from LSEG.

Euronext said it no longer wanted to rely LCH in Paris given LCH is owned by a group based outside the EU.