LCH.Clearnet Ltd (LCH.Clearnet) has launched with Europe’s first clearing service for CFDs. LCH.Clearnet is the central counterparty to LMAX, the new multilateral trading facility for retail customers owned by betting exchange Betfair. The initial offering includes Equity Indexes, Commodities and Interest Rate contracts.
Contracts for differences are cleared via LCH.Clearnet’s EquityClear service. The centrally cleared CFD has all the standard CFD benefits, including the ability to hedge or gear a position and reduced counterparty risk.
Against the backdrop of worldwide regulatory changes, the development makes LCH.Clearnet’s stand out on its capacity 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.’