Intercontinental Exchange (ICE) is planning to set up its own European clearinghouse by 2008 as part of a strategy "to offer clearing services through wholly-owned clearing businesses in the US and the UK".
The announcement would appear to be a death knell for LCH Clearnet (LCH-C)'s relationship with the US exchange. LCH-C currently clears futures and OTC business for the Atlanta-based exchange.
A spokesperson for LCH-C spoke of its "disappointment" over ICE's decision. He added, "The decision on clearing is not simply one that can be taken by the exchange and must be discussed among its members. We feel sure [members] will wish to examine this decision with due care. We will examine the situation further as details emerge."
Another veteran source agreed that some of ICE's members, especially those in the UK, may...