Futures may follow as LCH-C puts clearing code to the test

The progress of LCH Clearnet (LCH-C)’s formal requests to Deutsche Börse and Borsa Italiana for full interoperability may have a significant impact on the fate of the European clearing code of conduct for equities and, therefore, also influence the transposition of that code to futures markets.  The code is designed to improve investors’ ability to trade in a consistent, coherent and cost-efficient framework across Europe and requires signatories to meet certain standards in the areas of price transparency, access and interoperability and service unbundling and accounting separation. “Even if the code works well for equities, some of the European exchanges are going to fight tooth and nail against the same process being applied in their futures divisions,” one clearing...