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Liffe to join clearing fray

by Paul Francis-Grey

Liffe will finally join rival exchanges by conducting its own clearing after re-negotiating its terms with LCH Clearnet.The exchange is to create LiffeClear, which will enable it to clear its own trades. LCH Clearnet will, however, continue to provide Liffe with risk management and guarantee functions at an outsourced fee. As a result, LCH Clearnet will no longer receive clearing fees from its members. It is unclear how much the new arrangement is worth for either party. Out of the larger derivatives exchanges Liffe is alone in not conducting its own clearing. While the exchange argues that the move will allow...

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