Roger Liddell, CEO of LCH.Clearnet, has said there is little prospect of interoperability between European derivatives clearing houses. The term means giving customers the choice of where their trades are cleared.
“I don’t think we’ll ever see interoperability in derivatives clearing,” Liddell told FOi, two days after his resignation was announced. “The risks from contagion are just not worth the benefits.”
His comments are a blow to those who hope that interoperability could one day be introduced, furthering competition between clearing houses and exchanges.
The European Commission’s consultation paper on Derivatives and Market Infrastructures, published in June, seeks market comment on interoperability. It notes that “Europe’s post-trade sector remains fragmented along national lines”, which undermines efficiency and “could make cross-border trades more costly”.
However, the document is...