Société Générale Securities Services (SGSS) has selected LCH.Clearnet as its main clearer of pan-European interoperable cash equities, consolidating its cash equity business.
This is the latest in a string of mandates for LCH.Clearnet amid a growing trend to drive efficiency in cash equity clearing by using a single CCP connection. LCH.Clearnet’s interoperable volumes have increased by more than 50 percent over the last 18 months
By consolidating its cash equity clearing, SGSS will provide a more efficient and optimised service for its clients. It will be able to streamline its default fund contributions and margin pages, leading to reduced clearing and settlement fees.
SGSS could also see operational savings, with fewer reconciliations and reporting requirements.
Guillaume Heraud, head of business development for financial institutions and brokers at SGSS, said: "When it comes to clearing, robust risk management is of paramount importance.”
“LCH.Clearnet was able to demonstrate excellence in this area as well as offering comprehensive customer service and broad product and trading venue coverage. The firm's expanding clearing activity across Europe, and innovation in clearing and risk management of OTC equities and equity derivatives were other contributing factors to our decision."
Cécile Nagel, global head of equities at LCH.Clearnet said: "We're committed to improving efficiency for our members and the wider market. Consolidation brings multiple benefits to members in terms of cost savings and improving risk management processes.”
“We're delighted that SGSS has chosen to clear its cash equity business through LCH.Clearnet and we consider this a major milestone in the expansion of our global cash equities and derivatives clearing services."
