Société Générale Securities Services consolidates cash equity clearing with LCH.Clearnet
SGSS to benefit from streamlining default fund contributions and margin payments, as well as reduced clearing fees and settlement costs
Reflects growing trend for clearing members to consolidate cash equity flow through one CCP
LCH.Clearnet interoperable volumes up 50% over last 18 months
LCH.Clearnet Limited ("LCH.Clearnet"), the global clearing house, today announced that it has been selected by Société Générale Securities Services (SGSS) as the main clearer of its pan-European interoperable cash equities. SGSS is the latest clearing member to consolidate its cash equity business with LCH.Clearnet. The mandate is indicative of the growing trend amongst financial institutions to drive efficient cash equity clearing activity by utilising one CCP connection. This has resulted in LCH.Clearnet's interoperable volumes increasing by over 50% over the last 18 months.
By consolidating its cash equity clearing, SGSS will optimise its clearing arrangements for clients and directly benefit from a number of efficiency gains. SGSS will be able to streamline its default fund contributions and margin payments through one CCP. It will additionally reduce its clearing fees and settlement costs through cross trade venue netting. Operational savings can also be achieved as a result of minimised reconciliations and reporting.
Guillaume Heraud, Head of Business Development for Financial Institutions and Brokers, 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."
About Societe Generale Securities Services (SGSS)
Present in 28 locations worldwide with around 4,000 employees, SGSS provides financial institutions and brokers, asset managers and insurers, and businesses with a full range of securities services adapted to the latest financial market and regulatory trends: clearing services, custody and trustee services, retail custody services, liquidity management, fund administration and asset servicing, fund distribution and global issuer services.
SGSS is ranked among the top 10 worldwide global custodians and the 2nd largest in Europe with EUR 3,810* billion of assets under custody. SGSS provides custody & trustee services for 3,485* funds and the valuation of 4,118* funds, representing assets under administration of EUR 546* billion. SGSS also ranks among the European leaders in stock option management.
*Figures at end September 2014
For further information
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The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and trading platforms as well as a range of OTC markets.
LCH.Clearnet's world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of past defaults. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to achieving the highest standards of risk management across all asset classes cleared.
LCH.Clearnet Group is majority owned by London Stock Exchange Group (LSE.L), a diversified international exchange group that sits at the heart of the world's financial community.