The service, which is based on SETS™, the Exchange's electronic order book, will use the Dutch market's existing post trade market infrastructure. More specifically, CLEARING 21® will provide the central counterparty services.
This combination is designed to attract trading business from all those operating in the Dutch market. The service will be launched, subject to FSA regulatory approval, in the first quarter of 2004.
Full details of the service, including launch date, pricing and how it will work, will be announced later this month when the London Stock Exchange will be holding kick-off events in Amsterdam (22 October) and London (23 October).
Commenting on the proposal, Clara Furse, Chief Executive of the London Stock Exchange, said:
"We have spent considerable time talking to firms active in the Dutch market in an effort to understand and, ultimately, meet their specific requirements for a bespoke market offering. The market wants competition. This is an important step in moving forward Europe's capital markets."
Patrice Renault, Chief Executive of Clearnet, continued:
"Clearnet intends to provide services to multiple exchanges. Our members will be thus offered the opportunity to increase the benefits of their post trading rationalisation across several markets."
