Euronext: agreement with Intercontinental Exchange.

(CercleFinance.com) - Euronext says it has signed binding heads of terms with ICE Clear Netherlands, a subsidiary of Intercontinental Exchange, for the provision of clearing services for its financial derivatives and commodities markets.


Euronext says it is now obliged to ensure its clients obtain cost effective clearing solutions after the European Commission's prohibition of the merger between Deutsche Börse and LSE Group last week.

The group says LSE Group and LCH Group refused to engage in discussions about completing the agreed sale of Clearnet, which Euronext had been granted exclusivity to acquire.

The agreement with ICE Clear Netherlands covers the clearing of financial derivatives and commodity derivatives for a period of 10 years, with Euronext contributing a 10 million euro upfront investment.

Clearing operations will be run from Amsterdam and a new solution for asset financing, inventory management and physical delivery for commodities will be built in Paris.

The formal clearing services agreement is scheduled for completion in the second quarter.


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