LCH.Clearnet In Talks to Buy IDCG From Nasdaq OMX

The European clearinghouse operator said the move will help it to better serve the buy side, while expanding its footprint in the U.S.

Clearinghouse operator LCH.Clearnet Group said it's in deep talks to buy the International Derivatives Clearing Group from Nasdaq OMX, a move that would expand the firm's footprint in the U.S.

The firm, which already operates an interest rate clearing service in the U.S. with SwapClear, said that by acquiring IDCG it could better serve buy-side market participants by offering more choice. Under terms of the proposed deal, LCH.Clearnet would become sole owner of IDCG and Nasdaq would become a shareholder of LCH.Clearnet.

The London Stock Exchange, meanwhile, is set to take control of LCH.Clearnet after agreeing to buy the firm for $615 million in March. That deal still needs to be cleared by regulators and is expected to be completed by the fourth quarter.

"LCH.Clearnet Groups is committed to providing end-users with a broad range of clearing services for their over-the-counter trades," SwapClear Chief Executive Michael Davie said. "This strategic acquisition would complement our U.S. offering, where we are seeing accelerating client take-up for the SwapClear service."

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio