Chi-East, the joint venture between Chi-X Global and Singapore Exchange Limited, have appointed LCH.Clearnet as the central clearing facility for its pan-Asian dark trading platform which is scheduled to launch in mid-2010.
Pending regulatory approvals and agreement terms, LCH.Clearnet’s EquityClear service will clear the Australia, Hong Kong and Japan-listed securities trading on Chi-East. SGX-listed stocks will clear and settle through The Central Depository Limited, SGX’s securities clearing house and depository through SGX’s clearing members.
John Lowrey, a Director of Chi-East, said in a statement, “Providing a centralised clearing facility for our trading participants is an integral part of our overall business strategy. After a rigorous due diligence process we are confident that LCH.Clearnet will be an ideal partner to assist us in helping to lower the overall frictional cost of trading within the region. This relationship ensures Chi-East will have robust, reliable and integrated architecture through all stages of the trade.”
Added Wayne Eagle, Director of Equity Services, LCH.Clearnet, “We are delighted to be a part of such an innovative venture. Asian markets are developing rapidly and we are pleased to expand our offering in the region at such an exciting time. Our appointment demonstrates recognition of the effectiveness and flexibility of our market-leading EquityClear service and the overall quality of LCH.Clearnet’s offering.”