Euronext has entered into a definitive agreement to sell its 11% stake in LCH SA back to LCH Group for €111 million.
In the third quarter, Euronext will incur a non-underlying capital gain of around €40 million as a result. The transaction is expected to take place in July.
The move comes as part of Euronext’s ongoing migration of its clearing business back into the Bloc and onto its own clearing house, Euronext Clearing.
“Euronext and LCH SA are committed to working together to ensure an orderly migration of clearing flows from LCH SA to Euronext Clearing,” said Euronext in a statement.
Euronext acquired its clearing house – formerly CC&G – as part of the Borsa Italiana deal in 2021.
Since the completion of the deal, Euronext has been vocal around its intention to internalise its operations including clearing in Europe. As part of the migration process, the exchange operator confirmed it was set to pay €36 million to LSEG’s clearing house LCH SA in exchange for the early termination of its derivatives clearing agreement.
Euronext Clearing will be the preferred clearing house for Euronext’s cash equities markets, however for other trading services for derivatives, commodities futures and repo clearing, the preferred clearing model does not currently exist and so Euronext Clearing will clear all of the flow.
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In April, Euronext completed the migration of Borsa Italiana’s equities and ETF businesses to its proprietary trading platform, Optiq, removing the need to pay LSEG for the use of its technology in the future.
The exchange expects listed derivatives and commodities markets across Amsterdam, Brussels, Lisbon, Oslo Børs and Paris to move to Euronext Clearing by the third quarter of 2024. Euronext Milan’s listed derivatives business is already cleared by Euronext Clearing.