SGSS is the latest clearing member to consolidate its cash equity business with LCH.Clearnet. The mandate is indicative of the growing trend amongst financial institutions to drive efficient cash equity clearing activity by utilising one CCP connection. This has resulted in LCH.Clearnet's interoperable volumes increasing by over 50% over the last 18 months.

By consolidating its cash equity clearing, SGSS will optimise its clearing arrangements for clients and directly benefit from a number of efficiency gains. SGSS will be able to streamline its default fund contributions and margin payments through one CCP. It will additionally reduce its clearing fees and settlement costs through cross trade venue netting. Operational savings can also be achieved as a result of minimised reconciliations and reporting.

Guillaume Heraud, Head of Business Development for Financial Institutions and Brokers, SGSS said: "When it comes to clearing, robust risk management is of paramount importance. LCH.Clearnet was able to demonstrate excellence in this area as well as offering comprehensive customer service and broad product and trading venue coverage. The firm's expanding clearing activity across Europe, and innovation in clearing and risk management of OTC equities and equity derivatives were other contributing factors to our decision."

Cécile Nagel, Global Head of Equities at LCH.Clearnet said: "We're committed to improving efficiency for our members and the wider market. Consolidation brings multiple benefits to members in terms of cost savings and improving risk management processes. We're delighted that SGSS has chosen to clear its cash equity business through LCH.Clearnet and we consider this a major milestone in the expansion of our global cash equities and derivatives clearing services."