LCH.Clearnet, the clearing house formed by the merger of the London Clearing House (LCH) and Paris-based Clearnet is returning EUR34.5 million to its futures and options clearing members in its 2003 rebate.
The group recorded organic growth in turnover of 15% for the 14-month period to December 31 2003, excluding the Clearnet merger. The increase was largely driven by an increase in gross clearing fees of 29% to EUR139m.
The number of contracts cleared rose by 32%.
Clearing fees from RepoClear and equities generated the largest percentage increases of 65% (to EUR16.9m) and 63% (to EUR23.4m) respectively. The futures and options business generated the largest proportion of fees by value, with fees rising in the period by 23% (to EUR74.4m).
As a result of the rebate, earnings before interest and tax (EBIT) decreased by 29% to EUR25.7m. Excluding the impact of the clearing fee rebate, EBIT increased by 67%.
LCH.Clearnet is owned 45.1 percent by exchanges, 45.1 percent by users and the balance held by international securities settlement house Euroclear.