LCH.Clearnet is to slash its fees by a third as it responds to the arrival of fresh competition inspired by an EU-mandated Code of Conduct for European clearing agreed last year.
The clearer says it will lower cash equity clearing fees for the NYSE Euronext, Bourse de Luxembourg, Equiduct and SmartPool markets by 30% from 1 July 2009.
The move comes just a day after LCH.Clearnet's US suitor DTCC walked out on a proposed transatlantic merger, leaving the way clear for a consortium-based cash bid next month.
The once-moribund European clearing business has been shaken up by the arrival of a new wave of pan-European exchange-based trading platforms and market pressure for fee reductions in cross-border clearing costs.
LCH.Clearnet says the latest fee cuts will equate to a 75% reduction in its prices since January 2007, and promises that more cuts are on the way.
Christophe Hémon, chief executive, LCH.Clearnet, says plans are in place to drive down the cost-base, enabling further fee reductions in the near future.