LCH.Clearnet has moved to slash its fees and eliminate charges for high volume equity traders as it responds to the twin threats of growing competition and customer defections.
The independent London clearer says it will introduce free equity clearing for average daily member volumes of over 150,000 trades a day from 1 October. It also plans to introduce stepped discounts for market participants clearing over 50,000 and 75,000 trades per day.
The initiative comes as the clearer faces the possibility of fresh competition for erstwhile suitor DTCC - which has reputedly been running the rule of EMCF - and grumbles among customers over the high costs of clearing.
Nyse Euronext plans to sever its links with LCH.Clearnet in 2012 and the London Stock Exchange is also thought to be considering its options.
The tariff reductions have been welcomed by Kevin Milne, director of post trade, London Stock Exchange. "In combination with our own ongoing tariff cuts, this move will further reduce the overall cost of trading for our major clients and make the service more compelling," he says.