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The Depository Trust & Clearing Corporation and LCH.Clearnet Group announced that they have signed non-binding heads of terms regarding the proposed merger of the two companies.
The merger proposal aims to create the world’s leading clearing house, which would operate a user-owned, user-governed model, with LCH.Clearnet moving to an at-cost based structure comparable to DTCC’s within three years.
Euroclear, currently the largest shareholder in LCH.Clearnet with a holding of 15.8%, intends to support the transaction in principle and remain a shareholder of LCH.Clearnet HoldCo, and to thereby cement a strong partnership in European post-trade solutions.
The range of markets and services covered would include such asset classes as equities, fixed income instruments, exchange-traded derivatives and commodities, mutual funds, annuities and OTC products such as interest rate swaps, credit default swaps, carbon emissions and freight contracts.