LME sells stake in LCH.Clearnet
The London Metal Exchange is selling its remaining stake in LCH.Clearnet to Borsa Istanbul, the two exchanges announced in March. Following this transaction, LME has disposed of its entire remaining stake in LCH.Clearnet, its former clearing provider.
As part of the deal, LME will license steel billet settlement data to Borsa Istanbul and work with the Turkish exchange to develop products and services for the steel market. The terms of the deal were not disclosed, but reportedly the stake represented 2% in LCH.Clearnet.
The move will further strengthen Borsa Istanbul’s links with London as it looks to increase its attractiveness to international investors. In January it signed a deal with the London Stock Exchange Group, the parent company of LCH.Clearnet, to promote international trading of futures and options on its main stock index and individual Turkish stocks. The contracts will be listed on LSE's derivatives exchange in the second half of the year, pending regulatory approval, and cleared by LCH.Clearnet.
