Euronext Announces Expansion of Euronext Clearing to Euronext Derivatives Markets for Q3 2024

Euronext, the largest stock exchange in Europe, announced its plan of migrating derivatives markets to Euronext Clearing in the third quarter of 2024.

The clearing activities of Euronext's cash and derivatives flows are currently operated by third-party providers. In November 2021, the exchange announced that it would be internalizing these activities. As a result, Euronext Clearing will become Euronext's CCP of choice for cash equity, listed derivatives and commodities markets.

On November 3, 2022, Euronext confirmed the first phase of the expansion of Euronext Clearing with the expected positioning of Euronext Clearing as the Euronext CCP of choice for its cash equity markets by the end of the fourth quarter of 2023.

By Q3 2024, Euronext is expected to migrate the listed financial derivatives and commodities markets of its subsidiaries including Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Oslo Børs and Euronext Paris from LCH SA, a third-party clearing house, to Euronext Clearing.

The migration of Euronext-listed derivatives and commodities markets is the final step in Euronext Clearing's European expansion and is part of Euronext's "Growth for Impact 2024" strategic plan. Euronext and LCH SA will work together to ensure this migration goes orderly.

Meanwhile, Euronext has decided to terminate the existing agreement with LCH SA early as Euronext Clearing starts to carry out derivatives clearing services in Europe, and issued a notice of termination to LCH SA on January 16, 2023.

To this end, Euronext will pay LCH SA a termination fee of approximately EUR 36 million in 2024. Following the notification of the early termination of the Agreement, LCH Group, the parent company of LCH SA, has the option to repurchase Euronext's 11.1% stake in LCH SA. Further communications on the stake will be made in due course.

The termination of the Agreement does not impact the existing clearing agreement signed between MTS S.p.A and LCH SA nor the existing agreement related to the interoperability link on Italian Government Bonds between Euronext Clearing and LCH SA.