LCH.Clearnet and the European Multilateral Clearing Facility have signed a master link agreement to achieve interoperability by November 2009.

In November trading participants on Chi-X and Bats Europe will be able to choose where their UK and Swiss equity trades are cleared, which the companies says will maximise value to users and ensure the highest standards of risk management.  

Interoperability will bring advantages to the European equities environment, delivering greater efficiency, reduced costs and a wider choice of clearer for the trading community, the companies say.

Wayne Eagle, director, equity services at LCH.Clearnet, says: “We have made excellent progress since we first announced our plans to interoperate with EMCF only four months ago. Our aim is to deliver the benefits of clearing interoperability as soon as possible and in signing this agreement, we are another step closer.”

Jan Booij, chief executive of EMCF, says: “Clearing interoperability will create a more open and transparent clearing process, and offer much greater choice for clients. This is an important step for the industry. ”

The arrangement between LCH.Clearnet and EMCF is in line with the Access and Interoperability Guidelines within the European Code of Conduct and is subject to regulatory approval.