All securities in continuous trading mode
Liquid shares and bonds; eligible with LCH.Clearnet SA, Euroclear Bank and Clearstream Banking Luxembourg, and the bridge solution
Post-trade activities, under the guaranteed and pass-through schemes, are carried out in conjunction with LCH.Clearnet SA for clearing and with Euroclear Bank and Clearstream Banking Luxembourg for settlement. Under the bilateral settlement scheme, other Central Securities Depositories (CSDs)/International Central Securities Depositories (ICSDs) may be accepted."
We classify financial instruments in several trading groups according to the type of product, their currency, liquidity, and several other characteristics.
Each security can be traded only in one channel at a time (‘bilateral’, ‘pass-through’ or ‘guaranteed’), according to its trading classification. However, we may move a security from ‘pass-through’ to ‘guaranteed’ classification if its liquidity changes or on a market-maker’s request.
For more information check the appendix to our trading manual
LCH.Clearnet SA operates as a central counterparty (CCP) and therefore ensures that trades are cleared rapidly and cost-effectively. The novation process – the interposition of the CCP between buyers and sellers – allows members to profit from post-trade anonymity, netting and counterparty risk protection, leading to an improved liquidity and price formation.
LCH.Clearnet SA carries out its activities via indirect and direct relationships with members of LuxSE:
The difference: GCMs may clear their own trades and trades executed by NCMs while ICMs can only clear their own trades.
|Advantages of the CCP System|
|Bilateral||Non-guaranteed (Pass through)||Guaranteed (Central contreparty)|
|Delivery versus Payment|
|Anonymity of transactions|