We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

London Stock Exchange targets improved IT purchasing scale with LCH.Clearnet stake

LSE will also stick with LCH.Clearnet's extensive system deduplication programme

The London Stock Exchange - which today announced it was taking a 60 percent controlling stake in clearing firm LCH.Clearnet, for £386 million - is expecting to draw on its larger scale for improved IT purchasing.

The exchange, which has made the move in order to give itself a place in the competitive clearing market, said it was taking a number of steps to make the most from technology.

The exchange said it expected that the new group will achieve more efficiency "through scale benefits (including through the sharing of some internal support services), further enhancing IT project management and through a joint purchasing approach in areas such as IT".

It added that the group "will be highly dependent on the development and operation of sophisticated technology and advanced information systems".

LCH.Clearnet is in the middle of a plan called 'One Firm', under which it is developing a single infrastructure "by reducing the costly duplication of systems", said the exchange, which vowed to continue with the programme. LCH.Clearnet expects to save £29.8 million in costs by the end of the year.

"LCH.Clearnet's current strategy is to deliver increased efficiencies, de-duplication of technologies and enhanced risk and collateral management services through its transformation plan. [The LSE] supports LCH.Clearnet's strategy and endorses [its] commitments to reducing costs, which will remain a key priority for the enlarged group's business following completion," the exchange said.

It added: "The implementation of the LCH.Clearnet Group fixed income platform has already commenced and a further 37 LCH.Clearnet Group-wide applications have been identified for de-duplication. In addition to the IT cost efficiencies, there are multiple process efficiencies under consideration."

IDG UK Sites

How to use an Apple Watch: Everything you need to know about the Apple Watch

IDG UK Sites

Why Scottish Tablet is better than the iPad mini

IDG UK Sites

How Microsoft's HoloLens AR headset will work without needing a computer or phone

IDG UK Sites

Apple MacBook 1.1 GHz review (Retina, 12-inch, Early 2015): The future of Apple laptops