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Clearnet SA and the London Clearing House (LCH), are creating a consolidated European clearing house that will be the largest central counterparty in Europe for capital, energy and commodity markets, cash and derivatives, traded on regular exchanges and the OTC market.

A joint venture

is expected by early 2001, with a full merger to follow. It will be user-governed, market and settlement independent and open to all markets and trading systems, including other European clearinghouses. Clearnet and LCH will allow clearing under English or French law, giving the market jurisdictional choice regardless of trading location. It is hoped that these arrangements will be expanded to include other European jurisdictions.

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