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LCH and Cleartrade partner for commodity futures

First Published 1st December 2014

Cleartrade Exchange selected for all LCH.Clearnet commodity future trades.

Richard Baker, Cleartrade Exchange

Richard Baker, Cleartrade Exchange

"I am certain that the evolution of these markets will create an even closer co-operation between LCH and CLTX..."

Cleartrade Exchange (CLTX) the Singapore regulated futures exchange, has announced it will provide trade registration and execution services for all LCH EnClear futures contracts.

The exchange has advanced STP connections to the Enclear systems meaning 95% of trades are novated instantly, significantly reducing time between execution and clearing.

Isabella Kurek-Smith, director, head of Freight and Commodity Markets at LCH.Clearnet said: "The transition from OTC contracts to futures is a significant milestone for the industry, giving our members and customers even greater regulatory oversight."

CLTX is a Singapore regulated futures market with reach in EEA, Switzerland and the US. It will be the only exchange to offer futures and options contracts on freight, fertiliser, iron ore, steel, coal and container freight for clearing at LCH.

"CLTX and LCH first collaborated in 2011, since then we have enjoyed a close and successful relationship which has seen over 1.5 million FFA and Fertiliser lots of CLTX transactions novated to and cleared at LCH," said Richard Baker, chief executive, CLTX.

"I am certain that the evolution of these markets will create an even closer co-operation between LCH and CLTX and will allow us not only to boost volumes and liquidity but also to extend the outstanding service that our relationship provides to many more organisations in the future," he added.