The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Spain throws down a vertical challenge

The arrival of a new clearing house in Spain challenges the balance of power in Europe. Can it succeed against competitors such as LCH.Clearnet that are pushing for a horizontal solution?

JUST WEEKS AFTER the London Clearing House and Clearnet announced their merger and celebrated their contribution towards a pan-European securities infrastructure, Spanish securities trading group Meff revealed details of a plan to set up a rival European clearing network.


It is rejecting the trend towards horizontal ownership in securities trading and processing and, in the words of one banker, "doing a Germany" by setting up a vertical structure. Critics say this is yet another example of Spanish protectionism. Supporters say it will enhance Spanish debt's liquidity. Either way, it could provide interesting competition.

It was known for months that such an announcement was on its way. The establishment of a new clearing entity in Spain required a change in the country's law, which was passed in November 2002. And the Meff Group was authorized to provide this new service in June 2003.

Long on ambition But what the announcement lacked in surprise, the details make up for in ambition. Meffclear started on September 18 by clearing the repo traded on the Senaf electronic platform for Spanish government debt.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree