The LCH.Clearnet Group is to release the findings of its review on the creation of a single pan-European Central Counterparty (CCP) for clearing, according to an industry official. The official said (LCH). Clearnet Group is looking into the idea of a single CCP after the European Commission's Internal Market and Services Commissioner Charlie McCreevy raised the subject last year. CCP is a clearing and settlement facility. It often interposes itself between trade counterparties, taking on the trade obligations of trade counterparties to each other.

Andrew Lam, chief executive of LCH Clearnet Ltd, formerly known as The London Clearing House Ltd., who left the company after over 12 years on Friday, said that there is a big push from the markets for a consolidation of the big European clearing houses. In September, McCreevy said in a speech that the securities industry must do more to cut costs for cross-border trading in the EU or face regulation on clearing and settlement, adding that the "clock is ticking" because the next six months are crucial. McCreevy said that cross-border clearing and settlement costs can still be up to six times more than those of domestic settlements and that the Commission is taking a close look at the economic case for action, which could include new legislation.

The Commission was also granted authority by the Council to open negotiations to discuss making it easier to hold and transfer securities at a worldwide level late last year--with negotiations taking place within the International Institute for the Unification of Private Law (CR, 12/23). Catherine Bunyan, Commission spokeswoman, said the Commission is currently carrying out an impact assessment, but little had changed since November in that the Commission believed the problem required a market solution.

The London Clearing House and Clearnet S.A. merged to form the LCH.Clearnet Group. Both LCH.Clearnet Ltd., and LCH.Clearnet SA (formerly Clearnet) are leading CCP clearing houses in Europe.