The NYSE Euronext’s international derivatives market, Liffe, is planning to create a new clearing facility.

Liffe announced that, following approval from the board of LCH.Clearnet Group Ltd, it will negotiate a new contract with LCH.Clearnet that will enable it to manage its London clearing operations directly. Liffe’s proposal will create a new central counterparty, LiffeClear, for the exchange, with LCH.Clearnet continuing to provide risk management and guarantee functions for the market.

The exchange says that, as a result, Liffe will be able to develop further its service to customers and compete on a level footing with other futures exchanges that own their own clearing houses.

Hugh Freedberg, group executive vice president and head of global derivatives at NYSE Euronext said, “I am very pleased that the board of LCH.Clearnet has agreed to this important change. The direct relationship that LiffeClear will give us with our clearing customers will enable us to invest in additional post-trade services. We are looking forward to concluding our negotiations of a new mutually beneficial relationship with LCH.Clearnet.”