“It’s a game changer for Euronext, in terms of having the essential building blocks to grow our franchise and diversify away from equities and develop more derivatives clearing and other services,” said Anthony Attia, global head of derivatives and post-trade at Euronext.

It will complete the final part of the transition in the third quarter of 2024, when it migrates equity derivatives traded on its markets to Euronext Clearing.

Euronext markets — which include Paris and Amsterdam — account for one-in-four shares traded in Europe, according to data from Cboe.

With the completion of the equities migration, Attia told Financial News Euronext Clearing was now the third-largest clearing house in Europe; it expects to move into the number two slot once the derivatives migration is complete.

Attia said the clearing house is planning to launch several new offerings around the time or shortly after the derivatives transition is completed, with fixed income and commodities being priorities. Euronext Clearing will also look to clear equity derivatives not traded on its markets such as those on rival exchange Eurex.

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“We can’t say we are a strong European clearing house and not have a full European offering,” Attia said.  “This multi-asset class, multi-country dimension is important because that’s what makes the difference between a small niche clearing house and a top three EU one.”

In November, chief executive of Euronext Stéphane Boujnah, said the migration would allow Euronext to capture “100% of the revenues of cash equity clearing that in the past was collected by LCH SA”.

Euronext previously held a 11% in LCH SA, which was sold back to the London Stock Exchange for €111m in July.

LCH SA is the London Stock Exchange’s Paris clearing house which is overseen by the French financial regulator.

Euronext acquired its clearing house from the acquisition of Borsa Italiana for €4.4bn in 2021. Based in Rome, Attia said the team behind Euronext Clearing has grown to 130 as part of the group’s clearing business expansion.

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But while Euronext plans to offer a full suite of clearing products, Attia said it has no plans presently to go into clearing for euro swaps.

“That’s a conscious choice we made,” said Attia. “Not because we don’t think it’s critical but because we have so much work to do build Euronext Clearing, transform it into a pan-Europe clearing house and migrate Euronext markets.”

One of the last remaining vestiges of Brexit, the EU is currently debating how best to encourage euro swap clearing back onto the continent.

Traders have pushed back against any introduction of coercive regulation such as mandatory thresholds. European banks argue it would leave them constrained and disadvantaged compared to their non-EU peers.

LCH in London processes the overwhelming majority of euro swaps. Eurex is the only significant clearing house in the bloc to offer euro swap clearing services.

To contact the author of this story with feedback or news, email Jeremy Chan