Rainbow awaits LCH decision as board reconvenes next week (free)
LCH Clearnets board has failed to reach a decision over whether to clear contracts of a newly planned platform, Project Rainbow.
The board sat through most of the day locked in talks over its potential to act as clearinghouse to Project Rainbow, which will look to rival Liffe by launching sterling and Euribor contracts.
LCH Clearnets indecision is believed to have been forced upon by Liffe placing pressure on it, as one of its shareholders, not to service a project that will ultimately compete with it.
LCH Clearnets board met today and will meet again next week to continue with its agenda, a spokesman for the clearinghouse told FO Week.
Project Rainbow is made up of a number of large FCMs and has been in development since mid-2007. If it fails to attract LCH Clearnet as its clearinghouse its is highly suspected that it will turn to Eurex as clearinghouse.
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