BClear extends into Russian and eastern European stocks

London-based derivatives exchange Liffe added various Russian and eastern European equities to its BClear platform on December 5. The platform provides exchange-like clearing to wholesale over-the-counter equity derivatives trades.

The new listings include 14 Russian single-stock futures, as well as equity options on the London Stock Exchange-listed depository receipts of Moscow-based energy firms Gazprom, Lukoil and Rosneft. Single-stock futures on 31 Czech, Hungarian and Polish stocks have also been listed on the platform.

The expansion comes after Liffe added 94 US single-stock futures to BClear on November 21. Ade Cordell, the bourse’s head of equity derivatives wholesale services, said: “Our customers are saying they have a global portfolio, and after the US, the most pressing need for them was Central and Eastern Europe.”

No trades had been registered on the new Czech, Hungarian, Polish and Russian offerings by December 6, according to Cordell. He predicted volumes on the products would pick up in 2008.

BClear now covers 850 equities in 21 countries, including single-stock futures, European equity index futures and index variance futures.

Cordell claimed BClear would expand into asset classes other than equity in 2008, as well as including stocks in new countries and additional Russian equity options.

In September, Liffe listed a future linked to a bespoke index on BClear for the first time with JP Morgan. Cordell added the exchange was in discussions with other market participants aimed at adding similar products to BClear in future.

The JP Morgan Ipox Europe 50 Index consists of the top 50 European equities that have been involved in an initial public offering or a spin-off on a European stock exchange over the past 1,000 trading days.

See also: Liffe lists JP Morgan index future on BClear
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