Taking the slow road

Recent developments suggest that clearing is likely to gain widespread acceptance in the European energy market. Market participants feel it is a question of how and when – not if – robust, liquid solutions will emerge. By Joe Marsh

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While clearing has yet to gain serious momentum in Europe, the building blocks are gradually falling into place. London Clearing House (LCH) merged with Paris-based clearing house Clearnet in December. At the same time, Amsterdam’s APX Group signed an agreement to acquire London energy exchange UKPX, while LCH Clearnet will clear longer-dated gas and power contracts for UKPX from mid-2004 (see box, p.49).

Meanwhile, UKPX has extended its over-the-counter (OTC) clearing and notification

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