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Two of Europe’s biggest exchanges have conducted executive reshuffles as they prepare to make post-trade services such as clearing a bigger part of their businesses.
NYSE Euronext on Wednesday said Patrick Birley, the experienced exchanges executive, would head the commercial team of its expanded London-based clearing house when it goes into operation from June 2013.
At the same time John Tanner, post-trade business architect at the London Stock Exchange, departed at the end of last week, according to three people familiar with the situation.
The moves come as exchanges prepare to grab a slice of the emerging market for clearing of derivatives. The G20 countries have mandated that more over-the-counter derivatives are traded on electronic venues and processed through clearing houses, potentially opening up a market that had hitherto been dominated by banks.
This year NYSE has confirmed it will expand its NYSE Liffe Clear operations to become NYSE Clearing while the LSE is in the process of buying a controlling stake in LCH.Clearnet. Last week NYSE Liffe formally gave 12 months’ notice to LCH.Clearnet that the latter would no longer clear some of Liffe’s derivatives products.
Mr Birley has previously been chief executive of the UK arm of LCH.Clearnet, the Anglo-French clearing house, and chief executive of European Climate Exchange, which was bought by IntercontinentalExchange in 2010. In 2010 he briefly advised the LSE on its post-trade strategy.
Mr Birley has also worked at the London Metal Exchange and helped develop the South African Futures Exchange, later sold to the Johannesburg Stock Exchange.
Mr Birley will report to Mark Ibbotson, executive vice-president of Global Clearing, and work alongside Declan Ward, executive director and head of NYSE Liffe Clearing.
Mr Tanner, who has been at the LSE for more than 25 years, is the latest in a series of departures at the LSE, which is reorganising internally after a rapid three years of change as it diversifies beyond cash equities.
The deal to buy up to 60 per cent of LCH.Clearnet, which gave the clearer an implied value of more than €800m, is due to close at the end of the year. The LSE declined to comment.
Last month the LSE announced three high-profile departures – Doug Webb, chief financial officer; Kevin Milne, its head of post-trade operations and Tracey Pierce, head of primary markets. In their place it appointed David Warren, formerly the chief financial officer of Nasdaq OMX while Alexander Justham, once head of markets at the Financial Services Authority as chief executive of the UK business and head of regulation.