Title: Paris-Based CCP to Launch in 2027 to Challenge Eurex and LCH in Clearing Market

NeoClear, a Paris-based central counterparty (CCP), has announced plans to launch a new service for clearing euro-denominated interest rate swaps in 2027, positioning itself as a challenger to established players Eurex and LCH.

The company was founded by Paul Whitehead, a former Citigroup trader and risk management expert, and Helena Frumson, ex-managing director at Numerix. NeoClear describes its approach as a “low-touch, high-tech” service designed to reduce cost and complexity in the clearing process.

The launch comes amid broader shifts in the European clearing landscape, driven by regulatory changes under the revised European Market Infrastructure Regulation (EMIR). EU policymakers have mandated that market participants maintain a portion of their interest rate swaps and futures in “active accounts” with European-based CCPs, aiming to reduce systemic risk from the concentration of euro swaps clearing outside the eurozone.

Currently, LCH Ltd, based in London and part of the London Stock Exchange Group, dominates the market, handling approximately 95% of euro-denominated interest rate swaps, according to data from Clarus Financial Technology. Eurex, Nasdaq Clearing, and BME are among the European CCPs seeking to capture market share under the new regulatory framework.

NeoClear’s entry adds to increasing competition in euro swaps clearing, a sector undergoing transformation as regulators push for more onshore clearing of derivatives. The company’s 2027 launch timeline aligns with the phased implementation of EMIR reforms, which are expected to reshape how interest rate derivatives are cleared across Europe.

While NeoClear has not disclosed specific pricing, technology partners, or initial client commitments, its founders emphasize that the platform will leverage automation and streamlined operations to differentiate itself from legacy CCPs. The success of the venture will depend on its ability to attract trading firms and banks seeking alternatives to the current market structure.