The project, which began as a result of the merger between London Clearing House and Paris-based Clearnet in 2003, was intended to lower costs for customers through the development of a single integrated IT platform across markets and securities. None of the projected customer-savings have been realized.
Following a review of the GCS program in 2005, LCH Clearnet wrote off E20.1 million in technology costs. In 2006, an impairment charge of E47.8 million was recognized and will be reported in the group’s half year results to be published in August.
Commenting on the decision, Chris Tupker, chairman of LCH.Clearnet group, said, the nature of the GCS design resulted in an over-complex solution both in terms of on-going production support, operability and development. Our short term focus will now be on the development of our existing systems so that our customers can continue to rely on our technical service with confidence.
Tupker says the board has asked newly appointed CEO Roger Liddell to prepare a long-term strategy for the group.
