LCH.Clearnet, Europe’s largest clearer, is to overhaul its core clearing systems in a bid to see off the growing threat of competition from new rivals and clients, including the London Stock Exchange, less than 18 months after it wrote off a €48m ($60m) technology project.

The Anglo-French clearing house, which clears trades on the LSE, NYSE Euronext and derivatives market Liffe, has started talks with leading systems companies about the development of a platform to replace its main systems, a project valued by one exchange analyst at about €50m.