LCH.Clearnet, Europe's largest clearer, has become the latest supplier of services to banks and brokers trading on exchanges to move further into the expanding over-the-counter markets, launching a clearing service for bonds.

The clearer, which has its centres in London and Paris, is to launch on January 2 next year a clearing service for French government bonds, a move LCH.Clearnet claims will reduce the risk of trading in the OTC market.