Anglo-French clearinghouse LCH.Clearnet has signed a pact with 10 of the world’s largest credit default swap dealers to use its new solution for CDS clearing, as it throws down the gauntlet to market-leader InterContinental Exchange.

Dealer members of the Paris-based service, CDSClear, will be able to clear 129 CDS index-based contracts across Europe. Clearing for single-name corporate CDS contracts, as well as a clearing solution for dealers' clients such as hedge funds and proprietary trading firms, are expected to follow in the second half of 2012.