Euroclear Bank, the European central securities depository, has launched a service to settle London Stock Exchange trades for non-UK banks, the latest step in its drive to reduce the high cost of trading outside investors' home markets.

Settlement of LSE trades through Crest, the UK settlement house, is relatively cheap for UK-based firms. However, firms outside the UK must use a chain of intermediaries to use the settlement system. Most of these firms already have accounts with Euroclear, whose new service will prevent them from having to use other intermediaries to settle in Crest.