13 February 2016

EMCF and EuroCCP agree merger

14 March 2013  |  4700 views  |  1 EU flag

Pan-European cash equities clearing houses EuroCCP and the European Mulitlateral Clearing Facility (EMCF) have agreed to merge their operations.

Under the agreement, ownership of the new venture will be split evenly between four players: the DTCC, which owns EuroCPP; current EMCF owners ABN Amro Clearing Bank and Nasdaq OMX; and new partner Bats Chi-X Europe.

Called EuroCCP and headquartered in Amsterdam, the new entity will be led by current EuroCCP CEO Diana Chan, with EMCF chief Jan Booij acting as COO, subject to regulatory approval.

The partners say that the new clearing house will use the risk management framework and customer-service organisation of EuroCCP but run on the technology and operations infrastructure of EMCF.

The deal means that clients will benefit from substantial settlement cost savings, reduced collateral obligations, removal of one set of membership fees, improved IT, and lower connectivity expenses, claim the firms.

Says Booij: "This is not only a transformational initiative for EMCF and EuroCCP but for the industry. It will enable us to provide more flexible and innovative clearing services to all clients, while our sustainable business model will ensure costs are kept low and will provide the very best in risk management, technology, settlement and client service."

Chan adds: "The new CCP will lead the way in encouraging greater competition between all cash equity clearing houses while driving down costs. Following the launch of four-way interoperability, the industry must now consolidate in Europe to achieve economies of scale and respond to the changing needs of market participants."

Comments: (1)

A Finextra member
A Finextra member | 14 March, 2013, 14:21

Good thats a start now more consolidation will give the industry what it needs. The benefits described in this merger equally applies to the industry as whole. So more consolidation please

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

09 January, 2012
12 May, 2011
02 July, 2009
17 June, 2009
03 February, 2009
16 October, 2008
01 November, 2007

Related company news


Related company information

ABN Amro

Top topics

Most viewed Most shared
UK sets out open banking API frameworkUK sets out open banking API framework
15418 views comments | 100 tweets | 89 linkedin
Deutsche Bank calls for co-operation with fintech firms on B2B servicesDeutsche Bank calls for co-operation with...
8415 views comments | 28 tweets | 30 linkedin
How to accelerate your fintech startupHow to accelerate your fintech startup
8029 views comments | 34 tweets | 9 linkedin
Is Paym a failure?Is Paym a failure?
6804 views 16 comments | 23 tweets | 16 linkedin
Visa issues API to offer consumer control over card transactionsVisa issues API to offer consumer control...
6279 views comments | 17 tweets | 28 linkedin

Featured job

up to £95K base, £190K OTE, benefits
London, UK

Find your next job