EMCF and EuroCCP today announce that the Office of Fair Trading (OFT), the UK's consumer and competition authority, has recommended an unconditional clearance for the two clearing houses to combine to form a new pan-European cash equities clearing house that builds on the strengths of both firms.
In March 2013, EMCF and EuroCCP announced plans to combine their strengths and capabilities to form a new entity, to be called EuroCCP N.V., that will deliver greater efficiencies and sustainable competition to the pan-European market place. The deal was formally referred voluntarily to the OFT in August 2013.
Diana Chan, CEO, EuroCCP and CEO designate of the new company, said: "We are grateful to the OFT for reaching a swift decision in relation to combining EMCF and EuroCCP and we are pleased that their conclusions support our own assessment that bringing the two companies together is in the best interests of competition in the clearing of European cash equities."
Jan Booij, CEO of EMCF and COO designate of the new company, said: "We will now focus on completing the transaction and delivering the best practices of both companies to all of our customers as well as providing sustainable competition to the European clearing market."
The transaction is now expected to complete as soon as all other regulatory approvals for the new shareholders have been received.
Current owners of EMCF - ABN AMRO Clearing Bank and NASDAQ OMX - and current owner of EuroCCP - The Depository Trust & Clearing Corporation (DTCC) - along with BATS Chi-X Europe, will be equal shareholders in the new combined clearing house.