Source: EMCF
European Multilateral Clearing Facility (EMCF), which has one of the lowest overall cost per transaction of any European Central Counterparty, or CCP, today announces a considerable clearing-fee reduction and introduces a volume discount schedule. Together with its partner Multilateral Trading Facilities and exchanges, EMCF seeks to take the next step in developing the European equities market and facilitate further growth in trading and clearing volumes.
As from 1 July 2010, EMCF will charge €0.01 for all executions in excess of 100,000 per Clearing Participant per day and €0.03 for the first 100,000 contracts cleared, across all markets. This is a significant reduction of the already competitive clearing fee rate of €0.03 per contract cleared for the UK market, with all other markets priced at €0.05 per contract.
EMCF will maintain the optional order-based fee, at the adjusted rates of €0.03 for any order cleared in excess of the first 75,000 per Trading Participant per day and €0.05 for the first 75,000 orders cleared, across all markets.
"We are delighted to be able to offer our clients this new pricing schedule," said Jan Booij, CEO of EMCF. "Listening to our customers, we are continuously improving our services to them and offer those services at the most competitive prices available in the market. They will feel the benefit from the low-cost yet superior systems we use to service the rapidly growing markets. This new fee schedule is another example of the simplicity and transparency we always advocate."
EMCF amended its settlement management fee structure on 1 January 2010, resulting in an important reduction in the monthly charges.
Our strategy of offering low-cost, pan-European services has generated steady volume growth on the platforms serviced by EMCF. BATS Europe, Burgundy, Chi-X Europe, Nasdaq OMX Nordic Exchanges and Quote MTF will all benefit from the strong offering of EMCF and the connectivity to multiple markets. The fee schedule puts EMCF in a strong position to consolidate clearing volumes in Europe.
EMCF, the largest CCP for on-exchange European cash equities, continues to deliver low-cost CCP services for Europe. EMCF's clearing volumes on average reach 3.5 million trade sides on a European total of 10 million trades per day in 2010.
"We at Chi-X Europe are focused on lowering the cost of trading for our participants and are keen to see our partners doing the same," says Alassdair Haynes (CEO Chi-X). "EMCF's move today will benefit our participants and is good for the whole European market."
Andras Vajlok at NASDAQ OMX and Mark Hemsley at BATS share Mr Haynes' sentiment.
"This is a great step forward for the Nordic market," says Andras Vajlok, Head of Post Trade Solutions with NASDAQ OMX in the Nordics. "We at NASDAQ OMX are pleased the total cost of trading for the Nordic markets is lowered and is now on par with the rest of the European markets."
"We're pleased with EMCF's amended pricing and expect the new schedule to boost competition by encouraging greater liquidity," says Mr Hemsley at BATS.