30 May 2017
Visit cib.db.com

EuroCCP to clear LSE trades

23 June 2014  |  1680 views  |  0 Source: EuroCCP

EuroCCP, Europe's largest cash equities central counterparty (CCP), announced that it will be clearing trades executed on London Stock Exchange (LSE) - the first of Europe's big national exchanges to open its trade feeds to competitive clearing by three interoperating CCPs.

EuroCCP will start clearing LSE trades after legal, connectivity and operational arrangements have been finalized and regulatory approvals have been received.

"Many market participants have been waiting to have more choice in where they clear trades executed on London Stock Exchange," said Diana Chan, CEO of EuroCCP. "The addition of EuroCCP to the central counterparties already available will bring the benefits of more competition together with reduced costs."

Advancing Interoperability
Three years ago, regulators approved interoperability among four cash equities CCPs, which allows firms to clear and net all trades through a single provider of their choice, reducing settlement fees and collateral and post-trade complexity.

EuroCCP has long been a supporter of interoperability, leading the initiative for trading platforms to open up to multiple CCPs. Alternative trading platforms, also known as multilateral trading facilities (MTF), were quick to see the benefits of interoperability.

EuroCCP, LCH.Clearnet and SIX x-clear are now interoperable on all the largest MTFs, which account for over 40% of all trades executed in Europe.

However, not all the interoperating CCPs have access to the same trading platforms. It is estimated that an additional 24% of trades executed in Europe could become available in this three-CCP interoperating arrangement if all the platforms that are cleared by at least one of the interoperating CCPs were to give equal access to all of them.

LSE's commitment to extend clearing choice to all interoperating CCPs may encourage market participants to urge additional national stock exchanges to review their clearing arrangements.

EuroCCP is equally owned by BATS Chi-x Europe, NASDAQ OMX, ABN AMRO Clearing Bank and The Depository Trust & Clearing Corporation (DTCC). 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit vasco.com/news/PSD2-compliant-solutionsvisit www.ebaday.comvisit dh.com

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
15170 views comments | 54 tweets | 82 linkedin
Did someone cancel the fintech revolution?Did someone cancel the fintech revolution?
8823 views comments | 34 tweets | 21 linkedin
R3 raises $107mR3 raises $107m
8102 views comments | 17 tweets | 16 linkedin
Digital payments to drive social justiceDigital payments to drive social justice
8044 views comments | 25 tweets | 12 linkedin
Bank of America preps data sharing serviceBank of America preps data sharing service
8022 views comments | 21 tweets | 19 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job