29 April 2017
Find out more

Bats Chi-X Europe extends interoperable clearing to ETFs and ETPs

14 July 2014  |  1245 views  |  0 Source: Bats Chi-X Europe

Bats Chi-X Europe, Europe's leading stock exchange, has extended interoperable clearing to include exchange-traded funds (ETFs) and exchange-traded products (ETPs), as it continues its campaign to address inefficiencies in the European market so as to increase participation and liquidity for all investors and traders.

Effective Monday, 21st July 2014, trading participants will be able to select one of three central counterparties (EuroCCP N.V., LCH.Clearnet Ltd, or SIX X-Clear) to clear their trades executed on BATS' order books. The change, which brings the clearing and settlement treatment of ETFs and ETPs in line with other equity trading activity on BATS, will allow participants to net their ETF/ETP trades executed on BATS with their trades that are executed on other venues.

Given as much as 70% of all European ETF trading occurs over-the-counter, BATS has also made the interoperable model available to participants using the Exchange Trade Reporting capabilities within BATS' market-leading BXTR suite of products. This will allow customers and their clients to realise significant collateral, risk and cost benefits.

Guy Simpkin, Head of Business Development at BATS said: "As the original architects of the interoperable clearing model, we are encouraged that regulators have realised its huge potential in reducing cost and increasing market efficiency in the European ETF and ETP market, which equates to meaningful reform and is long overdue.

"The European ETF market is around a tenth of the size of its US equivalent, and changes to simplify market structure will enable it to grow in size and efficiency. We pursued our Registered Investment Exchange license, which is now a year old, with the explicit intention of improving the European ETF market and the momentum we've achieved so far reflects our commitment to reform this critical element of the market."

In June, BATS in partnership with Euroclear Bank, announced the first exchange-traded fund to be listed on the exchange with an international securities structure. BATS is also the only exchange signatory on a recent industry letter sent to ESMA calling for greater transparency in the European ETF market. As of July, five ETFs are listed on BATS, with a further 1,017 available to trade. 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out morevisit dh.comVisit capgemini.com

Top topics

Most viewed Most shared
Six global banks join Swift DLT trialsSix global banks join Swift DLT trials
7882 views comments | 16 tweets | 36 linkedin
BBVA steps up fintech acquisition strategy with purchase of OpenpayBBVA steps up fintech acquisition strategy...
7060 views comments | 17 tweets | 16 linkedin
JPMorgan formally quits R3JPMorgan formally quits R3
6394 views comments | 25 tweets | 14 linkedin
Should central banks open up payment and settlement systems to non-banks?Should central banks open up payment and s...
6188 views comments | 22 tweets | 21 linkedin
Token raises $15.7 million as PSD2 approachesToken raises $15.7 million as PSD2 approac...
5981 views comments | 20 tweets | 20 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job