Eurex Clearing and SIS x-clear agree interoperability pact

Eurex Clearing and SIS x-clear agree interoperability pact

European clearing houses Eurex Clearing and SIS x-clear say they are working together to develop and secure full interoperability and mutual access to the virt-x exchange and the Frankfurt Stock Exchange.

SIS x-clear - which is owned by Swiss Exchange - and Eurex Clearing - which is jointly operated by Deutsche Borse and the Swiss Exchange - have requested mutual "transaction feed access" from the respective exchanges.

This will allow respective clients to process transactions on Xetra or on the Frankfurt Stock Exchange trading floor via SIS x-clear, and on virt-x via Eurex Clearing.

The partners say they are currently working on solutions for mutual clearing access for the project, which was launched in 2006 after the signing of the European Code of Conduct, which aims to cut the cost of trading shares across borders by providing more transparency and competition into clearing and settlement operations.

Marco Strimer, CEO of SIS x-clear, says: "At as early as the end of 2006, SIS x-clear approached Deutsche Börse and Eurex Clearing in order to achieve interoperability. The partners are now working on common solutions for open and mutual clearing access in line with the principles of equality and reciprocity."

Thomas Book, who is responsible for clearing on the Eurex executive board, adds: "We want to offer our clients clearing access to the relevant markets. The cooperation with SIS x-clear and virt-x is a further step towards achieving this goal for the European markets."

Last month LCH.Clearnet said it had issued formal requests to both Deutsche Börse and Borsa Italiana for full interoperability with Eurex Clearing and Cassa di Compensazione e Garanzia respectively.

LCH.Clearnet said the link up would enable market participants to consolidate clearing of cash equities traded on four separate European markets - London Stock Exchange, virt-x, Deutsche Börse and Borsa Italiana - at LCH.Clearnet.

Michael March, director, corporate communications, LCH.Clearnet, told Finextra that the company had received the requisite acknowledgement and "positive indications" from the two exchanges.

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