Germany's Deutsche Börse has made formal requests for interoperability and mutual access to exchanges, clearing houses and settlement platforms in five European markets under the new voluntary code of conduct.
In a statement Deutsche Börse says it wants to expand its post-trade services for equities trading in the UK, France, the Netherlands, Belgium and Portugal.
The exchange's Eurex Clearing and Clearstream subsidiaries have made formal requests for access and interoperability to the London Stock Exchange, Euronext Paris and Euronext Amsterdam, LCH.Clearnet Group, Interbolsa and the Euroclear Group.
If the requests are granted, Eurex Clearing will be able to act as an ACH for LSE and the two Euronext exchanges. In addition, international depository Clearstream - which already provides custody services in all five markets - says it will extend its services to support "the on-exchange trading of its customers on these platforms".
The code of conduct on clearing interoperability was agreed by securities markets participants under the threat of legislation from the European Commission, which was concerned about the high costs of share trading across European border.
Earlier this week Eurex Clearing and SIS x-clear said they were working together to secure full interoperability and mutual access to the virt-x exchange and the Frankfurt Stock Exchange. 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.
Commenting on the latest move by Deutsche Börse, Thomas Book, who is responsible for clearing on the Eurex executive board, says: "Clearing links to the UK, French and Dutch markets, as well as the link to Switzerland announced this week and the existing service for Germany and Ireland will allow us to offer equities clearing for more than 80% of the European blue chips listed on the Dow Jones STOXX 50. This means that we are systematically implementing our strategy of offering our clients clearing access to all relevant 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.