Bats Chi-X Europe rolls out four-way clearing interoperability

Bats Chi-X Europe rolls out four-way clearing interoperability

Bats Chi-X Europe has become the first trading platform operator to offer its customers the choice of four different clearing providers.

The operator is now providing four-way interoperability, letting users choose from EMCF, EuroCCP, LCH.Clearnet and SIX x-clear.

Traders and operators have spent years lobbying for clearing interoperability as a way to reduce post-trade costs. Agreement was reached within the industry some time ago but progress has been stymied over the last couple of years by regulators' concerns about the associated systemic risks.

However, in recent months there has been a breakthrough and both Bats and Chi-X had committed to interoperability before the former completed its takeover of the latter in November.

Mark Hemsley, CEO, Bats Chi-X Europe, says: "This launch is the culmination of efforts by Bats Europe and Chi-X Europe, as well as the CCPs, to bring about a competitive clearing model to further reduce post-trade costs associated with European equities. We continue to encourage our participants to demand clearing choice from all exchanges and MTFs."

Diana Chan, CEO, EuroCCP, adds: "Following the success of preferred interoperability, EuroCCP is looking forward to seeing four way interoperability on Bats/Chi-X finally deliver to market participants the economic benefits of true competitive clearing."

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