Europe's top cash equities central counterparty clearing (CCP) company, EMCF (European Multilateral Clearing Facility), announced today it has appointed Deutsche Bank as settlement agent in Czech, Hungarian and Polish markets.
The appointment was driven by Deutsche Bank's Central and Eastern European (CEE) market knowledge, strong position in the markets and strategy.
The appointment of Deutsche Bank as settlement agent follows the announcement made by NASDAQ OMX Europe ("NEURO") in September last year that it would begin trading blue-chip securities listed on Budapest Stock Exchange, Warsaw Stock Exchange and Prague Stock Exchange and appointing EMCF as its CCP partner, both being the first to offer those services in CEE markets.
"The launch of CCP services will significantly mitigate counterparty risks in the region and provide low settlement fees, thanks to the netting capability provided by EMCF. This launch coupled with our work in helping to change the tax regime in Poland so that international investors are on an equal footing to domestic investors, demonstrate our commitment to the region. We are proud to have Deutsche Bank as a partner in this dynamic market," said Jan Booij, Chief Executive of EMCF.
EMCF was among industry participants in a recent hearing before the Public Finance Committee of the Polish Parliament that resulted in proposed changes to stamp duty that will, if passed, exclude international companies from duties on most equity trades.
"Expansion of trading into CEE markets is a natural step in NEURO's pan-European strategy", said Charlotte Crosswell, President of NASDAQ OMX Europe. "We will be the first MTF to offer trading in these markets, bringing greater efficiencies to customers through lower transaction costs and world class technology," Crosswell added.
"Deutsche Bank is delighted to have been selected as a partner to EMCF in Eastern Europe. We see EMFC as a key facilitator to tapping new pools of liquidity for these three exciting markets - thus bringing new investors into the region," says Michael Aschauer - Regional Head of Austria and Eastern Europe. "The collaboration between the 2 institutions and a consultative approach helped make this innovative mandate possible," he added.
EMCF will offer CCP services in the region in first quarter of 2010, subject to regulatory approval and implementation of the new Polish tax laws.