EuroCCP and Turquoise today announce they have expanded their respective clearing and trading services into two additional markets, Hungary and the Czech Republic.
The move makes Turquoise the first multilateral trading facility (MTF) to offer trading and EuroCCP the first pan-European CCP to offer clearing services in the 25 components of the main Hungarian and Czech indices-the BUX and PX indices, respectively.
EuroCCP's clearing services for Hungary and Czech Republic securities are open to any trading venue to which it is linked that offers trading in these securities.
Turquoise will offer trading in the Hungarian and Czech securities cleared through EuroCCP from 26 February. The service further extends Turquoise's pan-European equities, ETF and ETC coverage.
This service extension marks the latest in an ongoing series of enhancements EuroCCP is bringing to Europe's clearing space. Earlier this year, EuroCCP launched clearing services for listed Currency ETCs. EuroCCP's expansion delivers the efficiency and risk mitigation benefits of central counterparty clearing to a widening array of investors' transactions.
With the addition of Czech and Hungarian securities, EuroCCP's market coverage grows to encompass securities issued in 17 national markets and traded in nine different currencies.
EuroCCP has further extended its relationship with Citi's Global Transaction Services, by appointing Citi as EuroCCP's settlement agent for these securities.
Commenting on EuroCCP's expanded service offering, Andrew Simpson, head of EuroCCP Product Management in London, said: "EuroCCP is continually diversifying the markets and instruments we cover, in response to investor demand. With the addition of Czech and Hungarian equity issues, we're offering European market players the opportunity to invest in a larger variety of securities in a safe environment, where counterparty risk protection is available on all trades."
David Lester, CEO of Turquoise, commented: "We are delighted to be the first pan-European trading platform to launch trading in Hungarian and Czech equities, further extending the choice of securities for our clients. Through these clearing arrangements, clients will benefit from the same differentiated value and risk-managed clearing and settlement solution offered currently for our existing European markets."
The securities newly eligible for clearing through EuroCCP include 12 Hungarian ISINs and 13 Czech ISINs . To view the list of eligible ISINs, please go to euroccp.co.uk.