SIX x-clear Ltd, the Central Counterparty (CCP) and licensed Swiss bank, today announced an agreement to offer central clearing services for all trades conducted on UBS MTF, the new Multilateral Trading Facility (MTF) for European stocks.
Central clearing models are designed to mitigate Member counterparty risks and reduce settlement costs. This move will ensure customers benefit from netting, collateral management, margining and settlement for all securities traded on UBS MTF.
SIX x-clear supports UBS MTF's plans to offer a 'user choice' model that will add EuroCCP as an additional CCP once the industry regulatory review allows further moves towards interoperability. Interoperability enables Member firms to consolidate clearing for scale benefits across multiple markets into the CCP that is a Member's commercial and functional profile.
Marco Strimer, CEO of SIX x-clear, commented: "With the regulatory spotlight firmly placed on clearing and more specifically interoperability, offering clearing services and supporting UBS MTF is another important step in our market coverage and will provide clients with the opportunity of clearing choice on a wider number of venues. We believe that past events have highlighted the benefits of the centralised clearing model. We look forward to working with UBS MTF and providing clients with the opportunity to consolidate clearing across another venue and asset class."
Robert Barnes, CEO of UBS MTF, commented: "UBS MTF is committed to greater simplicity, lower transaction costs and reducing market impact that drive market efficiencies. We look forward to working with SIX x-clear to reduce post-trade settlement risks and enhance scale benefits for Members."