EuroCCP, the pan-European cash equities clearing house, has signed a memorandum of understanding (MOU) with Pave, (Plataforma Alternativa de Valores Españoles), Spain's first multilateral trading facility (MTF), to become the clearing house for Pave's trading.
The MOU establishes EuroCCP as the first clearing house to provide services to a Spanish trading platform and secures the company's position as a leading clearing house in the Spanish market.
EuroCCP is the European clearing subsidiary of The Depository Trust & Clearing Corporation (DTCC) and currently clears trades in more than 4,000 securities, making it one of the main cash equities clearing houses in Europe, with 26 participant members.
The PAVE trading platform, which was conceived in August 2010, aims to provide liquid, efficient, ultra-fast and secure international trading of Spanish securities. PAVE, expected to become operational in the second half of 2011, will be Spain's first alternative trading platform.
Diana Chan, CEO of EuroCCP, said, "I am delighted that PAVE has chosen EuroCCP as its partner in establishing Spain's first alternative trading platform. PAVE's presence will increase competition, helping price formation and improving efficiency in the Spanish market. We believe our high level of customer service, comprehensive approach towards risk management and competitive pricing model will bring great value to this new MTF and its customers."
Javier Tordable, founding partner and CEO of PAVE, stated, "PAVE seeks to increase liquidity in Spanish equities and bring international traders to the market. As such, it is vital that we develop a relationship with a clearing house that will help us to achieve our ambitions. Despite strong competition, EuroCCP has demonstrated that it is the most efficient CCP to provide clearing services for trades executed on PAVE."