EuroCCP, the pan-European cash equities clearing house, today received authorisation from the UK's Financial Services Authority to clear under interoperable arrangements for BATS Europe and UBS MTF.
Commenting on the announcement, Diana Chan, CEO, EuroCCP said, "The approval from the FSA is the final step towards making interoperability a reality. EuroCCP has been a long-term supporter of interoperability as it will enable clients to benefit from greater choice of clearing venues and lower clearing and trading costs."
Following the FSA authorisation, EuroCCP's Preferred Interoperable Clearing Service will go live on Friday 29 July. The service will be launched by BATS Europe whereby trading firms can elect a preferred CCP to clear their trades.
Under the new Preferred Interoperable Clearing Service, if trading firms on both sides of a trade have selected a preferred CCP, then each side will be cleared by the respective CCP the firm has chosen.
The approval of interoperable arrangements for UBS MTF means that firms trading on UBS MTF will be able to choose EuroCCP to clear their trades as it now interoperates with the incumbent CCP.