ABN AMRO Clearing Bank N.V. announced today that it will consolidate the clearing of its UK equity trading with European Central Counterparty N.V. (EuroCCP) as of today.
EuroCCP is the largest cash equities central counterparty (CCP) in Europe. Since October 2015, EuroCCP has been providing CCP services to LSE's SETS and SETSqx order books, on an interoperable basis with LCH.Clearnet Ltd. and SIX x-clear.
Reducing operational risk ABN AMRO Clearing will direct all trades in UK stock to EuroCCP to maximise cross-platform netting.
All cleared trades in the same UK stock with the same settlement date executed on any platform, including LSE, will be netted into one single settlement obligation. This increases efficiency in back-office operations and reduces operational risk in the settlement chain.
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Avoiding multiple settlements for the same stock on the same day saves costs in post-trade activity considerably.
“Over the last 10 years ABN AMRO Clearing has supported innovative market initiatives that have brought more competition and resulted in extended functionality for all market participants”, says James Egan, CCO of ABN AMRO Clearing in Europe. “We will continue to invest in more efficient post-trade processing solutions. As a major global clearer, we want to contribute positively to systemic resilience and make financial markets infrastructures more sustainable. Supporting initiatives to minimise frictional
costs all through the value chain underlines our mission to make our clients globally competitive.”
Diana Chan, CEO of EuroCCP, adds: "We are delighted that ABN AMRO Clearing has chosen to clear its UK equity trades with EuroCCP. It's a clear endorsement that a wider choice of CCPs brings benefits to market participants. Thanks to market demand, as much as 65% of European equity trades can now be cleared with a choice of CCPs, ahead of MiFID II mandating trading platforms to give CCPs access to their trade feeds.”