EuroCCP's Reach
EuroCCP, DTCC’s European subsidiary, is a Recognised Clearing House regulated by the Financial Services Authority. Headquartered in London, it has signed the European Code of Conduct governing clearing and settlement.
EuroCCP was launched in August 2008 initially to provide clearing and settlement services for Turquoise, a multilateral trading facility (MTF) owned by a consortium of nine leading banks. In February 2009, EuroCCP launched clearing and settlement services for NYSE Arca Europe, a high-frequency trading platform owned by NYSE Euronext, and SmartPool, a dark pool owned by NYSE Euronext, BNP Paribas, HSBC and JP Morgan. In addition, EuroCCP is working to develop a CCP solution for the U.K. business of SecFinex, a securities lending trading platform owned by NYSE Euronext, Fortis and Société Générale.
EuroCCP participants are able to trade on any of the platforms EuroCCP clears for and, in all markets except the U.K. and Ireland, have the trades in the same security on the same day netted into one settlement obligation and margin requirement.
When EuroCCP in early 2007 was selected by its first platform customer, Turquoise, among several CCPs already active in Europe at the time, Turquoise cited EuroCCP’s ability to deliver immediate economies of scale. EuroCCP is able to continuously offer low-cost, robust clearing services in Europe through its at-cost business model structured after parent DTCC. DTCC provides EuroCCP with technology, know-how and risk management expertise gained from more than three decades’ experience in securities clearing.
EuroCCP recently reinforced its commitment to competitive clearing by signing a memorandum of understanding with SIX x-clear Ltd to interoperate for all platforms that appoint multiple CCPs (see article, “EuroCCP and SIX x-clear Break New Ground on Interoperability”). This agreement serves to accelerate the ability of trading firms to use the CCP of their choice. EuroCCP is also in the process of making interoperating arrangements with LCH.Clearnet Ltd. @