CCP Services for Pipeline’s European Block Trading Platform
EuroCCP has been selected by Pipeline Financial Group Limited to provide central counterparty (CCP) services for Pipeline’s new pan-European block trading and specialist algorithmic trading platform.
This groundbreaking arrangement provides a CCP solution to be applied to a crossing network for buyside as well as sellside users and greatly expands the number of securities – approximately 5,000 equity issues in this case – covered by EuroCCP’s clearance and settlement services. BNP Paribas Securities Services has been selected by Pipeline as its settlement agent for trades in which Pipeline acts for its buyside clients.
This innovative CCP solution for block trades and algorithmic orders of European stocks will enable users of Pipeline’s European crossing network to receive the risk-management and cost-saving benefits of EuroCCP’s cross-platform netting and settlement. A crossing network electronically matches buy and sell orders for execution without first routing the orders to an exchange or other market that displays quotes publicly. On a crossing network, traders can execute large block orders without affecting the public quotes of the securities.
New partnership
“We are delighted that Pipeline has chosen EuroCCP as its partner in delivering to its customers a unique and innovative clearance and settlement solution in Europe,” said Diana Chan, CEO of EuroCCP. “We believe EuroCCP’s central counterparty guarantees will meet a rising demand from Pipeline’s clients for safety and certainty in their block trades in Europe.”
Pipeline Financial Group Limited’s block trading system, modeled upon Pipeline’s successful, four-year-old U.S. network, will initially cover 14 European markets: the U.K., France, the Netherlands, Portugal, Sweden, Spain, Germany, Switzerland, Ireland, Norway, Finland, Denmark, Belgium and Italy. The European network, like that in the U.S., will enable buyside and sellside firms to maintain anonymity when trading block trades and algorithmic orders, minimize information leakage and maximize the opportunities for executing large orders.
“Pipeline chose EuroCCP to provide CCP support for our European platform because of EuroCCP’s excellent value proposition, as well as its strong reputation for safety and reliability in Europe,” said Marcus Hooper, executive director, Pipeline Financial Group Limited. “We have been impressed with the responsiveness and professionalism of the EuroCCP team, and look forward to our ongoing collaboration with EuroCCP as we build a successful Pipeline network in Europe.”
In its role as central counterparty, EuroCCP will enable anonymous post-trade processing, providing cross-margining, cross-platform netting and a full range of risk management services to Pipeline. Citi’s global transaction services business will act as EuroCCP’s settlement agent and handle settlement in the respective central securities depositories. @