EuroCCP Begins Clearing Exchange-Traded Currencies
EuroCCP launched clearing services for European-listed Exchange-Traded Currencies (Currency ETCs) in February, as it continues extending to new instruments the efficiency, cost-saving and counterparty risk protection benefits it currently provides to clients’ equity and Depositary Receipts transactions.
Turquoise is the first multilateral trading facility (MTF) to offer trading in Currency ETCs cleared through EuroCCP.
Tracking indices
Currency ETCs are liquid securities traded on exchange that track the performance of underlying currency indices. EuroCCP initially will clear 18 Currency ETCs, which provide long or short passive exposure to the currencies of G-10 countries versus the U.S. dollar.
“EuroCCP is pleased to extend our clearing services to support the trading of Currency ETCs. By providing a safe post-trade environment, we believe this service offering will encourage liquidity,” said Andrew Simpson, head of EuroCCP Product Management in London. “Our ETC clearing service responds to investor demand for liquid, secure and transparent exchange-traded securities and also reflects increased investor appetite for foreign exchange instruments.”
Adrian Farnham, COO at Turquoise, commented, “Currency ETCs are presenting the European market with new trading opportunities. Turquoise is delighted to provide highly efficient access to such an expanding market, along with the competitive pricing schedule and robust technology that the Turquoise MTF already offers for equities and depositary receipts.”
Listed in both U.S. dollars and British pounds, ETC transactions cleared through EuroCCP will settle in CREST.
More on ETCs
ETCs trade on a regulated exchange, just as an equity is traded. An issuer creates (and redeems) the ETC security with the assistance of an authorized participant/market maker, and each ETC is assigned an ISIN when listed on exchange.
To view the list of EuroCCP-clearable Currency ETCs, go to www.euroccp.co.uk. @