News Center
Press Room
For Release:
Immediately
Contact:
Jeff Smith
EuroCCP
+44 (0)20 7444 0415
EuroCCP receives FSA recognition to clear Nasdaq Europe trades
London, September 21, 2001 - European Central Counterparty Limited (EuroCCP), a wholly-owned subsidiary of The Depository Trust & Clearing Corporation, the world's largest securities clearance and settlement organisation, today announced that it received recognition from the Financial Services Authority (FSA) as a UK Recognised Clearing House.
Headquartered in London, EuroCCP has been created to deliver a seamless, low-cost, safe and efficient, cross-border clearing and settlement solution initially for transactions executed on Nasdaq Europe in both European and US securities.
Jeffrey H. Smith, EuroCCP's Chief Executive Officer said: "We are extremely pleased to have received recognition from the FSA as a clearing house in the UK in such a timely fashion. The granting of approval paves the way for us to be operational in the fourth quarter of this year."
Jim Weber, Chief Operating Officer of Nasdaq Europe said, "This is an important step in the development of Europe's equity markets. Through EuroCCP, Nasdaq Europe will be able to offer a streamlined clearing and settlement solution, designed in conjunction with market participants, which will significantly reduce the operational costs, inefficiencies and risk associated with cross-border transactions."
EuroCCP will provide trade guarantee and netting. A trade guarantee ensures certainty of trade completion and netting decreases the number of trades requiring settlement and reduces the money values to be settled. One of the other key benefits offered by EuroCCP is that it allows settlement at a security's home depository where the greatest liquidity exists. Transactions executed on Nasdaq Europe will benefit from this settlement feature.