DTCC Connection

Mar 01, 2010 • DTCC Connection

EuroCCP and Turquoise Launch Clearing and Trading Services For Hungarian and Czech Securities

by Melanie Best


EuroCCP and Turquoise recently expanded their respective clearing and trading services into two additional markets, Hungary and the Czech Republic. The move makes EuroCCP the first pan-European central counterparty (CCP) to offer clearing services in the 25 components of the main Hungarian and Czech indices – the BUX and PX indices, respectively.


EuroCCP’s clearing services for Hungary and Czech Republic securities are open to any trading venue to which it is linked that offers trading in these securities, and Turquoise is the first multilateral trading facility (MTF) linked to EuroCCP to do so.


Turquoise launched trading in the Hungarian and Czech securities cleared through EuroCCP on February 26. The service further extends Turquoise’s pan-European equities, exchange-traded-fund and exchange-traded-currency coverage.


Ongoing expansion

This service extension marks the latest in an ongoing series of enhancements EuroCCP is bringing to Europe’s clearing space. Earlier this year, EuroCCP launched clearing services for listed exchange-traded currencies. EuroCCP’s expansion delivers the efficiency and risk-mitigation benefits of central-counterparty clearing to a widening array of investors’ transactions.


With the addition of Czech and Hungarian securities, EuroCCP’s market coverage grows to encompass securities issued in 17 national markets and traded in nine different currencies.


EuroCCP has further extended its relationship with Citi’s Global Transaction Services by appointing Citi as EuroCCP’s settlement agent for these securities.


Investor demand

Commenting on EuroCCP’s expanded service offering, Andrew Simpson, head of EuroCCP Product Management in London, said, “EuroCCP is continually diversifying the markets and instruments we cover in response to investor demand. With the addition of Czech and Hungarian equity issues, we’re offering European market players the opportunity to invest in a larger variety of securities in a safe environment, where counterparty risk protection is available on all trades.”


David Lester, CEO of Turquoise, commented, “We are delighted to be the first pan-European trading platform to launch trading in Hungarian and Czech equities, further extending the choice of securities for our clients. Through these clearing arrangements, clients will benefit from the same differentiated value and risk-managed clearing and settlement solution offered currently for our existing European markets.”


The securities newly eligible for clearing through EuroCCP include 12 Hungarian ISINs and 13 Czech ISINs. To view the list of eligible ISINs, please go to www.euroccp.co.uk. @


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