EuroCCP, the pan-European cash equities clearing house, will reduce its clearing service fees effective July 29, 2011. The new fee structure, available to all EuroCCP participants, will be implemented to coincide with the rollout of EuroCCP’s Preferred Interoperable Clearing Service. The service will be launched by BATS Europe whereby trading firms can elect a preferred central counterparty (CCP) to clear their trades in a specific market segment. Under this new service, if trading firms on both sides of a trade have selected a preferred CCP, then each side will be cleared by the respective CCP the firm has chosen.
Under the new fee structure, participants will not be charged clearing fees for transaction volumes over 230,000 sides a day. This translates into an actual fee cap of €4,300 for EuroCCP customers trading an average daily volume of over 230,000 sides.
The launch of the revised fee structure will provide significant benefits to customers that concentrate volume with EuroCCP across the multiple platforms EuroCCP clears for. The move is part of EuroCCP’s strategy of competitive clearing and reflects its at-cost business model, which ensures benefits of scale are passed through to customers.
“The pricing structure we have devised is testament to our goal of continuously driving down the cost of clearing,” said Diana Chan, CEO of EuroCCP. “We will pass through the benefits of scale economies directly to customers that designate EuroCCP as their CCP of choice and bring incremental volumes.”