The ownership of EuroCCP is expected to give Cboe Global Markets a scope to pursue development of equity derivatives trading and clearing capabilities in Europe


EuroCCP to be acquired by Cboe Global Markets. Photo: courtesy of Csaba Nagy from Pixabay.

Cboe Global Markets, a US-based exchange holding company, has agreed to acquire European Central Counterparty (EuroCCP), a pan-European equities clearing house, based in The Netherlands.

Financial terms of the deal were not disclosed.

Headquartered in Amsterdam, EuroCCP is regulated by De Nederlandsche Bank and by Autoriteit Financiële Markten. The equities clearing house is owned equally by Cboe Europe, Euronext, Nasdaq, The Depository Trust & Clearing Corporation (DTCC), and ABN AMRO Clearing Bank.

According to the US firm, its ownership of EuroCCP is expected to give scope to pursue the development of equity derivatives trading and clearing capabilities in Europe.

The two companies plan to expand the benefits of EuroCCP’s open-access model further to cater to other exchanges and trading venues.

Cboe Global Markets CEO comments on EuroCCP acquisition

Cboe Global Markets president and CEO Ed Tilly said: “Cboe’s planned acquisition of a leading equities clearing house in Europe is an important step in our growth strategy for the region. We believe ownership of EuroCCP will enhance our current European equities business, while providing opportunities to potentially diversify our business, including trading and clearing derivatives, in the future.”

Currently, EuroCCP is said to clear trades for 39 trading venues, which represent nearly 95% of the equity landscape in Europe.

The equities clearing house is claimed to clear four to five million trade sides daily, on average, which have a total value of €30bn-€40bn.

EuroCCP is said to offer clearing members with easy access and the ability to maximise operational efficiency and netting opportunities while bringing down risk and cost. Cboe Global Markets said that it sees an opportunity to expand the business further by making use of the strength of its pan-European network.

EuroCCP CEO Cécile Nagel said: “Cboe is a staunch advocate of open access and interoperability, values which EuroCCP has long promoted, with an established track record of servicing clients globally and providing innovative products across numerous asset classes.

“We believe this transaction positions EuroCCP for continued success and we look forward to becoming part of the Cboe group. EuroCCP remains committed to offering a best-in-class service with leading client satisfaction.”

The deal is expected to be completed in the first half of 2020, subject to the required regulatory clearances and also the arrangement of a supporting liquidity facility at the EuroCCP clearing entity level.