European Central Counterparty (EuroCCP) has secured required regulatory approvals to offer post-trade services to the EU-based entities of Aquis Exchange, Cboe Europe Equities and Turquoise.
Image: EuroCCP will provide post-trade services to EU-based entities of three trading venues. Photo: courtesy of mapichai / FreeDigitalPhotos.net.
EuroCCP, along with Aquis Exchange, Cboe Europe Equities, Turquoise, has built a facility that will allow customers to continue with their trading and clearing activity post-Brexit.
The approval allows the EU-based entities of the three trading venues to provide market participants with the capacity to trade in EU-listed securities following Brexit.
It will also enable to operate their UK-based trading venues for the trading of UK and Swiss-listed securities.
Once the new EU-based venues are ready to go live, EuroCCP will activate the clearing arrangements in EU-listed securities.
EuroCCP CEO Cécile Nagel said: “While the uncertainty continues and despite the increasing likelihood that there may be a delay to Brexit, we are still focused on our preparations in case the UK leaves the EU on 29th March.
“In addition to today’s announcement, we have also successfully on-boarded six new EU-based entities acting as clearing members, together with more than 10 new EU-based trading members.
“Our work with all market participants has intensified in recent weeks as we set up and operate the new memberships, to secure frictionless pre- and post-trading activity in EU-based and UK-based products after Brexit.”
To facilitate smooth go-live, EuroCCP is expecting to have all new clearing memberships in place prior to the go live date agreed with the new venues, which currently remains as 1 April.
EuroCCP is said to access near to 90% of European equities markets, as of end 2018. EuroCCP also said it has captured a share of more than 30% of clearing in this competitive environment.
Based in Amsterdam, EuroCCP was established in 2013 to offer safe and efficient equities clearing and settlement services across the Europe.
EuroCCP clears equities from 18 European markets and from the US, depositary receipts, as well as ETFs and currency ETCs.
At present, EuroCCP clears between 5 to 8 million trade sides each day from 30 stock exchanges, multilateral trading facilities and other trade sources in Europe that are valued between €30bn and €40bn.