Nyse Arca Europe, the pan-European multilateral trading facility (MTF) of Nyse Euronext, will admit US equities to its trading platform when it launches the components of the S&P 100 Index for trading during the second quarter of 2010.
European Central Counterparty (EuroCCP) will offer clearing services for these securities with settlement taking place via EuroCCP’s account at The Depository Trust Company (DTC), the US central securities depository and subsidiary of the Depository Trust and Clearing Corporation (DTCC), providing trading firms with a cost-effective posttrade solution.
The service will provide trading firms an opportunity to trade US securities on a European platform during European trading hours with settlement at DTC. Initially, S&P 100 stocks will be admitted to the platform; however, further stocks are likely to be introduced in the near future.
Virginie Saade, head of Nyse Arca Europe, said: “Our clients have shown a strong interest in being able to trade US stocks through Nyse Arca Europe, seeing this as a good business opportunity. As part of Nyse Euronext, we have been able to leverage the group’s knowledge and experience of the US market, as well as our relationship with EuroCCP, to help unlock the US stocks for our European clients for the first time, at low cost. This is an opportunity for us to create the first transatlantic trading platform and is an important step towards becoming a truly global MTF.”
Lawrence Leibowitz, chief operating officer at Nyse Euronext, said: “This is an example of us listening closely to our clients globally and responding with a new way for our customers in Europe to maximise their trading opportunities.”