The Equiduct pan-European trading venue, operated by Börse Berlin, has selected EuroCCP to provide it with interoperable Central Counterparty (CCP) clearing. Subject to regulatory approval, the deal is due to start in July.
At present Equiduct uses incumbent CCPs in the ‘national’ markets in Europe in which it operates. EuroCCP will offer interoperable CCP clearing with the incumbents in these markets. Where interoperability with the incumbent CCP is not yet possible, a “preferred” clearing model will be used, says the multilateral trading facility (MTF).
According to Diana Chan, chief executive of EuroCCP, the deal signifies that the transformation of the European equities market continues apace, as more trading platforms begin to offer interoperable clearing. “The increased competition that follows delivers greater choice and lower costs to trading and clearing firms,” she added. “We are already seeing the impact of interoperable clearing on our business as our low cost, customer-focused clearing model is chosen by trading and clearing firms.”
The Equiduct venue is at a very important stage in the evolution of its business, says the chief executive of its technology services and data arm, Equiduct Systems Ltd, Peter Randall. “We constantly need to diversify and strengthen the service we provide to our users because of this …and are pleased to be able to do this with the launch of interoperable clearing with EuroCCP.”
By Neil Ainger