Deutsche Börse Group expands cross-border equities clearing and settlement

21 September 2007

Deutsche Börse Group wants to expand its post-trade services for equities trading in the UK, France, the Netherlands, Belgium and Portugal. As a result, Eurex Clearing AG, the clearing house of the international derivatives exchange Eurex, and Clearstream, the settlement organization of Deutsche Börse Group have requested access and interoperability to the stock exchanges, clearing houses and settlement organizations on these five markets on the basis of the European Code of Conduct for Clearing and Settlement.

Requests have been addressed to the London Stock Exchange, Euronext Paris and Euronext Amsterdam, LCH.Clearnet Group, Interbolsa and the Euroclear Group. Based on these requests, Eurex Clearing wants to act as a clearinghouse for London Stock Exchange, Euronext Paris and Euronext Amsterdam. Clearstream has for some years offered settlement services for OTC and German on-exchange trading and full value added custody services in all of the five addressed markets. With these requests, Clearstream expects to further extend its services to support the on-exchange trading of its customers on these platforms.

Mark Gem, Member of the Executive Committee of Clearstream International said, “Deutsche Boerse Group wants its customers to benefit from the possibilities offered by the Code of Conduct. Settlement links to the major European infrastructure providers form the basis for efficient cross-border equities trading. In expanding the scope of our links to these markets to support the settlement of trades executed at other exchanges, Clearstream will leverage its many years of interoperability expertise for the benefit of our clients and of all market participants. Clearstream already offers access to 44 markets – more than any other central depository.”

Thomas Book, who is responsible for Clearing on the Eurex Executive Board, said, “Clearing links to the UK, French and Dutch markets, as well as the link to Switzerland announced this week and the existing service for Germany and Ireland will allow us to offer equities clearing for more than 80 percent of the European blue chips listed on the Dow Jones STOXX 50.
This means that we are systematically implementing our strategy of offering our clients clearing access to all relevant markets.”

The Code of Conduct is a market-driven initiative for the establishment of a consistent, uniform and cost-effective European framework for cross-border equities trading, clearing and settlement. Deutsche Börse contributed to the Code along with other organizations. The Code covers price transparency, access and interoperability, as well as separation of services and separate accounting. Price transparency and the principles for access and interoperability have already been implemented. The Code is to be fully implemented by the end of the year.

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