BATS Europe offers traders clearing provider choice

1 August 2011

BATS Europe is launching Preferred Interoperable Clearing to offer traders a choice of clearing provider.

The new system, which comes into practice with immediate effect, allows customers of BATS to choose between EuroCCP, LCH.Clearnet and SIX x-clear when seeking to clear their trades.

Trade participants will be able to use an online form to let them select a clearing counterparty (CCP) from this interoperable group.

Mark Hemsley, CEO of BATS Europe, said: “We are pleased to be the first market centre to offer a multilateral interoperable clearing service that supports customer choice and encourages CCP price and service competition.

“Today’s launch is the first step toward a fully interoperable clearing environment, which is an important one toward significantly reducing frictional post-trade costs for Europe’s market participants.”

Tomas Kindler, head of clearing relations at SIX x-clear, added that interoperability in the clearing space is beneficial to all participants and this move “is set to change the clearing landscape in Europe for the future”.

BATS previously had an exclusive agreement with clearer EMCF since 2008 - any trades not designated to one of the CCPs in this new arrangement will continue to be cleared by this Dutch organisation.

By Jim Ottewill

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