EuroCCP and the European Multilateral Clearing Facility (EMCF) have completed their merger, first announced in March, forming a new pan-European cash equities clearing house.
The owners of EMCF consisting of ABN Amro Clearing Bank and Nasdaq OMX, and the owner of EuroCCP - the US Depository Trust & Clearing Corporation (DTCC) - signed the agreement today alongside BATS Chi-X Europe.
The new central counterparty (CCP) clearinghouse is to be named EuroCCP N.V., reflecting the senior partner which will provide the risk management framework and customer-service background, while EMCF contributes the technology and operations infrastructure. Headquartered in Amsterdam, the new clearing house will retain customer-facing functions located in London and Stockholm. The takeover is still dependent on getting approval from regulators and competition authorities, although this should be a formality and the signed agreement between the two companies should signal the start of the integration procedure.
Diana Chan, chief executive officer of EuroCCP and CEO designate of the new company, said: “The signing of the sale and purchase agreement is a significant step towards launching the new CCP and demonstrates market participants’ desire and support for initiatives that are pro-competition and strengthen the market’s infrastructure and risk mitigation while driving down costs for users. We are focused on making the migration of our customers’ business as straightforward as possible and are working closely with them to ensure they can fully benefit from what the new business will deliver to them.”
Jan Booij, CEO of EMCF and chief operations officer (COO) designate for the new company, said: “We welcome this further development and look forward to delivering the sustainable best practices of both companies from a single cost base. This will benefit the platforms that connect to us and the customers who clear with us.”