The EuroCCP European cash equities clearing house has signed up Deutsche Bank Frankfurt as a general clearing participant (GCP) on its platform. A GCP is a firm that clears trades on its own behalf and for other trading firms who are not EuroCCP participants, widening its reach.
The addition of Deutsche Bank Frankfurt increases EuroCCP’s total number of approved clearing participants to 26, 15 of which are GCPs. The firm’s 11 individual clearing participants (ICP) clear only their own trades. Deutsche Bank London is already an ICP of EuroCCP, with the German HQ now joining in.
As Diana Chan, chief executive officer (CEO) of EuroCCP, said: “Adding Deutsche Bank Frankfurt to our roster of clearing participants is a natural extension of our relationship with the bank.”
Commenting on the deal, Dieter Bernhard, head of direct securities services Germany at Deutsche Bank Frankfurt, said: “There is huge demand across Europe for efficient and lower cost clearing services. We believe that EuroCCP will continue to deliver this to its members and so we have chosen to join as a clearing participant.”
In March 2013, the European Multilateral Clearing Facility (EMCF) and EuroCCP announced plans to merge their strengths to form a new combined company – still to be called EuroCCP, reflecting the senior partner. It will aim to deliver greater efficiencies and sustainable competition to the pan-European cash equities clearing market place, which is undergoing considerable changes as the new post-crash rules demanded after the Pittsburgh G20 come into effect. The transaction is expected to complete once the necessary regulatory and competition authority approvals are received.