Overview: The EuroCCP Advantage
European Central Counterparty Limited (EuroCCP) delivers safety and savings to trading firms through its low-cost, low-risk pan-European clearing and settlement services. EuroCCP clears equities from 17 European markets and from the US, Depositary Receipts as well as ETFs and Currency ETCs.
What is EuroCCP?
EuroCCP is a central counterparty and the European clearing subsidiary of DTCC. Central counterparties (CCPs) give protection to both sides of a trade, providing to each party that the trade will settle at the agreed price in the event one party defaults on its obligations. Headquartered in London, EuroCCP was established in 2007 to provide low-cost equity clearing and settlement services throughout Europe and launched its services in August 2008. It clears equities from 17 European markets and from the US, Depositary Receipts as well as ETFs and Currency ETCs.
Currently, EuroCCP clears more than 4,000 securities. EuroCCP is a pan-European CCP, which operates at-cost and has a board of directors comprised mainly of its users.
Who does EuroCCP work with?
EuroCCP provides clearing and settlement services for a number of trading platforms: BATS Chi-X Europe, Burgundy, Equiduct, NYSE Arca Europe, SIGMA X MTF, SmartPool, Turquoise and UBS MTF. It has the mandate from NASDAQ OMX Nordic Exchanges to provide competitive clearing.* EuroCCP’s clearing participant customers are some of the largest financial market intermediaries.
EuroCCP has developed a capability to clear over-the-counter (OTC) European cash equities trades. It currently clears trades matched on the Omgeo CTM platform and has been mandated by SWIFT to provide a pan-European clearing for its Accord platform.*
What progress has been made on interoperability?
EuroCCP successfully introduced full interoperable clearing on BATS Europe and Chi-X Europe platforms on Friday 6 January 2012 and has been selected by BofA Merrill Lynch, Credit Suisse, Morgan Stanley and Nomura, among others, as their CCP of choice on these venues. EuroCCP is the first CCP to be selected as CCP of choice by several clearing participants from the first day of launch of full four-way interoperability on BATS Europe and Chi-X Europe platforms. As of launch date, EuroCCP's volumes of cleared transactions went up by 54% and have been steadily increasing since then. Clearing volumes are expected to increase still further as participants continue to consolidate their activity with EuroCCP on these platforms.
EuroCCP’s interoperable service has also been live on UBS MTF since August 2011, on Turquoise since November 2011, on Burgundy since June 2012 and on Equiduct since July 2012.
(*) Subject to regulatory approval