In the News
Clearing feels the first winds of competition
19 December 2011 - Article reports that the interoperability model has gained ground in the equities market throughout 2011 due to growing demand among brokers, who are keen to make cost savings in what is becoming an increasingly competitive, low-margin environment. During the past 12 months six trading platforms – Chi-X Europe, Bats Europe, UBS MTF, Turquoise, Nasdaq OMX and Burgundy Exchange – have signed up to the interoperability model. This means about 60% of European cleared equities flow will be up for grabs in what clearing chiefs regard as a milestone for the industry. Diana Chan, EuroCCP, which has played an active role in pushing for the reforms, comments: “The introduction of interoperable clearing this year marked a new chapter in the market infrastructure supporting equity trading in Europe. We expect to see a marked increase in equity volumes due to a significant reduction in post-trade frictional costs.”
Burgundy chooses EuroCCP for interoperable clearing
12 December 2011 - Coverage of EuroCCP’s plans to provide interoperable CCP clearing to Burgundy, the Nordic MTF. The article quotes Diana Chan who says that EuroCCP is pleased to see more trading venues adopt interoperable clearing as ultimately this will succeed in transforming the European equities trading landscape with all market participants enjoying the benefits of greater choice and lower costs. Further coverage appeared in Automated Trader, Asset Servicing Times and Waters Technology.
CCPs prepare for battle
12 December 2011 - Profile article featuring Tomas Kindler from SIX Securities Services who discusses the sustainability of clearing houses in 2012 as market participants get used to routing their trades to the CCP of their choice. Tomas states that full-blown competition is currently focused on pricing, however sustainability of CCPs is rapidly moving up the agenda. EuroCCP is referenced as a CCP that remains dependent on its parent, DTCC, and is now competing with other CCPs by announcing significant reductions in clearing fees.
EuroCCP to clear for Burgundy
9 December 2011 - Exclusive coverage of EuroCCP’s plans to provide interoperable CCP clearing to Burgundy, the Nordic MTF. The article reports that EuroCCP is set to become the second clearing house to interoperate on Burgundy, in a further sign of the competition sweeping the European post-trade sector. Commenting on the news, Diana Chan states that this is another step towards providing genuine competition in the clearing of Nordic securities and is great news for equity traders operating in these markets. The article notes that the addition of Burgundy marks EuroCCP's sixth client-win this year, in addition to BATS Europe, Chi-X Europe, UBS MFT, Goldman Sachs MTF, and Nasdaq OMX. EuroCCP is the incumbent clearer on Turquoise. Coverage also appeared in Financial News, The Trade and Automated Trader.
BATS Chi-X Europe excludes ETF interoperability in first cut
5 December 2011 - Article reports that BATS Europe and Chi-X Europe will not include exchange-traded funds (ETFs) in the initial stage of their clearing interoperability offering, blaming an on-going regulatory review of the instruments for the delay. In the meantime, both MTFs will continue to trade ETF/ETC securities, but all executions will be routed to existing CCP, EMCF, irrespective of the participant’s choice of CCP for the underlying market segment. However both companies are planning to provide four-way clearing interoperability on all other instruments, subject to regulatory approval, on 6 January 2012 through EMCF, EuroCCP, LCH.Clearnet Ltd and SIX x-clear.
X-Clear lifts share of LSE clearing
30 November 2011 - Article reports on interoperability and the recent changes that have occurred in the clearing market as a result. The article makes reference to EuroCCP as one of the original clearing houses to champion interoperability.
CCP safety measures ‘fight yesterday’s battles’
9 November 2011 - Article reports on current market fears that the recently published Basel III collateral requirements and impending OTC derivatives regulations could go too far in trying to protect the market against systemic risk, potentially leading to higher costs for end-users. The requirements follow comments from the Bank of England’s deputy governor, Paul Tucker, who stressed the need for an effective resolution regime for CCPs and other financial market infrastructures. Commenting on the issue, Diana Chan says that the ability of clearing houses to handle increased levels of risk will depend on the ability of regulators to coordinate their various initiatives: "Combined, EMIR, Dodd Frank, Basel III and the CPSS-IOSCO principles will determine the minimum risk management standards for CCPs... but these initiatives are still not finalised. It is crucial that they are in sync and avoid opportunities for regulatory arbitrage." She adds that the CPSS-IOSCO principles must be implemented in a “timely and standardised fashion” to avoid the flight of transactions to jurisdictions that impose lower standards on CCPs.
FN100 Influential Women: The women battling Europe’s crisis
31 October 2011 - Article features Diana Chan among the FN100 Influential Women, a profile of the most influential female executives working in European financial markets. The article provides a brief biography of Diana together with an overview of EuroCCP’s efforts to champion interoperability. Coverage also appeared in print edition of The Wall Street Journal Europe.
Industry split over CCPs ability to meet new risks
26 October 2011 - Following a roundtable organised by the DTCC and CSFI, the article reports that there is discord in the industry over whether CCPs will be able to deal with the risks of clearing OTC derivatives as mandated by new regulations. Diana Chan agrees that new markets will mean new risks for established CCPs. In the wake of the crisis, tighter financial markets regulation is also an issue, she adds. The market’s infrastructure handled Lehman very well but post-Lehman the bar has been raised and regulators require new contracts to be centrally cleared that have not been cleared before, requiring CCPs to comply with new and higher standards in risk management. Diana argues that there are ways to deal with these issues and disagrees with the opinion that CCPs in Europe will try to take on risks they do not have the skills or the structural knowledge to be able to measure. According to the article, participants at the roundtable also voiced concerns about the current new swath of regulations and the ability to get them right first time, given the short timeframes in which they're being implemented. In response to this, Diana Chan warns that hurried regulations could bring unsuspected risks and that safety should not be compromised. The article also appeared in International Custody & Fund Administration.
BoE urges clearing house wind-down clarity
24 October 2011 - Article reports on a recent speech given by Paul Tucker, Bank of England, at a post-trade event in Brussels on resolution regimes for banks and other systemically important financial institutions in the event of another big default. According to the article, policymakers are wrestling with what happens if a CCP is faced with the default of more than one of its members, putting it at risk of collapse. In the banking sector, losses in a default are usually shared among bondholders and unsecured creditors but since CCPs do not issue debt, it is not possible to share losses in this way. Mr Tucker said it was the members of a CCP that would share losses, since they would be the main creditors in a liquidation. He added that the technical issue is how to achieve that in a way that minimises disruption and enables essential CCP services to be maintained. Commenting on the issue, Diana Chan is quoted welcoming an eventual "resolution regime" for CCPs stating that the role of central banks in providing liquidity to CCPs will benefit from definitive clarification.
The end of an MTF era
20 October 2011 - Article reports on the recently approved takeover of Chi-X Europe by BATS by the UK Competition Commission on a provisional basis and its efforts to re-aggregate the market share of the two largest European “multilateral trading facilities”, remedying the European Commission’s concerns over market fragmentation.
Here EuroCCP is mentioned as a clearer for both BATS and Chi-X. The article suggests that there is an advantage to doing a deal like this at a time when “interoperability” on the clearing side is also driving consolidation and efficiencies all the way from trading to post-trade.
Collateral chase changes settlement DNA
17 October 2011 - Article reports that new regulations and changes in the settlements market are forcing post-trade sector players to review business models for higher revenue growth. According to market participants new regulatory developments will naturally push more collateral through central counterparties. There used to be a clear demarcation between infrastructure providers, such as CCPs and CSDs, and custodians, but those lines are now blurring. As a result Diana Chan believes that, depending on the legislation, a number of new CSDs could emerge: “We could see new CSDs created depending on the contents of the legislation. Some could be created by banks, or banks could buy national CSDs.”
Diana adds that it may be that the industry experiences an entire shake-up with some CSDs becoming gateways – acting as an intermediary to allow its members to settle securities that are issued to any other CSD that has joined T2S, meaning investors need to have only one CSD relationship.
Pave calls for EU probe into Spanish equity trading
12 October 2011 - Article reports that Pave, Spain’s first MTF, has asked European competition authorities to launch a formal investigation into the Spanish equity trading market, as alternative trading venues remain unable to take a meaningful slice of trading volumes more than four years after the introduction of legislation designed to encourage competition. Pave which is set to go live in the second quarter of 2012 has chosen Cinnober as its technology partner and EuroCCP as its clearing house.
Best Clearing House - EuroCCP takes a clear lead
10 October, 2011 - Article reports exclusively on EuroCCP’s win in the Best Clearing House category at the Financial News Awards for Excellence in Trading & Technology 2011. Diana Chan is quoted on the award win stating that EuroCCP played a pivotal role in helping to bring about interoperability in Europe, which will, for the first time, allow users to choose their preferred clearer when trading on an exchange. Diana further states that EuroCCP has a vision and believes that effective competition in the post-trade environment is necessary for the European equities markets to grow and that interoperability is a major step in that direction.
The public face of clearing
10 October, 2011 - Article reports exclusively on Diana Chan’s award win for Most Influential Woman in Trading and Technology. Here a member of the judging panel states, “Diana is one of the most knowledgeable people in the industry on clearing – a function that is so critical but often overlooked. She has campaigned tirelessly for changes in clearing services and infrastructure and it looks like those efforts are now starting to bear fruit.” The article continues with a brief biography of Diana describing her knowledge of clearing as immense and stating that she has put forward a clear, confident message of the benefits of interoperability to the entire market.
Regulation and competition reshape the industry
10 October, 2011 - Article reports on Financial News’ Awards for Excellence in Trading & Technology 2011, providing a brief overview of the winners. Diana Chan is mentioned as one of the industry leaders who participated in the judging process.
Editor's Choice Award - Bats Europe flies ahead
10 October, 2011 - Article reports on the Editor’s Choice Award at Financial News’ Awards for Excellence in Trading & Technology 2011 , won by Bats Europe. The winner’s preferred clearing system allows trading firms to choose which clearers they want to use, and introduces competition to clearing. Diana Chan is quoted saying that the introduction of Bats interoperable clearing is a new chapter in clearing in Europe and will encourage other MTFs and exchanges to follow suit. EuroCCP is then referenced as one of two new entrants to the European clearing market that has helped to push down clearing fees in recent years by providing trading platforms and exchanges with new alternatives.
Sibos reveals more questions than answers to regulatory puzzle
10 October, 2011 - Article provides extensive coverage of Financial News’ 2011 Sibos roundtable, featuring Diana Chan. Here Diana participated in a panel discussion on the direction of market regulation, and, in particular, the lack of coordination with Asian regulatory authorities. Diana also discusses the introduction of T2S, stating that for cash equities the initiative will have a positive and transformational effect on the industry.
UBS MTF takes second place in dark pools
9 October 2011 - The volatile markets of August and September and regulatory approval for new clearing arrangements in Europe have propelled UBS MTF into the position of the region’s second-largest broker-operated “dark pool”. The broker attributed the change to two factors; general heavy trading volume in Europe and Swiss and UK regulators’ approval for full interoperability between clearing houses. UBS MTF, which offers trading in 15 European countries, went live in late July offering clearing choice between SIX x-clear and EuroCCP.
More capital proposed for UK exchanges and clearers
6 October, 2011 - Article reports that regulated exchanges and clearing houses in the UK could face an average increase of 22 per cent in the minimum amounts of capital they are required to hold in the event of risks to their operations, under new proposals from UK authorities. EuroCCP is mentioned as among the institutions operating in the UK that would be affected by these proposals. The proposals will remain in consultation phase and open for industry comment until January 2012. Recommendations are expected to be made in the first half of next year.
EuroCCP gets fresh capital injection
5 October, 2011 - Article reports on EuroCCP’s recent cash injection by DTCC, a routine injection to ensure EuroCCP meets capital requirements set by the FSA. DTCC states that the capital injection was in no way connected to interoperability and that it looks forward to competing for trades in an open and fair market. The boost is reported to be the latest in a series of capital injections since the venture was founded in 2008. EuroCCP was initially capitalised with €25m, received a further €7.4m in 2009 and €39m in 2010 to ensure it complied with UK regulatory capital requirements.
MTFs shine at annual FN trading awards
5 October, 2011 - Article reports on the award wins of various European MTFs at the Financial News awards dinner on 4 October. EuroCCP is mentioned in the article as the sponsor of the event.
Nasdaq OMX Nordic to offer clearing choice
4 October 2011 - Article reports on the announcement that Nasdaq OMX Nordic will launch interoperability at the end of April 2012, a move that its president believes will drive liquidity and lower investor costs, thus benefiting the entire European capital market. This will leave Deutsche Börse and NYSE Euronext as the only main European trading platforms which do not offer their customers some form of interoperability. This issue is one under scrutiny by European regulators as they examine the merger between NYSE Euronext and Deutsche Börse, which would create the region’s largest exchange. Nasdaq OMX Nordic will offer customers a choice of EuroCCP, EMCF and SIX X-clear. Coverage also appeared in Financial News, Asset Servicing Times and Exchange News Direct.
Will T2S increase operational risk in Europe?
1 October 2011 - In-depth review of the Target2-Securities (T2S) settlement platform, five years since the European Central Bank (ECB) announced its development. According to the article Europe's post-trade industry continues to grapple with the potential impact of the system. Many had anticipated that it would bring clarity to the costly and fragmented post-trade environment in Europe, but it appears this has not been the case.
T2S seems to have raised more issues than it solves and is yet another factor that has been thrown into the midst of a decade long debate in Europe about the high cost of clearing and settlement. But with the implementation of the system due to begin by the end of 2014, issues are being raised. Diana Chan states that T2S is a huge project, and there is project risk attached to it as it requires collaboration and consensus of all of the markets that want to join. She adds that inevitably there will be compromises, but the end result should be something everyone can live with.
Finally Diana states that it is projects like T2S that are catalysts for change; without it some of the complexities in the post-trade environment would never be addressed. The costs associated with T2S are an investment in a better post-trade future for Europe. Without a party to settle on a pan-European basis and move securities, cash and collateral on the same platform, the integration of Europe's financial markets will be inhibited. T2S will allow market participants to do things we cannot do in a fragmented environment.
SGSS becomes clearing member on UBS MTF
26 September, 2011 - Article reports that Société Générale has extended its clearing license with Six x-clear to become a clearing member on UBS MTF. The article mentions that EuroCCP joined UBS MTF as a clearer in August 2011 along with BATS Europe. Coverage also appeared in Funds Europe.
Turquoise offers clearing competition
19 September, 2011 – Article reports on Turquoise’s launch of interoperability which will offer its customers the choice to use CC&G, LCH.Clearnet, SIX x-clear of Switzerland or EuroCCP, its existing clearer. It will also allow customers to select separate clearing houses for business transacted in different countries. The exchange’s interoperability service is scheduled to launch in November 2011. Coverage also appeared in: The Wall Street Journal, Financial News, The Trade, Automated Trader, Securities Technology Monitor, Finextra, and Clearing & Settlement.
Harmonizing Europe
Article examining the recent consultation paper issued by the European Commission which discusses the harmonization of CSDs and pan-European settlement. The highest profile proposal in the paper is a Europe-wide move to a standardized settlement timetable of T+2 which has provoked mixed reactions around Europe. On this subject Diana Chan states that the largest impact of T+2 will be on OTC flow where the timing of allocations and confirmations could create delays. Unless addressed, this could increase 'fails', causing fines and increased borrowing costs. Diana adds that moving Europe to T+2 would impact its ability to hedge given that other global markets still remain on a longer settlement cycle, thus creating market arbitrage opportunities.
Nasdaq OMX puts Nordics on path to interoperability
24 August, 2011 - Article reports that Nasdaq OMX Nordic expects to finalise plans to offer its members clearing choice within the next six to nine months. The group’s Copenhagen, Helsinki and Stockholm bourses will initially offer clearing choice between EuroCCP, SIX x-clear and EMCF, which according to Nasdaq OMX, were selected due to customer demand. The article also mentions that Chi-X Europe will offer its members the ability to select from four CCPs – EuroCCP, EMCF, LCH.Clearnet and SIX x-clear – from 1 January 2012. As CCPs begin to open up to a new era of competition, SIX x-clear, EMCF and EuroCCP have all announced fee reductions to coincide with the various venues’ interoperability schemes.
EMCF joins push for central clearing interoperability
19 August 2011 - Article reports that EMCF has decided to sign interoperability agreements with UBS MTF and BATS Europe and the CCPs of each platform in the coming weeks. The article reports that the announcement that EMCF will sign these agreements has come as welcome news for the other CCPs, EuroCCP, SIX x-clear and LCH.Clearnet. Diana Chan is quoted saying that four-way interoperability is "a major milestone for clearing in Europe". Diana Chan further adds that the challenge remains for the four interoperating CCPs to have access to the trade feeds of all the venues cleared by each other; only then would true competition be possible on a level playing field and users could truly select their CCP of choice.
UBS MTF to offer four-way clearing
17 August, 2011 - Article reports on UBS MTF’s plans to offer four-way interoperability of CCPs for cash equity trades. It is currently live with interoperating CCPs EuroCCP and SIX x-clear but plans to add EMCF and LCH.Clearnet. Coverage with reference to EuroCCP also appeared in Banking Business Review.
Chi-X Europe to offer greater clearing choice
16 August, 2011 - Article reports that Chi-X Europe will offer four-way interoperability on its platform with LCH.Clearnet, SIX x-clear, EuroCCP and EMCF by 1 January 2012. This marks the first time that EMCF, Europe’s largest cash equities clearing house, has agreed to interoperate with rivals. EMCF has also said that it plans to enter into interoperability agreements with BATS Europe and Nasdaq OMX. The article further reports that UBS MTF also plans to add EMCF and LCH.Clearnet to the clearing houses EuroCCP and SIX x-clear that already interoperate on its platform. Coverage with reference to EuroCCP also appeared in Financial News, Reuters, The Trade, Automated Trader, Securities Technology Monitor, Finextra, AT monitor, Banking Business Review, Institutional Asset Manager and City A.M
Europe’s banks take first step on clearing path
10 August 2011 - Coverage reporting that five of the world's largest investment banks have pledged to use EuroCCP for clearing on BATS and UBS MTF in a sign that the largest trading houses are backing competition among Europe's clearing firms. Andrew Bowley, head of electronic trading product management at Nomura, says that the banks’ decisions to use EuroCCP shows the market is moving forward and EuroCCP is a strong solution partly because it is not exchange-owned. Coverage also appeared in Economic Times.
Diana Chan of EuroCCP on the Expansion of Interoperability
2 August 2011 - Interoperability Launch - FT Trading Room interview of Diana Chan, EuroCCP Chief Executive Officer.
EuroCCP’s star to rise with arrival of clearing competition
1 August 2011 - Article reporting on the launch of interoperability on BATS Europe and the fact that SIX x-clear and EuroCCP, who recently slashed their tariffs in readiness for the new service, are likely to be the beneficiaries of competition. According to industry experts quoted in the article, EuroCCP looks especially strong as it can leverage massive economies of scale as part of DTCC, allowing it to compete on fees.
More clearing choice for European trades
29 July 2011 - A comment piece by Jeremy Grant following the launch of interoperability on BATS Europe. The article says that interoperability could help reduce post-trade costs in Europe, which are significantly higher than in the US. EuroCCP is referenced among the CCPs likely to lure business away from EMCF which has not signed up to interoperability and is the incumbent CCP on BATS.
Launch of interoperability not perfect
29 July 2011 - This article reports that CCPs have welcomed today’s launch of interoperability although there is still progress to be made. Diana Chan agrees, saying "It's not perfect, because the incumbent still has a tremendous advantage as it is the default CCP…but it is a good start". The article states that the change to interoperability will be slow given that a large number of firms are not ready to use the interoperable system, and the incumbent EMCF is not interoperating with the other three CCPs. "When the incumbent interoperates with the rest of us, and all interoperating CCPs have access to the same trading venues, that's when it will be perfect, because then trading firms can truly have free choice and the CCPs can compete on a level playing field," says Diana Chan. Commenting on the systemic and operational risks surrounding CCPs, the article adds that interoperable CCPs will have to adhere to strict regulations to ensure that these risks do not arise from interoperability.
The EU Market is Ready For T+2
26 July 2011 (online and in print) - Article reporting on the European Commission’s plans to implement a T+2 settlement time which has proved to have mixed reactions amongst market participants. The article quotes Diana Chan who says that the implementation of a standardised timetable would require minimal changes but that it is not without its risks. "If Europe moves to T+2, the largest impact would be seen on OTC flow and the ability to hedge that could then lead to market arbitrage."
Brokers spearhead new generation of European dark pools
25 July 2011 - Article reporting on the advantages of broker-owned MTFs, discussing in particular that of UBS MTF. The article refers to 22 July, date when the UK FSA approved EuroCCP interoperability arrangements and allowed EuroCCP to join UBS MTF to act as a clearing provider.
UK Watchdog approves clearing scheme
22 July 2011 - Coverage of EuroCCP’s announcement that it has been authorised by the UK’s Financial Services Authority to provide clearing services under interoperable arrangements for multilateral trading facilities (MTFs) BATS Europe and UBS MTF. The article quotes Diana Chan who says that "The approval from the FSA is the final step towards making interoperability a reality". Coverage also appeared in The Trade, Fundamentals and Finextra.
SWIFT white paper prepares firms for onslaught of new regulation
15 July, 2011 - Article reporting on a white paper published by SWIFT that calls for financial institutions to work together to develop operational solutions that address important aspects of the regulatory agenda. Diana Chan is quoted saying that "regulators want CCPs to clear more, and at the same time, are raising the bar significantly on all aspects of their operation". She adds that "collaboration within the clearing industry to develop standards to face these new challenges is more important than ever before". Coverage also appeared in Global Custodian, Asian Banker and Asia Asset Management.
Awards for Excellence in Trading & Technology 2011
11 July, 2011 - Financial News European Awards for Excellence in Trading & Technology will be announced on 4 October 2011. EuroCCP is shortlisted in two categories: the ‘Best Clearing House’ and 'Best New Clearing Service or Initiative' category; the latter jointly with Omgeo for bringing OTC cash equities into central clearing. Diana Chan is shortlisted in the 'Most Influential Woman in Trading and Technology' category. The Preferred CCP initiative is in the 'Best New Clearing Service or Initiative' category, accredited to BATS.
SIX x-clear chief steps down
11 July, 2011 - Article reporting on the resignation of SIX x-clear’s CEO. The article references EuroCCP in the context of BATS Preferred Interoperable Clearing Service which includes EuroCCP, LCH Clearnet and SIX x-clear. Coverage also appeared in The Trade.
SmartPool offers Swiss stocks as SIX terminates dark offering
06 July, 2011 - Coverage of the announcement that SmartPool will start offering trading in Swiss stocks. EuroCCP is referenced as the central counterparty for all European markets traded on SmartPool.
NYSE Euronext's European Dark Pool Starts Trading Swiss Stocks
06 July, 2011 - Coverage of the announcement that SmartPool is to begin trading of Swiss stocks, hoping to add new customers from Switzerland. The article quotes Lee Hodgkinson, Chief Executive Officer of SmartPool, who says that transactions are to be cleared by EuroCCP.
EuroCCP slashes clearing fees
29 June, 2011 - Article reporting on EuroCCP’s fee reduction initiative that is set to coincide with the launch of interoperability among European CCPs on BATS. The article provides an overview of the fee structure at EuroCCP, as well as explains the motivation behind the price reduction move. The article quotes Andrew Simpson of EuroCCP saying that the cut is about delivering the benefits of EuroCCP’s scale and at-cost business model to the firm’s clearing members. Andrew Simpson is further quoted saying: “As the industry reaches the first stage of interoperability we want to be at the forefront of fee reductions, which will in turn help to bring increased volumes to the European market. Our aim is to bring the blended fee per trade down to one Euro cent.”
EuroCCP to launch triparty clearing in July
29 June, 2011 - Article reporting on EuroCCP's fee reduction announcement, coinciding with the launch of interoperabilty on BATS Europe.
EuroCCP plans fee cut in tandem with interoperability service
29 June, 2011 - Article reporting on EuroCCP's fee reduction announcement, coinciding with the launch of of a Preferred Interoperable Clearing Service on BATS Europe. Andrew Simpson, Head of Business Development at EuroCCP, is commenting on the cost savings to customers: “If you are clearing 400,000 sides a day, the EuroCCP blended rate takes you down to one euro cent per side. Previously a broker trading pan-European stock would have had to put through more than 900,000 sides a day to hit that rate.”
Central clearing: safe as houses?
29 June, 2011 - Article looking at the methods being employed by CCPs in a bid to mitigate operational risk and, in turn, systemic risk, with particular focus on derivatives clearing. The article states that CCPs will face operational risks as they undertake these new types of trade. Diana Chan is quoted saying that the risk is transferred to a CCP; it doesn’t go away. Diana Chan however notes that the move towards central clearing is a trade-off between lack of transparency and a centralised process that is highly regulated.
EMIR delayed by access row
22 June, 2011 - Article reporting on recent talks at the Council of the European Union’s Economic and Financial Affairs that called for more time to discuss EMIR proposals. The article mentions disagreements between policy makers over the possible expansion of EMIR to include exchange-traded derivatives, which were exempt from the draft proposed by the EC in September 2010. The article continues to report on the difficulties faced by the introduction of post-trade competition in Europe’s cash equity markets, quoting Diana Chan, "If either of the parties doesn't select an alternative CCP then the clearing is conducted by EMCF as the default provider.” Diana is further quoted “It is not a level playing field, but we are happy because it is the first step towards users being able to exercise their right of choice."
EMCF calls time on interoperability
16 June, 2011 - Article reporting on a recent comment made by EMCF that said it doesn’t expect major trading venues to support interoperability arrangements and so would not support them itself. The article makes reference to interoperability agreements between CCPs, following approval from British, Dutch and Swiss regulators, referencing EuroCCP.
DTCC,CSFI Host Post-Trade Regulation Debate
02 June, 2011- Coverage Resulting from The DTCC/CSFI Post-Trade Fellowship Launch Event and Panel Disussion.
BoE warns clearing houses over taxpayer bailouts
02 June, 2011 - Coverage resulting from the DTCC/CSFI post-trade fellowship launch event and panel discussion. Article primarily focused on the keynote speech by Paul Tucker, Bank of England Deputy Governor, on clearing houses as system risk managers. Diana Chan, CEO, EuroCCP is quoted on the CCPs’ reluctance to become the regulator of their clearing members, without clear parameters and powers to do so.
Savings for investors as Europe acts on trading
24 May, 2011 - Article reporting on efforts to simplify trading structures in Europe where share trading is currently more expensive than in the US. The article continues by giving a brief mention to recent regulatory approval for LCH.Clearnet and Swiss x-clear to enter into an interoperability agreement. The article goes on to mention the BATS Europe initiative that allows customers to route their trades through their chosen CCP. The article ends with a quote from Diana Chan, saying: "It’s valid for an exchange to own a CCP but there will be a lot of pressure from regulators and trading firms to open the silo. It’s about choice and price."
EuroCCP creates clearing service to cut trading costs of Spanish stocks
10 May, 2011 - Article reporting on the launch of EuroCCP’s new service for the clearing of Spanish stocks following the recent Title V reforms. The article quotes Diana Chan who talks of the benefits of the new service and states that this is a significant milestone towards the liberalization of trading in Spanish stocks.
The Narcissism of Small Differences
Article analysing the features of Omgeo and SWIFT trade matching solutions. Diana Chan is quoted in reference to EuroCCP OTC cash equities clearing service.
EuroCCP and Pipeline partner for Block Board MTF launch
14 April, 2011 - Article announcing the launch of Pipeline Block Board MTF platform and referring to Pipeline's partnership with EuroCCP as intrinsic to this launch. Diana Chan is quoted in this article.
Turquoise and EuroCCP plan Spanish price cuts
04 April, 2011 - Article reporting on the launch of a new service that EuroCCP will offer together with Turquoise to take advantage of recent reforms to the clearing and settlement of trades in Spanish equities and reduce costs for investors.
The long road to interoperability
A detailed profile interview with Diana Chan for the Trade magazine’s Industry Profile series. The interview focuses on the reform of the post-trade infrastructure of Europe’s cash equities markets and the role that EuroCCP plays in delivering cost savings and efficiencies.
FN100 Profile: Chan charts an unconventional voyage to the top
04 April, 2011 - Diana Chan is profiled in the prestigious FN 100 series, which includes an overview of Diana’s career to date, with particular focus on her role at EuroCCP, the company’s successes to date and the drive towards interoperability.
Spain's first MTF, PAVE, is one step closer to launch
09 March, 2011 - Following an interview with Javier Tordable, the article reports that PAVE plans to open for business in H2 2011, subject to regulatory approval. The article cites Javier as saying that 95 per cent of preparatory work has been done and the remaining five per cent – finalising the corporate governance structure – is the 'icing on the cake'. The company will then apply for a licence and anticipates this process to be completed within three to six months. The article reports that PAVE specifically went for international partners for clearing and trading and operational infrastructure. On the clearing side, Javier is quoted as saying that PAVE liked EuroCCP's focus on Spain and experience of the local market, as EuroCCP clears Spanish stocks trades for Turquoise. He also referenced EuroCCP's agility compared to the 'more monopoly-like structures' of its counterparts.
EuroCCP gains ground with two wins
01 March, 2011 - Article covering the announcement that EuroCCP will provide clearing services for Spanish MTF PAVE and Goldman Sachs’ Sigma-X platform. Diana Chan is quoted saying that PAVE’s presence in the Spanish market will increase competition. The article implies EuroCCP is gaining ground on its clearing competitors, and has forced prices down due to its competitive position amongst other clearers since its inception in 2008. The launch of PAVE and Sigma-X are also indicative of the increasing opportunities for clearers due to the fragmented state of European equities markets, spread across multiple trading venues.
Spanish MTF PAVE selects EuroCCP
28 February, 2011 The Trade highlights the deal between PAVE and EuroCCP. It states that PAVE will offer a lit order book and a mid-point dark pool; while noting that EuroCCP will be the first clearing house to offer such a service in Spain other than Ibeclear.
EuroCCP to clear for Alternative Spanish trade service, FT says
28 February, 2011 - This article cites the agreement between EuroCCP and PAVE.
EuroCCP set to clear for Spain's Pave platform
28 February, 2011 - Article reporting that EuroCCP has signed a memorandum of understanding with PAVE to provide clearing services for the Spanish trading platform. The article quotes Diana Chan.
Industry shocked by EU challenge to link-ups
07 February, 2011 - Article reporting on concerns raised by clearing houses and traders following a speech by Germany MEP Werner Langen to the European Parliament last week in which he argued that creating links between clearing houses could create systemic risk and should be delayed. The article reports that interoperability will allow market participants to choose their preferred clearer when they trade, thus introducing competition and helping reduce fees. Diana Chan, referred to in the article as champion of interoperability, is quoted on the existing progress already made to achieve interoperability in the cash equities markets. LCH Clearnet was the other CCP quoted in the article, while EMCF and SIX x-clear declined to comment.
