London, 19 May 2009 -
European Central Counterparty Ltd. (EuroCCP) has approved Timber Hill (Europe) AG as a General Clearing Participant (GCP). Once Timber Hill goes live, the number of EuroCCP's Participants will increase to 26.
With this addition, EuroCCP will have 15 General Clearing Participants (GCPs)-Participants that clear for themselves as well as for other trading firms that are not EuroCCP Participants-as well as 11 individual Participants that clear only their own trades.
Timber Hill (Europe) AG is a member of the Interactive Brokers Group, Inc. ("IBG") (NASDAQ: IBKR), one of the largest international securities dealers with over US$4.4 billion in capital. Timber Hill (Europe) AG is the headquarters and lead affiliate for the Group's European operations and has well established and successful businesses in both proprietary trading and client brokerage services. Timber Hill maintains a keen focus on technological solutions, which keeps it on the leading edge of the financial services industry. With operations in the financial markets of 27 countries and 70 exchanges, IBG is one of the leading participants in listed derivatives globally.
EuroCCP Participants are able to trade on any of the platforms EuroCCP clears for and, in all markets except the UK and Ireland, have the trades in the same security on the same day netted into one settlement obligation and margin requirement.
EuroCCP, a Recognised Clearing House regulated by the Financial Services Authority, clears trades for multilateral trading facilities Turquoise, SmartPool and NYSE Arca Europe. EuroCCP is also working with SecFinex to develop a central counterparty solution for securities lending and borrowing transactions in the UK market. EuroCCP has also signed a memorandum of understanding with NASDAQ OMX Nordic Oy to be one of three central counterparties to provide clearing services for NASDAQ OMX's stock exchanges in Denmark, Finland and Sweden. Pipeline Financial Group Limited earlier this week announced the appointment of EuroCCP to support Pipeline's new pan-European block trading and specialist algorithmic trading platform.
When EuroCCP in early 2007 was selected by its first platform customer, Turquoise, among several CCPs already active in Europe at the time, Turquoise cited EuroCCP's ability to deliver immediate economies of scale. EuroCCP is able to continuously offer low-cost, robust clearing services in Europe through its at-cost business model structured after its parent, The Depository Trust & Clearing Corporation (DTCC). DTCC provides EuroCCP with technology, know-how and risk management expertise gained from more than three decades' experience in securities clearing.
EuroCCP recently reinforced its commitment to competitive clearing by signing a Memorandum of Understanding with SIX x-clear Ltd to interoperate with each other for all platforms that appoint multiple CCPs. This agreement serves to accelerate the ability of trading firms to use the CCP of their choice. EuroCCP is also in the process of making interoperating arrangements with LCH.Clearnet Ltd.
European Central Counterparty Limited (EuroCCP), a UK-incorporated, FSA-regulated Recognised Clearing House, started operations in 2008. It is the European subsidiary of The Depository Trust & Clearing Corporation (DTCC) and is headquartered in London. EuroCCP was formed to provide clearing and settlement services for a wide range of trading venues across Europe, offering the scale economies of the US market to European market participants. It currently clears equity trades in 15 countries and in seven currencies. EuroCCP has been appointed to provide central counterparty services by Turquoise, SmartPool, NYSE Arca Europe and Pipeline Financial Group Limited for equity trades. NASDAQ OMX Nordic Oy has signed a Memorandum of Understanding with EuroCCP for clearing services for its stock exchanges in Denmark, Finland and Sweden. EuroCCP is also working with SecFinex to develop a central counterparty solution for securities lending and borrowing transactions. Market participants can trade equities on any venue EuroCCP supports and have their transactions netted for settlement and/or margin purposes for the same security traded on the same day, thereby reducing costs and operational risks.
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 110 other countries and territories, valued at US$27.6 trillion. In 2008, DTCC settled more than US$1.88 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.