How the service works

EuroCCP accepts trades directly from the platforms it clears for, and these trades are netted on trade date. EuroCCP guarantees trades against a counterparty's failure upon trade receipt and validation. The clearing process masks the counterparty of the trade for full anonymity from trade through to settlement. Trading parties that are not clearing members of EuroCCP can have their trades processed through EuroCCP by appointing a EuroCCP General Clearing Participant to handle their transactions.

EuroCCP applies risk-based margining on all open, unsettled positions, with appropriate levels of margin collected on a daily basis. Margin can be provided in the form of cash, sovereign government bonds, or letters of credit. Collateral requirements are reviewed and may be adjusted daily. Cash collateral may be posted in any one of the supported currencies. The currency chosen for cash collateral purposes is selected by the firm at the time it joins EuroCCP as a participant.

Settlements occur between clearing members and EuroCCP at the respective national central securities depository of the securities. Citi, acting as EuroCCP's settlement agent, monitors settlement with clearing participants. Clearing participants can use the settlement agent of their choice; there is no requirement to use Citi services.

The currencies currently supported for clearing and settlement by EuroCCP are: the euro, British pound, U.S. dollar, Swiss franc, Danish krone, Swedish krona, Norwegian krone, Hungarian forint, and Czech koruna. Trades may settle in any currency supported, but only in those depositories where the currency is accepted. Countries/markets supported by EuroCCP include: Austria, Belgium, Czech Republic, France, Denmark, Germany, Hungary, Ireland, Italy, Finland, Netherlands, Norway, Portugal, United Kingdom, Switzerland, Sweden and Spain. Additional currencies and countries will be supported in the future.

EuroCCP clears trades in 19 markets, including more than 6,000 equities issues in Europe, US issues, and 120 listed Depositary Receipts through Euroclear.

For a more-detailed description of EuroCCP's clearing and settlement process, download the Service Overview.

For more information

Please visit Membership to contact an account relationship manager.

EuroCCP is a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC).