BATS Europe offers multilateral clearing choice
30 July 2011 London
Image: Shutterstock
BATS Europe has launched Preferred Interoperable Clearing, which provides its trading participants the choice of a preferred clearer from three interoperating clearing counterparties (CCPs), effective immediately.
EuroCCP, LCH.Clearnet and SIX x-clear are the three CCPs participating in BATS Europe鈥檚 Preferred Interoperable Clearing service. Under this service, if participants on both sides of a trade select a CCP from the interoperable group via the online election form, then the executed trade will be cleared by the designated CCP(s).
Mark Hemsley, CEO of BATS Europe, said: 鈥淲e are pleased to be the first market centre to offer a multilateral interoperable clearing service that supports customer choice and encourages CCP price and service competition. Today鈥檚 launch is the first step toward a fully interoperable clearing environment, which is an important one toward significantly reducing frictional post-trade costs for Europe鈥檚 market participants. We continue to encourage our participants to demand clearing choice from all trading venues so that the full benefits of competition can be realised.鈥�
Diana Chan, CEO of EuroCCP, said: 鈥淓uroCCP has long been a proponent of interoperability and of the benefits of increased competition. We are confident that our industry utility model, robust risk management practices and recent fee reduction will drive participants towards choosing EuroCCP as their preferred CCP.鈥�
Wayne Eagle, executive director, EquityClear, LCH.Clearnet Ltd, said: 鈥淎 competitive clearing environment gives users real choice, delivering greater efficiency and reduced costs whilst ensuring the integrity and safety of the market. There is a real demand for interoperability involving all the CCPs.鈥�
Tomas Kindler, head of clearing relations, SIX x-clear Ltd, said: 鈥淭hough this has been long in coming, we are delighted at the news. It vindicates our long-held position that interoperability in the clearing space benefits all constituencies - trading participants and, on a more macro level, the industry as a whole. This particular approach to interoperability is just the beginning and is set to change the clearing landscape in Europe for the future. We are pleased to be part of it.鈥�
EMCF will continue to provide clearing and settlement services for orders executed on the BATS Europe platform not designated to one of the three interoperating CCPs.
EuroCCP, LCH.Clearnet and SIX x-clear are the three CCPs participating in BATS Europe鈥檚 Preferred Interoperable Clearing service. Under this service, if participants on both sides of a trade select a CCP from the interoperable group via the online election form, then the executed trade will be cleared by the designated CCP(s).
Mark Hemsley, CEO of BATS Europe, said: 鈥淲e are pleased to be the first market centre to offer a multilateral interoperable clearing service that supports customer choice and encourages CCP price and service competition. Today鈥檚 launch is the first step toward a fully interoperable clearing environment, which is an important one toward significantly reducing frictional post-trade costs for Europe鈥檚 market participants. We continue to encourage our participants to demand clearing choice from all trading venues so that the full benefits of competition can be realised.鈥�
Diana Chan, CEO of EuroCCP, said: 鈥淓uroCCP has long been a proponent of interoperability and of the benefits of increased competition. We are confident that our industry utility model, robust risk management practices and recent fee reduction will drive participants towards choosing EuroCCP as their preferred CCP.鈥�
Wayne Eagle, executive director, EquityClear, LCH.Clearnet Ltd, said: 鈥淎 competitive clearing environment gives users real choice, delivering greater efficiency and reduced costs whilst ensuring the integrity and safety of the market. There is a real demand for interoperability involving all the CCPs.鈥�
Tomas Kindler, head of clearing relations, SIX x-clear Ltd, said: 鈥淭hough this has been long in coming, we are delighted at the news. It vindicates our long-held position that interoperability in the clearing space benefits all constituencies - trading participants and, on a more macro level, the industry as a whole. This particular approach to interoperability is just the beginning and is set to change the clearing landscape in Europe for the future. We are pleased to be part of it.鈥�
EMCF will continue to provide clearing and settlement services for orders executed on the BATS Europe platform not designated to one of the three interoperating CCPs.
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