Chi-X members demand competitive clearing

Chi-X, a European multilateral trading facility, could follow the lead of some its rivals by considering the introduction of a competitive clearing model.
By None

Chi-X, a European multilateral trading facility, could follow the lead of some its rivals by considering the introduction of a competitive clearing model.

During a recent advisory meeting, Chi-X members asked the European equity trading platform to explore alternatives to its current clearing counterparty (CCP),

European Multilateral Clearing Facility (EMCF), now owned by the Dutch government and exchange group Nasdaq OMX, after a government bail-out of parent group Fortis.

As a result, Chi-X has begun an analysis into its clearing services, but has not set a firm date for further action.

The London Stock Exchange (LSE) and NYSE Arca Europe, the European MTF offering by NYSE Euronext, both recently announced access to multiple CCPs.

In September, the LSE revealed plans to add Swiss clearer SIX X-clear to its existing CCP, LCH.Clearnet. NYSE Arca Europe will initially use EuroCCP upon its launch this month, before introducing EMCF, LCH.Clearnet and SIX X-clear in 2009.

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