Deutsche Bank’s transaction banking division has started offering clearing and settlement to multilateral trading facilities (MTFs) Chi-X and Turquoise as a general clearing participant of pan-European clearers European Multilateral Trading Facility (EMCF) and European Central Counterparty (EuroCCP).
General clearing participants submit trades to the clearers on behalf of MTF members that do not have direct clearing memberships. EuroCCP has 24 clearing participants, of which 14 are general clearing participants. EMCF has 32 clearing participants, of which 17 are general clearing participants. Most general clearing participants on the two platforms are large banks, although some are mid-sized or boutique sell-side firms.
Deutsche is monitoring the development of other MTFs with a view to offering them clearing and settlement services where appropriate.
EMCF acts as the central counterparty for Chi-X, as well as fellow trading platforms BATS Europe and Nasdaq OMX Europe. EuroCCP provides post-trade services to Turquoise and has also been chosen to clear and settle for exchange group NYSE Euronext’s new European platforms, SmartPool and NYSE Arca Europe, which are expected to launch in January.
“These latest additions to our global clearing product suite demonstrate Deutsche Bank’s commitment to the securities clearing business,” said Rob Scott, global head of securities clearing and financing at Deutsche Bank. “We will continue to expand our services in markets where there is client demand.”