Equiduct, the pan-European regulated market majority owned by Citadel Execution Services, will become the latest platform to introduce interoperability with the addition of clearer EuroCCP.
Up until now, Equiduct has used the domestic central counterparty (CCP) for each market in which it operates. From July, subject to regulatory approval, EuroCCP will be offered in addition to the domestic clearer.
Where domestic CCPs do not support clearing choice, a preferred model will be used.
“We are at a very important stage in the evolution of our business and so we constantly need to diversify and strengthen the service we provide to our users,” said Equiduct Systems CEO Peter Randall. “In response to a growing customer demand, we are pleased to be able to do this with the launch of interoperable clearing with EuroCCP.”
“The transformation of the European equities market continues as more trading platforms offer interoperable clearing,” added Diana Chan, CEO at EuroCCP. “The increased competition that follows delivers greater choice and lower costs to trading and clearing firms. We are already seeing the impact of interoperable clearing on our business as our low cost, customer focused clearing model is chosen by trading and clearing firms.”
Equiduct will join multilateral trading facilities BATS Chi-X Europe, Turquoise and Nordic-focused Burgundy in offering clearing choice. The London Stock Exchange has offered SIX x-clear in addition to incumbent clearer LCH.Clearnet since 2008, while Nasdaq OMX Nordic, which controls stock exchanges in Sweden, Denmark and Finland, was due to launch interoperability this month, but has delayed its plans because of regulatory uncertainty.