EuroCCP, the new European central counterparty owned by US post-trade processing firm DTCC, has chosen financial messaging firm SWIFT to provide connectivity to its clearing members.
EuroCCP provides clearing and settlement services for Turquoise, the pan-European multilateral trading facility (MTF) that embarked on its limited live trading period today.
Eight EuroCCP clearing participants, all members of Turquoise, have signed to use SWIFTNet, SWIFT’s advanced internet protocol (IP)-based messaging solution, for connectivity to EuroCCP for clearing and settlement for today’s launch. Full processing of the 1,267 securities from 13 European markets traded on Turquoise will be available on 5 September.
SWIFT said the eight Turquoise members wanted the ability to access EuroCCP via SWIFT so they could reuse their existing SWIFT infrastructures to communicate with the clearing house. While firms can elect other methods to connect to EuroCCP, SWIFT says it is a popular option for European brokers.
“By making use of SWIFTNet, EuroCCP was able to quickly connect into the existing SWIFT community to generate secure connections, rather than having to set up all new connections,” said Diana Chan, CEO of EuroCCP, in a statement. “That capability was invaluable to us in making our system operational against tight competitive deadlines.”
SWIFTNet offers connectivity between all parties in the post-trade lifecycle, including EuroCCP members’ settlement agents, EuroCCP’s chosen settlement bank, Citi, and many European central securities depositories (CSDs).
The ‘EuroCCP over SWIFT’ offering spans SWIFT’s entire suite of messaging services, including FIN for message-by-message communications related to settlement, FileAct for file-based messaging related to clearing and Browse for GUI access to EuroCCP’s reporting databases.