EuroCCP, the pan-European cash equities central counterparty (CCP), has been authorised by the UK's Financial Services Authority to provide clear services under interoperable arrangements for multilateral trading facilities (MTFs) BATS Europe and UBS MTF.
With immediate effect, UBS MTF, operated by the Swiss investment bank, offers trading members the choice of clearing executed trades via EuroCCP or SIX x-clear, the CCP unit of post-trade market infrastructure provider SIX Securities Services.
BATS Europe goes live with a preferred interoperable clearing programme on 29 July, which allows counterparties to select a clearer from EuroCCP, LCH.Clearnet, and SIX x-clear. Under this system the incumbent CCP, Dutch firm EMCF, will be selected if either of the counterparties does not express a preference. This model is necessitated by EMCF's decision not to participate in interoperability arrangements.
Diana Chan, CEO, EuroCCP, a subsidiary of US post-trade service provider the Depository Trust and Clearing Corporation, said, “EuroCCP has been a long-term supporter of interoperability as it will enable clients to benefit from greater choice of clearing venues and lower clearing and trading costs. We're pleased to see UBS MTF become the first broker–operated platform offering interoperability with EuroCCP.”
“We are ready to support interoperability and welcome the opportunity this presents to participants in terms of costs savings and a greater choice,” said Tomas Kindler, member of the executive committee at SIX x-clear.