Pan-European clearing house EuroCCP has agreed to provide interoperable central counterparty (CCP) clearing to Burgundy, the Nordic multilateral trading facility (MTF).
EuroCCP will offer CCP clearing in securities traded on Burgundy in 2012, subject to regulatory approval. Burgundy currently offers trading in over 1,000 securities in Denmark Finland, Norway and Sweden.
“We are pleased to see more trading venues adopt interoperable clearing as ultimately we believe this will succeed in transforming the European equities trading landscape with all market participants enjoying the benefits of greater choice and lower costs,” said Olof Neiglick, CEO of Burgundy.
Burgundy had already agreed to offer members a choice of clearing houses from May 2012, bringing full interoperability to the largest markets trading in Nordic stocks. Rival trading venue Nasdaq OMX Nordic, which operates domestic markets in Denmark, Norway and Sweden, plans to offer its own clearing operability between EuroCCP, SIX x-clear and EMCF from April 2012.
The London Stock Exchange was the first bourse to offer clearing choice, with the addition of SIX x-clear in September 2008. However, BATS Europe was the first MTF to introduce clearing choice, launching its preferred interoperable model in June this year. Chi-X Europe plans to launch four-way interoperability from next year.