European Multilateral Clearing Facility (EMCF), an independent central counterparty clearing house regulated by the Dutch Central bank, announced on Friday a reduction in its clearing fees effective 1 March 2008.
According to the firm, this round of fee cuts takes into consideration pre-emptive positioning in relation to the competitive responses of the incumbent clearing houses. Taking into account both clearing and settlement fees, EMCF reports it will remain, on average, more than 50% cheaper than other European clearing houses.
After going live in March 2007, the total number of cleared Chi-X transactions has increased substantially. During this period other clearing houses have reacted by either reducing their fees or changing their fee structure.
“EMCF is determined to bring fair market prices to all participants in order to grow the clearing business whilst at no point compromising its reliability in the evolving European market infrastructure," says Jan Booij, managing director, EMCF. "The non-exclusive partnership between EMCF and Chi-X continues to flourish based on the simple principles of price competition and quality of service. EMCF remains a committed business partner of Chi-X,” Booij continues.
“As volumes on Chi-X have continued to grow, we have been impressed not only with EMCF’s capacities to clear these trades, but also the savings they bring," comments Peter Randall, CEO, Chi-X Europe. "We recognise the need to reduce the frictional cost of trading and the benefits this brings Chi-X participants. We would anticipate these fee reductions will continue to stimulate the modestly encouraging growth we have enjoyed to date and we support EMCF’s commitment to lowering prices,” he adds.