SIX to offer clearing services for TP ICAP’s MTFs

Clearing of UK and EU multilateral trading facilities on SIX x-clear will allow TP ICAP members to improve their settlement efficiency.

SIX has partnered with interdealer broker TP ICAP to allow participants of the latter’s markets to clear their UK and EU multilateral trading facilities (MTF) trades on SIX x-clear.

SIX currently offers clearing services to 19 trading platforms, including primary exchanges as well as MTFs based in various European countries and the UK.

The inclusion of TP ICAP UK MTF and TP ICAP EU MTF will expand the market coverage of SIX and will enable TP ICAP members to increase their settlement efficiency.

“This expansion of our portfolio of connected platforms is an important step for our organisation.”

TP ICAP’s operates multiple trading venues and as part of this partnership, the possibility to opt for central counterparty (CCP) clearing will be introduced for the first time.

Given that transactions on TP ICAP MTF are typically high in value, CCP clearing will be beneficial for capital treatment as well as liquidity and risk aspects, compared to bilateral settlement.

“This expansion of our portfolio of connected platforms is an important step for our organisation,” said José Manuel Ortiz, head of clearing and repo operations at SIX.

“We see the go-live of CCP clearing at TP ICAP MTF’s as advantageous to all markets participants and we believe this will contribute to increased transparency, sustainability, and resilience in the financial sector.”

This latest partnership follows SIX’s launch of a new clearing platform targeting the Nordic markets, earlier this year. The new platform will provide benefits including continued enhancement of the IT infrastructure and reliability, and increased functionality and processing capabilities to participants within the region.