Swiss central counterparty (CCP) SIX x-clear has signed an agreement with buy-side crossing network and agency brokerage Liquidnet to provide clearing services for its streaming liquidity participants (SLPs) in seven new markets.
SIX x-clear currently provides clearing services for Liquidnet's SLPs in the UK, Germany, Switzerland, France and the Netherlands, and will now offer centralised clearing across the markets in Finland, Sweden, Norway, Denmark, Austria, Belgium and Portugal.
Liquidnet's SLPs include brokers, exchanges and multilateral trading facilities (MTFs). The clearing arrangement with SIX x-clear also provides Liquidnet with a risk management framework, computation of risk calculations for each trade across the seven new Liquidnet markets and updating of positions instantly.
“Counterparty risk remains one of the key challenges for financial markets and the role of CCPs has been highlighted as vital in mitigating this risk,” said John Barker, managing director of Liquidnet in Europe. “Our partnership with SIX x-clear demonstrates our focus on additional risk management and we look forward to benefiting from their expertise and to passing these benefits on to our buy-side community across these new markets.”
Marco Strimer, CEO of SIX x-clear added that centralised clearing would help the proper functioning of the market, providing clients with the systems and confidence they need to trade more efficiently.
On 16 October SIX x-clear agreed to supply central clearing services for Swiss investment bank UBS's new dark MTF, UBS MTF, which has since launched.