SmartPool, NYSE Euronext’s new European block trading platform, has taken an important step towards its planned launch later this year. SmartPool has chosen EuroCCP and LCH.Clearnet as its clearing and settlement service providers.
The two firms will act as central counterparties, enabling anonymous post-trade processing, as well as providing risk management services and netting. Citi’s global transaction services business will act as EuroCCP’s settlement agent and handle settlement in the respective central securities depositories (CSDs).
SmartPool was created by NYSE Euronext, HSBC and BNP Paribas. It will offer a dark pool for the execution of large institutional order flow in stocks from 14 European countries.
“SmartPool’s ‘open’ business model, whereby we have agreements with two clearing providers, enables us to offer our future customers the most appropriate, competitive and attractive services and environment for the trading of European stocks,” said Roland Bellegarde, Head of European cash markets at NYSE Euronext, in a statement. “By offering a combination of EuroCCP/Citi and LCH.Clearnet we have selected the most efficient low-cost clearing solution for SmartPool customers,” said
LCH.Clearnet, as Euronext’s contracted central counterparty, will provide clearing services for stocks listed in the four Euronext markets: Amsterdam, Brussels, Lisbon and Paris. Settlement will be provided through the local CSDs.
EuroCCP will provide services for the stocks traded in 10 other European countries: Austria, Denmark, Finland, Germany, Ireland, Italy, Norway, Sweden, Switzerland and the United Kingdom. Both CCPs have signed the European Code of Conduct governing clearing and settlement.