Cboe Clear Europe, a leading pan-European clearing house, provides an overview of its 2024 key milestones and shares its plans for 2025.
- 2024 milestone achievements:
- Record market share:
- In cash equities, Cboe Clear Europe (CCE) strengthened its position as the largest pan-European clearing house, clearing 1.2bn client trades - a 5% increase on 2023.
- CCE ended the year with a record market share of 45.4% on interoperable venues, up from 41.6% in 2023.
- CCE achieved significant growth across the Nordic region, with standout growth on Euronext Oslo, where its cleared volumes grew 74% year-over-year.
- In cash equities, Cboe Clear Europe (CCE) strengthened its position as the largest pan-European clearing house, clearing 1.2bn client trades - a 5% increase on 2023.
- New venues:
- CCE cleared in October 2024 its first trades on Deutsche Börse, marking the introduction of clearing choice in the German market. Since this launch, the firm has cleared over 17,000 trades and continues to welcome new users to its service.
- CCE also initiated clearing for the Spotlight Stock Market, a Swedish growth market, in early December - representing its 47th venue connection.
- CCE cleared in October 2024 its first trades on Deutsche Börse, marking the introduction of clearing choice in the German market. Since this launch, the firm has cleared over 17,000 trades and continues to welcome new users to its service.
- CEDX growth:
- CCE continued its support of Cboe Europe Derivatives (CEDX), Cboe’s pan-European equity derivatives marketplace. This includes assisting with the significant expansion of its suite of single-stock options during the year, which now comprises single-stock options on over 320 leading European companies from 14 countries.
- Cboe Clear Europe cleared a record 210k lots over the year, up from 94k in 2023, with Interactive Brokers joining as a new direct trading and clearing member in July.
- CCE continued its support of Cboe Europe Derivatives (CEDX), Cboe’s pan-European equity derivatives marketplace. This includes assisting with the significant expansion of its suite of single-stock options during the year, which now comprises single-stock options on over 320 leading European companies from 14 countries.
- New members:
- CCE welcomed European financial group, Oddo BHF, and French leader in Internet stock trading, Bourse Direct, as new clearing members in 2024 – their 47th and 48th members, respectively.
- 2025 strategic plans
- SFT clearing:
- CCE obtained regulatory approval in November 2024 to clear Securities Financing Transactions (SFT). The firm is preparing to clear the first trades and will be building out this new clearing ecosystem in collaboration with market participants throughout the year.
- The firm is in advanced discussions with various firms, including banks, asset managers, broker-dealers, and agent lenders, to ensure a smooth launch in the near future.
- CCE obtained regulatory approval in November 2024 to clear Securities Financing Transactions (SFT). The firm is preparing to clear the first trades and will be building out this new clearing ecosystem in collaboration with market participants throughout the year.
Commenting on the SFT clearing, Vikesh Patel, President at Cboe Clear Europe, said: “Our new SFT clearing solution will revolutionise the current bilateral process for SFTs into a centrally cleared model, thereby supporting the growth of this key market. Participants will be able to reduce their risk-weighted asset exposures associated with SFTs, as well as introduce various capital and operational advantages, such as greater settlement efficiencies, elimination of agent lender disclosures, and improved practices around corporate actions. This new service underscores our dedication to providing innovative clearing solutions across multiple asset classes.”
- CEDX and Derivatives:
- CCE will continue to support the growth of CEDX and showcase the benefits this marketplace offers from a post-trade perspective – contributing to the continued expansion of this emerging European derivatives market.
- By allowing pan-European index and single-stock options to be cleared at a CCP, the combined service seeks to provide significant capital efficiencies to participants and challenges the status quo of how European derivatives have historically been cleared.
- CCE will continue to support the growth of CEDX and showcase the benefits this marketplace offers from a post-trade perspective – contributing to the continued expansion of this emerging European derivatives market.
- OTC equities:
- CCE will aim to activate our collaboration with DTCC to improve the workflow around OTC equities trades during the first half of the year. This initiative will enable CCE to introduce clearing for trades traditionally settled OTC between executing and prime brokers on DTCC CTM's tri-party trade matching workflow.
Commenting on CCE’s venue connectivity, Vikesh Patel, President at Cboe Clear Europe, said: “In equities, we remain proud of our status as the most-connected CCP in Europe and will continue to focus on strengthening our venue coverage. Looking ahead, we see opportunities in gaining access to Europe’s listing exchanges for which we don’t currently clear – promoting clearing choice in vertically integrated markets.”
