Clearing 21® Gets Off To A Smooth Start In Paris

Clearing 21®, developed by the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange (NYMEX), is the recognized international standard for clearing systems. It is now operational on French derivatives markets Matif and Monep.

The system will be extended to French equity markets between now and the end of the year, then, in 2001, to all the partners in Euronext, the first European bourse, which brings together AEX of Amsterdam, BXS of Brussels and ParisBourseSBF SA.

The clearing operations of ParisBourseSBF SA are through its wholly-owned subsidiary Clearnet SA. The Amsterdam and Brussels clearing houses are to be merged with Clearnet SA , making it the clearing house and central counterparty for Euronext as a whole from January 1, 2001 on.

Clearing 21® replaces existing systems on French derivatives markets with a single platform operating in real time. Benefits include simpler technical and operational management of market risk, lower clearing costs, and reduced margin requirements as a result of new opportunities for cross margining.

Open, modular architecture means that Clearing 21® is easily adaptable to all types of security and trading system, wherever market participants are located. ParisBourseSBF SA already counts ten remote clearing members, and the introduction of the new system will offer scope for more to participate in operations through Clearnet SA.