NYSE Euronext, the world's leading and most diverse exchange group, today announced it has appointed EuroCCP, a wholly-owned subsidiary of the Depository Trust & Clearing Corporation (DTCC) based in London, as clearer from day one of the launch of its Multilateral Trading Facility (MTF). EuroCCP will act as a Central Counterparty (CCP), enabling anonymous post-trade processing, providing netting and a full range of risk management services to NYSE Euronext’s new pan-European MTF. The MTF is scheduled to be launched in November this year.
In addition, NYSE Euronext has committed to provide access to its trade feed to all four pan-European clearing providers for its MTF once these CCPs have established the necessary interoperability. Besides EuroCCP, these pan-European clearing providers are: the European Multilateral Clearing Facility (EMCF), a Dutch Clearing house; LCH.Clearnet, the independent Anglo-French clearing house and SIX X-clear, the Swiss central counterparty. The four clearing houses will work to establish links amongst themselves so that NYSE Euronext can offer customers of its new MTF a choice of central counterparty in 2009.
NYSE Euronext’s new European MTF will offer trading in the most actively-traded European blue-chip shares that are not already offered on its existing market. It will leverage on the existing connectivity of its European platform, allowing all existing European customers the ability to trade pan-European stocks upon launch of the MTF. Currently, the Company is finalizing its consultation with customers about the launch principles, including pricing. The new MTF will also be the first market to operate on NYSE Euronext’s new Universal Trading Platform (UTP) which utilizes advanced and resilient technology designed to provide the industry’s most innovative, fast and reliable trading platform.
Cees Vermaas, Executive Director, European Sales who is leading the new pan-European MTF project at NYSE Euronext said, “This is a significant breakthrough in rationalizing the post-trade infrastructure in Europe and is in line with the EU Commission’s voluntary Code of Conduct, which requires that market infrastructures offer reciprocal open access.”
“We’re delighted to be the first exchange to offer freedom of clearing choice to our customers who will be trading on our new pan-European MTF. We believe all four clearing and settlement providers will work to implement links to each other to be ready to clear the full range of stocks from 14 European countries in the course of 2009. This will considerably enhance competition, delivering quality of service, reducing cost and lowering risk for our customers.”
