Smooth Start For Clearing 21® On Paris Equity Markets

Clearing 21®, which will be the common clearing system used by Euronext markets in Amsterdam, Brussels and Paris by the end of the year, has been operational on Euronext equity markets in Paris since January 12. Already up and running on Euronext Paris derivatives markets Monep and Matif since September 8 last year, Clearing 21® is a recognized industry standard developed jointly by the Chicago Mercantile Exchange and the New York Mercantile Exchange. The Paris Bourse acquired the system in 1997 through a technology exchange agreement which also enabled the CME to adopt NSC, the Euronext trading system.

Following three years of development work conducted by teams from Clearnet SA and Atos-Euronext(1), Clearing 21® is now the world's only real-time clearing system for both equities and derivatives. Modular, open architecture make if fully compatible with the automated back-office processing systems of market members, whatever their geographical bases.

Members also benefit from new capacity for immediate fine-tuning of treasury management, lower back-office costs and lower margin requirements, thanks to scope for cross margining. Finally, Clearing 21® makes it easier for institutions to operate as remote clearers.

Clearnet SA is to act as the clearing house and central counterparty for markets in Amsterdam, Brussels and Paris following a merger with Euronext clearing houses in Amsterdam and Brussels. It will thus be the first clearing house to process cross-border transactions in real time for both equity and derivatives markets.