UBS MTF, the multilateral trading facility operated by UBS Limited, today announced plans to offer four-way interoperability of central counterparties (CCPs) for cash equity trades executed on UBS MTF, subject to regulatory approval.
UBS MTF, which is live with two interoperating CCPs, EuroCCP and SIX x-clear Ltd, is the first MTF to offer full interoperability for cash equities. UBS MTF plans to expand its selection by adding EMCF and LCH Clearnet. This will allow members of UBS MTF to choose between the four interoperating CCPs when clearing and settling their trades in European cash equities.
Dr. Robert Barnes, CEO of UBS MTF, said: “Full interoperability allows 100% predictability that a matched order will clear through the trader’s CCP of choice. With a larger selection of CCPs, UBS MTF members will have more opportunity to consolidate clearing from a wider range of markets.
"Fostering innovation and choice is part of UBS MTF’s core mission, so we are delighted with plans to be an early adopter of four-way interoperability as regulation makes investor choice more available. We hope other markets will follow this best practice example for enhancing efficiency in the European securities markets."
