virt-x and its members now benefit from the risk management, optional settlement netting and post trade anonymity provided by the CCP service. The pan-European CCP structure will also add significantly to the reduction in cross border trading and settlement costs offered by the virt-x model.
Settlement of virt-x trades is offered by CRESTCo, Euroclear Bank and SIS.
Commenting on the announcement Peter Keller, virt-x's CEO, said:"The launch of the first pan-European CCP structure completes virt-x's integrated trading, clearing and settlement model. The integrated straight through processing environment further simplifies the process of trading securities cross border and will deliver real operational, risk and cost benefits to members."
David Hardy, LCH Chief Executive, said "LCH is delighted to participate in this further development of the virt-x market. This is another central counterparty service to be launched by LCH EquityClear®, and further highlights the demand for a value adding CCP model for equities, that delivers anonymity, reduces operational risks and costs, provides greater security and, through netting, minimises the number and value of settlements. In addition to these wellunderstood benefits, our members will begin to enjoy the very considerable benefits of dealing through a single counterparty in a highly automated and increasingly homogenised manner for both cross-border and domestic trades."
Heinz Haeberli, CEO of the SIS Group, said: "The establishment of SIS x-clear as a CCP for virt-x marks an important milestone in the further development of the Swiss-based European Value Chain, which is designed and committed to offering low-cost but highly sophisticated and automated clearing and settlement services to its domestic and international members, and providing to market participants a unique structure of free choice both for clearing and for settlement ."
