A Netherland based equity clearing company, EuroCPC, has concluded plans to offer its clearing services on the Frankfurt Stock exchange. The trade execution on the stock trading platform will begin on November 11, as announced by the company. And for the first time, EuroCCP will offer its services for ETF and cash equity trades via an electronic trading platform, Deutsche Börse’s Xetra.
Chief Executive of EuroCCP, Cécile Nagel, said that post-trade efficiency and simplicity had been driven by competitive and open access clearing. She pointed out that EuroCCP is honored to provide its services to companies that execute trades on FWB.
She further stated that pan-European equity trading would become very easy to access as a result of this partnership. The integration will equip clearing members for improved operation, reduced clearing difficulties, and consolidate more flow. It will surely reduce operational costs to a large extent, according to Cecile.
A 95% increase in clearing access
EuroCCP’s partnership with FWB means that there is an increase of the clearing access to about 95% of equity trades on organized markets in the Netherland and Europe in general. Apart from this benefit, the company is also achieving another feat. The integration is a step towards achieving EuroCCP’s goal of increasing interoperability and open access among different clearing houses in Europe.
Presently, EuroCCP handles more than 40% of trades on the exchanges and over 30% of cash equities in Europe. EuroCCP has already entered into a partnership with Tradeweb for European ETFs. From these strategic alliances, it is clear that EuroCCP is stopping at nothing to make sure exchangers have a robust platform for improved clearing participation.
Apart from this fact, the alliance has helped EuroCCP to reposition itself as one of the biggest clearing houses in Europe. From Tradeweb’s point, the partnership will enable its clients to understand the CSDR rules easily. A clear understanding of the rules will reduce the risk involved among clearing participants.
EuroCCP has always been a pacesetter in the industry
The company’s partnership with Tradeweb and Frankfurt Stock Exchange is no new feat. In the past, EuroCCP had partnered with several other exchanges to clear trades. It has aligned with Euronext Dublin, Borsa Italian, and Oslo Bors.
Currently, EuroCCP service is now available on CCP basis. It has also cleared trades for other EU institutions like Aquis Exchange, Turquoise, and Cboe Europe.
EuroCCP began a business in 2007. Since then, it has expanded its clearing operations to about 38 trading venues in Europe. It has been providing access to clearing members, which offers them the chance to increase their operational efficiency. At the moment, the clearinghouse partners with about 30 stock exchanges in the European continent for clearing members.