ICE Acquires a Majority Stake in Dutch-Based Derivatives Clearing House
- Holland Clearing House is regulated and supervised in the European Union by the Netherlands Authority for the Financial Markets and the Dutch Central Bank, details about the transaction were not disclosed.
One of the biggest clearing services providers in the world, the Intercontinental Exchange (ICE), just issued an announcement about its intentions to buy a majority stake in Holland Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term (HCH) - an Amsterdam-based derivatives clearing house which is the primary clearing house for the TOM multilateral trading facility (MTF).
The TOM MTF offers trading in shares, derivatives and ETFs to banks, brokers and Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term, packaging access to high-speed trading in the most liquid shares.
HCH is regulated by the Netherlands Authority of the Financial Markets (NAFM) and the Dutch Central Bank, giving ICE the opportunity to expand its presence in continental Europe clearing services.
Dutch bank, ABN Amro Clearing will retain a minority interest in the venture, while the investment has not been classified by ICE as material enough to disclose the costs associated with it.
The transaction is still subject to due-diligence and the regulatory approval from Dutch authorities with ICE expecting to be closed in Q4 of 2014.
The firm is currently running five clearing houses, with ICE Clear Singapore preparing to launch in the coming months. Its European presence is already established with London-based ICE Clear Europe, but HCH is the first "continental" acquisition which the company is making.
The President of ICE Clear Europe, Paul Swann, commented in the company announcement, "We are pleased to work with ABN Amro Clearing Bank, as well as with TOM and HCH, to further develop our European clearing businesses."
The CEO of HCH, Joost Beckers, stated, “We are excited to welcome ICE as a new shareholder, and together with ICE we will continue to service TOM and our clearing participants competitively. The support of ICE will add to HCH’s strengths, and through robust and efficient services, HCH is well positioned for growth."
One of the biggest clearing services providers in the world, the Intercontinental Exchange (ICE), just issued an announcement about its intentions to buy a majority stake in Holland Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term (HCH) - an Amsterdam-based derivatives clearing house which is the primary clearing house for the TOM multilateral trading facility (MTF).
The TOM MTF offers trading in shares, derivatives and ETFs to banks, brokers and Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term, packaging access to high-speed trading in the most liquid shares.
HCH is regulated by the Netherlands Authority of the Financial Markets (NAFM) and the Dutch Central Bank, giving ICE the opportunity to expand its presence in continental Europe clearing services.
Dutch bank, ABN Amro Clearing will retain a minority interest in the venture, while the investment has not been classified by ICE as material enough to disclose the costs associated with it.
The transaction is still subject to due-diligence and the regulatory approval from Dutch authorities with ICE expecting to be closed in Q4 of 2014.
The firm is currently running five clearing houses, with ICE Clear Singapore preparing to launch in the coming months. Its European presence is already established with London-based ICE Clear Europe, but HCH is the first "continental" acquisition which the company is making.
The President of ICE Clear Europe, Paul Swann, commented in the company announcement, "We are pleased to work with ABN Amro Clearing Bank, as well as with TOM and HCH, to further develop our European clearing businesses."
The CEO of HCH, Joost Beckers, stated, “We are excited to welcome ICE as a new shareholder, and together with ICE we will continue to service TOM and our clearing participants competitively. The support of ICE will add to HCH’s strengths, and through robust and efficient services, HCH is well positioned for growth."