EuroCCP to Clear Trades on Frankfurt Stock Exchange

The European clearinghouse will begin to offer its clearing services from the 11th of November.

EuroCCP, an equities clearinghouse based in the Netherlands, announced this Thursday that it would begin to clear trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange from the 11th of November, 2019.

Furthermore, the clearinghouse’s services are now also available on a preferred CCP basis for trades in cash equities and exchange-traded funds (ETFs) on Deutsche Börse’s Xetra, an all-electronic trading system, for the first time.

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Cécile Nagel, CEO of EuroCCP
Cécile Nagel, CEO of EuroCCP
Source: LinkedIn

Commenting on the development, Cécile Nagel, CEO, EuroCCP, said: “Open access and competitive clearing have been essential drivers of post-trade simplicity and efficiency, and we are pleased to be able to extend our services to firms executing trades on FWB. 

“This is a key milestone in pan-European equities clearing and will allow clearing members to consolidate more flow, reducing complexity and leading to significant operational, netting and cost efficiencies.”

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EuroCCP increased clearing access to 95%

By partnering with FWB, the clearinghouse has increased its clearing access to more than 95 percent of cash equity trades executed on organized markets in Europe. The move is also part of the company’s ambitions to increase open access and interoperability between clearinghouses in Europe, the statement said.

At present, EuroCCP clears more than 30 percent of Europe’s cash equities and around 40 percent of trades on exchanges. As Finance Magnates reported, earlier this year, the clearinghouse partnered with Tradeweb to clear European ETFs.

Not only did the partnership allow EuroCCP to position itself as a clearinghouse with the broadest coverage in Europe, according to the statement, but the partnership also allowed Tradeweb to better help its clients navigate the rules under the European Central Securities Depositories Regulation (CSDR) as well as mitigate counterparty risk for clearing participants.

In 2018, EuroCCP also finalized agreements to clear trades with a number of exchanges, such as Oslo Børs, Borsa Italiana, and Euronext Dublin.

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