Euronext Set to Expand Derivatives Service to Capture Migration from OTC to Central Clearing
- The service will provide flexibility , allowing investors to tailor derivative instruments and report expiration dates, strike prices, option and settlement styles which are not available on the central order book.
Euronext announced today a new service which will be launched with equity derivatives in the spring of 2015, enabling bilaterally agreed trades with flexible parameters to be reported to Euronext and cleared by LCH.Clearnet SA , Euronext’s Central Counterparty
The service will run on the TRADExpress platform, delivered by Cinnober, an independent provider of solutions and services to major trading and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term venues. The service will significantly expand and enhance Euronext's derivatives offering for clients.
The new service will provide flexibility for investors, allowing them to tailor derivative instruments and to report through a web interface with expiration dates, strike prices, option types and settlement styles which are not available on the central order book.
Lee Hodgkinson, Head of Markets and Global Sales, said, “Against the backdrop of the G20 post-crisis reform programme of increased transparency and reduced systemic risk in derivative markets, we will be positioning our service to deliver clients with the capital efficiency and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term benefits of central clearing. This initiative will allow us to boost the competitiveness of our existing and recently launched products, and will be the springboard for expansion into new derivative products and asset classes, as it directly provides us with opportunities to develop closer links to a broader section of the trading community.”
Veronica Augustsson, CEO of Cinnober Financial Technology AB, said, “There are many changes taking place within trade management and post-trade, where regulations and competition in particular are driving innovation. Together with our track record, independence and flexible technology this puts us at the forefront. We are confidently looking forward to providing a top-notch solution together with our partners, which will also benefit the European derivative and equity markets in general.”
Christophe Hemon, CEO of LCH.Clearnet SA, said,“Our members recognize the benefits of centrally clearing a greater proportion of their derivative trading activity through regulated platforms. The addition of this service to our clearing pool further strengthens potential for portfolio margining for both our members and clients. We look forward to continuing our work with Euronext to grow the service in line with customer demand.”
Euronext announced today a new service which will be launched with equity derivatives in the spring of 2015, enabling bilaterally agreed trades with flexible parameters to be reported to Euronext and cleared by LCH.Clearnet SA , Euronext’s Central Counterparty
The service will run on the TRADExpress platform, delivered by Cinnober, an independent provider of solutions and services to major trading and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term venues. The service will significantly expand and enhance Euronext's derivatives offering for clients.
The new service will provide flexibility for investors, allowing them to tailor derivative instruments and to report through a web interface with expiration dates, strike prices, option types and settlement styles which are not available on the central order book.
Lee Hodgkinson, Head of Markets and Global Sales, said, “Against the backdrop of the G20 post-crisis reform programme of increased transparency and reduced systemic risk in derivative markets, we will be positioning our service to deliver clients with the capital efficiency and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term benefits of central clearing. This initiative will allow us to boost the competitiveness of our existing and recently launched products, and will be the springboard for expansion into new derivative products and asset classes, as it directly provides us with opportunities to develop closer links to a broader section of the trading community.”
Veronica Augustsson, CEO of Cinnober Financial Technology AB, said, “There are many changes taking place within trade management and post-trade, where regulations and competition in particular are driving innovation. Together with our track record, independence and flexible technology this puts us at the forefront. We are confidently looking forward to providing a top-notch solution together with our partners, which will also benefit the European derivative and equity markets in general.”
Christophe Hemon, CEO of LCH.Clearnet SA, said,“Our members recognize the benefits of centrally clearing a greater proportion of their derivative trading activity through regulated platforms. The addition of this service to our clearing pool further strengthens potential for portfolio margining for both our members and clients. We look forward to continuing our work with Euronext to grow the service in line with customer demand.”