Tradeweb Markets Inc, announced this Thursday that it has partnered with equities clearing house EuroCCP to facilitate central counterparty clearing for European Exchange Traded Funds (ETFs).
Tradeweb Markets is a global operator of electronic marketplaces for rates, credit, equities, and money markets. The collaboration with EuroCCP will help the company streamline the settlement process for its European clients, as well as reduce costs, the statement said.
The partnership between Tradeweb and EuroCCP comes at a time when regulators are trying to increasingly harmonize under the European Central Securities Depositories Regulation (CSDR).
Because of this, new Settlement Discipline procedures will need to be followed, which market participants will be subject to. These changes include cash penalties for settlement fails and mandatory buy-ins.
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EuroCCP partnership to help Tradeweb support its clients
By collaborating with EuroCCP, Tradeweb will be able to better help its clients navigate these new rules as well as mitigate counterparty risk for clearing participants, the company said.
Commenting on the partnership, Enrico Bruni, head of Europe and Asia business at Tradeweb said: “By offering our clients the ability to centrally clear European ETF trades, we are enhancing the RFQ workflow by introducing a new post-trade process to help investors minimise settlement fails and improve efficiency. As a leader in the ETF marketplace, we remain fully committed to innovative client solutions, and we are excited about this new initiative.”
Tradeweb has been operating its European ETF trading platform since 2012 and its US platform since 2016. During the month of July, the company reported a recorded an average daily trading volume of $1.5 billion per day for European ETFs. This is higher by 55.2 percent year-on-year.
“Our partnership with Tradeweb allows us to expand our ETF clearing business, delivering a new and innovative service to clients which helps them to better manage the cost and risk of trading this asset class,” added Cécile Nagel, CEO, EuroCCP.