BATS Europe unveils preferred interoperable clearing service
23 May 2011 London
Image: Shutterstock
BATS Europe has announced plans to launch an exclusive preferred interoperable clearing programme to allow trading participants the choice of a preferred clearer from three interoperating clearing counterparties (CCPs) from late July, pending regulatory approval.
With the new service, participants can elect a preferred CCP for clearing of all trades in a specific market segment on BATS Europe. The preferred CCP may be one of LCH.Clearnet, x-clear or EuroCCP, pending regulatory approval and implementation of interoperability arrangements between these three CCPs. Under the new preferred clearing service, if participants on both sides of a trade have selected a preferred CCP, then the executed trade will be cleared by the designated CCP(s).
“We have been very supportive of the CCP interoperability initiative because its development is consistent with BATS Europe's intentions of improving market structure in Europe through customer choice and competition,” said Mark Hemsley, CEO of BATS Europe. “With preferred interoperable clearing, we are a step closer to a competitive European clearing environment that encourages efficiency and innovation.”
EMCF will continue to act as the default CCP for BATS Europe.
With the new service, participants can elect a preferred CCP for clearing of all trades in a specific market segment on BATS Europe. The preferred CCP may be one of LCH.Clearnet, x-clear or EuroCCP, pending regulatory approval and implementation of interoperability arrangements between these three CCPs. Under the new preferred clearing service, if participants on both sides of a trade have selected a preferred CCP, then the executed trade will be cleared by the designated CCP(s).
“We have been very supportive of the CCP interoperability initiative because its development is consistent with BATS Europe's intentions of improving market structure in Europe through customer choice and competition,” said Mark Hemsley, CEO of BATS Europe. “With preferred interoperable clearing, we are a step closer to a competitive European clearing environment that encourages efficiency and innovation.”
EMCF will continue to act as the default CCP for BATS Europe.
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