EuroCCP Named Clearing House of the Year

 

EuroCCP is delighted to have been named ‘Clearing House of the Year’ by Financial News in its 2020 Trading & Technology Awards. This award reflects EuroCCP’s achievements over the past year in the post-trade equities market in Europe.

 Under the leadership of CEO Cecile Nagel, the company has grown through its venue connections, cleared volume and completed the transaction with Cboe Global Markets. 

Whilst we continue to operate in difficult conditions, we look forward to partnering with our clients in 2021 to enhance our equities business, expand into equity derivatives and help to bring efficiencies and liquidity to the ETF market.

Thank you for your continued partnership and support.

Clearing Rule Book Changes

EuroCCP announces that an updated version of its Clearing Rule Book is posted on its website.

On 21 April 2020 EuroCCP published an updated version of its Clearing Rule Book (“CRB”) together with an updated Regulation Trade Refusal and a newly introduced Regulation Liquidity Measures on its website for consultation.

The changes to the CRB were open for consultation for a 30 calendar day consultation period. This period ended on 20 May 2020.

The purpose of the changes is to introduce new tools and measures to address potential liquidity risks with the aim to enhance EuroCCP’s liquidity risk management framework and resilience.

Following feedback, a change has been made in the Regulation Liquidity Measures in respect of the look back period used to determine Qualifying Clearing Participants and to calculate the applicable Settlement Exposure Add-on Percentage. An uninterrupted period of three months instead of twelve months immediately prior to the Designation Date will be used to determine whether a Clearing Participant would qualify as Qualifying Clearing Participant. In addition,  the applicable look back period to calculate the Settlement Exposure Add-on Percentage will be changed from 12 months to 3 months as well.  This change will allow Clearing Participants to be sooner out of scope of the obligation to provide Settlement Exposure Add-on if the amount of liquidity risk brought to EuroCCP by that Clearing Participant has reduced over time.

Next to that a few clerical changes have been made in section 5 of the Regulation Liquidity Measures which we believe to be non-contentious. Apart from these adjustments no changes have been made to the versions that were published 21 April 2020.

The final versions of the updated CRB, the updated Regulation Trade Refusal and the new Regulation Liquidity Measures are now published on EuroCCP’s website. They will be in effect as of 1 July 2020.

Once more we would like to thank the Clearing Participants that have participated in the consultation.

For queries, please contact our Relationship Management department.

Cboe Global Markets Completes EuroCCP Acquisition

Today, Cboe Global Markets has completed its acquisition of EuroCCP.

The acquisition brings together two pan-European organizations that have long championed competition, open access and clearing interoperability in Europe.

The full press release is available here.

The acquisition paves the way for the planned launch of Cboe Europe Derivatives, a new Amsterdam-based futures and options market, in the first half of 2021, subject to regulatory approvals.

For further information on this important milestone in our history, please contact the Relationship Management team.

Updated Regulation Investment Policy

 

EuroCCP is pleased to inform you that it has updated its Regulation EuroCCP Investment Policy.

The changes have been approved in accordance with the requirements of the Regulation and relate to the following:

Additions

  • Citibank, National Association (LEI E57ODZWZ7FF32TWEFA76) is recognised as a Credit Institution.
  • Annex 1, Approved Countries has been extended with The United States of America.

Removal(s)

  • Lloyds Bank PLC is no longer recognised as a Credit Institution.

Following the above changes, EuroCCP will publish its updated Regulation Acceptable Collateral after thirty (30) days following this newsflash .

The Regulation Acceptable collateral will be extended to include United States Treasury Securities.

Should you have any further queries, please do not hesitate to contact us.

Revised Liquidity Framework Client Package

Following the conclusion of the consultation of the Revised Liquidity Framework, the website has now been updated with further details and examples of the additional member reporting. Further details can be found in the following document.

 

It is anticipated that the new measures will come into effect on 1st July, subject to regulatory approval.

EuroCCPs COVID19 response

In response to the evolving COVID19 situation, EuroCCP is making sure it is fully prepared to continue to operate as normal and is in close dialogue with all its stakeholders including clients, regulators and suppliers.

In line with the recently issued advice from the Dutch Government to work from home as much as possible, we have begun transitioning our staff to working remotely. All critical functions, including external communications, continue to operate as normal with no impact to the functioning of our services.

EuroCCPs Business Continuity Framework is centred around the ability to work remotely for an indefinite period of time without the need to access our office locations in London and Amsterdam. Our ability to operate remotely is regularly tested and a test was recently completed confirming our ability to continue our services without any disruptions.

We continue to monitor the situation closely and will inform stakeholders of any changes to the normal functioning of our services should any such changes arise.

A more detailed FAQ document is available on request. Please contact a member of the EuroCCP Relationship Management Team with any questions.

Updated Regulation Fees and Penalties – Effective 1 March 2020

Please be advised EuroCCP will be making two adjustments to its Fee Regulation, effective 1 March 2020.

  1. Following progress by various CSDs with the implementation of auto-partialing functionality and the introduction of T2S. EuroCCP will remove “Reimbursement Partial Settlement” (item 4.2 in Fee Regulation) effective 1 March 2020.
  2. EuroCCP will adjust the Trading Participant per Exchange / Platform Participant fee (item 4.9 in Fee Regulation). The Participant fee will now be applicable for Trading Participants who submit off book trades for clearing regardless of the time received.

A copy of the new fee schedule can be found below.

Should you wish to discuss the above changes, please contact EuroCCP’s Relationship Management team.

Cboe to acquire EuroCCP

We are pleased to inform our members that Cboe Global Markets today announced it has entered into a definitive agreement to acquire EuroCCP.

EuroCCP will continue to champion open access and grow its Equities and ETFs clearing business in Europe, following our recent go-live with Deutsche Börse and the strategic partnership with TradeWeb.

Cboe’s ownership of EuroCCP is expected to provide further opportunities to expand our business, including the development of derivatives clearing capabilities, subject to regulatory approvals.

The transaction is expected to close in the first half of 2020.

http://ir.cboe.com/press-releases/2019/12-10-2019

Please contact Tim Beckwith Head of Commercial & Business Development for any questions associated to this announcement.  Contact details as follows:

0044 (0)207 392 7492

0044 (0)7395 798391

Tim.Beckwith@euroccp.com

Updated Regulation Fees and Penalties – Effective 1 January 2020

EuroCCP is committed to providing its members with a competitive and valuable service. Most recently, EuroCCP has enabled access to Deutsche Borse and members can now benefit from access to 39 trade venues. EuroCCP continues to invest in its infrastructure with new products and services including plans for primary and secondary market clearing for ETFs, a new risk platform and service enhancements in preparation of CSDR.

In order to consolidate its position as Europe’s leading cash equities CCP,  EuroCCP has performed a review of its pricing. Effective from 1 January 2020 EuroCCP’s Regulations Fees and Penalties will be updated as described below.

EuroCCP will introduce a banded fee structure for clearing fees. The new fee structure will charge clearing members a set clearing fee per trade based on the number of active markets cleared and average daily cleared volume.

Additionally the new fee schedule provides clients with the ability to achieve greater savings through the use of Preferred Clearing.

EuroCCP already has a separate fee schedule for off order book trades and this will be updated as a response to changes in trading behaviours and the growing use of off order book trading platforms. Off order book trades will be charged on the same banded fee structure as per on order book clearing; however in addition, trades received over €50K (or equivalent) will incur a basis point charge, capped at €1mn.

Acknowledging the different risk profile of intercompany trades, trades between two entities of the same member will be charged a flat rate fee.

Following the successful implementation of trade feed access to Oslo Bors, Euronext and Borsa Italiana, the clearing fee supplements to facilitate access to these platforms will be removed. The proposed clearing fee supplement for Deutsche Börse will be reduced as a result of the fee charged from the trading venue.

Should you wish to discuss the above changes, please contact EuroCCP’s Relationship Management team.

A copy of the new fee schedule can be found below.

Deutsche Börse go-live 11 November 2019

EuroCCP is pleased to announce that regulatory approval was received to provide clearing services for trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange. The service is planned to go-live from trade date 11 November 2019 on a Preferred CCP basis for shares and exchange traded funds on Xetra© (MIC: XETR).

To clear trades executed on Xetra© with EuroCCP, participants are required to:-

1 . Advise Deutsche Börse Key Account Manager (KAM) of your implementation plans

Trading firms admitted for trading at Deutsche Börse and wishing to adopt the “Preferred CCP” Model should contact Deutsche Börse Key Account Manager and complete the appropriate forms.

2 . Advise EuroCCP of your implementation plans

Trading firms wishing to benefit from the “Preferred CCP” Model should liaise with their Clearing Participant, who will contact EuroCCP’s Relationship Management department at RM@euroccp.com to agree implementation plans and intended go-live date. EuroCCP will coordinate internally and make the necessary arrangements.

The following documentation should be completed and returned to: clientservices@euroccp.com

Upon receipt of the forms and supporting information, EuroCCP will liaise with Deutsche Börse to ensure both Deutsche Börse and EuroCCP systems are configured accordingly.

3 . Complete testing with Deutsche Börse and EuroCCP

Clearing Participants must undertake testing prior to go-live.

Deutsche Börse and EuroCCP’s test environments are available for your testing requirements from  today.

A list of ISIN codes will be agreed bilaterally with each client for testing purposes, to ensure a smooth and successful test.

4 . Go live into the Production environment

After successful testing, clients can commence clearing with EuroCCP on the agreed go live date.

5 . Reporting changes

A new platform MIC XETR will be reported to all clients in the daily CIF file.

6 . Regulation changes

Currently, the following regulations have been updated for the purpose of clearing Deutsche Börse traded executed on Xetra using the “Preferred CCP” model.

7 . Direct Debit

In order to clear  Deutsche Börse trades, Clearing Participants will need to have  a direct debit authorisation in place.

There are two options available and they are as follows:

  1. Direct debit authorisation which allows EuroCCP to withdraw funds from the respective clearing participants’ Target account or;
  2. Direct debit authorisation which allows EuroCCP to withdraw funds from the respective clearing participants’ commercial bank account under the condition that the commercial bank account has an overdraft possibility.

8 . End of day timing

Upon the first clients going live, the end of day timing will move from 19:30 CET to approx. 20:30 CET. This will mean that the daily CIF will be issued to clients later than is currently in place.

For details on cost saving, please contact EuroCCP’s Relationship Management team to provide an assessment of the savings resulting from the consolidation of Deutsche Börse activity with EuroCCP.

Should you have any further queries, please do not hesitate to contact us.