LONDON and AMSTERDAM, March 10th, 2016 – ABN AMRO Clearing Bank N.V. announced today that it will consolidate the clearing of its UK equity trading with European Central Counterparty N.V. (EuroCCP) as of today.
EuroCCP is the largest cash equities central counterparty (CCP) in Europe. Since October 2015, EuroCCP has been providing CCP services to LSE’s SETS and SETSqx order books, on an interoperable basis with LCH.Clearnet Ltd. and SIX x-clear.
Reducing operational risk
ABN AMRO Clearing will direct all trades in UK stock to EuroCCP to maximise cross-platform netting. All cleared trades in the same UK stock with the same settlement date executed on any platform, including LSE, will be netted into one single settlement obligation. This increases efficiency in back-office operations and reduces operational risk in the settlement chain.
Investing for our clients
Avoiding multiple settlements for the same stock on the same day saves costs in post-trade activity considerably.
“Over the last 10 years ABN AMRO Clearing has supported innovative market initiatives that have brought more competition and resulted in extended functionality for all market participants”, says James Egan, CCO of ABN AMRO Clearing in Europe. “We will continue to invest in more efficient post-trade processing solutions. As a major global clearer, we want to contribute positively to systemic resilience and make financial markets infrastructures more sustainable. Supporting initiatives to minimise frictional costs all through the value chain underlines our mission to make our clients globally competitive.”
Diana Chan, CEO of EuroCCP, adds: “We are delighted that ABN AMRO Clearing has chosen to clear its UK equity trades with EuroCCP. It’s a clear endorsement that a wider choice of CCPs brings benefits to market participants. Thanks to market demand, as much as 65% of European equity trades can now be cleared with a choice of CCPs, ahead of MiFID II mandating trading platforms to give CCPs access to their trade feeds.”
About ABN AMRO Clearing
ABN AMRO Clearing is one of the world’s leading providers of clearing and financing services for listed derivatives and cash securities, OTC products, warrants, commodities and FX. With 11 offices globally employing more than 800 staff, ABN AMRO Clearing services clients on 160+ exchanges, MTFs, dark pools and FX liquidity centres and consistently ranks as a top 3 clearer in most time zones. We consistently post over 20% market share of transactions cleared on most relevant derivatives exchanges globally. ABN AMRO Clearing offers an integrated approach to global transaction processing, financial logistics and risk management and processes over 16 million trades per day. ABN AMRO Clearing in December 2015 received the FOW award as the ‘Proprietary Traders Clearing Firm of the Year’ for the 3rd year in a row and the CTA Intelligence Award for FCM – Best Client Service (US, January 2015 and 2016) and Best FCM – Overall (Europe, November 2015).
EuroCCP clears equities traded on stock exchanges, multilateral trading facilities and other trade sources. After a trade has been executed, EuroCCP centrally manages counterparty risk for trading firms and reduces their post-trade costs through netting. EuroCCP clears for 15 trading platforms; it clears equities, ETFs and depositary receipts listed in 19 national markets including the United States.
Headquartered in Amsterdam, EuroCCP was formed in December 2013 following the combination of Dutch-based European Multilateral Clearing Facility N.V. and UK-based European Central Counterparty Limited. The company is equally owned by the stock exchanges Bats Europe and Nasdaq, by ABN AMRO Clearing Bank and by The Depository Trust & Clearing Corporation (DTCC).