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.

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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.

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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.

EuroCCP extends platform coverage to include Deutsche Börse

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

Onboarding requirements including testing, documentation and notification of changes to Regulations will be communicated in an additional member notice.

Access to the Frankfurt Stock Exchange has enabled EuroCCP to connect over 95% of European Equities traded on venues and continues to position EuroCCP as Europe’s leading Equity CCP.

Please contact Relationship Management for further information.

EuroCCP goes live with Frankfurt Stock Exchange

November 7, 2019 – EuroCCP, Europe’s leading equities clearing house, today announced that it will clear trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange, starting November 11, 2019. EuroCCP’s clearing services are now available on a preferred CCP basis for trades in cash equities and ETFs executed on Xetra© (MIC: XETR) for the first time.

EuroCCP has long advocated the benefits of open access and increased interoperability amongst European clearing houses. With the addition of FWB, EuroCCP has extended its clearing access to over 95 per cent of cash equity trades executed on organised markets in Europe.

Cécile Nagel, CEO, EuroCCP, commented: “Open access and competitive clearing have been essential drivers of post-trade simplicity and efficiency, and we are pleased to be able to extend our services to firms executing trades on FWB. This is a key milestone in pan-European equities clearing and will allow clearing members to consolidate more flow, reducing complexity and leading to significant operational, netting and cost efficiencies.”

EuroCCP is central to Europe’s equities markets and currently clears more than 30 per cent of the region’s cash equities and approximately 40 per cent of the trades on exchanges and venues offering three-way interoperability. Last year, EuroCCP finalised agreements to clear trades executed on leading exchanges including Oslo Børs, Borsa Italiana and Euronext Dublin. Earlier this year, EuroCCP announced it will clear European ETFs on Tradeweb, positioning EuroCCP as a clearing house with the broadest coverage in Europe.

About EuroCCP

 EuroCCP is important to Europe’s equities markets as it currently clears for 38 trading venues, representing over 95% of the equity landscape in the continent, making EuroCCP the most connected equity CCP in Europe. EuroCCP provides clearing members with easy access and ability to maximise operational efficiency and netting opportunities whilst reducing risk and cost in the market. Headquartered in Amsterdam, EuroCCP is regulated by De Nederlandsche Bank and by Autoriteit Financiële Markten.

Euroclear Finland – postponement to implementation of Partial Settlement

Further to the Newsflash published on 19 July 2019, Euroclear Finland’s proposed implementation date of partial settlement on trade date 30 September has been postponed to 7 October 2019. EuroCCP will therefore mandate the use of PARQ for this market in keeping with its Regulation Settlement. Trades with trade date 4 October 2019 will not be sent to the market and will be released in the morning of 7 October 2019.

The main changes impacting EuroCCP’s services incorporate:

  • Partial settlement functionality.
  • Settlement agent Power of Attorney.

Partial Settlement

The partial settlement windows for settlement instructions against payment are scheduled at 11:00, 13:00 and 16:30 EET.

Clearing Participants need to ensure that the settlement instructions submitted into the settlement system include the PARQ indicator. This is a mandatory requirement and Clearing Participants are responsible for informing any trading members that they must update their settlement instructions to reflect the PARQ indicator on 7 October 2019.

Settlement Agent Power of Attorney

Settlement instructions sent to the Clearing Participant’s settlement agent under the Settlement Agent Power of Attorney (PoA), will be enriched to include the partial indicator PARQ and the status of the PoA settlement instruction will be “released” (NEWM).

Should you have any further questions please do not hesitate to contact EuroCCPs Relationship Management Team.

 

EuroCCP to provide clearing and settlement services to TradeWeb for European ETFs

EuroCCP, Europe’s leading equities clearinghouse, today announces its collaboration with TradeWeb, a global operator of electronic marketplaces for multiple products including Rates, Credit, Equities, ETFs and Money Markets.

The press release associated to this announcement can be found here.

The new clearing link will enable its members and their clients to streamline the settlement process of ETFs in Europe, whilst providing important counterparty protection in the event of a default.

The settlement of ETFs today can be impacted by high costs associated with OTC settlements and subsequent fails. With CSDR settlement discipline measures on the horizon, the introduction of CCP services for TradeWeb in ETFs can mitigate against such issues, whilst being able to cross net ETFs traded and cleared on other trading venues.

The clearing link between TradeWeb & EuroCCP is expected to be available to its clients in Q4 2019, subject to regulatory approvals.

Please contact the Relationship Management & Client Services team at EuroCCP for further information.

Tradeweb Announces Central Counterparty Clearing for European ETFs in Partnership with EuroCCP

London – September 5, 2019 – Tradeweb Markets Inc. (Nasdaq: TW), a leading global operator of electronic marketplaces for rates, credit, equities and money markets, and EuroCCP,  Europe’s leading equities clearing house, today announced a strategic collaboration to facilitate central counterparty clearing for European Exchange Traded Funds (ETFs).

This collaboration will help streamline European clients’ settlement process and minimise costs, by facilitating pre-settle margin and netting of exposures — while still offering pan-European ETF investors the transparency and benefits afforded by the RFQ process.

“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,” said Enrico Bruni, head of Europe and Asia business at Tradeweb. “As a leader in the ETF marketplace, we remain fully committed to innovative client solutions, and we are excited about this new initiative.”

With regulators aiming to harmonise rules under the European Central Securities Depositories Regulation (CSDR), market participants will soon be subject to new Settlement Discipline procedures, including cash penalties for settlement fails and mandatory buy-ins. By offering access to central clearing and settlement services via EuroCCP within the trading workflow, Tradeweb will help clients navigate these new rules and mitigate counterparty risk for clearing participants.

Cécile Nagel, CEO, EuroCCP said: “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.”

“Introducing CCPs to ETF trading on Tradeweb’s RFQ platforms is an important market structure enhancement, improving the clearing, settlement and utility of ETFs,” said Jason Warr, Head of Global Markets at BlackRock iShares.

Tradeweb launched its European ETF trading platform in 2012 and its U.S. ETF trading platform in 2016.  In August 2019, Tradeweb announced July trade volumes in European ETFs had risen by 55.2% Y-O-Y to reach a record figure of $1.5bn per day.  As of June 30, 2019, over 60% of European ETF transactions were processed via Tradeweb’s Automated Intelligent Execution Tool (AiEX).

Tradeweb’s global ETF marketplaces deliver an alternative method for investment firms to access competitive OTC prices with greater efficiency and transparency. The platforms offer a number of tools that reduce errors and improve performance, while streamlining post-trade processing and providing reports that help institutional investors meet their best execution requirements. Tradeweb’s ETF CCP service is expected to be available by the fourth quarter of 2019, subject to regulatory approvals.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, the expected timing and availability of Tradeweb’s new ETF CCP solution, our future performance, the markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in our prospectus filed with the SEC on April 5, 2019 and other documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance or events and our actual results and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if future performance or events, our results or developments in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of performance, events, results or developments in future periods.

Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 60 countries. On average, Tradeweb facilitated more than $630 billion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

About EuroCCP
EuroCCP is important to Europe’s equities markets as it currently clears for 36 trading venues, representing near 90% of the equity landscape in the continent, making EuroCCP the most connected equity CCP in Europe. EuroCCP provides clearing members with easy access and ability to maximise operational efficiency and netting opportunities whilst reducing risk and cost in the market.  Headquartered in Amsterdam, EuroCCP is regulated by De Nederlandsche Bank and by Autoriteit Financiële Markten. EuroCCP is equally owned by Cboe Europe, Euronext, NASDAQ, ABN AMRO Clearing Bank and The Depository Trust & Clearing Corporation (DTCC).