U.S. Sanctions on Chinese Military companies

Effective 11 January 2021, U.S. Executive Order 13959 issued by President Trump (the “Order”) becomes effective. The Order prohibits U.S. persons from engaging in certain securities transactions involving entities identified in or pursuant to the Order.  Details of the Order and guidance on interpretation of the Order issued by the Office of Foreign Assets Control (OFAC) can be found using the link below:

Chinese Military Companies Sanctions

EuroCCP is not a U.S. person for the purposes of this Order.

EuroCCP would like to remind Clearing Participants of their responsibility to ensure they act in accordance with any applicable limitations or obligations arising under U.S. law.

EuroCCP will continue to monitor the U.S. sanctions regulations and will notify you of any actions EuroCCP decides to take. Clearing Participants are reminded that nothing contained in this newsflash constitutes legal advice, and Clearing Participants are encouraged to monitor the evolving status of U.S. sanctions regulations and act accordingly.

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

Sigma-X EU MTF – Go live announced

Following EuroCCP’s Newsflash dated 30 November, Sigma X has now confirmed that 21 December is the go-live date of its EU entity – Sigma X Europe MTF.

Through its EU entity Sigma X Europe MTF (MIC-code SGMU), Sigma X will enable participants to continue trading in EEA symbols only (excluding UK and Swiss) and will continue to operate its UK based trading venue Sigma X UK (MIC-code SGMX) for trading with the same market coverage as today.

Clearing Participants wishing to trade on Sigma X Europe MTF will need to have the following actions completed as soon as possible with EuroCCP:

·         Statement of Authority signed

·         Netting set up agreed

·         Standard Settlement Instructions (SSIs) confirmed

·         Successful testing undertaken

Further information on membership applications, client testing and transition arrangements can be found at EuroCCP’s EU based venues & Brexit web page.

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

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.

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.