Dedicated Own EuroCCP Resources July 2021

As required under EMIR, article 8.4.2 of EuroCCP’s Clearing Rule Book confirms that EuroCCP will apply its own dedicated financial resources – “skin-in-the-game” – in the event of a member default, prior to the use of clearing fund contributions of non-defaulting clearing participants.

Regulation – Dedicated Own EuroCCP Resources, confirms that EuroCCP must determine the value of its financial resources amounting to 25% of the minimum required capital in the month following the month in which the annual report for prior year is approved.

The minimum capital requirement for determining “skin in the game / dedicated own resources” is the minimum capital required by EuroCCP pursuant to the regulatory technical standards for central counterparties (Regulation EU 152/2013). For the purposes of July 2021 calculation, EuroCCP’s unaudited balance sheet as at 30 June 2021 has been used and the level of dedicated own resources amounts to EUR 6.823.757,36. This amount will apply until a new amount is fixed in accordance with the aforementioned Regulation.

For questions on the above, please contact the Relationship Management team.

EuroCCP Relationship Management
T.   +44 20 7392 7480
rm@euroccp.com|euroccp.com

EuroCCP Receives Regulatory Approval for Equity Derivatives      

EuroCCP is delighted to inform its members that it has received regulatory approval to clear Equity Derivatives. Full details can be found in the press release.

This approval will enable EuroCCP to provide clearing services for Cboe Europe Derivatives, a new Amsterdam-based index futures and options exchange which is launching on 6th September.

The introduction of derivatives clearing diversifies EuroCCP’s product line, whilst strengthening its core franchise in cash equities, continuing its journey to become a  multi-asset clearing house.

For queries on the new Derivatives service, please contact the Relationship Management team.

EuroCCP Relationship Management
T.   +44 20 7392 7480
rm@euroccp.com|euroccp.com

Clearing Rule Book Consultation – May 2021 – Now Closed

On 11 May 2021 EuroCCP published an updated version of its Clearing Rule Book (“CRB”) 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 10 June 2021.

The purpose of the changes is to facilitate the clearing of certain types of equity derivative instruments as traded on the Cboe Europe Derivatives trading venue. As announced on 29 April 2021, Cboe has confirmed a go-live date of 6 September 2021 for Cboe Europe Derivatives, its new Amsterdam-based equity derivatives exchange, subject to regulatory approval.

We have received valuable comments which we will now further assess. A final version of the updated CRB is expected to be published on EuroCCP’s website in the next few weeks. EuroCCP expects the changes to apply as of Monday 6 September 2021.

Clearing Participants will be notified by Newsflash upon the new CRB being available on EuroCCP’s website.

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

EuroCCP to extend clearing to Euronext Oslo Growth Market

EuroCCP will be extending its clearing services to the Euronext Growth Oslo Market (previously known as MERKUR), with the target launch 28 June 2021.  The extension of clearing for the Norwegian growth stocks is subject to regulatory approval.

Euronext issued a market notice 20th May of the new cleared service including testing arrangements.

EuroCCP will support member testing from 2 June 2021.  Trades executed on the segment and cleared by EuroCCP will be reported with the MIC “MERK” in the daily CIF files.

Please note for those members already active on Oslo Bors and using EuroCCP, no additional setup is required and your existing connectivity will include the clearing of the Growth Market when the service goes live.

Please do not hesitate to contact the EuroCCP Relationship Management team

EuroCCP Relationship Management
T.   +44 207 131 3430
rm@euroccp.com|euroccp.com

Clearing Rule Book Consultation – May 2021

Dear Clearing Participant,

EuroCCP is pleased to announce that an updated version of its Clearing Rule Book is now available below for consultation, together with a memo including reading instructions.

 
Icon
EuroCCP Clearing Rule Book WORD COMPARISON

Consultation version 11 May 2021

 

The following regulations will also be updated.

  • Regulation Margin
  • Regulation Settlement
  • Regulation Clearing Days
  • Regulation Clearing Hours
  • Regulation Transfer and Open/Close (new)
  • Regulation Clearing Fund
  • Regulation Trade Refusal
  • Regulation Portability
  • Regulation Derivatives(new)

The updated versions of the following Regulations are available below for review.

Icon
Equity Derivative Regulations

Consultation versions 11 May 2021

The purpose of the changes is to facilitate the clearing of certain types of equity derivative instruments as traded on the Cboe Europe Derivatives trading venue. As announced on 29 April 2021, Cboe has confirmed a go-live date of 6 September 2021 for Cboe Europe Derivatives, its new Amsterdam-based equity derivatives exchange, subject to regulatory approval. The types of equity derivative instruments that will be cleared by EuroCCP are set out in the Regulation Derivatives. Further information can be found in the EuroCCP Clearing Rule Book and Regulations consultation memo.

Pursuant to Article 3.7.3 of the Clearing Rule Book, the changes to the Clearing Rule Book are open for consultation for a period of 30 calendar days, starting on 11 May 2021 and ending on 10 June 2021.

EuroCCP expects the changes to apply as of Monday 6 September 2021. Clearing Participants will be advised of the outcome of the consultation by newsflash following the consultation period.

All changes are subject to regulatory review and approval.

Should you wish to take part in the consultation process or have questions relating to these changes, please contact the EuroCCP Legal and Compliance Department at compliance@euroccp.com.

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

Cboe Europe Derivatives Launch – Go-live announced

Dear EuroCCP Member,

I am delighted to inform you that Cboe has confirmed a go-live date for Cboe Europe Derivatives, its new Amsterdam-based equity derivatives exchange, of Monday, 6 September 2021, subject to regulatory approvals.

As you’ll be aware, EuroCCP is expanding into equity derivatives to provide clearing services for this exchange. This is the first major joint initiative between the two companies since EuroCCP was acquired by Cboe in July 2020. 

We are also excited by the group of participants that have been secured, so far, to participate in the initiative.  Participant bank and clearing firms include ABN Amro Clearing, Goldman Sachs and Morgan Stanley. Market-makers and proprietary trading firms that have already confirmed their participation include All Options, Da Vinci Derivatives, DRW, Flow Traders, Liquid Capital Markets and Susquehanna International Securities. 

The press release regarding these announcements is attached.   

http://ir.cboe.com/press-releases

Expanding into equity derivatives is a natural expansion of EuroCCP’s pan-European cash equities business, and we couldn’t be more thrilled to help bring competition to the European equity derivatives marketplace through this initiative as part of the Cboe group. 

The exchange will launch initially with futures and options based on six Cboe Europe equity indices, with further products added based on customer demand.  

I would like to thank you for your continued support and on behalf of the EuroCCP team, I look forward to continuing our partnership and collaboration to bring efficient clearing and innovation to you.

Cécile Nagel

CEO, EuroCCP N.V.

Press Release 13th April 2021

EuroCCP Announces Senior Management Changes

Strengthening of leadership with focus on operational resiliency and risk management ahead of planned expansion into equity derivatives

13 April 2021 – EuroCCP, a leading pan-European equity clearing house owned by Cboe Global Markets, today announces changes to its senior management team designed to enhance the firm’s operational resiliency and risk management capabilities, two areas of focus for the firm as it continues its diversification into new asset classes.

The three appointments are:

  • Arnoud Siegmann, Chief Operating Officer. Arnoud was previously Chief Risk Officer at EuroCCP and its predecessor EMCF, joining in 2008.
  • Jonathan Tran, Chief Risk Officer. Jonathan was formerly Deputy Chief Risk Officer, having joined EuroCCP in 2018 from LCH.
  • Ed Hughes, Chief Technology Officer. Ed joined EuroCCP in 2019 initially to manage its expansion into equity derivatives.  He previously held change, technology and operations roles at LCH.

“The strengthening of our senior management team reflects the change EuroCCP’s business has undergone since our acquisition by Cboe Global Markets. It positions the firm for the next stage of our transformation into a multi-asset clearing house, with our planned diversification into equity derivatives being a natural extension and complement to our existing cash equities and ETF businesses,” said Cécile Nagel, CEO of EuroCCP.

Since its inception, EuroCCP has become one of the leading pan-European cash equities clearing houses, with access to 39 venues representing approximately 95% of all European equity trading flows. It was fully acquired by Cboe Global Markets in July 2020 and is expanding into clearing equity derivatives in support of Cboe Europe Derivatives, a planned new equity futures and options exchange, subject to regulatory approvals.

Ms Nagel continued: “Despite the huge volatility in financial markets over the last 12 months and, more recently, the impact of Brexit, we have consolidated our position as the leading pan-European equities clearing house. We have also reinforced our operational resiliency with the implementation of a stronger liquidity management framework, as well as a new margin risk management system expected to be deployed later this month. These appointments recognise the significant contribution that Arnoud, Jonathan and Ed have each made to these achievements.”

EuroCCP cleared 1.7 billion trades in 2020, up 31% on 2019, with strong growth already this year, including record volumes on Euronext markets through the preferred clearing model in Q1 2021.

Ends

For further information

Jane Padgham

Associate Director, Greentarget

Email: jane.padgham@greentarget.co.uk

Direct: 020 8940 0542

Mobile: 07990 571 366

 

About EuroCCP

EuroCCP is a pan-European central counterparty (CCP) which currently clears for 39 trading venues, representing over 95% of the equity market on the Continent. This makes it the most connected equity CCP in Europe. EuroCCP provides clearing members with easy access and the ability to maximise operational efficiency and netting opportunities, while also reducing risk and costs. Headquartered in Amsterdam, EuroCCP is regulated by De Nederlandsche Bank and by Autoriteit Financiële Markten. It is owned by Cboe Global Markets.

 

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE) provides cutting-edge trading and investment solutions to market participants around the world. The company is committed to defining markets through product innovation, leading edge technology and seamless trading solutions.

The company offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S., Canadian and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and volatility products based on the Cboe Volatility Index (VIX Index), recognized as the world’s premier gauge of U.S. equity market volatility.

Cboe’s subsidiaries include the largest options exchange and the third largest stock exchange operator in the U.S. In addition, the company operates one of the largest stock exchanges by value traded in Europe, and owns EuroCCP, a leading pan-European equity clearing house. Cboe also is a leading market globally for ETP listings and trading.

The company is headquartered in Chicago with a network of domestic and global offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas City and Amsterdam. For more information, visit www.cboe.com.

 Cautionary Statements Regarding Forward-Looking Information

Certain information contained in this press release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.

 

Risk Replatform go-live date

Following our previous communication and successful client testing, EuroCCP are ready to confirm the go-live date of 19 April 2021 on the replacement of our current risk system (“CoH”) with a new risk system (“CleaRisQ”). The new risk reports are intended to replace the existing set of CoH reports.

EuroCCP will use the existing delivery methods currently in place upon implementation.

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

Change of Contact Details for EuroCCP London

Dear Clearing Participant,

Please be aware that EuroCCP’s contact details are changing.

The Relationship Management hotline is now +44 207 131 3430:

For all queries related to:

  • General EuroCCP interest
  • Business Development & Sales queries
  • Request for direct Relationship Manager assistance:

E-mail: rm@euroccp.com

For all queries related to:

  • Onboarding material
  • Member Reporting
  • Statement of Authority, Power of Attorney, Direct Debit forms
  • Client related static data: Netting forms and SSI changes

E-mail: clientservices@euroccp.com

For all queries related to:

  • Client & Platform testing,

E-mail: clienttesting@euroccp.com

 

The Operations hotline is now +31 20 5703 333

Department coverage hours are 08:00 – 20:00 CET (07.00-19.00 UK time):

For all queries related to:

  • Day-to-day operational questions
  • Settlements
  • Funding
  • Instrument static data

E-mail: mbo@euroccp.com

  • Margin
  • Collateral
  • Payments

E-mail: collateral@euroccp.com

  • Corporate Actions / Income

E-mail: ca@euroccp.com

  • Partial/Splitting Requests

E-mail: partials@euroccp.com

Landline telephone numbers for EuroCCP’s London Office will also change and details of updated individual contacts numbers including the above hotline changes can be found on the “contact us” webpage on the company website.  The link is shown below;

https://euroccp.com/home/contact-us/contacts/

All new contact details are effective immediately and the previous contact numbers will be discontinued by the end of March 2021.   All lines are temporary diverted until this date.

Please kindly update your contact information and we look forward to serving you as usual with the new telephone numbers.

Please also be aware that effective 1st May 2021 EuroCCP’s London Office address will change. EuroCCP’s new address in London will be;

11 Monument St

5th Floor

London

EC3R 8AF

UK

EuroCCP’s contact details, visiting address and registered address in Amsterdam will remain unchanged.

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