New EU based venues Brexit

Introduction

Following the UK’s departure from the EU, as a European entity, EuroCCP continues to operate in the (EU) under the European Market Infrastructure Regulation (EMIR). EuroCCP also continues to provide services in the United Kingdom (UK) under the Transition Recognition Regime (TRR) approved by the UK parliament in November 2018, which ensures continuity of services from non-UK central counterparty clearing houses (CCPs) for three years from 29 March 2019. EuroCCP is pursuing its application – submitted to the Bank of England in 2018 – in order to obtain permanent recognition as a qualified CCP under UK domestic law in due course after UK’s departure from the EU.

EuroCCP continues to actively work with UK based clearing members and venues to help them execute their Brexit plans – including onboarding new EU entities and connecting to new EU platforms.

If you have any questions about how the UK’s departure from the EU may affect the clearing services provided by EuroCCP, please do not hesitate to contact your relationship manager.

About

To allow participants to continue trading in EU-listed ISINs following Brexit,  Aquis Exchange, Cboe Equities and Turquoise have established EU entities for the trading of EU-listed ISINs and continue to operate the UK based platform for trading of UK and Swiss-listed ISINs.

Aquis Exchange has established its EU entity in France and has filed applications with the relevant French competent authorities to operate a multilateral trading facility (Aquis EU). In addition to the current MIC code AQXE (to be used after Brexit for UK and Swiss-listed ISINs), a new MIC code – AQEU – is set up for the EU-listed ISINs.

Cboe  Equities has established its EU entity in the Netherlands and has filed applications with the relevant Dutch competent authorities to operate a MiFID II compliant equities trading venue (Cboe EU). In addition to the current MIC codes BATE and CHIX (to be used after Brexit for UK and Swiss-listed ISINs), new MIC codes – BEUE and CEUX – is set up for EU-listed ISINs.

Turquoise will establish its EU entity in the Netherlands and has filed applications with the relevant Dutch competent authorities to operate a Multilateral Trading Facility (Turquoise EU). In addition to the current MIC code TRQX (to be used after Brexit for UK, USD and Swiss-listed ISINs), a new MIC code – TQEX – is set up for the EU-listed ISINs.

The service for Aquis EU, Cboe EU and Turquoise EU will be fully interoperable and includes the instruments that are currently available for trading on the UK based platforms. As an EU-based CCP, EuroCCP maximises the operational and commercial benefits for trading and clearing participants, as all trades cleared by EuroCCP will be fully netted into one settlement per ISIN per day. EuroCCP features include:-

  • European based CCP
  • Cross-platform netting
  • Fully interoperable clearing model
  • Incorporated in existing reporting
  • Existing margin methodology applies

Reporting

The new MIC codes for the EU entities of these platforms will be as follows:-

PlatformMIC
Aquis EUAQEU
Cboe EUBEUE, CEUX
Turquoise EUTQEX

These MIC codes will be reflected in EuroCCP’s Clearing Information File (CIF).  During testing, files will be generated and distributed from EuroCCP’s client test environment.

Documentation

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Cboe Europe BV SoA – EU

Version September 2019

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Turquoise MTF SoA – EU 185.22 KB 1590 downloads

Version December 2018 …

Contacts

DepartmentContact detailsResponsibilities
Relationship Managementrm@euroccp.com
+44 20 7392 7480
EuroCCP services
EuroCCP pricing
Main point of contact
Client Servicesclientservices@euroccp.com
+44 20 7392 7490
Paperwork
Static data
Connectivity
Reporting
Client Testingclienttesting@euroccp.com
+44 20 7392 7490
Testing
Risk Managementriskmanagement@euroccp.com
+31 20 5703 371
Risk related queries

Newsflashes

EuroCCP and Brexit

Following EuroCCP’s Newsflash dated 28 January 2019 regarding the establishment of new EU-based venues in advance of the UK’s proposed exit from the European Union,

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