Euronext / EuroCCP – Question & Answers

1. Euronext – a shareholder of EuroCCP

EuroCCP is the leading cash equities CCP in Europe, providing safe and efficient clearing services for 16 trading platforms.  Euronext was pleased to invest in shared post-trade infrastructure with other exchanges and has become an equal shareholder in EuroCCP.  This will allow it to influence the provision of clearing services and EuroCCP’s strategic direction.

Yes, all shareholders have equal rights in the company.

LCH SA will continue to clear for Euronext, for those members that wish to do so.
Euronext envisages a continued extension of “user choice” which will provide access to multiple CCPs in the future.

Euronext is fully supportive of competition in cash equities clearing and, as stated at the Investor Day in May 2016, intends to implement full interoperability when it is technically feasible, meeting all relevant regulatory approvals.  In the meantime, Euronext will continue to implement the User Choice model, which is independent to any potential acquisition.

EuroCCP leads by volume of transactions cleared – it cleared 58% of trades on platforms where it competes with other interoperating CCPs and 42% of all CCP-cleared trades in Europe, as at Q1 2016.  It has also a successful track record, being the first pan-European CCP and the first equities CCP to be authorised under EMIR.  It is the only CCP to have been nominated in equities clearing for the Financial News’ “Clearing House of the Year” award over the last 3 years and won the “Clearing House of the year” award in 2016, for the fourth time.

EuroCCP is the clearer of choice for many firms.  It is the market leader by volume of transactions cleared – 58% of trades on those platforms where it competes with other interoperating CCPs.  It is at the forefront of advocating for greater competition in equities clearing through extended access and interoperability, for the benefit of all market participants.

In addition, EuroCCP is committed to providing its clients with the most efficient access to local markets, which improves settlement efficiency and reduces costs.  EuroCCP settles directly in 15 of the 19 markets it services, including France, Holland, Belgium and Portugal. This unique operations model among equities CCPs, allows EuroCCP’s clients to benefit from the efficiency-enhancing functionalities offered to CCPs by T2S.