Euronext / EuroCCP – Question & Answers

1. “User Choice” model & Interoperability

Can firms clear all their Euronext activity with EuroCCP?

In the absence of interoperability arrangements between LCH SA and EuroCCP, only those Euronext transactions where both sides of the transaction are undertaken by a member having selected EuroCCP as its “preferred CCP” will be cleared by EuroCCP. This model is called the “User Choice” model.

These Euronext trades can be netted against the activity executed on other platforms supported by EuroCCP for settlement purposes.
Non-guaranteed Euronext transactions will not be cleared nor processed by EuroCCP and these instructions will continue to be settled bilaterally.

Will the introduction of the “User Choice” model maximise operation and commercial efficiencies for Trading Members?

Trading members and clearing participants will enhance their commercial efficiency. The User Choice model is an initial means toward gaining substantial commercial benefits. Once there is full interoperability, EuroCCP will be able to maximise the operational and commercial benefits for trading and clearing participants, as all trades of those firms that have selected EuroCCP as their CCP of choice will be fully netted into only one net-settlement per ISIN per day.

What is the estimate of the commercial benefit for the community during the interim period of the “User Choice” model?

As the “User Choice” model is implemented, we anticipate ongoing phases of client participation.  Substantial savings can be expected from the adoption of the User Choice model as soon as the first wave of clearing participants take advantage of this service.  An assessment of potential savings is available on request from EuroCCP’s Relationship Management team.

When will the service be fully interoperable?

The service will be fully interoperable once all CCPs to which Euronext has granted a trade feed interoperate with each other.  The exact timing will depend on Euronext and each CCP‘s readiness to interoperate, subject to all relevant parties obtaining the required regulatory approvals.

2. Markets

Which Euronext markets and instruments can be cleared by EuroCCP and when?

EuroCCP can clear all cash equities activity, including Rights, ADRs, GDRs, ETFs and Trackers for the following Euronext markets and MTFs:

Euronext markets Market Identifier Code (MIC)
Euronext Amsterdam XAMS
Euronext Brussels XBRU
Euronext Dublin* - Main securities market XMSM
Euronext Dublin* - Enterprise securities market XESM
Euronext Lisbon XLIS
Euronext London XLDN
Euronext Paris XPAR
Euronext Access Brussels MLXB
Euronext Access Lisbon ENXL
Euronext Access Paris XMLI
Euronext Block XSMP
Euronext Growth Brussels ALXB
Euronext Growth Lisbon ALXL
Euronext Growth Paris ALXP

*Subject to regulatory approval

Does EuroCCP also provide clearing services for the trades confirmed on the Euronext’s Trade Confirmation System (TCS)?

Yes, EuroCCP provides clearing services for TCS trades.

Are there any pre-requisites to the EuroCCP clearing of TCS Trades?

TCS trades are considered by EuroCCP as “Off Order Book” trades.

As such, the clearing of TCS trades is subject to the conditions detailed in EuroCCP’s Regulation Trade Refusal.

Does EuroCCP also provide clearing services for trades resulting from exercise and assignment?

No, the delivery of equities resulting from exercises / assignments is cleared and settled via LCH SA.

3. Adoption of the “User Choice” Model.

What do I need to do If I wish to adopt the “User Choice” Model?
Euronext procedure:

Firms wishing to adopt the “User Choice” Model should contact Euronext’s membership department and should complete the appropriate application forms. Further information can be found on Euronext website under the section Trading & Products > Membership.

EuroCCP procedure:

Trading firms wishing to use the “User Choice” Model should advise their clearing participant, which should advise EuroCCP’s Relationship Management team.  Existing EuroCCP clearing participants must complete a Statement of Authority, and confirm their netting and settlement preferences with the intended activation date, which should be forwarded to EuroCCP’s Client Services team.

On receipt of the forms and supporting information, EuroCCP will liaise with Euronext to ensure that Euronext and EuroCCP’s systems are configured accordingly.  Clearing Participants will be required to undertake testing prior to going live.

Do trading firms wishing to adopt the “User Choice” Model need to become a EuroCCP Direct Clearing Member?

No, interested parties can use the services of a EuroCCP General Clearing Participant, a list of which can be found in the /About/Participants section of the EuroCCP website.

How does one become a EuroCCP clearing member?

Firms wishing to become a direct member of EuroCCP must meet EuroCCP’s membership requirements as detailed in EuroCCP’s Rule Book and apply for membership.  The process should take no more than four weeks once all relevant documentation and contracts are duly signed and returned to EuroCCP.

Any parties interested in applying for membership should contact EuroCCP Relationship Management at for further information.

4. Testing

What are the testing arrangements?

Euronext’s testing environment is free of charge and with daily business support from 09.00-18:00 CET, with the exception of Wednesdays, where the testing environment is unavailable until 13.00 CET.

EuroCCP‘s testing environment is available on business days on a free of charge basis, from 09:00-17:00 CET, with reporting available thereafter.  Specific ISINs will be made available for testing.

Clearing participants wishing to test should contact the Euronext CTSG team and EuroCCP’s Client Services team to discuss their testing requirements and ensure that the test systems are configured accordingly.  They should advise Euronext of the trading participant ID with which they wish to test and provide EuroCCP with a completed “EuroCCP testing form”.

5. EuroCCP Reporting

What is the impact of the adoption of the “User Choice” model on EuroCCP and Euronext reporting?
Euronext reporting:

Euronext has announced that it will make the CCP Identifier available in its real-time trade report execution message.

In Euronext’s system update, the CCP Identifier will be available in the original execution message, allowing clients to receive immediate information on the CCP clearing the trade under the “User Choice” model. Euronext plans to implement the CCP Identifier in its External User Acceptance (EUA) test platform in September 2018, which should be included in the production environment in October 2018.

An additional “post-trade trade confirmation” message, including the identifier, will be available on request.  This additional “post-trade trade confirmation” message will be issued immediately after the distribution of the real-time trade report execution message.

Further information can be found at  Euronext website under Resources > IT Documentation > Order Entry.

EuroCCP reporting:

There is no impact on EuroCCP’s reporting.

Euronext trades are included in the existing EuroCCP reporting (real time trade feed, intra-day and end-of-day trade files).

Euronext trades appear in EuroCCP’s reporting under the relevant Market Identifier Code (TAG 58 in the FIX messages and TAG 8 in the Client Information File (CIF).

TCS trades are flagged in EuroCCP’s real-time FIX message in TAG 150 with a value of ’3’ instead of ‘2” and the “ETR” are shown in field 150 “transaction type” of EuroCCP’s Client Information File (CIF).

EuroCCP’s reporting specifications for the Client Information File (CIF) and Real-time confirmation message are available on EuroCCP’s website under the technology documentation section in Participants' Centre.

For further information on EuroCCP’s reporting, please contact EuroCCP’s Client Services team at

How do I know which transaction is cleared by which CCP?

The real-time trade report execution message provided by Euronext will contain a CCP identifier for CCP cleared transactions. The CCP identifier for EuroCCP will be “6”.

Further information can be found at Euronext website under Technology Solutions > Optiq > Optiq Documentation and the Info-Flash regarding CCP identifier real-time availability in trade reports.

6. EuroCCP Risk Management

What are the main characteristics of EuroCCP’s margin calculation methodology?

The main characteristics are as follows:-

• The location of execution has no bearing on the margin calculation

• The margin is calculated on the net positions

• The correlation between the different constituents of a portfolio provides margin offset

• Unsettled profit and loss of failed trades are deducted / added from EuroCCP margin requirements (Variation Margin component), and

• Risk exposure is assessed real time.

Does EuroCCP’s margin methodology differ depending on the Euronext markets?

No, the same methodology applies to all Euronext segments.

What will be the impact of the “User Choice” Model on margin requirements?

Firms adopting the User Choice model and selecting EuroCCP as their CCP of choice will face direct or indirect margin calls and clearing arrangements (including guarantee funds contributions) with LCH SA and EuroCCP, as they will have cleared positions with both CCPs.

Trades cleared by EuroCCP will be netted with the rest of a clearing participants’ activity cleared by EuroCCP, for margining purposes.

It is not possible to predict the impact on margin levels as it will depend on the net positions which arise from the addition of the Euronext trades.  Margin assessments can be undertaken by request, for a specific portfolio.

The trades cleared by LCH SA will continue to be margined by LCH SA.

What are the services available to EuroCCP participants to monitor risk?

Real time information on risk exposure is available to all EuroCCP’s clearing participants - and to their underlying trading firms - via TRACE, EuroCCP’s real time online risk management tool, which is available on a free of charge basis.

Further information on the risk management tool is available in the section /Participants' Centre/TRACE on EuroCCP’s website.

7. Operations

Which settlement methodology applies?

EuroCCP uses Trade Date Netting.

EuroCCP’s cleared trades are netted at ISIN and trade date level for settlement purposes.  EuroCCP’s clearing participants can benefit from EuroCCP’s current netting options which include cross-client and cross-platform netting.

EuroCCP instructs the relevant CSD of the settlement of its own obligations at the end of the day and clearing participants should instruct the CSD themselves the settlement of their obligations.  The instructions are matched and settled at the CSD.

To assist with the matching process, EuroCCP can instruct the settlement of its clearing participants’ obligations to the CSD on their behalf (“Already Matched facility”) or the clearing participants’ settlement agents (“Settlement Agent POA”).  Further information on EuroCCP’s “Power of Attorney” services is available from EuroCCP's Client Services team at

Given that EuroCCP is a direct member of T2S, EuroCCP’s participants can benefit from the complete suite of T2S CCP services which increase settlement efficiency, including auto-partialling and settlement prioritisation.

Where is the stock resulting from exercise and assignment cleared and settled?

The delivery of equities resulting from exercises / assignments is cleared and settled via instructions issued by LCH SA.

8. “User Choice” model – a compelling commercial proposition

Will firms wishing to adopt the “User Choice” model incur additional Euronext charges?

There will be no extra charges by Euronext for the use of the “User Choice” model.  In addition, there will be no change to the current fee schedule and no extra reporting charges will apply.

Will firms wishing to adopt the “User Choice” model incur an additional EuroCCP charge?

EuroCCP’s current fee schedule is available in the section /Participants' Centre/Documentation/Regulations on EuroCCP’s website.

Is it possible to have an assessment of the savings that can be expected from the adoption of the “User Choice” Model?

Yes. EuroCCP’s Relationship Management team can arrange a free assessment of the savings resulting from a client clearing Euronext’s activity with EuroCCP.

Does the adoption of the “User Choice” Model impact EuroCCP’s settlement cost levels?

Firms will be able to net their Euronext activity with their French, Dutch, Portuguese and Belgium activity executed on all other platforms cleared by EuroCCP and in doing so, mitigate additional settlement costs.

Does EuroCCP levy any “one-off” charges for the on-boarding of a new market, trading firm or clearing firm?

No – these costs do not apply at EuroCCP.

How much savings can I expect as a result of the adoption of the “User Choice” model?

The savings are achieved as a result of EuroCCP’s highly competitive clearing fees, meaning that the higher the number of Euronext trades being undertaken at EuroCCP, the greater the savings.

In like manner, the greater the number of firms adopting the “User Choice“ model, the bigger the proportion of the Euronext activity are undertaken by EuroCCP, thus increasing the savings the firms can achieve.

How much more competitive is EuroCCP compared to LCH SA ?

The savings are achieved as a result of EuroCCP’s highly competitive clearing fees, meaning that the higher the number of Euronext trades being undertaken at EuroCCP, the greater the savings.

In like manner, the greater the number of firms adopting the “User Choice“ model, the bigger the proportion of the Euronext activity are undertaken by EuroCCP, thus increasing the savings the firms can achieve.

9. EuroCCP and Euronext contacts

What are EuroCCP’s contacts?

Your main contacts for “Euronext on-boarding” are :

A detailed “EuroCCP contact list” is available in the Contact Us section of EuroCCP’s’ website.

What are Euronext’s contacts?