Benefits of Using EuroCCP
- Robust risk management enables EuroCCP to calculate and collect the appropriate amount of collateral to protect a participant from another’s default.
- Low-cost clearing is provided by a tariff structure that is competitive and non-discriminatory.
- Interest on cash collateral is returned to participants without the deduction of a spread.
- Pan-European capability enables Trading Participants to trade the same security on any of the platforms cleared by EuroCCP and have those positions – traded on the same day – netted into a single settlement and margin obligation.
- Reliable technology used by EuroCCP minimises delays and downtime. Processing capacity is capable of handling platforms’ anticipated peak volumes.
- Business continuity capabilities ensure that even during a major disruption, EuroCCP will remain operational.
How the Service Works
Through novation, EuroCCP substitutes itself for all counterparties that use its services, becoming the buyer to every seller and seller to every buyer, thus assuming counterparty risk for its Clearing Participants and ensuring settlement of trades in the event of a Clearing Participant’s failure. EuroCCP’s processing also ensures anonymity for all parties from the onset of a trade through clearing and settlement thereafter.
A detailed description of EuroCCP’s services can be found in the Service Overview.
An important element of EuroCCP’s service is the variety of reports available for Clearing Participants. EuroCCP offers its Clearing Participants a choice of delivery via machine readable output, SWIFT or email. Delivery of the data is free but there are charges for the communication lines supplied by third parties.
- Real-time reporting offers EuroCCP’s Clearing Participants the reporting of executed trades as soon as the data has been received from the trading platform and validated in EuroCCP’s This service can be offered via a connection through BT Radianz or a VPN line.
- Intra-day reportingprovides EuroCCP data files via SFTP and the data is delivered in ASCII format. The intra-day files are sent three times per day at 11:00, 14:00 and 17:00 CET but different timing and frequency of reporting can be offered as required by clients.
- End-of-day reporting includes end-of-day margin reports, trade reports, settlement reports, netting reports and fee reports. The end-of-day reports are sent at approximately 19.00 CET.
Trade reports are contained in the CIF file, whereas risk management reports can be found in the CHC file. Both files contain data in an ASCII format and are sent via (S)FTP. EuroCCP can also send the end-of-day reports via secured email, with data being available in either a .doc(x) or .pdf format.
Details regarding format and content can be found in EuroCCP’s CIF specifications.