Posts

EuroCCP Appoints David Hatton as Chief Technology Officer

Amsterdam and London, 14 May 2019 – EuroCCP, Europe’s leading equities clearinghouse, today announces the appointment of David Hatton as Chief Technology Officer. Mr Hatton will take over from Albert-Jan Huizing, who has decided to step down at the end of June 2019 having worked at EuroCCP since its formation in 2007.

Mr Hatton brings 25 years financial services technology experience having worked across Europe in London, Frankfurt, Paris and Geneva. He joined LCH in 2011 and helped build and launch their Foreign Exchange Clearing Service – ForexClear. In 2014, Mr Hatton moved to Paris as Head of IT for CDSClear where he led the technical aspects of their transformation programme and had overall responsibility for IT Strategy, Run and Change. Most recently David was Product Owner for the FX Option Migration Project at Commerzbank AG.

Reporting directly to EuroCCP’s CEO, Cécile Nagel, Mr Hatton will be responsible for setting the firm’s IT strategy and managing the IT function across infrastructure, application development and support.

Commenting, Ms Nagel said: “I am delighted that David has chosen to join EuroCCP. As we continue to develop our business, we need to understand how existing and new technology can help support our growth and bring efficiencies to our clients.”

Since its inception, EuroCCP has become one of the pre-eminent pan-European equities CCPs, with access to 36 venues including CBOE Europe, Euronext, the London Stock Exchange, Nasdaq and SIX Swiss Exchange.

Paying tribute to Albert-Jan Huizing, Ms Nagel added: “He has been integral to the development and success of EuroCCP since it was launched more than 10 years ago, helping turn the business into one of Europe’s leading market infrastructures. His contribution and counsel will be missed.”

Mr Hatton will join EuroCCP on 20th May 2019 allowing for handover and a smooth transition.

Reporting on Capital Requirement Regulation

The Capital Requirement Regulation (EU 575/2013-CRR) requires EuroCCP to disclose information to allow a Clearing Participant to determine its own funds requirement for its exposure on EuroCCP.

Accordingly, please find the information for 31 March 2019

in pdf format,

or

in Excel format.

Updated Regulation Fees and Penalties

EuroCCP is committed to continue to provide a competitive and valuable service to its clients and the industry.  To support this, we would like to inform you that following EuroCCP’s annual pricing review, EuroCCP’s fee schedule will be amended effective from 1 May 2019 as follows:

  1. Clearing Participant Membership fee  (General and Direct) : Increase from EUR 12,000 to EUR 20,000 per annum
  2. Trading Participant Membership fee:  increase  from EUR 2,500 to EUR 3,500 per annum.
  3. Clearing fee cap: increase from  EUR 130,000 to EUR 140,000 per month.

The key drivers for our increase are set out below.

EuroCCP has incurred increased workload and additional costs because of Brexit and the contingency arrangements that we have had to put in place for our clients, specifically onboarding new EU platforms and new EU members.  There are also additional ongoing costs as a result of servicing the new EU platforms, as well as managing member flows between entities to ensure continuity of services in all Brexit scenarios.

EuroCCP continues to invest and develop its business to deliver greater efficiencies to clients.  Specifically, clearing members are able to consolidate more activity through EuroCCP as we have recently established connections to Euronext Dublin, Oslo Bors, Borsa Italiana and Morgan Stanley MTF.  The preferred clearing model on Euronext and Borsa Italiana is live and we encourage members to take full advantage of the lower clearing fees and the netting benefits available by choosing EuroCCP as their preferred CCP.  We plan to go live with connections to additional venues, including Deutsche Boerse in the coming months.

The fee increase will also cater for EuroCCP’s continuous strengthening of its risk and control framework in an ever increasingly demanding regulatory environment.

Finally, we are looking at a number of opportunities, such as additional products and service improvements to help us deliver further efficiencies for our clients.

We would like to take this opportunity to thank you for your continuous support.

Should you wish to discuss trade feed access and netting opportunities or have any questions regarding the above changes please contact EuroCCP’s Relationship Management team.

A copy of the new fee schedule can be found below.

Clearing Rule Book changes (consulation 20 March 2019)

EuroCCP has published an updated version of its Clearing Rule Book (“CRB”) on its website.

The changes primarily relate to a number of recovery tools which are included in EuroCCP’s recovery plan and which require the involvement of the Clearing Participants.

A memorandum outlining the changes to the CRB also been posted on EuroCCP’s website.

The changes to the CRB are open for consultation pursuant to article 3.7.3 of the CRB. The 30 calendar day consultation period ends on 18 April 2019.

The relevant provisions are expected to apply shortly after the end of the consultation period. 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 (if required).

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

Aquis Exchange Europe go live preparations

Aquis Exchange Europe has announced its plan for a soft go-live in order to ensure a smooth transition. From Wednesday 20 March 2019, trading will be available in the following twelve selected securities:-

ISIN Currency Operating MIC
NL0000440584 EUR AQEU
IT0003697080 EUR AQEU
ES0105128005 EUR AQEU
BE0003853703 EUR AQEU
FR0004024222 EUR AQEU
PTSNC0AM0006 EUR AQEU
DE0005493092 EUR AQEU
JE00B3DCF752 EUR AQEU
BMG0451H1170 NOK AQEU
SE0000191827 SEK AQEU
BSP951331318 DKK AQEU
FI4000197934 EUR AQEU

Clearing Participants wishing to start trading on the new platform need to ensure that the following is completed:-

  • Statement of Authority fully completed and signed.
  • Netting set up agreed.
  • Standard Settlement Instructions (SSIs) confirmed.
  • Successful testing undertaken.

Further information on membership applications, client testing and transition arrangements can be found at EuroCCP’s EU based venues & Brexit webpage.

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, EuroCCP is very pleased to inform you that it has obtained the necessary regulatory approvals to provide post-trade services to the EU-based entities of Aquis, Cboe Equities and Turquoise.

EuroCCP and the three trading venues have been working together to put in place measures to allow customers to continue their trading and clearing activity post Brexit.  Specifically, it is expected that the EU-based entities of Aquis Exchange, Cboe Equities Europe and Turquoise will offer market participants the ability to trade in EU-listed ISINs following Brexit, while continuing to operate their UK based trading venues for trading of UK and Swiss-listed ISINs.  EuroCCP will activate the clearing arrangements in EU-listed ISINs as soon as the new EU-based venues are ready to go live.

In order to ensure a smooth go-live, EuroCCP is seeking to have all new clearing memberships in place prior to the agreed go live date. Clearing Participants are encouraged to have the following completed as soon as possible:-

  • Statement of Authority signed
  • Netting set up agreed
  • Standard Settlement Instructions (SSIs) confirmed
  • Successful testing undertaken

Further information on membership applications, client testing and transition arrangements can be found at EuroCCP’s EU based venues & Brexit webpage.

 

EuroCCP and Deutsche Börse AG  

Separately, the anticipated go-live date for EuroCCP’s access to Deutsche Börse is being postponed from 29 March to 27 May 2019 at the earliest.   EuroCCP’s resources have been focused on changes related to Brexit as clearing members and trading venues have increasingly started to execute their Brexit contingency arrangements.  Additional time is required to finalise the work required prior to go live, including ensuring technical readiness and obtaining required regulatory approvals and EuroCCP is now actively working on this.

EuroCCP to Provide Post-Trade Services to EU-Based Entities of Aquis Exchange, Cboe Europe Equities and Turquoise

Amsterdam and London, 18 March 2019 – EuroCCP, Europe’s leading equities clearinghouse, today confirms that it has obtained the necessary regulatory approvals to provide post-trade services to the EU-based entities of Aquis Exchange, Cboe Europe Equities and Turquoise.

Working together, Aquis Exchange, Cboe Europe Equities, Turquoise and EuroCCP have developed a facility that will enable customers to continue with their trading and clearing activity post-Brexit. Specifically, it is expected that the EU-based entities of the three trading venues will offer market participants the ability to trade in EU-listed securities following Brexit, while continuing to operate their UK-based trading venues for the trading of UK and Swiss-listed securities. EuroCCP will activate the clearing arrangements in EU-listed securities as soon as the new EU-based venues are ready to go live.

While the uncertainty continues and despite the increasing likelihood that there may be a delay to Brexit, we are still focused on our preparations in case the UK leaves the EU on 29th March,” said Cécile Nagel, Chief Executive Officer of EuroCCP.

She continued: “In addition to today’s announcement, we have also successfully on-boarded six new EU-based entities acting as clearing members, together with more than 10 new EU-based trading members. Our work with all market participants has intensified in recent weeks as we set up and operate the new memberships, to secure frictionless pre- and post-trading activity in EU-based and UK-based products after Brexit.”

In order to ensure a smooth go-live, EuroCCP is seeking to have all new clearing memberships in place prior to the go live date agreed with the new venues, which currently remains as 1st April 2019.

As of end 2018, EuroCCP was able to access close to 90% of European equities markets and achieved a share of over 30% of clearing in this competitive environment.

EuroCCP clears Morgan Stanley MTF

EuroCCP is very pleased to announce that it now clears the transactions executed on Morgan Stanley MTF.

EuroCCP’s clearing and trading  participants will benefit from EuroCCP offering the largest range of cross-platform netting opportunities in Europe. Transactions executed on 34 different exchanges, MTFs and OTC trade sources can be cross platform netted into one settlement instruction per ISIN code.

Morgan Stanley MTF is operated by Morgan Stanley France SA, which is authorised and regulated by the French Authority Financial Markets (AMF) and the French Prudential Supervision and Resolution Authority (ACPR).

Morgan Stanley MTF will operate during Primary Market hours of continuous trading and offer trading in cash equities and equity-like instruments on an interoperable basis with LCH in Austrian, Belgian, Danish, Dutch, Finnish, French, German, Irish, Italian, Norwegian, Portuguese, Spanish, Swedish, Swiss and UK markets.

Further details regarding client testing and the on boarding Statement of Authority can be found on EuroCCP’s website and we would also refer you to Morgan Stanley MTF’s website  which provides further information regarding the platform.

Should you require and further information please do not hesitate to contact us.

EuroCCP to continue providing clearing services in the EU and UK following Brexit

On the 29 March 2019, the United Kingdom (UK) is scheduled to leave the European Union (EU). Following the UK’s departure from the EU, as a European entity, EuroCCP will be able to continue to operate in the (EU) under the European Market Infrastructure Regulation (EMIR). EuroCCP will also continue 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 is actively working with UK based clearing members and venues to help them execute their Brexit contingency plans – including onboarding new EU entities and connecting to new EU platforms – to ensure firms can continue to operate as normal following the UK’s departure from the EU.

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.

Reporting on Capital Requirement Regulation

The Capital Requirement Regulation (EU 575/2013-CRR) requires EuroCCP to disclose information to allow a Clearing Participant to determine its own funds requirement for its exposure on EuroCCP.

Accordingly, please find here the required information for 31 January 2019 in pdf format, or here for Excel format.