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Deutsche Börse go-live 11 November 2019

EuroCCP is pleased to announce that regulatory approval was received to provide clearing services for trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange. The service is planned to go-live from trade date 11 November 2019 on a Preferred CCP basis for shares and exchange traded funds on Xetra© (MIC: XETR).

To clear trades executed on Xetra© with EuroCCP, participants are required to:-

1 . Advise Deutsche Börse Key Account Manager (KAM) of your implementation plans

Trading firms admitted for trading at Deutsche Börse and wishing to adopt the “Preferred CCP” Model should contact Deutsche Börse Key Account Manager and complete the appropriate forms.

2 . Advise EuroCCP of your implementation plans

Trading firms wishing to benefit from the “Preferred CCP” Model should liaise with their Clearing Participant, who will contact EuroCCP’s Relationship Management department at RM@euroccp.com to agree implementation plans and intended go-live date. EuroCCP will coordinate internally and make the necessary arrangements.

The following documentation should be completed and returned to: clientservices@euroccp.com

Upon receipt of the forms and supporting information, EuroCCP will liaise with Deutsche Börse to ensure both Deutsche Börse and EuroCCP systems are configured accordingly.

3 . Complete testing with Deutsche Börse and EuroCCP

Clearing Participants must undertake testing prior to go-live.

Deutsche Börse and EuroCCP’s test environments are available for your testing requirements from  today.

A list of ISIN codes will be agreed bilaterally with each client for testing purposes, to ensure a smooth and successful test.

4 . Go live into the Production environment

After successful testing, clients can commence clearing with EuroCCP on the agreed go live date.

5 . Reporting changes

A new platform MIC XETR will be reported to all clients in the daily CIF file.

6 . Regulation changes

Currently, the following regulations have been updated for the purpose of clearing Deutsche Börse traded executed on Xetra using the “Preferred CCP” model.

7 . Direct Debit

In order to clear  Deutsche Börse trades, Clearing Participants will need to have  a direct debit authorisation in place.

There are two options available and they are as follows:

  1. Direct debit authorisation which allows EuroCCP to withdraw funds from the respective clearing participants’ Target account or;
  2. Direct debit authorisation which allows EuroCCP to withdraw funds from the respective clearing participants’ commercial bank account under the condition that the commercial bank account has an overdraft possibility.

8 . End of day timing

Upon the first clients going live, the end of day timing will move from 19:30 CET to approx. 20:30 CET. This will mean that the daily CIF will be issued to clients later than is currently in place.

For details on cost saving, please contact EuroCCP’s Relationship Management team to provide an assessment of the savings resulting from the consolidation of Deutsche Börse activity with EuroCCP.

Should you have any further queries, please do not hesitate to contact us.

EuroCCP extends platform coverage to include Deutsche Börse

EuroCCP is pleased to announce that regulatory approval has been received to provide clearing services for trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange. The service will go-live from trade date 11 November 2019 on a Preferred CCP basis for shares and exchange traded funds on Xetra© (MIC: XETR).

Onboarding requirements including testing, documentation and notification of changes to Regulations will be communicated in an additional member notice.

Access to the Frankfurt Stock Exchange has enabled EuroCCP to connect over 95% of European Equities traded on venues and continues to position EuroCCP as Europe’s leading Equity CCP.

Please contact Relationship Management for further information.

EuroCCP goes live with Frankfurt Stock Exchange

November 7, 2019 – EuroCCP, Europe’s leading equities clearing house, today announced that it will clear trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange, starting November 11, 2019. EuroCCP’s clearing services are now available on a preferred CCP basis for trades in cash equities and ETFs executed on Xetra© (MIC: XETR) for the first time.

EuroCCP has long advocated the benefits of open access and increased interoperability amongst European clearing houses. With the addition of FWB, EuroCCP has extended its clearing access to over 95 per cent of cash equity trades executed on organised markets in Europe.

Cécile Nagel, CEO, EuroCCP, commented: “Open access and competitive clearing have been essential drivers of post-trade simplicity and efficiency, and we are pleased to be able to extend our services to firms executing trades on FWB. This is a key milestone in pan-European equities clearing and will allow clearing members to consolidate more flow, reducing complexity and leading to significant operational, netting and cost efficiencies.”

EuroCCP is central to Europe’s equities markets and currently clears more than 30 per cent of the region’s cash equities and approximately 40 per cent of the trades on exchanges and venues offering three-way interoperability. Last year, EuroCCP finalised agreements to clear trades executed on leading exchanges including Oslo Børs, Borsa Italiana and Euronext Dublin. Earlier this year, EuroCCP announced it will clear European ETFs on Tradeweb, positioning EuroCCP as a clearing house with the broadest coverage in Europe.

About EuroCCP

 EuroCCP is important to Europe’s equities markets as it currently clears for 38 trading venues, representing over 95% of the equity landscape in the continent, making EuroCCP the most connected equity CCP in Europe. EuroCCP provides clearing members with easy access and ability to maximise operational efficiency and netting opportunities whilst reducing risk and cost in the market. Headquartered in Amsterdam, EuroCCP is regulated by De Nederlandsche Bank and by Autoriteit Financiële Markten.

Euroclear Finland – postponement to implementation of Partial Settlement

Further to the Newsflash published on 19 July 2019, Euroclear Finland’s proposed implementation date of partial settlement on trade date 30 September has been postponed to 7 October 2019. EuroCCP will therefore mandate the use of PARQ for this market in keeping with its Regulation Settlement. Trades with trade date 4 October 2019 will not be sent to the market and will be released in the morning of 7 October 2019.

The main changes impacting EuroCCP’s services incorporate:

  • Partial settlement functionality.
  • Settlement agent Power of Attorney.

Partial Settlement

The partial settlement windows for settlement instructions against payment are scheduled at 11:00, 13:00 and 16:30 EET.

Clearing Participants need to ensure that the settlement instructions submitted into the settlement system include the PARQ indicator. This is a mandatory requirement and Clearing Participants are responsible for informing any trading members that they must update their settlement instructions to reflect the PARQ indicator on 7 October 2019.

Settlement Agent Power of Attorney

Settlement instructions sent to the Clearing Participant’s settlement agent under the Settlement Agent Power of Attorney (PoA), will be enriched to include the partial indicator PARQ and the status of the PoA settlement instruction will be “released” (NEWM).

Should you have any further questions please do not hesitate to contact EuroCCPs Relationship Management Team.

 

EuroCCP to provide clearing and settlement services to TradeWeb for European ETFs

EuroCCP, Europe’s leading equities clearinghouse, today announces its collaboration with TradeWeb, a global operator of electronic marketplaces for multiple products including Rates, Credit, Equities, ETFs and Money Markets.

The press release associated to this announcement can be found here.

The new clearing link will enable its members and their clients to streamline the settlement process of ETFs in Europe, whilst providing important counterparty protection in the event of a default.

The settlement of ETFs today can be impacted by high costs associated with OTC settlements and subsequent fails. With CSDR settlement discipline measures on the horizon, the introduction of CCP services for TradeWeb in ETFs can mitigate against such issues, whilst being able to cross net ETFs traded and cleared on other trading venues.

The clearing link between TradeWeb & EuroCCP is expected to be available to its clients in Q4 2019, subject to regulatory approvals.

Please contact the Relationship Management & Client Services team at EuroCCP for further information.

Tradeweb Announces Central Counterparty Clearing for European ETFs in Partnership with EuroCCP

London – September 5, 2019 – Tradeweb Markets Inc. (Nasdaq: TW), a leading global operator of electronic marketplaces for rates, credit, equities and money markets, and EuroCCP,  Europe’s leading equities clearing house, today announced a strategic collaboration to facilitate central counterparty clearing for European Exchange Traded Funds (ETFs).

This collaboration will help streamline European clients’ settlement process and minimise costs, by facilitating pre-settle margin and netting of exposures — while still offering pan-European ETF investors the transparency and benefits afforded by the RFQ process.

“By offering our clients the ability to centrally clear European ETF trades, we are enhancing the RFQ workflow by introducing a new post-trade process to help investors minimise settlement fails and improve efficiency,” said Enrico Bruni, head of Europe and Asia business at Tradeweb. “As a leader in the ETF marketplace, we remain fully committed to innovative client solutions, and we are excited about this new initiative.”

With regulators aiming to harmonise rules under the European Central Securities Depositories Regulation (CSDR), market participants will soon be subject to new Settlement Discipline procedures, including cash penalties for settlement fails and mandatory buy-ins. By offering access to central clearing and settlement services via EuroCCP within the trading workflow, Tradeweb will help clients navigate these new rules and mitigate counterparty risk for clearing participants.

Cécile Nagel, CEO, EuroCCP said: “Our partnership with Tradeweb allows us to expand our ETF clearing business, delivering a new and innovative service to clients which helps them to better manage the cost and risk of trading this asset class.”

“Introducing CCPs to ETF trading on Tradeweb’s RFQ platforms is an important market structure enhancement, improving the clearing, settlement and utility of ETFs,” said Jason Warr, Head of Global Markets at BlackRock iShares.

Tradeweb launched its European ETF trading platform in 2012 and its U.S. ETF trading platform in 2016.  In August 2019, Tradeweb announced July trade volumes in European ETFs had risen by 55.2% Y-O-Y to reach a record figure of $1.5bn per day.  As of June 30, 2019, over 60% of European ETF transactions were processed via Tradeweb’s Automated Intelligent Execution Tool (AiEX).

Tradeweb’s global ETF marketplaces deliver an alternative method for investment firms to access competitive OTC prices with greater efficiency and transparency. The platforms offer a number of tools that reduce errors and improve performance, while streamlining post-trade processing and providing reports that help institutional investors meet their best execution requirements. Tradeweb’s ETF CCP service is expected to be available by the fourth quarter of 2019, subject to regulatory approvals.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, the expected timing and availability of Tradeweb’s new ETF CCP solution, our future performance, the markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in our prospectus filed with the SEC on April 5, 2019 and other documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance or events and our actual results and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if future performance or events, our results or developments in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of performance, events, results or developments in future periods.

Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 60 countries. On average, Tradeweb facilitated more than $630 billion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

About EuroCCP
EuroCCP is important to Europe’s equities markets as it currently clears for 36 trading venues, representing near 90% of the equity landscape in the continent, making EuroCCP the most connected equity CCP in Europe. EuroCCP provides clearing members with easy access and ability to maximise operational efficiency and netting opportunities whilst reducing risk and cost in the market.  Headquartered in Amsterdam, EuroCCP is regulated by De Nederlandsche Bank and by Autoriteit Financiële Markten. EuroCCP is equally owned by Cboe Europe, Euronext, NASDAQ, ABN AMRO Clearing Bank and The Depository Trust & Clearing Corporation (DTCC).

 

ETF Buy-In Extension Period

Dear Clearing Participant,

EuroCCP is pleased to announce an extension to the buy-in period for ETF securities from ISD+4 to ISD+7. This extension has been made in close cooperation with the ETF community and to align the buy-in period for ETFs with local market practices. The changes become effective per settlement date 12 Aug 2019.

EuroCCP’s Regulation Buy-in Procedure has been updated accordingly and can be found here, which includes the normal timeline below, as well as the new ETF timelines.

The changed timeline for ETFs only will be:

Please note this will not impact the market maker buy-in timeframes and will also be  applicable across all markets.

Should you have any further queries, please do not hesitate to contact your Relationship Manager.

EuroCCP Annual Client Review 2019

EuroCCP is shortly to undertake its annual Clearing Participant review which will require all Clearing Participants to provide the following information:

  1. Certificate of Incorporation and current Articles of Association,
    Excerpt from Chamber of Commerce or Company Register and
    Organisation chart
  2. Current Authorised Signatory list
  3. Proof of regulated status: Credit institution, Bank or Investment firm established in a FATF country (If a bank, evidence of banking license)
  4. Copy of your Annual Report (English Version) and Disclosure Report
  5. Current contact list for all teams within your organisation, including escalation contacts
  6. LEI Number
  7. Contact Details of the Security Team and SOC (telephone number, email address, escalation 24X7 telephone number)
  8. Ultimate Beneficial Ownership (UBO) greater than 25%

EuroCCP is a central counterparty authorised pursuant to the EU Regulation on OTC derivatives, central counterparties and trade repositories (Regulation 648/2012 “EMIR”) and is required to conduct a comprehensive review of its Clearing Participants.

The deadline for completion of this review is 19th August 2019 and EuroCCP’s Client Services Team will be contacting all Clearing Participants by email from 27th July 2019

We look forward to the return of this information before that date however, should you have any further queries please do not hesitate to contact us.

Euroclear Finland – Partial settlements and EuroCCP to mandate PARQ indicator

Please be aware that Euroclear Finland has confirmed the introduction of partial settlement on trade date 30 September 2019. EuroCCP will therefore mandate the use of PARQ for this market in keeping with its Regulation Settlement.

The main changes impacting EuroCCP’s services incorporate:

  • Partial settlement functionality.
  • Settlement agent Power of Attorney.

Partial Settlement

The partial settlement windows for settlement instructions against payment are scheduled at 11:00, 13:00 and 16:30 EET.

Clearing Participants need to ensure that the settlement instructions submitted into the settlement system include the PARQ indicator. This is a mandatory requirement and Clearing Participants are responsible for informing any trading members that they must update their settlement instructions to reflect the PARQ indicator on 30 September 2019.

Settlement Agent Power of Attorney

Settlement instructions sent to the Clearing Participant’s settlement agent under the Settlement Agent Power of Attorney (PoA), will be enriched to include the partial indicator PARQ and the status of the PoA settlement instruction will be “released” (NEWM).

Testing

Clients are encouraged to test the new functionality to ensure a smooth migration and that the enriched settlement agent POA instructions flow STP in participants post trade systems.

EuroCCP will support testing from 5 August 2019 until 9 September 2019 and clients can contact EuroCCP’s testing team at: clienttesting@euroccp.com to arrange support.

Should you have any further questions please do not hesitate to contact EuroCCPs Relationship Management Team.

 

Swiss Equivalence

The Swiss Federal Department of Finance (FDF) published a notice on 24 June 2019 that in the event that the EU equivalence decision for Swiss trading venues is not extended beyond its current expiration date of 30 June 2019, it will remove the recognition that allows EU trading venues to offer trading in certain Swiss equity securities.

Due to this measure, the relevant EU trading venues have announced to delist certain equities securities of companies with a Swiss registered office and listed on a Swiss exchange in the event that Switzerland is not granted equivalence from the EU by Sunday 30th June 2019.

EuroCCP will continue to be authorized to offer clearing services both in the EU as well as in Switzerland and will continue to clear Swiss market securities.

The measure taken by the FDF will impact EU trading venues ability to admit to trading securities of companies with a Swiss registered office and listed on a Swiss exchange with effect from the start of trading on Monday 1st July 2019.

Clearing participants are advised to speak to the individual trading venues for further information.

EuroCCP’s clearing services remain unaffected.