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 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.

New EU based venues – client readiness

Following EuroCCP’s Newsflash dated 20 December 2018 regarding the establishment of new EU-based venues in advance of the UK’s proposed exit from the European Union, we would like to remind clients of key steps to ensure readiness for the anticipated go-live 1 April 2019.

Through their EU entities, Aquis Exchange, Cboe Equities Europe and Turquoise will enable participants to continue trading in EU-listed ISINs following Brexit, and will continue to operate their UK based trading venues for trading of UK and Swiss-listed ISINs.

In order to ensure a smooth transition, EuroCCP is seeking to have all new Clearing memberships ready to go live no less than four weeks prior the agreed 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

The final outcome of Brexit and details of the transition arrangements are currently uncertain, which may impact the anticipated go-live date of 1 April 2019.

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