Euronext Clearing expands to financial derivatives markets
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Euronext Clearing expands to financial derivatives markets 17 September 2024Netherlands Reporter: Carmella Haswell
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Euronext has completed the expansion of its Euronext Clearing activities to its financial derivatives markets.
The milestone marks the conclusion of the migration from LCH SA to Euronext Clearing and the end of the contractual relationship with LCH SA.
This was the final phase in the European expansion of Euronext Clearing, to create Euronext’s multi-asset class clearing house.
According to the pan-European market infrastructure, the move marks the last critical achievement in completing Euronext’s ‘Growth for Impact 2024’ strategic plan, and the integration of the Borsa Italiana Group — three years after it was acquired by Euronext.
Over three years, the firm has migrated its core data centre from the UK to Italy, and migrated Borsa Italiana cash and derivatives markets to its trading platform Optiq.
Now, the firm has expanded Euronext Clearing’s clearing activities to all Euronext cash and derivatives markets across Europe.
This latest achievement aims to bring benefits including enhanced risk management through a VaR-based margin methodology; improved efficiency and reliability in risk capture and allocation; and the introduction of a unified equity and derivatives default fund to facilitate cross-margining.
Clients can now streamline their collateral management and access consolidated information on collateral, risk and clearing activities through a single platform.
This integration strengthens Euronext's ability to offer end-to-end solutions across the entire trading value chain, from listing, trading to clearing, settlement and custody.
Commenting on the milestone, Stéphane Boujnah, CEO and chairman of the managing board of Euronext, says: “Euronext continues to strengthen the backbone of the Capital Markets Union in Europe by expanding Euronext Clearing services to financial derivatives activities.
“The successful expansion of Euronext Clearing contributes to the defragmentation and the harmonisation of post-trade activities in Europe, to increase the attractiveness of our markets. This ensures that our single European liquidity pool is supported by a simplified, streamlined and fully integrated post-trade structure.”
Anthony Attia, Euronext global head of derivatives and Post-Trade, adds: “By offering a comprehensive clearing solution across multiple asset classes, we enhance the efficiency and reliability of the markets we serve, delivering significant value to our clients.
"Thanks to this achievement, Euronext now offers a streamlined and efficient market environment and is ready to innovate and develop new derivatives and clearing solutions for our clients.”
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