Cboe Clear Europe has received permanent recognition from the Bank of England to offer central counterparty clearing services in the UK.
The Amsterdam-based clearing house, which is owned by Cboe Global Markets, reports that it is the first non-UK CCP to be granted permanent recognition by the Bank of England, having been a participant in the UK’s Temporary Recognition Regime for non-UK CCPs established at the end of the Brexit transition period in 2020.
Commenting on this development, Arnoud Siegmann, Cboe Clear Europe’s interim president and chief operating officer, says: We [announce] the removal of Brexit uncertainty for UK-based clearing members and UK trading venues that wish to continue to access Cboe Clear Europe and benefit from its services on a permanent basis.
“This recognition helps demonstrate our long-term commitment to our cash equities services in the UK and will be important in further extending our equity derivatives service among UK participants, in support of Cboe Europe Derivatives (CEDX). We greatly appreciate the efforts of both the Bank of England and our EU regulators for helping to provide this recognition, which is a great outcome for European capital markets as a whole as it reduces the likelihood of liquidity fragmentation."
Cboe Clear Europe N.V. was formed in the Netherlands in December 2013 through the combination of the European Multilateral Clearing Facility N.V. (EMCF) and European Central Counterparty Limited (ECCP Limited). It rebranded from EuroCCP in November 2022.
Cboe Worldwide Holdings Limited, an affiliate of the Cboe group, purchased 100 per cent of Cboe Clear Europe on 1 July 2020.
The clearing house indicates that it currently offers clearing services to 47 trading venues, having also diversified into equity derivatives clearing in 2021 to support the release of CEDX, Cboe’s European equity derivatives exchange.
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