BATS Europe and UBS' multi-lateral trading facility (MTF) have opted for EuroCCP, allowing firms trading in those venues to select a preferred CCP to clear trades.
"We are hoping the success of these initiatives will encourage other trading venues to follow suit in implementing interoperability," said Diana Chan, CEO of EuroCCP, adding that wider adoption of the concept will increase competition and lower costs for European equities trading activities.
Interoperability refers to the ability of diverse or disparate systems or organisations to operate with each other. Firms trading on BATS Europe can elect a preferred a CCP to clear their trades and if trading firms on both sides of a trade have selected a preferred CCP, then each side will be cleared by the respective CCP of choice.
UBS MTF will now allow trading firms to choose EuroCCP to clear cash equities trades as it interoperates with the existing CCP.
EuroCCP customers will not be charged clearing fees for transaction volumes over 230,000 sides a day. "This translates into an actual fee cap of €4,300 for EuroCCP customers trading an average daily volume of over 230,000 sides," writes EuroCCP.
So far, EuroCCP has been selected by BofA Merrill Lynch, Credit Suisse, Morgan Stanley and Nomura as the preferred CCP on BATS Europe and by Citigroup on UBS MTF.
