EMCF and EuroCCP today announce that the sale and purchase agreement has been signed to form a new pan-European cash equities clearing house that builds on the strengths of both firms.
This follows the announcement made in March that the firms planned to combine.
The owners of EMCF—ABN AMRO Clearing Bank and NASDAQ OMX—and owner of EuroCCP—DTCC—along with BATS Chi-X Europe, are signatories to the agreement.
The new CCP will be called EuroCCP N.V. It will use the risk management framework and customer-service organisation of EuroCCP, and it will run on the technology and operations infrastructure of EMCF.
EuroCCP N.V. will be headquartered in Amsterdam, with customer-facing functions located in London and Stockholm.
Diana Chan, CEO, EuroCCP and CEO designate of the new company, said: “The signing of the sale and purchase agreement is a significant step towards launching the new CCP and demonstrates market participants’ desire and support for initiatives that are pro-competition and strengthen the market’s infrastructure and risk mitigation while driving down costs for users."
"We are focused on making the migration of our customers’ business as straightforward as possible and are working closely with them to ensure they can fully benefit from what the new business will deliver to them.”
Jan Booij, CEO of EMCF and COO designate of the new company, said: “We welcome this further development and look forward to delivering the sustainable best practices of both companies from a single cost base. This will benefit the platforms that connect to us and the customers who clear with us.”
