European Central Counterparty Limited (EuroCCP) has again leveraged its economies of scale to restructure its fees and set a new low clearing price standard for European equity trades.
EuroCCPs new transparent fee structure starting from 3 euro cents ( 0.030) per side and decreasing to one-fifth of a euro cent (0.002) represents Europes most competitive pricing. With volume discounts at a participant level and no hidden fees, it delivers significant value to the growing number of high-frequency trading firms now operating across multiple markets. EuroCCPs new pricing model is effective from 1 October 2009.
The announcement is part of a major EuroCCP programme of innovation, including the launch of new products and expansion into further market sectors, which will help position EuroCCP strongly as the European market moves towards interoperability.
The market is looking for pricing to be simpler and more transparent, enabling traders to build predictable clearing costs into their models, says Diana Chan, EuroCCPs CEO. With the launch of our enhanced tiered fee structure, were bringing US high volume pricing to Europe, and offering a safe and low-cost service to help our customers and partners achieve further economies of scale.
EuroCCPs value proposition is that it operates on an at-cost basis, with tiered tariffs that apply to the clearing volumes of each participant rather than to the aggregate clearing volume of EuroCCP, ensuring that each firm can benefit directly from its own volume growth. EuroCCP customers can also be certain of no hidden charges elsewhere, with no charges for fails, no additional netting fees, and all interest earned on cash margins being returned to participants.
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