Despite being 78% owned by the Dutch government, EMCF has been developing its operations at a rapid pace. The central counterparty has recently announced that it has appointed Deutsche Bank as settlement agent in Czech, Hungarian and Polish markets.
The announcement follows the move by NASDAQ OMX (22% owners of EMCF) in September 2009 to trade blue-chip securities listed on Budapest Stock Exchange, Warsaw Stock Exchange and Prague Stock Exchange, appointing EMCF as its CCP partner.
The launch of CCP services will significantly mitigate counterparty risks in the region and provide low settlement fees, thanks to the netting capability provided by EMCF. This launch coupled with our work in helping to change the tax regime in Poland so that international investors are on an equal footing to domestic investors, demonstrate our commitment to the region. We are proud to have Deutsche Bank as a partner in this dynamic market, said Jan Booij, Chief Executive of EMCF.
EMCF has also recently announced that it will provide settlement obligation messaging to its clearing participants via SWIFT. The move towards standardization comes days after EMCF announced that the number of trades cleared surpassed four million in a single day for the first time.
“We are pleased to be cooperating with SWIFT in the initial stages of such an important project. This new service shows EMCFs dedication to removing technical obstacles to market integration and paving the way towards standardized, harmonized and efficient clearing in Europe,” said Albert-Jan Huizing, Chief Information Officer for EMCF.
EMCF was also among industry participants in a recent hearing before the Public Finance Committee of the Polish Parliament that resulted in proposed changes to stamp duty that will, if passed, exclude international companies from duties on most equity trades.
Expansion of trading into CEE markets is a natural step in NEUROs pan-European strategy, said Charlotte Crosswell, President of NASDAQ OMX Europe. We will be the first MTF to offer trading in these markets, bringing greater efficiencies to customers through lower transaction costs and world class technology, Crosswell added.
EMCF will offer CCP services in the region in first quarter of 2010, subject to regulatory approval and implementation of the new Polish tax laws.