European Multilateral Clearing Facility (EMCF) has reimbursed clients up to 150,000 for settlement and settlement management fees charged in 2009.
EMCF estimates the cost per settlement at the beginning of the year. According to a statement from EMCF, since 2009’s volumes were so high, EMCF paid lower settlement fees to CSDs and the total cost of settlement funding could be divided over more settlements than initially expected.
Speaking to GlobalCustodian.com, Willem Mooijer, director of sales and client relationships, EMCF said that reimbursing clients “is the only way we can hold onto our principle of charging only the costs. The costs are per-settlement and can vary on the number of settlements – so we estimate them at the start of the year and we make sure that we do not charge more than the annual real costs and the rest we give back to the customers.”
EMCF, which continues to charge the lowest overall costs per transaction of any European CCP, became the largest CCP for on-exchange European cash equities in Q4 2009. EMCF clearing volumes reached 2.5 million trade sides on a European total of 7.1 million per day on average in Q4 2009, according to statistics collected by FESE.
According to Mooijer the “main reasons [for the increase in volume] are that the European market has discovered that service and price offerings on the MTFs, combined with the service offering of the MCF, [means that clients] appreciate the price transparency and services that we offer and therefore our volumes have soared.”
EMCF fees have been decreasing steadily across Europe. The central counterparty has recently decreased clearing fees in Sweden and Italy, and will be looking to change more fee structures in the coming months.
In the first few months of 2010, turnover has increased by “a few hundred thousand contracts a day,” according to Mooijer.