EMCF 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 4 million in a single day for the first time.
From 26 March, SWIFT/EMCF customers will be able to reuse their existing SWIFT connection to receive the settlement obligations for EMCFs central counterparty (CCP) clearing in cash equities.
After the netting process, EMCF will mirror the settlement instructions addressed to the domestic central securities depositaries (CSDs) to both general and direct clearing participants.
The service will be the first step towards a Power of Attorney structure. With this structure, EMCF can send the instructions on behalf of its participants to the domestic central securities depositories. According to EMCF, this will improve settlement ratios in European markets.
“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.
Testing for clearing participants is scheduled for the last week of February.
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