Euronext has appointed EuroCCP as the sole central clearing counterparty (CCP) for its recently-acquired exchange business in Dublin, according to a memo seen by Global Custodian.
EuroCCP will act as Euronext Dublin’s CCP as of 12 November, following the migration of Euronext Dublin trading onto its newly-launched cash markets platform, Optiq.
Optiq provides investor access to trading across all asset classes available on Euronext’s exchanges, including equities, structured products, exchange-traded funds (ETFs) and fixed income.
Clients of EuroCCP will be able to cross-platform net all Irish trades executed on any of the platforms serviced by EuroCCP at the moment. Euronext said it carried out a detailed post-trade analysis to determine which clearing model would work for its clients.
EuroCCP was chosen as the sole CCP by Euronext due to its pan-European footprint, according to the memo. The clearing house currently has access to 19 European markets, 26 trading venues and more than a decade working in the cash equities clearing market.
Last month, EuroCCP was selected by Borsa Italiana to act as a CCP, with access to its trade feed for the clearing of shares and depository receipts for various markets. Diana Chan, EuroCCP’s chief executive, said at the time the move will see clearing services become more efficient and trade costs will be significantly reduced.
Euronext Dublin was established after Euronext’s acquisition of the Irish Stock Exchange in November last year. The €137 million deal was part of plans to expand the exchange’s European footprint and prepare for the UK’s exit from the European Union.
In 2016, Euronext acquired a 20% stake in EuroCCP for €13.4 million.