EuroCCP has launched a new service offering central counterpary clearing of trades in US stocks and US exchange-traded funds (ETFs) to European trading firms. EuroCCP is the first European equities central counterparty (CCP) clearing US securities and settling them directly in the central securities depository in their home market of issue, The Depository Trust Company (DTC).
EuroCCPs new service gives European trading firms their first-ever opportunity to trade US securities on a variety of pan-European platforms during European trading hours and to settle those trades in DTC.
Its clearing service for US issues allows EuroCCP to extend the efficiency, cost-saving and counterparty risk protection benefits it already provides to clients European-listed securities transactions to US stock and US ETF transactions. Initially, the US securities eligible for clearing through EuroCCP include approximately 100 stock issues and 50 ETFs. EuroCCP expects over time to expand the scope of eligible instruments to further equities, ETFs, and to ADRs.
EuroCCPs clearing service for eligible US issues is open to any trading venue cleared by EuroCCP that offers trading in the securities. Trading will be against US dollars.