The European Central Counterparty Limited (EuroCCP) has selected a 13-member board of directors, which will begin serving on 1 March 2008, to govern its operations.
The new slate of directors includes three independent directors from the industry, two management representatives and eight representatives from participant organizations.
Two representatives from EuroCCP management, Diana Chan, EuroCCP’s CEO and Michael Bodson, executive managing director, Business Management, Strategy and Marketing at The Depository Trust & Clearing Corporation (DTCC), will also be on the board, with Bodson serving as chairman.
Individuals were selected to serve based on their ability to provide broad industry insight and counsel. Board committees, in turn, will be specifically structured to help achieve key development objectives for EuroCCP. The independent directors will serve three-year terms, and the participant directors will serve one-year terms. The participant directors will be elected by participants through a process coordinated by a nominating committee.
“We have assembled some of the most talented, well-regarded industry leaders to serve on the EuroCCP board. Their unique industry perspectives will provide valued insight and guidance as we move towards the goal of lowering costs for clearing and settlement throughout Europe,” says Bodson.
EuroCCP, a subsidiary of DTCC, was named to provide clearing and settlement services for the new pan-European market being created by Turquoise, a consortium of nine major global investment banks in Europe. This new multilateral trading facility is expected to begin operations later this year pending approval from the Financial Services Authority, and will initially trade the most liquid equity securities in Europe. EuroCCP will use Citi’s Global Transaction Services as its settlement agent.
“We have made enormous progress to date, completing the underlying technologies, systems development, risk management procedures and business process flows. Working collaboratively with Turquoise, we’re on target to make EuroCCP operational, and so we’re pleased to have such a diverse, distinguished and broadly representative group of senior executives from the industry agreeing to serve on our board,” says Chan.
The eight initial directors from EuroCCP participant organizations are: James Crabb, managing director, Equity Operations, Deutsche Bank; Phil Davies, managing director, Operations, Goldman Sachs; John Devine, senior vice president, global head of Operations and Client Services, Merrill Lynch; Andrew Gelb, managing director and global head of Direct Custody and Clearing, Citi; David Maloy, global head of Commercial Services and Market Management, UBS; Jacques-Philippe M. Marson, president and CEO, BNP Paribas Securities Services; Neil Martin, director of European Operations, Credit Suisse and Martin Ryan, managing director, Morgan Stanley.
The three independent industry directors are: Edouard-Franois de Lencquesaing, former head of transaction banking and IT at Crdit Commercial de France; Iain Saville former CEO of CRESTCo Ltd. and Derek Ross, former partner at Deloitte U.K. and a chartered accountant.
“We were extremely pleased to have such highly regarded independent industry directors joining our board. Mr. de Lencquesaing and Dr. Saville both have long and impressive histories of contributing significantly to the development of European financial markets. Combined with Mr. Ross’s skills and experience in risk management and control, our independent directors will provide EuroCCP with strong and independent strategic thinking and guidance,” adds Bodson.