European Central Counterparty Ltd. (EuroCCP) has received approval as a U.K. Recognised Clearing House by the Financial Services Authority (FSA).
“We are delighted that the FSA has granted EuroCCP status as a U.K. Recognised Clearing House. Initiatives such as MiFid and the Code of Conduct are changing the landscape in Europe and allowing new service providers such as EuroCCP to help market participants further reduce transaction costs, improve efficieny and connect more seamlessly in todays market place,” says Diana Chan, CEO, EuroCCP.
EuroCCP was selected to clear and settle for Turquoise, a new pan-european multilateral trading facility (MTF) created by a consortium of nine major global investment banks that will trade the most liquid equities in Europe. EuroCCP will use Citis Global Transaction Services as its settlement agent.
“We believe the value that our at-cost, industry-governed business model will be attractive to European capital markets and their participants. EuroCCP is already in active discussions with other MTF trading platforms to provide clearing and settlement services,” adds Chan.
EuroCCP reaffirms its commitment to sign the voluntary European Code of Conduct for clearing and settlement, allowing for interoperability of its services with other clearing and settlement houses and European trading platforms.
The FSA approval of EuroCCP as a Recognised Clearing House followed a satisfactory in-depth review of all aspects of EuroCCPs business arrangements as a critical market infrastructure.
Earlier in 2008, EuroCCP announced the selection of a 13-member board of directors to govern its operations. The new slate of directors includes three independent directors from the industry, two management representatives and eight representatives from participant organisations: Deutsche Bank, Goldman Sachs, Merrill Lynch, Citi, UBS, BNP Paribas, Credit Suisse, Morgan Stanley. The three independent directors are Edouard-Franois de Lencquesaing, Iain Saville and Derek Ross.