European Exchange Operators Establish Clearing Link

Swiss exchange operator SIX and Swedish-based Nasdaq will offer their customers choice to clear with one another, in a move to enhance interoperability between European clearing houses.

Both Nasdaq and SIX will allow LCH.Clearnet and EuroCCP as a cash equity clearing provider in their local markets.

The links will not only provide market participants further choice of clearing provider and benefit from reduced costs, but will also act as an example to the incoming ‘open-access provision in the MiFID II regulation, which will allow participants to execute and clear trades on different platforms.

“Interoperability in cash equities and ETFs is a reality and it is working… This trend has continued and resulted in further European markets benefiting from a greater choice of providers,” says Urs Ruegsegger, Group CEO, SIX.

“We are now confident that the competitive clearing model with three interoperating CCPs will contribute to the long-term competitiveness of Nasdaq Nordic markets and benefit the European markets as a whole,” adds Lauri Rosendahl, head of European Equities, Nasdaq.

Both initiatives are subject to necessary regulatory consent or approvals from local regulators.