EMCF and EuroCCP have signed the sale and purchase agreement to combine and form a new pan-European cash equities clearing house, following the announcement of this plan in March.
The new CCP, subject to approval from regulators and competition authorities, will be named EuroCCP N.V. and will use the risk management framework and customer-service organization of EuroCCP while running on the technology and operations infrastructure of EMCF. It will be headquartered in Amsterdam, with customer-facing functions in London and Stockholm.
The signatories of the agreement include BATS Chi-X Europe, the owners of EMCF (ABN AMRO Clearing Bank and NASDAQ OMX) and the owners of EuroCCP (DTCC).
Diana Chan, CEO, EuroCCP and CEO designate of the new company, said: “The signing of the sale and purchase agreement … demonstrates market participants’ desire and support for initiatives that are pro-competition and strengthen the market’s infrastructure and risk mitigation while driving down costs for users. We are focused on making the migration of our customers’ business as straightforward as possible.”
Jan Booij, CEO of EMCF and COO designate of the new company, said: “We welcome this further development and look forward to delivering the sustainable best practices of both companies from a single cost base.”
The transaction is expected to complete once the necessary regulatory and competition authority approvals are received.
New CCP From EMCF and EuroCCP Under Way
EMCF and EuroCCP have signed the sale and purchase agreement to combine and form a new pan-European cash equities clearing house, following the announcement of this plan in March.
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