SIX x-clear Ltd has received the final sign-off from the Swiss National Bank, FINMA and Londons Financial Services Authority (FSA) to provide comprehensive clearing services.
The regulatory approval, which culminates after two years of discussions between SIX and the regulators, paves the way for pan-European clearing services by the CCP.
SIX x-clear Ltd had been engaged in discussions with the FSA and the Swiss regulators, the Swiss National Bank and FINMA, to establish an updated interoperability agreement to address concerns raised by regulators. The main concerns were around the framework for inter-CCP risk and how it should be managed in order to allow multiple clearing providers to offer their services to the same trading platforms.
This development will allow interoperability to be extended beyond the existing stock exchanges, London Stock Exchange and SIX Swiss Exchange, allowing UK, Swiss and international financial institutions greater choice and potentially lower costs down the line, SIX said in a statement.
I fully appreciate the challenges for all concerned regulators, market participants and providers alike, says Thomas Zeeb, CEO SIX Securities Services. This represents a major step forward in the implementation of one of the core tenets of the Code of Conduct on Clearing & Settlement signed in 2007, and will benefit clients by giving them additional choice in a level and fair European clearing landscape.
Marco Strimer, SIX x-clear Ltd, adds: This is the culmination of tremendous co- operation and hard work on all sides. The UK market stands to benefit, we benefit and, most importantly, our clients will benefit. Everyone wins.
(CG)