EuroCCP and Turquoise have expanded their respective clearing and trading services into two additional markets, Hungary and the Czech Republic. The move makes Turquoise the first multilateral trading facility (MTF) to offer trading and EuroCCP the first pan-European CCP to offer clearing services in the 25 components of the main Hungarian and Czech indicesthe BUX and PX indices, respectively.
EuroCCPs clearing services for Hungary and Czech Republic securities are open to any trading venue to which it is linked that offers trading in these securities.
Turquoise will offer trading in the Hungarian and Czech securities cleared through EuroCCP from 26 February. The service further extends Turquoises pan-European equities, ETF and ETC coverage.
This service extension marks the latest in an ongoing series of enhancements EuroCCP is bringing to Europes clearing space. Earlier this year, EuroCCP launched clearing services for listed Currency ETCs. EuroCCPs expansion delivers the efficiency and risk mitigation benefits of central counterparty clearing to a widening array of investors transactions.
With the addition of Czech and Hungarian securities, EuroCCPs market coverage grows to encompass securities issued in 17 national markets and traded in nine different currencies.
EuroCCP has further extended its relationship with Citi’s Global Transaction Services, by appointing Citi as EuroCCP’s settlement agent for these securities.
EuroCCP is continually diversifying the markets and instruments we cover, in response to investor demand, says Andrew Simpson, head of EuroCCP Product Management in London. With the addition of Czech and Hungarian equity issues, were offering European market players the opportunity to invest in a larger variety of securities in a safe environment, where counterparty risk protection is available on all trades.
We are delighted to be the first pan-European trading platform to launch trading in Hungarian and Czech equities, further extending the choice of securities for our clients, says David Lester, CEO of Turquoise. Through these clearing arrangements, clients will benefit from the same differentiated value and risk-managed clearing and settlement solution offered currently for our existing European markets.
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