The Office of Fair Trading (OFT), the U.K.’s consumer and competition authority, has recommended an unconditional clearance for the merger of clearing houses EMCF and EuroCCP.
The clearance follows the March announcement by the two clearing houses to form a new pan-European cash equities clearing house, to be called EuroCCP. The deal was formally referred voluntarily to the OFT in August 2013.
Diana Chan, CEO, EuroCCP and CEO designate of the new company, says: “We are grateful to the OFT for reaching a swift decision in relation to combining EMCF and EuroCCP and we are pleased that their conclusions support our own assessment that bringing the two companies together is in the best interests of competition in the clearing of European cash equities.”
Jan Booij, CEO of EMCF and COO designate of the new company, says: “We will now focus on completing the transaction and delivering the best practices of both companies to all of our customers as well as providing sustainable competition to the European clearing market.”
Current owners of EMCF – ABN AMRO Clearing Bank and NASDAQ OMX – and current owner of EuroCCP – The Depository Trust & Clearing Corporation (DTCC) – along with BATS Chi-X Europe, will be equal shareholders in the new combined clearing house.
Dutch regulators have to approve the two new shareholders in the Dutch vehicle, BATS Chi-X Europe and DTCC. They are expected to reach a decision before the end of the year.
U.K. Competition Watchdog Green-lights EMCF-EuroCCP Merger
The OFT clearance follows the March announcement by the two clearing houses to form a new pan-European cash equities clearing house, to be called EuroCCP. The deal was formally referred voluntarily to the U.K. regulator in August 2013.
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