Euronext to Become EuroCCP Shareholder After Acquiring 20% Stake

Euronext, the operator of four European stock exchanges, continues its expansion into the Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term services space after announcing today that it has signed a definitive agreement to acquire a 20% stake in EuroCCP.

Earlier in May, Finance Magnates reported that the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term group, which operates stock markets in Belgium, France, Netherlands and Portugal, has entered into exclusive talks to acquire a sizable stake in the cash equities clearer for a sum of $15.9 million (€14.0 million).

Take the lead from today’s leaders. FM London Summit, 14-15 November, 2016. Register here!

Current owners of EuroCCP, a leading CCP for pan-European equity markets, include ABN Amro Clearing, Bats Europe, DTCC and Nasdaq. Each will own a fifth of the business when Euronext joins.

Pending the regulatory approval, the deal, which is expected to close towards the end of year, will enable Euronext to introduce EuroCCP as a choice in clearing for its equity markets. This entails a preferred CCP model where a trading participant can designate EuroCCP as its preferred Central Counterparty (CCP). In practice, if two trading members agree to clear their trade through EuroCCP, the trade will be directed to it.

Furthermore, to allow clients greater operational efficiency, this model will be followed by a fully interoperable service and will be open to other CCPs in due course.