EuroCCP Enters Spain
February 2, 2009
Depository Trust & Clearing Corp. (DTCC) subsidiary EuroCCP will begin clearing about 100 Spanish stocks later this month in conjunction with the expansion of the Turquoise multilateral trading facility (MTF) into the country.
The move "marks the beginning of the next stage" of the clearer's growth, according to chief executive Diana Chan. Launched in September, EuroCCP, which clears about 1,500 issues in 14 European countries, is considering processing securities in additional markets this year, said Chan. In addition to Turquoise, EuroCCP will clear for SmartPool--a dark pool backed by NYSE Euronext, HSBC, BNP Paribas and JP Morgan Chase & Co.--and the NYSE Arca Europe MTF when they roll out later this quarter.
Citing its risk management capabilities, Chan added that "the more widely we can provide high-quality, low-cost clearing and settlement operations for a broader number of customers and instruments in Europe, the more likely it is to assist in restoring confidence to the markets." DTCC is in the process of finalizing an agreement to merge with LCH.Clearnet, which within three years would be consolidated with EuroCCP to form a single European clearing business.
As of Jan. 22, Turquoise competitor Chi-X Europe is offering all component stocks of the Spanish IBEX 35 Index. Fortis' European Multilateral Clearing Facility clears for Chi-X, along with Nasdaq OMX Europe and BATS Europe.
