EMCF, SIX X-CLEAR PLAN FOR INTEROPERABILITY

Posted February 3, 2009

LONDON – Dutch central counterparty EMCF and SIX x-clear, the central counterparty (CCP) and licensed Swiss bank, have committed to offer the exchanges and platforms that they work with competitive-clearing services under a dual CCP model.

“This move marks an important step towards offering customers choice in their clearing arrangements,” says Marco Strimer, CEO of SIX x-clear AG. “As a fierce proponent of interoperability and the benefits it brings to the industry and clients alike, the prospect of developing the relationship with EMCF to bring about significant change across a number of markets is particularly exciting. This is a major breakthrough and we look forward to taking our proposition to exchanges and platforms across Europe. We welcome the foresight in pursuing competitive clearing and see this as evidence of wider industry support for full pan-European interoperability.”

The move will provide a competitive clearing environment for the equity trade flows in those exchanges or platforms that wish to adopt the dual CCP model, allowing customers around Europe to select the CCP of their choice. Both CCPs will provide customers with benefits in netting, collateral management, margining and settlement in all stocks that are actively traded.

Subject to regulatory approval, SIX x-clear and EMCF expect to implement the interoperable link this summer to benefit all participants and platforms currently connected to either CCP.

“Interoperability works in the best interests of our clients and provides the choice and efficiencies that are vital to the highly competitive European trading landscape,” says Jan Booij, CEO of EMCF. “Signing the agreement with SIX x-clear represents a tangible commitment to the future of interoperability in Europe and we look forward to continuing to drive innovation in the market. Competitive clearing has long been a goal for EMCF, its participants and the platforms, Chi-X, BATS and Nasdaq OMX Europe. Interoperability with SIX x-clear will constitute a vital step in achieving this goal.”