NASDAQ GETS SUPPORT FROM SIX X-CLEAR, EUROCCP AS STAGE IS SET
FOR PRICE WARS IN EUROPEAN CLEARING
Posted May 11, 2009
“Through these agreements, we are acting on our outlined strategy to
increase market liquidity by building an open, competitive CCP model in
the Nordics,” says Hans-Ole Jochumsen, President of Nasdaq OMX Nordic.
“The ability to choose a CCP will allow price and service advantages to
our customers, and ultimately drive trading velocity on our Nordic
markets.”
In January, Nasdaq OMX announced its intention to seek additional CCP
partners that fulfill the Nordic markets' requirements. As a result of
the pending agreements with SIX x-clear and EuroCCP, trading
participants will be able to select CCP clearing from their choice of
service providers. This multiple CCP model will contribute to the
long-term competitiveness of Nasdaq OMX Nordic Markets.
“We are pleased to enter this agreement with Nasdaq OMX as it continues
our philosophy of interoperability and competition,” says Marco Strimer,
Chief Executive Officer, SIX x-clear. “This, we believe, provides
participants with greater choice and creates a more efficient and cost
effective post trade infrastructure bringing benefits to all.”
On October 9, Nasdaq OMX will introduce mandatory CCP clearing on its
Nordic markets through its first CCP service provider, the European
Multilateral Clearing Facility (EMCF). The additional availability of
CCP services from SIX x-clear and EuroCCP on NASDAQ OMX Nordic markets
is conditional on approval by the
“Nasdaq OMX’s decision to pursue a multiple CCP model for its Nordic
markets marks an important step forward in the development of
interoperability and competition between CCPs, something that EuroCCP
strongly supports,” says Diana Chan, Chief Executive Officer of EuroCCP.
“Market participants will be able to use the CCP of their choice.
Everyone at EuroCCP is eager to launch operations in this market.”
In another major step forward for the concept of interoperability,
EuroCCP and SIX x-clear Ltd. have signed a Memorandum of Understanding
to interoperate with each other to offer any of the exchanges or
platforms they work with competitive clearing services under an
accelerated multi-CCP model if the exchange or platform so wishes. The
first platform to offer this model to its participants will be
Turquoise, an alternative trading facility for equities.
In another development, on May 7 Turquoise entered into an agreement with LCH.Clearnet to clear trades transacted on the MTF, adding fuel to the start of a potential price war in European clearing services.