Euroclear Bank selected for settlement of US stocks by EuroCCP
London and Brussels, 24 February 2014 – EuroCCP, the pan-European central counterparty (CCP) which clears over 4,000 securities, has chosen Euroclear Bank, the Brussels-based international central securities depository (ICSD), as sole settlement provider for all US-listed equities transactions struck on Turquoise, the pan-European trading venue.
Under the service which was launched today, transactions in US stocks listed and traded on Turquoise will be settled on behalf of clients at Euroclear Bank in any of the 54 settlement currencies offered by the ICSD.
Clients of Turquoise and EuroCCP need make no adjustments – contractual or operational – to be able to benefit from Euroclear Bank’s robust securities settlement and asset servicing expertise. Turquoise is the only MTF in Europe to offer a full range of US equities.
Robert Barnes, Chief Executive Officer of Turquoise, said: “Turquoise already offers its customers access to 18 European markets through a single connection. Today’s announcement increases the geographic diversification of the markets we offer to our customers and makes the process of trading US names – as well as in a European time zone – easier than ever.”
Diana Chan, Chief Executive Officer of EuroCCP, said: “We have a very good working relationship with Euroclear Bank and it is a natural evolution of this to now partner with them to settle all of Turquoise’s US-listed equities transactions.”
Yves Poullet, Chief Executive Officer of Euroclear Bank, stated: “The proliferation of multi-lateral trading facilities post MiFID II, such as Turquoise, has led to a whole-scale redrawing of how investors access and trade stocks. Ultimately, those venues that attract the largest pools of equity liquidity can expect to flourish in the future. I am delighted to extend the current working relationship that we have for Depository Receipts with Turquoise and EuroCCP to US equities. Our 1,300 clients can now benefit from full trade, clearing and settlement automation in blue-chip firms like Apple, Berkshire Hathaway, Exxon Mobil and Ford, to name but a few.”
Note to editors
Euroclear Bank provides settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds. Serving major financial institutions located in more than 90 countries, Euroclear Bank, based in Brussels, is part of the Euroclear group. Euroclear Bank is rated AA+ by Fitch Ratings and AA by Standard & Poor’s.
Euroclear is the world’s largest provider of domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions. The Euroclear group includes Euroclear Bank, based in Brussels, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 572 trillion in securities transactions in 2013, representing 170 million domestic and cross-border transactions, and held almost EUR 24.2 trillion in assets for clients.
European Central Counterparty N.V. (EuroCCP) clears equities traded on stock exchanges, multilateral trading facilities and other securities trading platforms. After a trade has been executed, EuroCCP centrally manages counterparty risk for trading firms and reduces their post-trade costs through netting. It clears securities from 18 European markets and from the United States, depositary receipts as well as ETFs and Currency ETCs. Headquartered in Amsterdam, EuroCCP was formed in 2013 following the combination of EuroCCP Limited and EMCF N.V. It is now the central counterparty for the largest number of equities trading platforms in Europe.
ABN AMRO Clearing Bank, NASDAQ OMX, The Depository Trust & Clearing Corporation and BATS Chi-X Europe are equal shareholders. EuroCCP is regulated by De Nederlandsche Bank (DNB, the Dutch central bank) and by Autoriteit Financiële Markten (AFM, the Dutch financial markets regulator).