Six Securities Services' Tomas Kindler looks at the phasinng in of interoperability in Europe and expects future consolidation amongst CCPs.
The gradual phasing in of interoperability has been the
biggest development in recent years to the clearing layer in
Europe. Under interoperability, market participants choose
their CCP of choice from a number of alternatives. This
introduction of competition to European clearing is designed to
create market efficiency, in order to bring down costs and
improve the quality of service.
Fifty percent of exchange-traded cash equities clearing in
Europe now takes place under interoperable clearing
arrangements. The competitive clearing houses in Europe are SIX
x-clear, the clearing arm of SIX Securities Services,
LCH.Clearnet, EuroCCP and EMCF. Of the major exchanges, the
London Stock Exchange and SIX Swiss Exchange offer a choice of
clearers to their members. Of the multi-lateral trading venues
(MTFs), BATS Chi-X Europe and Turquoise are leading the
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