Euronext in Exclusive Talks to Acquire 20 % of EuroCCP and to Offer User Choice Clearing Model for Equity Markets

12/05/2016 - 17:45PM CEST

MOU signed to finalise the acquisition of a 20% stake in EuroCCP for €14M (including contribution to regulatory capital) subject to closing adjustments
Euronext to create user choice for clearing of Euronext equity markets, through a preferred CCP model followed by interoperability
This will enable reduced frictional post-trade costs and improved operational efficiencies, creating significant benefits for clients

Regulatory News:

Euronext (Paris:ENX) (Amsterdam:ENX) (Brussels:ENX) today announced that it is in exclusive talks to acquire a 20% equity stake in EuroCCP for €14M (including contribution to regulatory capital) subject to closing adjustments and regulatory approval. In addition, Euronext will offer choice in clearing within the Eurozone through the implementation of a preferred Central Counterparty (CCP) model for its equity markets. EuroCCP is the leading CCP for pan-European equity markets providing clearing and settlement services and this new partnership will allow clients to benefit from significant operational and cost efficiencies.

Following completion of this transaction five shareholders will each own 20% stake in EuroCCP : Euronext, ABN Amro Clearing Bank, Bats Europe, The Depository Trust & Clearing Corporation (DTCC) and Nasdaq. Euronext is taking a major step forward to the benefit of its clients through enabling user choice, by delivering optionality in clearing and enhancing the service for equities trading in the Eurozone.

Euronext will launch a Preferred Clearing service, providing trading participants with the choice of CCP. Under this service, if participants on both sides of a trade select EuroCCP as their CCP then the executed trade will be cleared by EuroCCP, their designated CCP. This will allow clients greater operational efficiency, the potential for increased netting opportunities and the ability to reduce frictional post-trade costs in relation to Euronext equity markets. This model will be followed by a fully interoperable service and will be open to other CCPs in due course.

“Our investment in EuroCCP and the implementation of a preferred CCP model will ensure the long-term delivery of clearing choice for our diverse range of equity clients. It further reduces the frictional costs of trading on our equity markets. This is a step forward in our commitment to offer optionality to all our clients in the Eurozone and to power pan-European capital markets to finance the real economy,” said Stéphane Boujnah, Chairman and CEO of the Managing Board of Euronext NV.

“Sustaining competition in clearing has long been our goal at EuroCCP and we are delighted that Euronext joins us in this vision as a strategic investor and service partner. We look forward to working closely with them on the roll-out of their preferred clearing model,” said Jan Bart de Boer, Chairman of the Supervisory Board of EuroCCP and Chief Commercial Officer, ABN AMRO Clearing.

About Euronext

Euronext is the primary exchange in the Euro zone with more than 1 300 listed issuers worth more than €3.0 trillion in market capitalization as of end December 2015, an unmatched blue chip franchise consisting of 25 issuers in the EURO STOXX 50® benchmark and a strong diverse domestic and international client base.

Euronext operates regulated and transparent equity and derivatives markets. Its total product offering includes Equities, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. Euronext operates regulated markets, Alternext and the Free Market; in addition it offers EnterNext, which facilitates SMEs’ access to capital markets.

About EuroCCP

EuroCCP clears equities traded on stock exchanges, multilateral trading facilities and other trade sources. After a trade has been executed, EuroCCP centrally manages counterparty risk for trading firms and reduces their post-trade costs through netting. EuroCCP clears for 17 trading platforms; it clears equities, ETFs and depositary receipts listed in 19 national markets including the United States. Headquartered in Amsterdam, EuroCCP was formed in December 2013 following the combination of Dutch-based European Multilateral Clearing Facility N.V. and UK-based European Central Counterparty Limited. The company is equally owned by the stock exchanges Bats Europe and Nasdaq, by ABN AMRO Clearing Bank and by The Depository Trust & Clearing Corporation (DTCC).

Disclaimer

This press release is for information purposes only and is not a recommendation to engage in investment activities. This press release is provided “as is” without representation or warranty of any kind. While all reasonable care has been taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication may be regarded as creating any right or obligation. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. All proprietary rights and interest in or connected with this publication shall vest in Euronext.

This press release speaks only as of this date. Euronext refers to Euronext N.V. and its affiliates. Information regarding trademarks and intellectual property rights of Euronext is located at www.euronext.com/terms-use.

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Media - Euronext
Pauline Bucaille, +33 1 70 48 24 41
pbucaille@euronext.com
or
Media - EuroCCP
Jeff Watt, +44 20 7324 5482
jeff.watt@greentarget.co.uk
or
Analysts & investors
Stephanie Bia, +33 1 70 48 24 17
sbia@euronext.com