Euronext has successfully completed the first phase of its cash markets migration to Euronext's multi-asset clearing house Euronext Clearing as default CCP (Central Counterparty), with Euronext Clearing for Brussels markets going live on Monday 6 November 2023.
Brussels markets lead the way for Amsterdam, Dublin, Lisbon and Paris
The Brussels cash markets now join the Italian cash and derivatives markets in having Euronext Clearing, formerly CC&G, handle their clearing activity.
Euronext Amsterdam, Dublin, Lisbon and Paris markets will follow two weeks later on Monday 27 November 2023. Customers across the Euronext cash markets (with the exception of Oslo, whose cash markets have separate clearing arrangements) will then have access to a harmonised clearing framework across the Euronext venues, with one single platform from which they can access information on collateral, risk, and clearing, while still enjoying localised support as part of Euronext’s proven federal model. They will benefit from improved netting efficiencies and cutting-edge technology, and many other benefits through the simplification of the post-trade value chain.
Realising Euronext’s Growth for Impact 2024 plan
The move to Euronext Clearing is part of the Euronext strategic plan "Growth for Impact 2024." By enabling Euronext to directly manage this core service for clients, Euronext Clearing will create substantial value through a unified clearing framework across Euronext venues.
A best-in-class VaR risk framework
This significant moment in offering clearing via Euronext Clearing for Euronext Brussels comes just two weeks after a new Value at Risk (VaR) risk model was introduced on Italian markets, replacing the previous SPAN-like model (MARS). The VaR model aligns with the industry's best practices and represents a significant advancement in risk management principles. This new risk framework is already built in for the Euronext markets joining Euronext Clearing, and has been offered since 2022 for Italian, Portuguese, Spanish, and Irish government bonds on MTS and BrokerTec cash and repo platforms. The introduction of the VaR framework reinforces Euronext Clearing's commitment to its clients' efficiency and safety, offering increasingly efficient and resilient solutions for risk capture and allocation.
Looking ahead to 2024
To complete this major migration, Euronext listed derivatives and commodities markets will also move to Euronext Clearing as their preferred CCP, targeted for Q3 2024. Euronext Clearing teams in Italy, France and the UK are continuing to work closely with customers to ensure that the final phase in the Euronext Clearing expansion runs as seamlessly as possible, bringing Euronext Clearing to all Euronext’s derivatives markets.