Euronext Cleared OTC Trade Facility

The Euronext Cleared OTC Trade Facility offers market participants a streamlined and secure solution for the registration and clearing of over-the-counter (OTC) trades. Designed to bridge the gap between bilateral OTC trading and central clearing, the facility enables clients to benefit from the flexibility of OTC negotiations while accessing the risk management and operational efficiencies of Euronext Clearing. By combining these advantages, the Euronext Cleared OTC Trade Facility delivers a robust and transparent post-trade environment for a wide range of asset classes.

Euronext's Cleared OTC Trade Facility allows a member to confirm a trade executed over-the-counter (OTC) with another Euronext member for clearing purposes. Hosted on our Saturn tool, the Cleared OTC Trade Facility reports OTC trades in eligible equities, ETFs and rights that are passed through to the CCP (Euronext Clearing) to benefit from the central clearing guarantee.

To use the Cleared OTC Trade Facility, members must sign either the Amendment letter to the TCS-Web Services Access Agreement

Flexible bilateral OTC trade registration and central clearing

Participants using the facility can negotiate trades bilaterally, tailoring terms to their specific requirements, before registering the transactions for clearing through Euronext. This approach allows firms to maintain the bespoke nature of OTC trading, yet benefit from the security and efficiency of central counterparty clearing. The facility supports a variety of instruments, including equities, fixed income and derivatives, providing a comprehensive solution for institutional investors and trading firms.

Counterparty risk reduction and regulatory compliance with Euronext Clearing

One of the key advantages of the Euronext Cleared OTC Trade Facility is the reduction of counterparty risk. By novating trades to Euronext Clearing, participants gain the assurance that their exposures are managed by a trusted central counterparty. This not only enhances risk management but also supports regulatory compliance, as cleared trades are subject to robust margining and default management processes. The facility further enables operational efficiencies, such as netting and streamlined settlement, which can help reduce costs and improve capital usage.

Optimise OTC trading workflows with Euronext Cleared OTC Trade Facility

In an increasingly complex trading environment, the Euronext Cleared OTC Trade Facility stands out as a flexible and secure solution for market participants seeking to optimise their OTC trading activity. By combining the best aspects of bilateral negotiation with the safety and efficiency of central clearing, Euronext empowers clients to manage risk, meet regulatory requirements and achieve greater operational efficiency. For institutions looking to enhance their OTC trading workflows, the Euronext Cleared OTC Trade Facility offers a compelling proposition.