Central counterparties (CCPs) are essential in the safety, efficiency and resiliency of the financial markets, providing risk management (risk calculation, margining, default funds, collateral management), clearing and settlement services.
Euronext currently has relationships with two CCPs providing clearing services for its markets
Clearing of transactions made on Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Euronext Paris
Euronext cash and derivatives trades on Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Euronext Paris are cleared by LCH S.A., while settlement services are provided by Euroclear and Interbolsa (for Euronext Lisbon). This covers trading activity on the Euronext, Euronext Growth and Euronext Access markets.
LCH S.A.’s risk management framework provides markets with effective and efficient risk management and clearing/settlement solutions with exceptional levels of protection. LCH maintains the highest standards in terms of risk management, margin methodology and collateral management (acceptable collateral and netting optimisation).
Clearing of transactions made on Euronext Dublin
EuroCCP offers clearing, settlement and risk management services for trades executed on Euronext Dublin.
EuroCCP is the sole CCP for Euronext Dublin and clears shares, equity certificates and exchange traded funds traded on Euronext Dublin, Euronext Growth, and the Atlantic Securities Market.
EuroCCP maximises the operational and commercial benefits for trading and clearing participants, as all trades cleared by EuroCCP are fully netted into one net settlement per ISIN per day.
Sole CCP clearing model
Cross platform netting delivers substantial settlement savings
Direct Participant in CREST / Euroclear UK and Ireland
Multi-currency support (EUR, GBP, USD)
Stamp duty Provision
Trades incorporated in existing reporting
Existing margin methodology applies, which may reduce margin requirements significantly
Interoperability for Euronext Cash Equities, ETFs and Rights
Euronext has partnered with EuroCCP for cash clearing following careful analysis of client needs and changes in the current economic environment. This partnership will increase the options available to customers and forms part of Euronext’s aim to build a broad-based offering across its markets. Euronext owns a 20% stake in EuroCCP. For more information, see the Q&A on the EuroCCP website.
Euronext Block and Euronext London
EuroCCP provides a post-trade link to UK clearing and settlement infrastructure for trades on our dark pool, Euronext Block, and ETF trades via our UK-based listing and trading venue, Euronext London.
Euronext Block and Euronext London trades are cleared through the London Branch of EuroCCP.
EuroCCP has an established, proven track record in Europe and offers highly efficient, pan-European, low-cost clearing and settlement solutions and services for Cash Equities.