Post Trade

Clearing & Settlement

All Euronext securities transactions begin with a trade through a European exchange on either the electronic order book, a multilateral trading facility (MTF), or in the OTC (over-the-counter) markets.

Clearing is performed by a central counterparty (CCP) that guarantees both sides of the trade, thereby mitigating counterparty risk. The CCP acts as a buyer to every seller and a seller to every buyer in a transaction, stepping in to complete a trade if one party defaults – a process called novation.

The CCP nets all the gross trades in a given security to generate a single net settlement instruction. Settlement, the final link in the change-of-ownership process, occurs at a central securities depository (CSD) through the DVP (Delivery-versus-Payment) process.

Euronext currently has relationships with two CCPs providing clearing services for its markets: LCH S.A., for Cash Markets, Warrants & Certificates, Derivatives and Commodities Markets, and EuroCCP N.V. (in progress) for Cash Markets (Equities, ETFs and Rights). For more information, see our Clearing page

Settlement is provided by the world’s leading cross-border settlement services provider, Euroclear, and for Euronext Lisbon by Interbolsa, the Portuguese national Central Securities Depository owned by Euronext. These arrangements ensure that trades are processed efficiently and cost-effectively. For more information, see our Settlement page

 

 

Clearing & Settlement partners

Euroclear

Interbolsa

The EuroCCP