Post Trade

Clearing and Settlement solutions to reduce costs and market risk

Clearing

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). The CCP 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.

  • EuroCCP N.V.

Clearing

Settlement

Settlement for trades on Euronext is provided by

  • Euroclear - A cross-border settlement services provider 

  • EuroCCP - A pan-European CCP and settlement services provider

  • Interbolsa - The Portuguese national Central Securities Depository owned by Euronext

These arrangements ensure that trades are processed efficiently and cost-effectively.

Settlement

Post-trade arrangements

 

Euronext Amsterdam, Euronext Brussels and Euronext Paris Cash and Derivatives Markets

Euronext Lisbon Cash and Derivatives Markets

Euronext Dublin Cash Markets

Clearing

LCH SA

EuroCCP (interoperability for all Cash Equities, Rights and ETFs is in progress)

LCH SA

EuroCCP (interoperability for all Cash Equities, Rights and ETFs is in progress)

EuroCCP (interoperability for all Cash Equities, Rights and ETFs is in progress)
Settlement Euroclear Interbolsa CREST (Euroclear UK & Ireland)