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EuroCCP Launches Clearing Service for US Equity Issues

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LONDON--(EON: Enhanced Online News)--EuroCCP announced today that has launched a new service offering central counterpary clearing of trades in US stocks and US exchange-traded funds (ETFs) to European trading firms. EuroCCP is the first European equities central counterparty (CCP) clearing US securities and settling them directly in the central securities depository in their home market of issue, The Depository Trust Company (DTC). EuroCCP’s new service gives European trading firms their first- a style='font-size:

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									EuroCCP Launches Clearing Service for US
Equity Issues
-First European equities clearing service that supports trading of US securities during European trading
hours with settlement in DTC

April 14, 2010 06:45 AM Eastern Daylight Time  

LONDON--(EON: Enhanced Online News)--EuroCCP announced today that has launched a new service offering
central counterpary clearing of trades in US stocks and US exchange-traded funds (ETFs) to European trading
firms. EuroCCP is the first European equities central counterparty (CCP) clearing US securities and settling them
directly in the central securities depository in their home market of issue, The Depository Trust Company (DTC).

EuroCCP’s new service gives European trading firms their first-ever opportunity to trade US securities on a variety
of pan-European platforms during European trading hours and to settle those trades in DTC.. By offering a service
where US securities settle directly at the US CSD, EuroCCP provides European trading firms with a more cost-
effective post-trade solution.

Its clearing service for US issues allows EuroCCP to extend the efficiency, cost-saving and counterparty risk
protection benefits it already provides to clients’ European-listed securities transactions to US stock and US ETF
transactions. Initially, the US securities eligible for clearing through EuroCCP include approximately 100 stock issues
and 50 ETFs. EuroCCP expects over time to expand the scope of eligible instruments to further equities, ETFs, and
to ADRs.

EuroCCP’s clearing service for eligible US issues is open to any trading venue cleared by EuroCCP that offers
trading in the securities. Trading will be against US dollars.

“With our new service, we expect to encourage the development of liquidity in US equities in Europe. European
trading firms will have a centralised clearing solution to facilitate their trading of US securities on multiple European
trading venues,” said Andrew Simpson, EuroCCP’s head of Product Management in London. “We are leading the
way by providing European investors with the most comprehensive array of central counterparty services on a single
post-trade platform — and at the same time offer a lower-cost settlement alternative than previously available to
firms trading in Europe. We’re focused on delivering services that reflect the demands of firms, making it easier to
build trading strategies across multiple asset classes—US and European equities issues, GDRs and Exchange-
Traded Funds — and driving down the cost of post-trade.” 

The new service increases the number of markets cleared by EuroCCP to 19, more than any other European
equities CCP. This service extension marks the latest in an ongoing series of enhancements EuroCCP is bringing to
Europe’s clearing space, and demonstrates EuroCCP’s commitment to support the European trading community
with a cost-effective, creative clearing solution that best addresses firms’ trading needs and business aspirations.

To view the initial list of US securities eligible for clearing through EuroCCP, please go to www.euroccp.co.uk.

About EuroCCP

European Central Counterparty Limited (EuroCCP) is a UK-incorporated, FSA-regulated Recognised Clearing
House that is governed by its European users. It is the European subsidiary of The Depository Trust & Clearing
Corporation (DTCC) and is headquartered in London. EuroCCP is a pan-European clearing solution offering the
scale economies and risk management expertise of the US market to European market participants. It currently
clears equity trades in 18 markets. EuroCCP has been appointed to provide central counterparty services by
Turquoise, SmartPool, NYSE Arca Europe and Pipeline for equity trades. EuroCCP has also entered into a
Memorandum of Understanding with NASDAQ OMX to provide clearing services for its exchanges in
Copenhagen, Helsinki and Stockholm. Market participants can trade equities on any venue EuroCCP supports and
have their transactions netted for settlement and/or margin purposes for the same security traded on the same day,
thereby reducing costs and operational risks. For more information on EuroCCP, visit www.euroccp.co.uk.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and
information services for equities, corporate and municipal bonds, government and mortgage-backed securities,
money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual
funds and insurance transactions, linking funds and carriers with financial firms and third parties that market these
products. DTCC’s depository provides custody and asset servicing for more than 3.5 million securities issues from
the United States and 121 other countries and territories, valued at US$33.9 trillion. In 2009, DTCC settled more
than US$1.47 quadrillion in securities transactions. DTCC has operating facilities and data centres in multiple
locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.

Contacts
For EuroCCP
Judith Inosanto, +1 212 855 5424
jinosanto@dtcc.com
or
Citigate
Lucie Holloway, +44 (0)20 7638 9571
lucie.holloway@citigatedr.co.uk

Permalink: http://eon.businesswire.com/news/eon/20100414005739/en

								
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