Cboe Clear Europe is the leading pan-European CCP in Europe and champions Open Access through Preferred Clearing, introducing competitive clearing to regulated markets where full interoperability is not currently available.
Cboe Clear Europe has access to around 95 percent of European equities trading activity executed on recognised exchanges. However, only 68 percent of this trade flow is fully interoperable, with 17 percent adopting a clearing process called "User Choice", or "Preferred Clearing". Under this model, a trade is cleared by the "Preferred CCP" when both sides of the trade have selected the "Preferred CCP" as their clearing provider.
|Preferred Clearing Venues||Primary CCP||Preferred CCP|
|Euronext (AMS, PAR, BRU, LIS)||LCH.SA||Cboe Clear Europe|
|Borsa Italiana||CC&G||Cboe Clear Europe|
|Deutsche Borse||Eurex||Cboe Clear Europe|
How Does Preferred Clearing Work?
For Cboe Clear Europe to clear a trade on one of these venues, the buyer and seller of the trade need to select Cboe Clear Europe as a preferred CCP at the point of onboarding.
The greater number of participants, the greater the chance of a trade being cleared by the "Preferred CCP".
In order to maintain transaction reporting, trade booking and reconcilation, the venues will report back to each trading participant which CCP has cleared the trade.
- Includes all equities & ETFs traded on Euronext Paris, Brussels, Lisbon (Main, Access, Growth) and Amsterdam (Main).
- Clients of Euronext will receive the CCP identifer in the SBE message FILL messages.
- All equities & ETFs traded on Mercato Telematico Azzionare (MTA), Borsa Italiana Equity MTF and ETFPlus market.
- Clients of Borsa Italiana will receive the CCP identifer in the MT202, MT204, MT205, MT203 messages.
- All equities & ETFs on Frankfurter Wertpapierborse (FWB).
- Clients of Deutsche Borse will receive CCP identifier in the ETI Trade Notification or FIX Trade Capture Report messages.
- All trades received from Euronext, Deutsche Borse & Borsa Italiana can be netted with trades received from alternative venues. Therefore no additional settlement costs are introduced.
- Clearing Members are charged the clearing fees of the European tariff, ensuring volume is rewarded through scale.
- The fees charged by Cboe Clear Europe on Preferred Clearing venues are over 75% less than the primary CCP (based on average fees charged across all members).
To find out more about Preferred Clearing, contact Relationship Management.
Phone: +44 20 7131 3430
mail: [email protected]
Please also see our Preferred Clearing FactSheet.