EMCF and EuroCCP, the two pan-European cash equities clearing houses, have agreed to consolidate their operations to establish a new clearing house, which will provide efficiencies and sustainable competition to the pan-European market place.
Current owners of EMCF, ABN AMRO Clearing Bank and NASDAQ OMX, and EuroCCP’s Depository Trust & Clearing Corporation (DTCC) and BATS Chi-X Europe will be equal shareholders in the new entity.
Integration of both firms will enable them to offer risk management, technology, settlement and client service, subsequently improving cost savings and increased collateral efficiencies for market participants.
Headquartered in Amsterdam, the new company will incorporate the risk management framework and customer-service organisation of EuroCCP and will run on the technology and operations infrastructure of EMCF.
The proposed startup will conduct client-facing functions from London, while Nordic coverage will be offered from Stockholm.
It is expected that EuroCCP chief executive officer (CEO) Diana Chan will be named as CEO of the new company, while EMCF CEO Jan Booij will assume the position of COO, pending regulatory approval.
Founded in March 2007, EMCF offers competitive central counterparty clearing services for the rapidly growing Multilateral Trading Facility (MTF) market and selected stock exchanges. EuroCCP is a UK-incorporated, FSA-regulated recognised clearing house.