Chi-X Europe has extended its ‘user choice’ clearing model following the memorandum of understanding signed by EMCF and LCH.Clearnet Group to interoperate in the UK and Swiss market seg
Chi-X Europe has extended its ‘user choice’ clearing model following the memorandum of understanding signed by EMCF and LCH.Clearnet Group to interoperate in the UK and Swiss market segments.
In addition to the MOU signed in February between EMCF and SIX x-clear, this will allow Chi-X Europe to offer its participants user choice through three-way central counterparty (CCP) interoperability.
The development will allow clearing participants to choose a single CCP for activity relating to any given market segment for a variety of different trading venues, reducing the need to fund cross margin arrangements across different CCPs. This should lower participants’ overall trading costs and enable them to manage risk more effectively.
Hirander Misra, chief operating officer of Chi-X Europe (pictured), says: ‘We believe that the choice and competition offered through this horizontally integrated CCP model will result in lower prices, better service and further innovation. We applaud the efforts of all three CCPs in cooperating for the benefit of the industry. We urge the London Stock Exchange and the SIX Swiss Exchange to also offer their trade feeds to EMCF so that the additional user benefits of bidirectional interoperability can be achieved.’
Jan Booij, chief executive of EMCF, adds: ‘EMCF has proven that in post-trading, competition, not consolidation, delivers better and cheaper services for market participants. Interoperability is crucial for fair competition.’
Subject to the terms of each MOU, Chi-X Europe anticipates that its participants should be able to clear with SIX x-clear AG and LCH.Clearnet by the end of the third quarter 2009, subject to regulatory approvals.
