EuroCCP-Turquoise Alliance To Reduce Spanish Trading Costs
Turquoise and EuroCCP, the pan-European cash equities clearing house, are offering a service to take advantage of recent reforms to the clearing and settlement of trades in Spanish equities, which are likely to lead to the reduction of costs for investors.
The reforms, known as Title V, facilitate the trading of Spanish equities on multilateral trading facilities (MTFs), by modifying the regulations governing Iberclear, the Spanish central securities depository, and simplifying settlement and registration processes relating to the sale and purchase of Spanish equities.
In the future, transactions that are subject to Title V may be settled bilaterally, without the participation of the stock exchange. Title V also removes the requirement for clearing houses such as EuroCCP to cross positions on the local exchange with a local broker.
By utilizing the new securities settlement and registration procedures authorized by Title V, the new service offered by EuroCCP and Turquoise will significantly reduce the operational costs of trading Spanish equities on Turquoise.
From 3 May 2011, the EuroCCP settlement fee for Spanish securities will be reduced from the current €2.42 to €1.00 and the EuroCCP clearing fee will be reduced from €0.07 per side to €0.03 per side, up to 100,000 sides on a participant's average daily volume.
Diana Chan, CEO of EuroCCP, says that while Spain is home to some of the most liquid stocks in Europe, to date Spain's post-trade infrastructure rules has prevented the evolution of the type of competitive markets that have helped drive transaction volumes in other parts of Europe.
Chan expects the Title V reforms, coupled with other initiatives currently under discussion, to help address this anomaly, resulting in more competition and increased liquidity for Spanish stocks.
In conjunction with these changes, from 3 May, Turquoise will offer a three-month pricing promotion for trading Spanish stocks on its Integrated Order Book or until daily consideration reaches €100mln. During this period the "take" fee will be reduced to zero, while the "maker" rebate will be unchanged at 0.2 basis points.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
The IMD Wrap: Talk about ‘live’ data, NAFIS 2024 is here
This year’s North American Financial Information Summit takes place this week, with an expanded agenda. Max highlights some of the must-attend sessions and new topics. But first, a history lesson...
MarketAxess builds strategy around X-Pro
MarketAxess profits were down in Q1, but revenues were up and automation volume hit a record $94 billion.
Canada’s triparty repo launch aims to fill C$60bn void
Test trades on TMX/Clearstream platform represent “quantum leap” for creaking funding markets.
People Moves: NorQuant, Tradition, Duco, HKEx, SimCorp, Hazeltree, Xceptor, Broadridge, and more
A look at the past month’s people moves in the capital markets technology and data space.
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
This Week: BBH, AllianceBernstein add data solutions, Deutsche Börse-Nodal Exchange, and more
A summary of some of the latest financial technology news.
Consortium backs BGC’s effort to challenge CME
Banks and market makers—including BofA, Citi, Goldman, Jump and Tower—will have a 26% stake in FMX.
Symphony boosts Cloud9 voice offerings with AI
The messaging and collaboration platform builds on Cloud9’s capabilities as it embraces the AI wave in what CEO Brad Levy calls “incremental” steps.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
- BMO’s cloud migration strategy eases AI adoption