Euronext Broadens Derivatives Validation and Confirmation Capabilities

The new service will run on Cinnober's TRADExpress platform and will be connected to LCH.Clearnet, Euronext’s central counterparty clearinghouse.

As OTC derivatives are migrating onto regulated platforms through regulatory initiatives such as the Markets in Financial Instruments Directive review, Euronext intends to capture the flow by providing investors added parameters, such as expiration dates, strike prices, option types and settlement styles which are not available on the central order book.

“Against the backdrop of the Group-of-20 post-crisis reform programme of increased transparency and reduced systemic risk in derivative markets, we will be positioning our service to deliver clients with the capital efficiency and risk management benefits of central clearing," says Lee Hodgkinson, head of markets and global sales at Euronext.

"This initiative will allow us to boost the competitiveness of our existing and recently launched products, and will be the springboard for expansion into new derivative products and asset classes, as it directly provides us with opportunities to develop closer links to a broader section of the trading community.”

Clients will also benefit from clearing trades in the same clearing pool as their existing Euronext positions.