Owners of the clearing houses EMCF and EuroCCP have signed a sale and purchase agreement, formalizing an intention to combine the two businesses that was announced earlier in the year.
The new entity, EuroCCP NV, will be helmed by EuroCCP's CEO Diana Chan, with EMCF chief Jan Booij serving as COO. ABN Amro Clearing Bank, Nasdaq OMX, the Depository Trust and Clearing Corporation (DTCC) and BATS Chi-X are signatories to the deal, which creates a pan-European cash equities clearing firm.
Subject to regulatory approval, EuroCCP NV will utilize EuroCCP's risk-management framework and customer service apparatus, and the technology and operations backbone of EMCF.
"The signing of the sale and purchase agreement is a significant step towards launching the new CCP and demonstrates market participants' desire and support for initiatives that are pro-competition and strengthen the market's infrastructure and risk mitigation while driving down costs for users," says Chan. "We are focused on making the migration of our customers' business as straightforward as possible and are working closely with them to ensure they can fully benefit from what the new business will deliver to them."
Terms of the deal were not disclosed. The new company will be headquartered in Amsterdam, with operational units in London and Stockholm.
James and Anthony talk about the looming Sibos event in Toronto and take a look at some recent M&A activity and blockchain developments in the capital markets.Subscribe to Weekly Wrap emails