Banks Give EuroCCP Preferred Status for MTFs

London-based EuroCCP, the central counterparty and the European clearing subsidiary of the DTCC, has announced that it has become interoperable on BATS Europe and UBS MTF, with a number of global banks selecting it as their preferred central clearing counterparty (CCP).

Bank Of America Merrill Lynch, Credit Suisse, Morgan Stanley and Nomura have all selected EuroCCP as their preferred CCP on the BATS Europe Preferred Interoperable Clearing Service. This service provides the ability for both sides of a trade to be cleared by their respective preferred CCP. Citigroup has done the same through its Global Transactions Services third-party clearing business on UBS MTF.

This selection follows a string of announcements by EuroCCP, including a new fee structure revealed at the beginning of August, where clearing fees are capped for transaction volumes over 230,000 sides per day. At the end of July, the Financial Services Authority (FSA) in the UK gave its authorization for EuroCCP to clear under interoperable arrangements for BATS Europe and UBS MTF.