BATS Chi-X Europe launched a service that will allow its customers to choose to clear trades at any of four European clearinghouses.
BATS Europe and Chi-X Europe members will be able to choose between the European Multilateral Clearing Facility , EuroCCP, LCH.Clearnet and SIX x-clear to clear trades.
The BATS Europe and Chi-X Europe multilateral trading facilities are the first venues in Europe to offer four-way interoperable clearing.
The first day of live four-way interoperable clearing for trades on BATS Europe and Chi-X Europe was Friday, January 6.
In July, BATS Europe became the first trading platform to offer multilateral interoperable clearing services by providing its participants the choice of a preferred clearer from three interoperating CCPs, including EuroCCP, LCH.Clearnet and SIX x-clear.
Chi-X Europe and EMCF said in August that they would pursue interoperability. EuroCCP, an outgrowth of the Depository Trust & Clearing Corp., has been an advocate of interoperability in clearing as a way of lowering costs and improving efficiency, since its founding in 2008.
“Our launch of interoperable clearing allows European equities traded on BATS Europe and Chi-X Europe to be cleared on a fully interoperable basis, giving our participants more choice and furthering competition amongst central counterparties,” said Mark Hemsley, chief executive officer of BATS Chi-X Europe.
BATS Global Markets acquired Chi-X Europe at the outset of December and is putting it on the same technology platform as BATS Europe. Their order books will stay separate
Participants will be able to take advantage of the efficiencies of netting and cross- margining to manage their risks and costs more effectively.
Tom Steinert-Threlkeld writes for Securities Technology Monitor.