Turquoise and EuroCCP Extend Clearing Service to Hungarian and Czech Securities

EuroCCP and Turquoise have expanded their respective clearing and trading services into two additional markets, Hungary and the Czech Republic.

The move makes Turquoise the first multilateral trading facility (MTF) to offer trading and EuroCCP the first pan-European CCP to offer clearing services in the 25 components of the main Hungarian and Czech indices— the BUX and PX indices, respectively.

EuroCCP’s clearing services for Hungary and Czech Republic securities are open to any trading venue to which it is linked that offers trading in these securities.

David Lester, CEO of Turquoise, pointed out that Turquoise has become the first pan-European trading platform to launch trading in Hungarian and Czech equities, further extending the choice for clients. “Through these clearing arrangements, clients will benefit from the same differentiated value and risk-managed clearing and settlement solution offered currently for our existing European markets,” stated Lester in the release.

Turquoise will offer trading in the Hungarian and Czech securities cleared through EuroCPP, the European subsidiary of Depository Trust & Clearing Corporation, as of Feb. 26th. The service extends Turquoise’s pan-European equities, ETF (exchange traded funds) and ETC (exchange traded commodity) coverage.

This services extension follows a series of enhancements EuroCCP is bringing to Europe’s clearing space, notes the joint release. Earlier this year, EuroCCP launched clearing services for listed currency ETCs. EuroCCP’s expansion delivers the efficiency and risk mitigation benefits of central counterparty clearing to a widening array of investors’ transactions, said the release.

With the addition of Czech and Hungarian securities, EuorCCP’s market coverage grows to encompass securities issued in 17 national markets and traded in nine different currencies.

EuroCCP has further extended its relationship with Citi’s Global Transaction Services by appointing Citi as EuroCCP’s settlement agent for these securities.

In a statement, Andrew Simpson, head of EuroCCP product management in London, said: “EuroCCP is continually diversifying the markets and instruments we cover, in response to investor demand. With the addition of Czech and Hungarian equity issues we’re offering European market players the opportunity to invest in a larger variety of securities in a safe environment, where counterparty risk protection is available on all trades.”

The securities eligible for clearing through EuroCCP include 12 Hungarian ISINs and 13 Czech ISINs.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio