European Central Counterparty (EuroCCP), the European subsidiary of The Depository Trust & Clearing Corporation (DTCC), has announced that it is launching clearing and settlement services for depositary receipts. The new services is expected to go live this Autumn.
According to the company Turquoise, provider of electronic execution services to buyers and sellers of pan-European equities, will become the multilateral trading facility (MTF) to offer trading in depositary receipts cleared through EuroCCP. It has added that initially, the settlement of these instruments will be in Euroclear Bank.
Adrian Farnham, COO at Turquoise, said: “We are pleased to offer members the opportunity to execute their transactions on Turquoise. We look forward to providing the depositary receipt market with the same efficiency and differentiated value that Turquoise brings to European equities, and EuroCCP’s fully risk-managed clearing and settlement arrangements are integral to this.”
Andrew Simpson, head of EuroCCP product management in London, said: “By collaborating closely with our users, EuroCCP has been able to develop a market solution that is significantly better than those currently available, particularly in the area of buyer protection for corporate actions. EuroCCP’s strategy has been to continue expanding service offerings to clients not only by covering additional trading venues but also by diversifying the types of instruments and transactions it clears.”
