With the new service, participants can elect a preferred CCP for clearing of all trades in a specific market segment on BATS Europe.
The preferred CCP may be one of LCH.Clearnet, x-clear or EuroCCP, pending regulatory approval and implementation of interoperability arrangements between these three CCPs.
Under the new preferred clearing service, if participants on both sides of a trade have selected a preferred CCP, then the executed trade will be cleared by the designated CCP(s), according to BATS Europe.
BATS Europe CEO Mark Hemsley said they have been very supportive of the CCP interoperability initiative because its development is consistent with BATS Europe’s intentions of improving market structure in Europe through customer choice and competition.
"With preferred interoperable clearing, we are a step closer to a competitive European clearing environment that encourages efficiency and innovation," Hemsley said.
