Currency ETCs are liquid securities traded on exchange that track the performance of underlying currency indices. EuroCCP initially will clear 18 Currency ETCs, which provide long or short passive exposure to the currencies of G-10 countries versus the US dollar.
EuroCCP said that Turquoise will be the first multilateral trading facility (MTF) to offer trading in Currency ETCs.
Andrew Simpson, head of product management at EuroCCP, said: “EuroCCP is pleased to extend our clearing services to support the trading of Currency ETCs. By providing a safe post-trade environment, we believe this service offering will encourage liquidity. Our ETCs clearing service responds to investor demand for liquid, secure and transparent exchange-traded securities and also reflects increased investor appetite for foreign exchange instruments.”
Adrian Farnham, COO at Turquoise, said: “Currency ETCs are presenting the European market with new trading opportunities. Turquoise is delighted to provide highly efficient access to such an expanding market, along with the competitive pricing schedule and robust technology that the Turquoise MTF already offers for equities and depositary receipts.”
EuroCCP) is the European subsidiary of The Depository Trust & Clearing Corporation (DTCC). It currently clears equity trades in 15 countries. EuroCCP has been appointed to provide central counterparty services by Turquoise, SmartPool, NYSE Arca Europe and Pipeline for equity trades.
EuroCCP has also entered into a MoU with Nasdaq OMX to provide clearing services for its exchanges in Copenhagen, Helsinki and Stockholm.
