Cboe Clear Europe announced it’s cleared its first equity trades on Deutsche Börse via the preferred clearing model, marking the introduction of competitive clearing in the German market.
Vikesh Patel, president at Cboe Clear Europe, said in a statement that this represents a significant step towards enhancing competition, open access and choice within Europe’s post-trade landscape.
“The preferred clearing model enables a competitive environment where full interoperability is not yet feasible and offers significant cost savings by allowing clients to consolidate more of their pan-European clearing activities at a single CCP. Such arrangements are key to reducing fragmentation and achieving greater efficiencies and scale in Europe, rather than pursuing mandatory top-down consolidation,” Patel said in a statement. “Looking ahead, we will be working towards achieving full clearing interoperability for products traded on Deutsche Börse platforms, in line with our objective for all exchanges we clear.”
Looking at Q4 2024: Cboe Clear Europe is preparing for a number of initiatives aimed at enhancing the efficiency, transparency, and stability of capital markets, including the launch of its securities financing transaction (SFT) clearing launch in European cash equities and ETFs. The service aims to transform the current bilateral process between lenders and borrowers into a cleared model, with the CCP acting as the counterpart for both parties.