Euronext announced the expansion of its clearing offering for its cash markets across Europe. In November, that included Brussels followed by France, Ireland, the Netherlands, and Portugal. As of that date, the pan-European clearing house Euronext Clearing now clears equities, ETFs, structured products, warrants, and bonds across six Euronext markets. O
n average, Euronext Clearing clears circa 2 million transactions on a daily basis for its 52 European and local clearing members, of which 37 were onboarded as part of the expansion, including all major clearing members of the industry.
“This transformation contributes significantly to building the backbone of the Capital Markets Union in Europe, reducing the fragmentation of European capital markets,” the exchange group said in a statement.
Through its expanded pan-European multi-asset-class CCP, Euronext will directly operate clearing activities for cash, listed derivatives and commodities markets by the end of 2024, providing one single platform for clients to manage their collateral, and access information on collateral, risk, and clearing.
Euronext Clearing has innovated with the adoption of a new VaR-based margin methodology, in line with evolving market standards. The new methodology enhances the efficiency and reliability of risk capture and allocation within the financial system. The introduction of a unified equity and derivatives default fund facilitates cross-margining means clients can optimize their trading activities across seven Euronext markets and have T2S access.
Since the acquisition of Borsa Italiana in April 2021, Euronext has demonstrated a unique expertise in delivering significant technological projects with the migration of the Core Data Centre from Basildon in the UK to Bergamo in Italy, as well as the successful migration of Italian cash equity, ETF, fixed income, warrants and certificates markets to the Euronext state-of-the-art proprietary trading platform Optiq.
Stéphane Boujnah, CEO and chair of the Managing Board of Euronext, said in a statement: “TThis move will enable us to further cater to our clients along the entire trading value chain, unlocking new opportunities to develop innovative solutions in a more agile way. This achievement is another step towards establishing Euronext as the leading market infrastructure in Europe to provide a unparalleled access to unified European financial markets and to be the backbone of the Capital Markets Union in Europe.”
Anthony Attia, Euronext global head of Derivatives and Post-Trade, said in a statement: “The efficiency and market security of a clearing house relies on its ability to manage various asset classes and markets, and Euronext is leveraging the diversity of its different markets to enhance Euronext Clearing, as a truly European clearing provider…Now present across the entire trading value chain, Euronext is a unique point of entry to European capital markets, from pre-listing to post-trade through T2S, and in this way further builds unified European capital markets.”