Market Watch reports that EuroCCP Launches Clearing Service for US Equity Issues.
(emphasis mine) [my comment]
April 14, 2010, 6:43 a.m. EDT
EuroCCP Launches Clearing Service for US Equity Issues
-First European equities clearing service that supports trading of US securities during European trading hours with settlement in DTC
LONDON, Apr 14, 2010 (BUSINESS WIRE) -- EuroCCP announced today that has launched a new service offering central counterpary clearing of trades in US stocks and US exchange-traded funds (ETFs) to European trading firms. EuroCCP is the first European equities central counterparty (CCP) clearing US securities and settling them directly in the central securities depository in their home market of issue, The Depository Trust Company (DTC).
EuroCCP's new service gives European trading firms their first-ever opportunity to trade US securities on a variety of pan-European platforms during European trading hours and to settle those trades in DTC. By offering a service where US securities settle directly at the US CSD, EuroCCP provides European trading firms with a more cost-effective post-trade solution.
Its clearing service for US issues allows EuroCCP to extend the efficiency, cost-saving
and counterparty risk protection benefits it already provides to clients' European-listed securities transactions to US stock and US ETF transactions. Initially, the US securities eligible for clearing through EuroCCP include approximately 100 stock issues and 50 ETFs. EuroCCP expects over time to expand the scope of eligible instruments to further equities, ETFs, and to ADRs.
EuroCCP's clearing service for eligible US issues is open to any trading venue cleared by EuroCCP that offers trading in the securities. Trading will be against US dollars.
"With our new service, we expect to encourage the development of liquidity in US equities in Europe. European trading firms will have a centralised clearing solution to facilitate their trading of US securities on multiple European trading venues," said Andrew Simpson, EuroCCP's head of Product Management in London. "We are leading the way by providing European investors with the most comprehensive array of central counterparty services on a single post-trade platform -- and at the same time offer a lower-cost settlement alternative than previously available to firms trading in Europe. We're focused on delivering services that reflect the demands of firms, making it easier to build trading strategies across multiple asset classes--US and European equities issues, GDRs and Exchange-Traded Funds -- and driving down the cost of post-trade." [Nothing can beat the “cost of post-trade” of any organization running a Ponzi scheme, because the “post-trade” NEVER HAPPENS!]
The new service increases the number of markets cleared by EuroCCP to 19, more than any other European equities CCP. This service extension marks the latest in an ongoing series of enhancements EuroCCP is bringing to Europe's clearing space, and demonstrates EuroCCP's commitment to support the European trading community with a cost-effective, creative clearing solution that best addresses firms' trading needs and business aspirations. [Wow, “cost-effective, creative clearing solution”… What a wonderful way to describe a Ponzi scheme]
Bernard L. Madoff Securities
You know know who else was really good at trade executions? Bernard L. Madoff Securities.
Portfolio.com reports about Bernard L Madoff Investment Services.
Bernard L Madoff Investment Services
Bernard L. Madoff Investment Securities LLC is a leading international market maker. The firm has been providing quality executions for broker-dealers, banks, and financial institutions since its inception in 1960. During this time, Madoff has compiled an uninterrupted record of growth, which has enabled us to continually build our financial resources. With more than $600 million in firm capital, Madoff currently ranks among the top 1% of US Securities firms. Our sophisticated proprietary automation and unparalleled client service delivers an enhanced execution that is virtually unmatched in our industry. Madoff Securities' clients include scores of leading securities firms, banks and financial institutions from across the United States and around the world. The firm is a leading market-maker in all of the S&P; 500 stocks as well as over 350 NASDAQ issues. The firm is known for its fine pricing as well as its ability to execute most orders in seconds. Madoff Securities' superior service is made possible by a sophisticated dealing staff backed by the securities industry's most advanced technology. It is underpinned by the personal commitment of founder Bernard L. Madoff and his brother Peter B. Madoff, who is the senior managing director. Their dedication to providing quality executions has enabled the firm to become a leader in the US "third market," which trades US listed equities away from the exchange floor...
Bernard L Madoff Investment Services
885 3rd Ave FL 18
New York, NY 10022
Phone: (212) 230-2424
Industry: Investment Banking & Securities Brokers
content provided by Dow Jones & Co., Inc. and may be inaccurate
…“enhanced execution that is virtually unmatched in our industry”
…“ability to execute most orders in seconds”
…“the securities industry's most advanced technology”
…renowned “fine pricing”
…“dedication to providing quality executions”
This “Bernard L Madoff Investment Services” sounds even better than the EuroCPP doesn' t it? Maybe they should clear European trades.
More infortation about the EuroCCP
The EuroCCP answers Frequently Asked Questions.
Frequently Asked Questions
Who is EuroCCP?
EuroCCP (or, European Central Counterparty Limited) is a company that provides central counterparty (CCP) clearing services for equities traded on multilateral trading facilities and stock exchanges in Europe. EuroCCP is incorporated in the UK [The UK is the US' s partner in crime] (England and Wales) and regulated by the Financial Services Authority as a Recognised Clearing House.
Who owns EuroCCP?
EuroCCP is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (DTCC). DTCC is a holding company incorporated in the United States, with subsidiaries active since the 1970's in the provision of clearing and settlement services for equities, corporate and municipal bonds, government and mortgage-backed securities, and money market instruments. DTCC also operates a trade repository for over-the-counter derivatives.
What services does EuroCCP offer?
EuroCCP provides central counterparty (CCP) clearing services for equities traded in Europe. It currently provides clearing services for multilateral trading facilities Turquoise, SmartPool, NYSE Arca Europe and Pipeline Financial Group Limited, and will in 2010 provide clearing services to NASDAQ OMX Nordic exchanges in Copenhagen, Helsinki and Stockholm.
EuroCCP's CCP service eliminates counterparty risks fortrading firms. Through netting, EuroCCP greatly reduces operations risks, operations costs and financing costs.
Through trade novation, EuroCCP guarantees to trading firms that the trades will settle at the price agreed at execution even if one party to the trade is unable to honour its settlement obligations (due to bankruptcy, for example).
Through multilateral netting, EuroCCP reduces settlement obligations for trading firms into a single net receipt or delivery per day for each security traded, regardless of the number of trades.
Through cross-platform netting (possible in all markets except the UK), all trades in the same security executed by a trading firm on any of the venues EuroCCP clears for are netted into a single settlement obligation and a single margin requirement.
In 2010, EuroCCP will extend its services to clear over-the-counter equities trades for institutional clients. This service will be offered in collaboration with Omgeo, a trade affirmation and confirmation service for buy-side firms and their intermediaries.
Which securities does EuroCCP clear?
EuroCCP at present clears equities from issuers in 19 markets, including Austria, Belgium, Czech Republic, France, Denmark, Germany, Hungary, Ireland, Italy, Finland, Netherlands, Norway, Portugal, United Kingdom, Switzerland, Sweden, Spain, and the United States. In addition, EuroCCP clears, through Euroclear, the most liquid European-listed Depositary Receipts that are traded on the venues it serves as well as certain Exchange-Traded Currency issues (Currency ETCs). The securities are traded in nine different currencies: the euro, British pound, U.S. dollar, Swiss franc, Danish krone, Swedish krona, Norwegian krone, Hungarian forint, and Czech koruna.
The list of securities, markets, and currencies EuroCCP clears grows as more trading venues appoint EuroCCP and as these venues trade more securities issues.
DTCC launches PR campaign to support its “new role” in Europe
Efinancial News reports that DTCC creates new role for European public affairs push.
DTCC creates new role for European public affairs push
15 Apr 2010
US clearing giant the Depository Trust and Clearing Corporation has appointed a new head of public affairs in Europe, as post trade infrastructure providers face mounting pressure from regulators to improve the transparency of financial markets in the region. [Transparency and Ponzi schemes don' t work well together.]
Andrew Douglas, who most recently head of securities research and development at the Society for Worldwide Interbank Financial Telecommunication, or Swift, has joined the DTCC in a newly-created role to lead public affairs efforts in Europe, according to a company statement.
Douglas' role will involve representing the DTCC's public policy positions to officials of the European Union, as well as dealing with other European organisations, such as regulators, central banks and industry associations.
He will be based in London and will report locally to Diana Chan, chief executive of EuroCCP, the DTCC's pan-European clearing house. He will report functionally to Larry Thompson, DTCC's general counsel in New York.
The move comes as EuroCCP and European rivals such as LCH.Clearnet, EMCF and Eurex Clearing, are continuing talks with European regulators over clearing houses' plans to link up with each other and start competing for the first time.
Dutch, Swiss and UK regulators said in February that did not "conceptually reject" so-called interoperability links between European clearers, having raised concerns last year that the plans
may [will] lead to increases in systemic risk.
Clearing, a process whereby a central counterparty stands on either side of a trade, ensuring it completes in the case of a default, is one method being called for by [(desperate) US] regulators to [keep the US financial system alive]
reduce risk in the wake of the financial crisis.
Commenting on Douglas' appointment, Donald Donahue, the chairman and chief executive of DTCC, said: "Andrew brings more than 20 years of experience in the global securities industry and has established close working relationships with European governmental, regulatory and institutional communities. With Europe becoming more and more of a focus of DTCC' s business activities, we are delighted to have Andrew' s vast wealth of experience as we look to work and collaborate with the broad constituencies in the European market.”
My reaction: With the retirement savings of Americans already looted by the DTCC, Europe is becoming more and more of a focus of DTCC's business activities.
1) EuroCCP announced this month that it has launched a new service offering central counterpary clearing of trades in US stocks and US exchange-traded funds (ETFs) to European trading firms.
2) The new service increases the number of markets cleared by EuroCCP to 19, more than any other European equities CCP.
3) This service extension marks the latest in an ongoing series of enhancements EuroCCP is bringing to Europe's clearing space.
4) EuroCCP expects over time to expand the scope of eligible instruments to further equities, ETFs, and to ADRs.
DTCC launches PR campaign to support its “new role” in Europe
1) Post trade infrastructure providers face mounting pressure from regulators to improve the transparency of financial markets in the region.
Transparency and Ponzi schemes don't work well together.
2) In response, the DTCC has increased public affairs efforts in Europe to persuade regulators to let them run their Ponzi scheme in peace.
Allowing EuroCCP to gain a dominant role in settling European trades IS IDIOTIC
Doing so puts the retirement savings of European investors into the hands of the completely-bankrupt, cash-starved US government. Given the DISASTROUS track record of US regulators and financial institutions, there is no sane justification for the DTC' s EuroCCP expanding role in European trade settlement.
For more information on the DTCC and its “business activities”, see:
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