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European Central Counterparty Limited (EuroCCP), the DTCC subsidiary, has announced that tomorrow it will launch Turquoise, the pan-European cash equity multilateral trading facility, with an initial coverage of ten major British and German stocks. EuroCCP will deliver a clearing & settlement solution on a single platform with Citi's global transaction services business as its settlement agent. BT Global Financial Services host the platform.
Turquoise is a collaboration between EuroCCP and nine founding firms - Credit Suisse, Deutsche Bank, Goldman, Morgan Stanley, Merrills, Citi, UBS, BNP and SocGen. Others participating are ABN Amro, Barclays, Crédit Agricole, Instinet, KAS and Lehmans. Six firms are general clearing participants who will clear and settle trades for others, the rest are individual clearing participants who only clear and settle trades they execute.
"MiFID and the Code of Conduct have been successful in unleashing competitive market forces and providing pricing transparency," said Diana Chan, Chief Executive Officer of EuroCCP. "Since the European authorities announced their intention to allow new entrants for trading and clearing securities, established markets and central counterparties have slashed their fee structures -- and more can be expected. We are committed to leading the way by being the low-cost, pan-European clearing and settlement provider to multilateral trading facilities (MTFs) as well as exchanges, offering them unparalleled efficiency, capacity, safety and business resiliency".
Turquoise is expected to go to full production by September 5th, trading in 1,300 equity issues across 13 European markets in seven different currencies. Institutions such as the London Stock Exchange, with whom Turquoise will now compete for business, have announced a cut in fees of 10%.
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