NO 249 – NOVEMBER 2013

WFE Focus
Post trade

BME brings its CCP activities under BME Clearing

BME will bring its CCP activities under one umbrella, BME Clearing. In compliance with the European regulation EMIR, BME has separated the exchange activity from the CCP activity. Until now, MEFF acted both as an official exchange and a CCP. As a result of the separation of functions, MEFF takes up the exchange activity as the governing company for BME’s derivatives market and BME Clearing will act as the CCP. BME Clearing handles the transactions that take place in the three activity segments operated by BME that are CCP cleared (derivatives, public debt repos and electricity derivatives). In the future, it will also encompass the clearing of the cash market (equities and fixed-income).

LCH.Clearnet and NYSE Euronext enter into agreement for clearing of continental derivatives

LCH.Clearnet and NYSE Euronext have signed a new five-year contract for LCH.Clearnet to clear NYSE Euronext’s continental listed derivatives until December 2018. It replaces the current clearing services terms and contract, which were due to expire on 31 March 2014. The agreement allows customers to maintain their existing trading and clearing connectivity and infrastructure, while enjoying high service quality and quicker, more responsive, customer-driven innovation.

Moscow Exchange: National Clearing Centre becomes Russia’s first central counterparty

The National Clearing Centre was assigned Russia’s first qualified central counterparty (CCP) by the Central Bank of Russia on 18 October 2013.

Moscow Exchange launches clearing of OTC derivatives with central counterparty

Moscow Exchange opened its new Standardized OTC Derivatives Market on 28 October 2013. The service allows banks and dealers to clear OTC interest rate, FX, and cross currency swaps through the NCC, which is a qualified central counterparty. This will reduce participants’ capital requirements and increase profitability due to more efficient liquidity management.

Oslo Børs to introduce T+2 settlement cycle

Oslo Børs has decided to introduce T+2 with effect from 6 October 2014. This means that securities will be settled on the investor’s account in two days after the transaction has taken place and consequently that the seller will receive payment after two days. Current market practice is based on T+3.