EuroCCP-Turquoise Alliance To Reduce Spanish Trading Costs
Turquoise and EuroCCP, the pan-European cash equities clearing house, are offering a service to take advantage of recent reforms to the clearing and settlement of trades in Spanish equities, which are likely to lead to the reduction of costs for investors.
The reforms, known as Title V, facilitate the trading of Spanish equities on multilateral trading facilities (MTFs), by modifying the regulations governing Iberclear, the Spanish central securities depository, and simplifying settlement and registration processes relating to the sale and purchase of Spanish equities.
In the future, transactions that are subject to Title V may be settled bilaterally, without the participation of the stock exchange. Title V also removes the requirement for clearing houses such as EuroCCP to cross positions on the local exchange with a local broker.
By utilizing the new securities settlement and registration procedures authorized by Title V, the new service offered by EuroCCP and Turquoise will significantly reduce the operational costs of trading Spanish equities on Turquoise.
From 3 May 2011, the EuroCCP settlement fee for Spanish securities will be reduced from the current €2.42 to €1.00 and the EuroCCP clearing fee will be reduced from €0.07 per side to €0.03 per side, up to 100,000 sides on a participant's average daily volume.
Diana Chan, CEO of EuroCCP, says that while Spain is home to some of the most liquid stocks in Europe, to date Spain's post-trade infrastructure rules has prevented the evolution of the type of competitive markets that have helped drive transaction volumes in other parts of Europe.
Chan expects the Title V reforms, coupled with other initiatives currently under discussion, to help address this anomaly, resulting in more competition and increased liquidity for Spanish stocks.
In conjunction with these changes, from 3 May, Turquoise will offer a three-month pricing promotion for trading Spanish stocks on its Integrated Order Book or until daily consideration reaches €100mln. During this period the "take" fee will be reduced to zero, while the "maker" rebate will be unchanged at 0.2 basis points.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Bloomberg ups focus on quants, intraday strategies
The vendor hopes its OHLC Bar data product will woo new audiences among quant traders and analysts, who have previously had to painstakingly build solutions in-house.
DORA stalls over identifier dispute
A disagreement over how to classify third-party tech providers on a reporting form known as the “register of information” has held up preparations for the highly anticipated operational resiliency rule in Europe.
WatersTechnology latest edition
Check out our latest edition, plus more than 12 years of our best content.
New equity trading protocols want traders to show their hand
A new generation of trading venues has emerged with the goal of unlocking liquidity and improving the efficiency of trades.
ForecastEx, event contracts, and a new way to think about markets
Waters Wrap: Anthony speaks with the former CEO of OneChicago David Downey about his new venture and the future of prediction markets.
Interop after acquisitions remains daunting for buyers
Executives from a variety of vendors speaking at WFIC explained why desktop interoperability is important and why progress has been slow.
Should banks risk lightning hitting twice for CrowdStrike?
Bank tech teams divided on whether to give security vendor a second chance after update crash.
Northern Trust adds fixed-income capabilities for outsourced trading in Asia-Pacific
The custodian bank now offers 24/6 fixed-income trading coverage with desks in Chicago, London, and Sydney.