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UBS MTF Launches Interoperability of Central Counterparties (CCPs)

London | | Media Releases EMEA

UBS MTF, the multilateral trading facility operated by UBS Limited, today announced the activation of EuroCCP to join SIX x-clear Ltd as clearing counterparties for cash equity trades executed on UBS MTF. Members of UBS MTF will now be able to choose between the two interoperating central counterparties (CCPs) when clearing and settling their trades in European cash equities.

The activation follows approval from UK and Swiss regulators for interoperability, an offering that UBS MTF sought to make available to its subscribers since its inception in November 2010.

UBS MTF was the first broker-operated MTF to feature a CCP model and will be among the first to offer full interoperability.

Dr. Robert Barnes, CEO of UBS MTF, said: “When we launched UBS MTF, we made choice one of the central philosophies of our platform. Our consistent view is that a CCP model offers investors better opportunities for efficiency and reduced transaction costs. We are delighted that regulators have approved this evolution for choice, because we can now allow UBS MTF members to select the CCP that best meets their commercial and functional needs.”

The use of a CCP can reduce counterparty risk and settlement cost by offering market participants netting, risk management, margining and settlement for all securities traded on UBS MTF. Now that members can select a CCP serving multiple markets, they can realise substantial savings from simpler connectivity, volume discounts, margin concentration and lower settlement fees. Platforms offering interoperability allow their members to select the CCP, whether multi- or single market, that is most appropriate for their trading activity and business profile.

On July 29th, firms clearing through EuroCCP can start trading on UBS MTF and have their trades netted with those executed on other platforms cleared by EuroCCP just as participants of SIX x-clear Ltd can do currently. UBS MTF members now have a choice of CCPs when executing their orders in this 100% nondisplayed venue.

Diana Chan, CEO, EuroCCP, said: “As long-term proponents of interoperability and of competition in clearing, we're pleased to see UBS MTF become the first broker – operated platform offering interoperability with EuroCCP. This represents a significant milestone for EuroCCP, demonstrating the success and resilience of our business model. Most importantly, it is great news for our clients who, through interoperability, will benefit from greater choice of execution venues and lower trading costs.”

Tomas Kindler, Member of the Executive Committee, SIX x-clear Ltd: “The addition of EuroCCP as an interoperable CCP for UBS MTF is good for the market, good for clients and is a positive development in the clearing industry landscape. We are ready to support interoperability and we welcome the exciting opportunity this presents to participants in terms of costs savings and a greater choice.”

For further information contact
Stephanie Aneto, UBS Media Relations, tel: +44(0)20 7567 7769.
Stephan Meier, SIX Group Media Relations, tel.+41 (0)58 399 3290
EuroCCP: Melissa Rowling, Greentarget +44 (0)20 7324 5490, Judith Inosanto, DTCC Corporate Communications, +1 212 855 5124