EuroCCP to Begin Clearing Exchange-traded Currencies
EuroCCP has launched clearing services for European-listed exchange-traded currencies (ETCs or currency exchange-traded funds), continuing to extend to new instruments the efficiency, cost-saving and counterparty risk protection benefits it currently provides to clients’ equity and depositary receipts transactions.
Turquoise will be the first multilateral trading facility (MTF) to offer trading in ETCs cleared through EuroCCP.
Currency ETCs are liquid securities traded on exchange that track the performance of underlying currency indices. EuroCCP initially will clear 18 ETCs, which provide long or short passive exposure to the currencies of G-10 countries versus the US dollar.
“EuroCCP is pleased to extend our clearing services to support the trading of ETCs. By providing a safe post-trade environment, we believe this service offering will encourage liquidity,” said Andrew Simpson, head of EuroCCP product management in London. “Our ETCs clearing service responds to investor demand for liquid, secure and transparent exchange-traded securities and also reflects increased investor appetite for foreign exchange instruments.”