Collaborate to offer ETF participants a better post-trade workflow
This collaboration will help streamline European clients’ settlement process and minimise costs, by facilitating pre-settle margin and netting of exposures -- while still offering pan-European ETF investors the transparency and benefits afforded by the RFQ process.
“By offering our clients the ability to centrally clear European ETF trades, we are enhancing the RFQ workflow by introducing a new post-trade process to help investors minimise settlement fails and improve efficiency,” said
With regulators aiming to harmonise rules under the European Central Securities Depositories Regulation (CSDR), market participants will soon be subject to new Settlement Discipline procedures, including cash penalties for settlement fails and mandatory buy-ins. By offering access to central clearing and settlement services via EuroCCP within the trading workflow, Tradeweb will help clients navigate these new rules and mitigate counterparty risk for clearing participants.
Cécile Nagel, CEO, EuroCCP said: “Our partnership with Tradeweb allows us to expand our ETF clearing business, delivering a new and innovative service to clients which helps them to better manage the cost and risk of trading this asset class.”
“Introducing CCPs to ETF trading on Tradeweb’s RFQ platforms is an important market structure enhancement, improving the clearing, settlement and utility of ETFs,” said
Tradeweb launched its European ETF trading platform in 2012 and its U.S. ETF trading platform in 2016. In
Tradeweb’s global ETF marketplaces deliver an alternative method for investment firms to access competitive OTC prices with greater efficiency and transparency. The platforms offer a number of tools that reduce errors and improve performance, while streamlining post-trade processing and providing reports that help institutional investors meet their best execution requirements. Tradeweb’s ETF CCP service is expected to be available by the fourth quarter of 2019, subject to regulatory approvals.
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, the expected timing and availability of Tradeweb’s new ETF CCP solution, our future performance, the markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in our prospectus filed with the
Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.
EuroCCP is important to Europe’s equities markets as it currently clears for 36 trading venues, representing near 90% of the equity landscape in the continent, making EuroCCP the most connected equity CCP in
EuroCCP provides clearing members with easy access and ability to maximise operational efficiency and netting opportunities whilst reducing risk and cost in the market.
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