European Multilateral Clearing Facility

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European Multilateral Clearing Facility
EMCFlogo.gif
Founded 2007
Headquarters The Netherlands
Key People Jan Booij, CEO
Products Offers central counterparty clearing house services
Website http://www.euromcf.nl/

The European Multilateral Clearing Facility (EMCF), a subsidiary of Fortis Bank Nederland Holding N.V., is a central counterparty clearing house for equity trading on exchanges and multilateral trading facilities. EMCF launched in March of 2007.[1]As of the middle of 2009, EMCF offered central counterparty clearing house services for the main equity indices of 12 countries.[2]

EMCF is regulated by the Dutch Financial Services Authority (Autoriteit Financiele Markten) and The Dutch Central Bank (De Nederlandsche Bank). It has been granted the status of Recognized Overseas Clearing House by the British Financial Services Authority (UK FSA).[3]

EMCF provides clearing services for BATS Trading, Chi-X and Nasdaq OMX.[4]


History

The European legislation MiFID, implemented in November 2007, forced order flow providers to direct their flow to the venue of best execution. EMCF was established to service the market for securities trading after the introduction of MiFID. Competition in the area has forced the slashing of fees by European clearers. EMCF and its competitors lowered clearing fees several times.[5][6]

In 2008, the European Central Counterparty appointed EMCF as their central counterparty.[7]

Also in 2008, The NASDAQ OMX Group, Inc. announced that it had entered into a binding agreement to acquire a 22 percent equity stake in EMCF from Fortis Bank Nederland Holding N.V.[8]

In July of 2009, it was reported that the London Stock Exchange was in talks with EMCF about the possibility of taking a stake in the venture.[9]

Products and Services

Key People

References

  1. Press Release. Fortis.
  2. General Information. Euro MCF.
  3. Press Release. Euro MCF.
  4. About Us. EMCF website.
  5. European Clearers Slash Prices. Financial Times.
  6. Market Turmoil Plays To ASX Monopoly. The Australian.
  7. Press Release. Waters News.
  8. Press Release. Nasdaq OMX.
  9. LSE In Talks With EMCF Over Stake. Nasdaq OMX.