European Multilateral Clearing Facility N.V.

The European Multilateral Clearing Facility (EMCF) is a clearing house based in the Netherlands for equity trades done on stock exchanges or multilateral trading facility throughout Europe.

It was established after the Markets in Financial Instruments Directive (MiFID) regulations were passed by the European Union allowing competition for clearing services. EMCF helped reduce the cost of clearing within Europe as it competed directly with the established clearing houses in each member state forcing them to reduce prices.[1]

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.

In 2007, Chi-X Europe appointed EMCF as their central counterparty. Nowadays, EMCF offers services to BATS Europe, Burgundy AB, CATS os, Chi-X- Europe, First North Securities, NasdaqOMX Nordic (Denmark, Finland & Sweden), Quote MTF and The order Machine (TOM).

Also in 2008, nasdaq acquire a 22 percent equity stake in EMCF from Fortis Bank Nederland Holding N.V.[2][3][3][4][5]

In 2008, following Fortis’ near bankruptcy the European Central Counterparty offered to clear trades instead of EMCF.[6] Fortis was nationalised by the Dutch Government to stop it failing, and EMCF became part of ABN AMRO.

“EMCF and EuroCCP complete merger”. 2017-02-21. Retrieved 2017-02-21. In 2014, EMCF merged with EuroCCP at the end of 2013 and took the name of European Central Counterparty N.V.

References

  1. ^Mackay, Tony. “Market turmoil plays to ASX monopoly”. The Australian. Archived from the original on 2012-09-14. Retrieved 2009-03-10. And Fortis’s European multilateral clearing facility (EMCF) clears the trades for about half the cost of incumbent clearing houses.
  2. ^Fairless, Tom (2009-03-02). “Oslo Bors Plans Clearinghouse – WSJ.com”. Wall Street Journal. Retrieved 2009-03-10. Oslo Bors’s move comes four months after Nasdaq OMX bought a 22% stake in Dutch clearinghouse European Multilateral Clearing Facility and agreed to use the system to clear trades in its Nordic equity markets
  3. ^ Jump up to:ab “Nasdaq Omx Announces Fourth Quarter 2008 Results -Operating Income Increases 77.2% To $180.0 Million ($101.6 Million In Q407)”. 2009-02-27. Archived from the original on 2013-02-10. Retrieved 2009-03-10. Acquired a 22% stake in the European Multilateral Clearing Facility N.V. (EMCF), a leading European clearing house, and signed an agreement with EMCF to use its central counterparty services for all transactions executed on the NASDAQ OMX Nordic exchanges
  4. ^“NASDAQ OMX Appoints EMCF to Handle Clearing for its Pan-European Market” (Press release). FoxBusiness.com. 2008-05-19. Retrieved 2009-03-10. The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it has selected European Multilateral Clearing Facility (EMCF), a wholly owned Fortis subsidiary, to deliver clearing services for the NASDAQ OMX Pan European Market[permanent dead link]
  5. ^Bernard, Stephen (2009-02-26). “Nasdaq OMX Group profit falls on special charges”. Retrieved 2009-03-10. Nasdaq has been building its revenue base over the past year. In addition to its acquisitions, Nasdaq also completed in 2008 four strategic investments, including acquiring stakes in International Derivatives Clearing Group and European Multilateral Clearing Facility NV
  6. ^“Waters – News – EuroCCP Readies for Chi-X, Nasdaq OMX, Bats and More”. 2008-10-01. Retrieved 2009-03-10. European Central Counterparty (EuroCCP) has the capacity to process all the multilateral trading facilities (MTFs) that have appointed Fortis Bank subsidiary European Multilateral Clearing Facility (EMCF) as their central counterparty[dead link]

Ofer Abarbanel – Executive Profile

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