Samiksha Jaiswal (Editor)

European Multilateral Clearing Facility N.V.

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Industry
  
Financial services

Products
  
Clearing house

Founded
  
29 March 2007

Key people
  
Jan Booij (CEO)

Website
  
www.euroccp.com

Headquarters
  
Amsterdam, Netherlands

European Multilateral Clearing Facility N.V. securearealchclearnetcomImagesEMCFtcm652077JPG

Owner
  
ABN AMRO (78%) Nasdaq (22%)

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.

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.

In 2008, following Fortis' near bankruptcy the European Central Counterparty offered to clear trades instead of EMCF. 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

European Multilateral Clearing Facility N.V. Wikipedia