Clearing Services

Euronext Clearing is the pan-European central counterparty (CCP) of the Euronext Group, delivering clearing services across a broad range of European markets and asset classes.

One European Clearing Framework

By bringing together multiple markets, asset classes and trading venues within a single clearing infrastructure, Euronext Clearing delivers risk management efficiency, operational simplicity and enhanced capital efficiencies for participants across Europe.

As buyer to every seller and seller to every buyer, Euronext Clearing mitigates counterparty risk, promotes market integrity, and supports the safe and efficient settlement of transactions across Europe.

Our clearing services support a diversified ecosystem of trading venues and financial instruments, including:

  • Cash equities
  • Exchange-traded funds (ETFs) and exchange-traded commodities (ETCs)
  • Investment funds and closed-end funds
  • Corporate bonds and government bonds
  • Financial derivatives, including equity index and single-stock futures and options
  • Commodity derivatives
  • Repo markets (All major European government bonds and Supranationals)
  • Block trading and off-order-book transactions

Markets and Trading Venues

Euronext Clearing provides clearing services across a broad network of European trading venues, including:

  • Euronext cash equity markets
  • Euronext derivatives markets
  • Euronext commodity derivatives markets
  • MTS fixed income markets, including MTSBondVision and MTS Repo
  • BrokerTec fixed income and repo markets
  • MOT, EuroTLX, Vorvel and other fixed income trading venues

Asset Classes Cleared

Euronext Clearing supports clearing across multiple asset classes through a harmonised European clearing framework:

  • Equities
  • Equity derivatives
  • Commodity derivatives
  • Government bonds
  • Corporate bonds
  • Fixed Income Derivatives
  • Repo markets (All major European government bonds and Supranationals)
  • Exchange-traded funds and investment funds

Robust Risk management Scheme

In a fast-evolving market and regulatory environment, Euronext Clearing provides a resilient and comprehensive risk management framework designed to safeguard market participants and support financial stability.

Our financial safeguarding system is built on three complementary layers of protection:

1. Membership requirements

Clearing Members must meet minimum Supervisory Capital requirements in accordance with their role (ICM or GCM) and the segment they want to. Each Member must have an organisational structure and IT systems that guarantee the ordered, continuous, and efficient management of the activities and relations foreseen by Euronext Clearing Rules.

2. Margin framework

Members must deposit sufficient guarantees to cover the theoretical costs of liquidation, which Euronext Clearing would incur in the event of a Member’s Default, in order to close the open positions in the worst reasonably possible market scenario. All Clearing Members are therefore required to pay margins on all open positions.

Margins are calculated using the new VaR-based margin methodology for Equity and Equity Derivatives sections, FIRE methodology (Fixed Income Risk Engine) for all government bonds, and MVP methodology (Method for Portfolio Valuation) for Govies of different Countries and Corporate on the Bond section.

Euronext Clearing has also introduced additional protection, which functions alongside the margins system, consisting of the Default Fund to cover that portion of the risk, generated by extreme variations in market conditions, that is not guaranteed by the margin system.

3. Default procedure

In addition to margins, Euronext Clearing maintains default resources designed to address extreme but plausible market scenarios. These resources provide an additional layer of protection and contribute to the resilience of the clearing framework.The procedure envisages the allocation of the losses and costs sustained by Euronext Clearing following the default of a Clearing Member according to the below hierarchy (i.e. "default waterfall") set out in Euronext Clearing’s Rulebook Article B.6.2.3):
Default procedure - Euronext Clearing

 

 

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