SWIFT seals deal with EuroCCP

publication date: Aug 29, 2008

SWIFT, the financial messaging provider for more than 8,300 institutions, has been chosen by European Central Counterparty Limited (EuroCCP) as a connectivity provider to its clearing members.
EuroCCP, the London-based, wholly-owned subsidiary of The Depository Trust & Clearing Corporation (DTCC), will provide clearing and settlement services for Turquoise, the new pan-European multilateral trading facility (MTF). Eight EuroCCP clearing participants have signed to use SWIFTNet, SWIFT's advanced IP-based messaging solution, for connectivity to EuroCCP for clearing and settlement when it begins limited use on August 15. Full processing of 1,300 securities from 13 European markets will be available on September 5.
The eight Turquoise brokers wanted the ability to access EuroCCP via SWIFT in order to reap cost and efficiency benefits by reusing their existing SWIFT infrastructures to communicate with EuroCCP. While firms can elect other methods to connect to EuroCCP, SWIFT is a popular option for European firms.
“By making use of SWIFTNet, EuroCCP was able to quickly connect into the existing SWIFT community to generate secure connections, rather than having to set up all new connections,” said Diana Chan, CEO of EuroCCP. “That capability was invaluable to us in making our system operational against tight competitive deadlines.”
The collaboration between DTCC and SWIFT for EuroCCP connectivity is one of many initiatives the two companies are working on to meet the industry’s requirement for greater harmonisation of global trade processing.