102/01
19 September 2001
NEW EUROPEAN CLEARING HOUSE TO BE IN LONDON
The Treasury has given a new European clearing house leave to locate in London. European Central Counterparty Limited (EuroCCP) will clear for the new pan-European Nasdaq Europe market. Economic Secretary Ruth Kelly has given leave for EuroCCP to be recognised as a clearing house.
Ruth Kelly said:
?I welcome the addition of EuroCCP to the list of UK Recognised Clearing Houses. The decision to set up EuroCCP in London is a clear vote of confidence in our financial regulatory system and in London as a place to do business.?
NOTES FOR EDITORS
1. Nasdaq Europe, a subsidiary of The Nasdaq Stock Market, Inc., was launched in March 2001. The market operates on a pan-European basis.
2. The Depository Trust & Clearing Corporation has agreed to establish a new subsidiary, European Central Counterparty Limited (EuroCCP), to act as central counterparty in relation to transactions effected on Nasdaq Europe.
3. EuroCCP's objective is to offer market participants a reliable clearing house that reduces costs and reduces risk. Recognition of EuroCCP should support Nasdaq Europe in bringing more competition to Europe's financial markets.
4. EuroCCP is applying to the Financial Services Authority (FSA) for the status of recognised clearing house. The FSA is responsible for recognising domestic clearing houses and requires leave from the Treasury to do so.
5. Recognition as a clearing house under section 39 of the Financial Services Act 1986 enables the clearing house to carry out investment business in the UK. The FSA applied to the Treasury for leave to recognise EuroCCP under section 120 of the Act.
6. The recognition requirements for a Recognised Clearing House under the Financial Services Act 1986 are in S.39(4).
7. Any media queries should be addressed to Simon Moyse, Treasury Press Office, tel. 020 7270 4420.