Clearing

BATS Chi-X Europe offers a user-driven post trade model for a more efficient European capital market. Trading Participants benefit from pre- and post-trade anonymity, real-time risk management, netting and fungibility at the domestic Central Securities Depository (CSD).

Trading Participants are able to manage counterparty risk and cost by using a Central Counterparty (CCP) as buyer to every seller and seller to every buyer.

Since launch, all trades on BATS Chi-X Europe have been novated and guaranteed by European Multilateral Clearing Facility N.V (now European Central Counterparty NV (ECCP NV)) and settled at the domestic CSD. Since January 2012, BATS Chi-X Europe has enabled Participants to choose a CCP per market segment by also offering a process known as interoperable clearing. This allows Participants to choose from three CCPs to clear their trades:

  • EuroCCP NV
  • LCH.Clearnet Ltd
  • SIX x-clear AG

Post Trade Model

  • Every Trading Participant requires a Clearing Participant (GCM equivalent) to guarantee trades / credit risk.
  • Every Clearing Participant is required to execute a Clearing Service Agreement with a CCP per market.
  • Every Clearing Participant requires a Settlement Agent at the domestic CSD.
  • The BATS Chi-X Europe market model is designed so that Participants can trade, clear and settle European stocks with minimum disruption and full fungibility in the domestic CSD.

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BATS Trading Limited is a Recognised Investment Exchange regulated by the Financial Conduct Authority. BATS Trading Limited is an indirect wholly-owned subsidiary of BATS Global Markets, Inc. and is a company registered in England and Wales with Company Number 6547680 and registered office at 10 Lower Thames Street, London EC3R 6AF. This Website has been established for information purposes only. None of the information concerning the services or products described on this Website constitutes advice or a recommendation of any product or service. To the extent that the information provided on this Website constitutes a financial promotion as defined by section 21 of the Financial Services and Markets Act 2000, it is only directed at persons who qualify as a Professional Client or Eligible Counterparty. Persons who do not qualify should not act on or rely upon it.