Our current arrangement with LCH.Clearnet Group and the world’s leading cross-border settlement services provider Euroclear ensures that trades are processed efficiently and cost-effectively.
Alternext offers investors a safe environment thanks to the central counterpart system provided by clearing house LCH Clearnet. This entails significant risk control measures such as daily updating of positions, margin calls and clearing funds, ensuring maximum guarantees of trading payment and delivery for users.
To ensure an efficient, pan-European, low-cost solution, clearing and settlement on NYSE Arca Europe is managed by EuroCCP. Based in London and regulated by the Financial Services Authority (FSA), EuroCCP has a well-known, proven track record in Europe. It is a wholly-owned subsidiary of the Depository Trust & Clearing Corporation (DTCC), and is supported by DTCC's three decades of experience in operating critical market infrastructures. Therefore, it is well placed to act as a Central Counterparty (CCP), enabling anonymous post-trade processing to provide netting, and a full range of risk management services. For more information, visit the EuroCCP website: www.euroccp.co.uk.
Securities on the Free Markets are admitted to Euroclear Bank, and settlement occurs automatically three days after the trade. The trades are cleared and guaranteed by LCH.Clearnet SA, under its own terms and conditions. For the Free Market securities that are not admitted to Euroclear Bank, the member involved in the trade may initiate a transfer order, which manages the formalities of registration and removal with the issuer or delegated transfer agent.
In the event of a defective settlement involving a security that is not cleared by LCH.Clearnet, NYSE Euronext can initiate a buy-in procedure or indemnity against the defaulting party on the 21st trading day after the theoretical delivery date, without warranty and in conformity with equity market practices. NYSE Euronext may modify the time frames mentioned above for a given security. In all cases, beyond a period of three months following the trade date, NYSE Euronext will no longer accept a buy-in request.
SmartPool executions are cleared via EuroCCP for all markets traded on SmartPool. Anonymity is offered through a central counterparty and settlement with local CSDs following local practices.