Competition among Europe’s central counterparties (CCPs) can offer greater benefits to market participants than the US’s largely single-clearer model, according to Marco Strimer, CEO of Swiss clearing house SIX x-clear.
“I don’t believe we will have one clearing house for Europe,” he told an industry audience on Tuesday. “I don’t believe one clearing house is good for the markets – you have got to give clients some choice.”
Aside from stimulating price competition and lowering costs for members, Strimer said choice was also important for collateral management, pooling and the ability to clear different instruments.
Strimer’s comments come follow reports of a Banque de France-led working group to create a single clearing house for the eurozone. The proposals include a suggestion to merge the French unit of LCH.Clearnet with Eurex Clearing, the post-trade division of derivatives exchange Eurex.
While Strimer does not foresee a single European clearing house, he does expect a contraction . The current list of European CCPs includes LCH.Clearnet (SA and Ltd), SIX x-clear, Eurex Clearing, EuroCCP, EMCF, CC&G and MEFF.
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