Clearing

SWX Europe successfully introduced the first pan-European Central Counterparty Service (CCP) for cross-border trading, in conjunction with LCH.Clearnet Limited (LCH.Clearnet) and SIS x-clear AG (SIS x-clear). The Central Counterparty offers considerable benefits, including:

• Trade anonymity
• Risk management
• Multi-lateral settlement netting (optional)

Clearing is provided by two Central Counterparties, LCH.Clearnet and SIS x-clear. Each SWX Europe member chooses which CCP they will use for each jurisdiction of security. Both LCH.Clearnet and SIS x-clear stand as Central Counterparties to their members and offer full clearing services across all eligible SWX Europe traded securities.

The inter-operation between LCH.Clearnet and SIS x-clear for trades results from orders matched between LCH.Clearnet members and SIS x-clear members. This is achieved by the CCP's operating accounts within each other's operations.

LCH.Clearnet Ltd members and SIS x-clear members see only their own CCP as counterparty. Additionally, each CCP sees only their own members, with the other CCP being both the contractual and settlement counterparty for a trade executed by a member of the other CCP.

The SWX Europe market model is shown under Clearing & Settlement Model.