CC&G (Cassa di Compensazione e Garanzia) launches new central counterparty service for Italian Government Bonds traded on the MTS market
An example of international inter-operability between central counterparties
CC&G (Cassa di Compensazione e Garanzia), a Borsa Italiana Group company, is pleased to announce the launch of a new central counterparty (CCP) service for Italian Government Bonds traded on MTS, the leading market in Europe for the trading of fixed income securities.
Following an agreement signed with MTS, the new service is provided in partnership with the French central counterparty LCH.Clearnet S.A. and enables brokers to clear their contracts with the respective central counterparty. The co-operation is an example of increasing international inter-operability between markets and post trading service providers for the benefit of all market participants.
CC&G and LCH.Clearnet S.A. have set up an interoperability mechanism which makes it possible for brokers to remain anonymous on the trading platform and to settle the netting and clearing margins arising from trading performed by the respective members through one single virtual central counterparty service. This service is achieved notwithstanding the presence of two different CCPs on the market.
The first intermediary to take benefit of this service has been Banca Nazionale del Lavoro and other leading banks have already signed up to participate in the service which is expected to extend quickly to other MTS operators.
There are now three market companies to which CC&G provides its services: MTS and Borsa Italiana, where anonymity, netting and guarantee services are offered through the central counterparty mechanism and TLX, where the contracts traded are guaranteed by a specific Guarantee Fund.
CC&G constantly monitors developments on the European and international financial markets in order to enlarge the non-captive business of the Borsa Italiana Group and to provide market participants with innovative and advanced services.
CC&G (Cassa di Compensazione e Garanzia S.p.A.), set up in 1992 and majority controlled by Borsa Italiana which bought the controlling interest in 2000, is responsible for managing the Central Counterparty System (CCP) and the Contract Guarantee Funds.
Milan, 17 August 2004
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