Colt Connects Clearing Houses of EuroCCP and EMCF

Information delivery platform Colt has connected the offices of clearing houses EuroCCP and European Multilateral Clearing Facility (EMCF) as they combine to form Europe’s largest pan-European clearing house EuroCCP NV.

The Dutch clearing house EMCF and its UK competitor EuroCCP announced their plans to combine in March 2013. Once the activity was approved by the UK’s Office of Fair Trading (OFT) in October, they wanted to move quickly to connect the Amsterdam and London offices ahead of the transaction being completed in January 2014.

As an established provider for EuroCCP, Colt had previously delivered services to a tight deadline when industry regulations meant that EMCF needed a separate infrastructure from its parent bank in 2009. EuroCCP therefore asked Colt to swiftly implement its optimum managed networking services ahead of the deadline.

EuroCCP manages more than six million European transactions each day, clearing stocks across 19 markets, including Bats Europe, Stockholm-based Burgundy and London Stock Exchange Group (LSE)’s Turquoise. EuroCCP offers automated clearing-house services that reduce risk and improve liquidity, meaning that its information and communication technology (ICT) infrastructure is at the core of the business. Any loss of connectivity would impact EuroCCP’s ability to monitor its clearing activity, while delays in clearing trades could create unacceptable levels of risk to its clients and potentially the pan-European equities trading eco-system.

Colt has provided managed networking services to EuroCCP since 2009. Colt’s managed internet protocoal virtual private network (IP VPN) service; part of its optimum connectivity services, now connects the Amsterdam headquarters with both the London office and four data centres. EuroCCP also uses Colt’s SWIFTNet service for secure connectivity to the SWIFT IP network, to ensure secure bank transaction messaging such as payment instructions.

“Our markets are very competitive,” says Albert-Jan Huizig, chief information officer (CIO), EuroCCP. “We need to keep an eye on our operational costs, even while demand for ICT services keeps growing. With Colt, I can concentrate on improving and extending our technical infrastructure because continuity is a given. We can move with our constantly expanding business requirements without worrying about stability.”

“With over €15bn worth of transactions passing through its systems every day, EuroCCP needs to be confident that their partners have the best combination of expertise, reach and enterprise-grade infrastructure so that they can focus on delivering a high quality, reliable and competitive service,” said Hugh Cumberland, financial services solutions manager, Colt.


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