Post trade services provider CC&G signs CCP clearing agreement with CCP.RO BUCHAREST

Maria Nikolova

CC&G, part of LSEG, will provide CCP.RO BUCHAREST S.A. of the Bucharest Stock Exchange Group with CC&G’s Clearing and Risk Management solution.

Provider of post trade services Cassa di Compensazione e Garanzia (CC&G), part of London Stock Exchange Group (LSEG), has announced its entry into an agreement to provide CCP.RO BUCHAREST S.A., part of Bucharest Stock Exchange (BVB) Group, with consultancy and technological support to clearing and risk management services that will be managed by CCP.RO BUCHAREST S.A. for all asset classes traded in the Romanian market. CCP RO BUCHAREST S.A. is establishing a central counterparty clearinghouse (CCP) for Romanian markets.

Each legal entity will remain fully responsible for its own distinct CCP activity. The seven-year agreement adds a new dimension to CCP cooperation by allowing the Romanian central counterparty to focus on its market requirements while leveraging CC&G’s clearing and risk management expertise and robust IT architecture.

CCP.RO BUCHAREST S.A. will host the infrastructure that will relaunch the derivatives market in Romania and will provide new mechanisms for mitigating and transferring the risks for the markets operated by BVB and OPCOM, thus enhancing the confidence and activity in these markets. The CCP will interpose between the parties of the transaction becoming a counterparty for each buyer, respectively the seller, and will guarantee the completion of the settlement of the transaction by applying specific mechanisms for risk management.

For the investors or the participants operating on the local capital market, the existence of the CCP will allow the introduction and development of transactions with derivative financial instruments (having as underlying assets equities, commodities, bonds, indices, exchange rates etc.).

Marco Polito, CEO of CC&G, comments:

“CC&G’s agreement with CCP.RO BUCHAREST S.A. represents a landmark project, beneficial to the entire Romanian financial community. This agreement is part of our commitment to simultaneously supporting multiple CCPs across geographies, fostering financial growth and ensuring full compliance with the current European CCP regulatory framework of EMIR and world-wide CCP principles. This agreement is a further step towards the growth of the CC&G clearing services internationally and will lead to further positive developments for both parties and stakeholder communities.”

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