Cinnober Financial Technology today announced the signing of a prestigious order with Euronext, the pan-European exchange group. The deal is for a trade validation and confirmation solution that will run on the proven TRADExpress technology and be adapted to Euronext’s specific requirements.
The service, planned to be launched with equity derivatives in the spring of 2015, enabling bilaterally agreed trades in derivative products with certain flexible parameters to be reported to Euronext and cleared by their central counterparty, LCH.Clearnet SA.
“We are very excited to be providing this solution in partnership with Cinnober and LCH.Clearnet SA, which responds directly to institutional client demand for us to broaden our derivative franchise,” says Lee Hodgkinson, Head of Markets and Global Sales at Euronext. “Against the backdrop of the G20 post-crisis reform programme of increased transparency and reduced systemic risk in derivative markets, we will be positioning our service to deliver clients with the capital efficiency and risk management benefits of central clearing. This initiative will allow us to boost the competitiveness of our existing and recently launched products, and will be the springboard for expansion into new derivative products and asset classes, as it directly provides us with opportunities to develop closer links to a broader section of the trading community.”
The new Euronext service will allow investors to create derivative instruments through either a web interface or a dedicated electronic connection, and to report trades with vital details that go beyond those in the central order book. Clients will also enjoy the capital and operational efficiencies of clearing flexible trades in the same clearing pool as their existing Euronext positions.
“What we see now is a new era that requires innovative and customized trade management and post-trade solutions. We look forward to deploying another next-generation solution, this time for an important part of the European derivatives and equities markets,” says Veronica Augustsson, CEO of Cinnober. “Euronext is a player of great caliber, with a long history and exciting future prospects. We’re proud of their trust and this order is a crowning moment in a decade-long series of collaborations with organizations affiliated with Euronext.”
Cinnober is a world-leading supplier of financial technology to marketplaces and clearinghouses. Customers include major global players with extreme demands on reliability and performance, such as BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear and the Stock Exchange of Thailand.