Clearing houses connect to each other with Colt network after merger

Colt has been brought in to connect 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.

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Colt has been brought in to connect 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.

As an existing provider of network services to EuroCCP and a previous provider to EMCF, Colt was in the driving seat to be selected to connect the two clearing houses after regulators gave the go ahead for the merger.

Dutch clearing house EMCF and British competitor EuroCCP announced their plans to combine in March 2013. Once the activity was approved by the UK Office of Fair Trading in October, the two clearing houses wanted to move quickly to connect their Amsterdam and London offices.

EuroCCP turned to Colt to implement its Optimum Managed Networking services. 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's Turquoise.

EuroCCP offers automated clearing-house services that reduce risk and improve liquidity. 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 been providing managed networking services to EuroCCP since 2009. Colt’s managed IP VPN service now connects the Amsterdam headquarters of the merged operations with both the London office and four data centres, for fast and secure internal communications and back-office operations.

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.

Albert-Jan Huizig, CIO at EuroCCP, said: "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."

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