Cboe Europe Equities Clearing and Settlement

Cboe Europe Equities (Cboe) offers full clearing interoperability, offering Participants true "user choice" in selecting their Central Counterparty (CCP).

Trading Participants are able to manage counterparty risk and cost by using a Central Counterparty (CCP) as buyer to every seller and seller to every buyer.

Cboe allows Participants to choose a CCP per market segment through a process known as interoperable clearing. This allows Participants to choose from three CCPs to clear their trades:

• Cboe Clear Europe NV
• LCH Ltd
• SIX x-clear AG

Since January 2022, Cboe has further expanded its post-trade model to enable Participants on Cboe NL (DXE) to choose LCH SA as their CCP via preferred clearing. This allows Participants to use LCH SA provided that both counterparties to a trade have selected it as their preferred CCP. If only one counterparty does so, the trade defaults to the interoperable CCP chosen by each Participant.

Post Trade Model

• Every Trading Participant requires a Clearing Participant (GCM equivalent) to guarantee trades / credit risk.
• Every Clearing Participant is required to execute a Clearing Service Agreement with a CCP per market.
• Every Clearing Participant requires a Settlement Agent at the domestic CSD.
• The Cboe market model is designed so that Participants can trade, clear and settle European stocks with minimum disruption and full fungibility in the domestic CSD.