Ownership of EMCF, the Fortis Bank subsidiary that provides clearing services to Instinet Chi-X and Nasdaq OMX, has been passed to the Dutch government as part of a EUR16.8 billion rescue package.
The transfer of Fortis' European Multilateral Clearing Facility into state hands provides reassurance for markets protected by the central counterparty.
Concerns about the solvency of Fortis - and the consequences for market participants sheltered under EMCF - were raised last week by rival European Central Counterparty Limited (EuroCCP), the European subsidiary of The Depository Trust & Clearing Corporation (DTCC) which provides clearing for Turquoise. EuroCCP moved to take advantage of Fortis' troubles by pointing out that the cash collateral given to EMCF by clearing members is exposed to the failure of the bank parent.
Market observers suggest the transfer of the business to the Dutch government will provide some much-needed stability until a private sector buyer can be found for the asset.