BATS Chi-X Europe offers a user-driven post trade model for a more efficient European capital market. Trading Participants benefit from pre- and post-trade anonymity, real-time risk management, netting and fungibility at the domestic Central Securities Depository (CSD).

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.

Since launch, all trades on BATS Chi-X Europe have been novated and guaranteed by European Multilateral Clearing Facility N.V (EMCF) and settled at the domestic CSD. Since January 2012, BATS Chi-X Europe has enabled Participants to choose a CCP per market segment by also offering a process known as interoperable clearing. This allows Participants to choose from four CCPs to clear their trades:

• EMCF
• EuroCCP
• LCH.Clearnet Ltd
• SIX x-clear AG

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 BATS Chi-X Europe market model is designed so that Participants can trade, clear and settle European stocks with minimum disruption and full fungibility in the domestic CSD.