Cboe Clear Europe Participates in ECB’s DLT Experiment

Cboe Clear Europe, the largest pan-European clearing house, has successfully participated in the Eurosystem’s recent exploratory work testing the use of new technologies for the settlement of wholesale transactions in central bank money. The experiments specifically aim to explore the potential of distributed ledger technology (DLT) according to a story in MarketMedia news. Cboe Clear Europe, working alongside ABN Amro Clearing Bank N.V., explored the use of Central Bank Digital Currency (CBDC) as collateral, with the intention of testing the viability of the solution for margin calls outside the opening hours of TARGET, the EU’s cash settlement system. The aim of this participation was to build understanding of new technologies such as DLT and how they could be used to bring greater efficiencies to clearing and settlement. The experiments demonstrated that the use of tokenized cash collateral as a potential solution to the problem of end-of-day collateral calls if the EU do not extend the operating hours of TARGET. “We are keen to explore further experiments in this space and to contribute to the further development of new industry solutions,” said the firm.