The clearing division of Dutch bank ABN Amro will funnel UK equity trades into EuroCCP, the largest cash equities central clearing house in Europe, in a bid to minimise costs.

EuroCCP is part owned by ABN Amro, with BATS Chi-x Europe, NASDAQ OMX, and the DTCC holding equal stakes. 

In a statement on Thursday, ABN Amro Clearing Bank said all cleared trades in UK shares will be netted into one settlement obligation, regardless of the platform on which the trades took place.

The fusion is set to increase back-office efficiency and reduce operational risk in the settlement chain. 

It will also entirely avoid the post-trade costs associated with multiple settlements for the same stock on the same day.

This month EuroCCP will  become a third provider of clearing services for trades executed on London Stock Exchange’s main market.

Five years ago, regulators approved interoperability among four cash equities CCPs, allowing firms to clear and net all trades through a single provider of their choice.

The other clearers on the LSE are LCH.Clearnet and Switzerland’s SIX x-Clear.