Eurex Clearing has developed a partnership program designed to
accelerate the development of a liquid, EU based alternative for the
clearing of interest rate swaps. Eurex Clearing has designed the program in
close consultation with major participants in the interest rate swap market
including dealers, end-clients and execution venues. The performance based
program aims to build a balanced ecosystem where responsibilities and benefits
are fully aligned between all participants in terms of economics and
Eric Müller, CEO Eurex Clearing, said: “This market-led initiative will
benefit clients and the broader market place through greater choice and competition,
improved price transparency as well as reduced concentration risk.”
The highly efficient set-up of Eurex Clearing with a state of the art
technology and risk management platform is the foundation for making this
program a success for all stakeholders and the market as a whole. The ten most
active program participants will be eligible for a significant share in the
economics of the multi-currency interest rate swap offering of Eurex Clearing
on a permanent basis. In addition, these clients will be included in the
governance and committee structure of Eurex Clearing AG. Participation is open
to all clearing members and Registered Clients of Eurex Clearing. The program
is open for registration as of 9 October 2017. Clients who register for the
program in the early registration phase until 20 November 2017 will benefit
from an extra reward.
Bank of America Merrill Lynch, Citigroup, Commerzbank, Deutsche Bank, J.P.
Morgan and Morgan Stanley are among the clients who already registered their
early interest to participate in the Eurex Clearing partnership program.
Jerome Kemp, Global Head of Futures, Clearing and Collateral at Citigroup
stated: “We welcome this market-led initiative to promote greater choice,
flexibility and transparency for our global client base.”
Sam Wisnia, Global Head of Rates and FX at Deutsche Bank, said: “This program
is a constructive contribution to help the market place navigate the political
and regulatory challenges facing our industry.”
“This initiative will bring greater choice and transparency to the market as
well providing the opportunity for greater risk diversification and resiliency.
We view these as important developments to benefit all market participants,”
said Charles Bristow, Co-Head of Global Rates Trading, J.P. Morgan.
More than 200 banks and buy-side firms are already connected to the interest
rate swap clearing service of Eurex Clearing, among them all major US, UK and
continental European banks active in this market. Eurex Clearing utilizes the
proven and highly scalable technology and risk management systems of Deutsche
Börse Group and has permanent access to the European Central Bank (ECB) through
its full banking license. Eurex Clearing cleared around 180 million
transactions per month in 2017 for its global client base across all asset
classes. The notional cleared in interest rate swaps at Eurex Clearing has
crossed 2 trillion in July 2017.