Eurex Gains Direct Clearing Connectivity on Partnership with CME Group’s Traiana

Deutsche Borse Group’s brokerage arm Eurex Exchange has partnered with trade infrastructure solutions provider Traiana which has facilitated Eurex to gain direct clearing connectivity access. Eurex exchange primarily deals with German and Swiss debt instruments and various European stocks and indices. As part of the deal between two parties, Traiana provides Eurex clients with end to end clearing solutions for OTC interest rate swaps on various trading venues. Traiana is a wholly owned subsidiary of American financial services provider CME Group. Traiana’s main focus is on trade life cycle and risk management solutions while it also providing infrastructure services to clients across the globe. Eurex clients can now submit traders executed on electronic trading venues for direct clearing and benefit from Traiana’s Credit risk hub which facilitates pre-trade checks for client orders placed on regulated trading venues and post trade checks for voice executed trades.

The verifications are mandatory regulatory requirements under MiFID II in Europe and Dodd-Frank in the United States. Traiana has claimed that clearing members at Eurex will be able to manage clients limits better now owing to gaining access for direct central clearing connectivity network. Eurex said this move for partnership was influenced by increasing demand from the market for Eurex’s OTC IRD clearing services. When speaking about the deal between Traiana and Eurex, Danny Chart, head of business development at Eurex clearing commented “Traiana’s clearing services are an essential part of the OTC clearing process and their efficient management of clearing workflows will allow our members and end clients to streamline processing IRS transactions on both a pre and post-trade basis”.

On same topic, Steve French, head of connectivity and messaging at Traiana stated “This connectivity agreement is well-timed for market participants keen to use our services to consolidate their OTC clearing processes and benefit from an increase in clearing activity at Eurex”. Aside from this deal, Eurex has been highly active this year focusing on expanding its income venues and features available to clients with most recent move being introduction of swap trades feature for US based end clients. This move was announced during early February this year and has been well received in US market with Citi Bank being one of its first and major clients to provide its users with swap rates using Eurex’s service. It should also be noted that Traiana made a similar deal earlier this year with Hong Kong Exchange. In this case, the exchange obtained direct central clearing connectivity with a focus on FX assets.

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