In early November 2018, Eurex Clearing made the news for working with BrokerTec Europe Limited in order to launch a new clearing solution for the European repo market, which will be live by the end of this year. Via the BrokerTec platform, market participants choosing to clear repo transactions will begin to consolidate their European repo and corresponding OTC and listed derivatives business under the single risk framework of Eurex Clearing.
Eurex Launches Swap Clearing to Clients of Futures Commission Merchants in the U.S.
Eurex Clearing, one of the leading CCPs globally wholly owned by Deutsche Boerse, has started offering clearing services for swap transactions to clients of futures commission merchants (FCMs) domiciled in the United States, following authorization from the Commodities Futures Trading Commission (CFTC).
Eurex Clearing, which is now licensed to provide clearing services for swaps for U.S. clearing members as well as their customers, has targeted the U.S. as an important market as the company expands globally. The recently obtained Derivatives Clearing Organization license has opened the U.S. market to its services, according to Erik Müller, CEO of Eurex Clearing. “With this step, our services have reached the next level, and it underlines Eurex Clearing’s commitment to our clients in the U.S. market.”
Christopher Perkins, Global Head of OTC Clearing and FX Prime Brokerage at Citi. commented:
“Citi is excited to expand its industry-leading, global clearing offering to support clients who desire to clear swaps with Eurex via the FCM model. We remain committed to supporting our clients by providing scalable clearing services on clearing houses based on their demand, which has been very strong for the Eurex LSOC offering.”
The company has decided to expand its Partnership Program to cover the repo and OTC foreign exchange (OTC FX) segments, which are complementary to the OTC interest rate derivatives segment. As part of its partnership program Eurex Clearing shares governance and economics with the most active program participants, including Commerzbank, Deutsche Bank, J.P. Morgan and Morgan Stanley.