Eurex Clearing (Eurex) is to offer an incentive programme to support buy-side clients who are starting clearing over-the-counter (OTC) interest derivatives rates positions in the EU.
Eurex aims to encourage active account use in the EU by providing a reward of up to €50,000 for those who begin clearing OTC interest rate, overnight index basis, or zero-coupon inflation swaps through their platform in 2023.
The announcement is in line with the regulatory goal to replace reliance on central counterparty clearing houses outside of the EU with increased euro clearing. Earlier this year, the European Commission urged market participants to reduce their exposures to UK market infrastructures.
Matthias Graulich, a member of the Eurex Clearing executive board, says: With this targeted incentive programme for buy-side clients, we again demonstrate our strong commitment for a market-led solution which is designed to further accelerate the development of a liquid, EU-based alternative for the clearing of OTC interest rate swaps.
“Especially against the backdrop of enduring uncertainty, changing rates and an increased need for hedging a broader marketplace through greater choice, improved price transparency, as well as reduced concentration risk, is more important than ever.”
