Eurex Clearing partners with seven for new clearing service
31 May 2012 Frankfurt
Image: Shutterstock
Seven banks have agreed to work with European clearinghouse Eurex Clearing of the Deutsche Börse Group on a new clearing service for OTC interest rate swaps (IRS).
Barclays, BNP Paribas, Citibank, Credit Suisse, Deutsche Bank, J.P. Morgan and Morgan Stanley will all support the launch of EurexOTC Clear for IRS that Eurex Clear said will deliver risk management and safety for dealer and client clearing.
The move to set up a new clearing service for OTC IRS comes ahead of European efforts to push OTC trading into clearinghouses with the European Market Infrastructure Regulation.
The service will be ready at the beginning of July 2012 and it will be rolled out in the second half of the year.
“Our industry is facing far-reaching structural changes to meet the clearing mandates for OTC derivatives. We need partners to meet these challenges. Eurex Clearing is a strong player in derivatives markets and is well known for its ability to deliver,” said Christian Mundigo, the global head of rates trading abd co-head of FI Americas at BNP Paribas.
Andreas Preuss, the CEO of Eurex, said: “We are excited to work closely with the leading OTC derivative dealers in rolling out our new service. Our objective is to deliver the market leading solution for OTC client clearing in Europe.
“Our customers will benefit from a broad product coverage across asset classes, full portfolio based risk management across listed and OTC products, strong asset protection and a broad collateral universe.”
Barclays, BNP Paribas, Citibank, Credit Suisse, Deutsche Bank, J.P. Morgan and Morgan Stanley will all support the launch of EurexOTC Clear for IRS that Eurex Clear said will deliver risk management and safety for dealer and client clearing.
The move to set up a new clearing service for OTC IRS comes ahead of European efforts to push OTC trading into clearinghouses with the European Market Infrastructure Regulation.
The service will be ready at the beginning of July 2012 and it will be rolled out in the second half of the year.
“Our industry is facing far-reaching structural changes to meet the clearing mandates for OTC derivatives. We need partners to meet these challenges. Eurex Clearing is a strong player in derivatives markets and is well known for its ability to deliver,” said Christian Mundigo, the global head of rates trading abd co-head of FI Americas at BNP Paribas.
Andreas Preuss, the CEO of Eurex, said: “We are excited to work closely with the leading OTC derivative dealers in rolling out our new service. Our objective is to deliver the market leading solution for OTC client clearing in Europe.
“Our customers will benefit from a broad product coverage across asset classes, full portfolio based risk management across listed and OTC products, strong asset protection and a broad collateral universe.”
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