Eurex Clearing’s partnership program gains broad market support

Eurex Clearing’s offer to accelerate the development of a liquid, EU based alternative for the clearing of interest rate swaps gains broad market support. Around 20 market participants from the US, the United Kingdom and Continental Europe already decided to participate in Eurex Clearing’s partnership program. The early sign-up period expires on November 20, and the participants will be disclosed on the Eurex Clearing website.

With this program, Eurex Clearing – one of the world’s leading Central Counterparties (CCP) and part of Deutsche Börse Group – shares a significant part of the revenues of its interest rate swap segment with the ten most active participants. In addition, Eurex Clearing opens its governance structure, thus ensuring that clients participate in the strategic development of the CCP.

“Clients are looking for a market-led alternative to clear interest rate swaps – and we are a committed partner”, says Erik Müller, CEO of Eurex Clearing. “This way we support the financial industry in times of enduring uncertainty and foster choice and competition in the interest rate swap market together with our clients.”

The partnership program is open to all clearing members and Registered Clients of Eurex Clearing. It has been designed in close consultation with major participants in the interest rate swap market including dealers, end-clients and execution venues. Next to regulatory certainty, clients focus on enhanced price transparency and reduced concentration risks.

More than 200 banks and buy-side firms are 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 Euro in July 2017.