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Anticipating Brexit, the French public investment bank, Bpifrance relocates clearing business into the EU

Release date: 16 Dec 2020 | Eurex Clearing

Anticipating Brexit, the French public investment bank, Bpifrance relocates clearing business into the EU

  • Bpifrance successfully switches swap book to Eurex Clearing.

As the legal and regulatory framework for transactions processed or managed from UK territory will be impacted by Brexit, the French public investment bank Bpifrance has transferred its entire portfolio of derivatives, composed mainly of interest rate swaps, from London Clearing House LCH to EU27-based Eurex Clearing.

The transaction was made possible thanks to BNP Paribas who acted as counterparty and clearing broker for Bpifrance. The portfolio was thus transferred smoothly and without any disruption or market impact.

Erik Müller, Chief Executive Officer of Eurex Clearing: “We are pleased that Bpifrance, a major European partially state-owned bank, chose to switch their swap book to Eurex Clearing. Our service provides clients with a liquid EU alternative to clear their interest rate swaps. The volume of long-dated interest rate swaps cleared at Eurex rose to a new record of EUR 56.5 billion (average daily volume) in November, a roughly 4-fold increase over the first half of 2020.”

About Eurex Clearing

Eurex Clearing is one of the leading central counterparties (CCPs) globally. It assures the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection. It clears the broadest scope of products under a single framework in Europe – both listed products and OTC – and accepts the world’s widest spectrum of eligible collateral. Eurex Clearing serves about 200 Clearing Members in 19 countries, managing a collateral pool of EUR 49 billion and clearing trades valued at EUR 11 trillion every month.