Eurex Clearing launches EurexOTC Clear for ... - Commerzbank
Eurex Clearing launches EurexOTC Clear for ... - Commerzbank
Eurex Clearing launches EurexOTC Clear for ... - Commerzbank
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media release<br />
London and Frankfurt/Main, 15 November 2012<br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> <strong>launches</strong> <strong>Eurex</strong>OTC <strong>Clear</strong> <strong>for</strong> Interest Rate Swaps<br />
New OTC clearing service successfully went live on 13 November 2012/<br />
Launch was supported by 10 clearing members/ First transactions successfully cleared /<br />
Strong Client Asset Protection and high capital efficiency through portfolio risk management<br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong>, Europe’s leading clearing house, announced today that <strong>Eurex</strong>OTC <strong>Clear</strong> <strong>for</strong> Interest<br />
Rate Swaps (IRS) successfully went live on 13 November 2012. The launch was supported by<br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong>’s cooperation banks Barclays, Citigroup Global Markets Ltd., Credit Suisse,<br />
Deutsche Bank and J.P. Morgan. In addition, <strong>Commerzbank</strong>, HSBC, Royal Bank of Scotland, UBS<br />
and Basler Kantonalbank joined the service <strong>for</strong> the production start. All ten members have successfully<br />
cleared their first transactions via <strong>Eurex</strong>OTC <strong>Clear</strong> <strong>for</strong> IRS. BNP Paribas, Goldman Sachs,<br />
Morgan Stanley, Nomura, NORD/LB, Société Générale and further market participants are preparing<br />
to join the service as clearing members. The support from major OTC dealers and <strong>Eurex</strong><br />
<strong><strong>Clear</strong>ing</strong>’s timely launch facilitate preparations <strong>for</strong> the onboarding of buy-side clients ahead of<br />
the start of the clearing obligation in Europe, which is anticipated to commence in the second<br />
half of 2013.<br />
The new OTC clearing service is designed <strong>for</strong> the needs of clients focusing on safety and efficiency.<br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong>’s segregation solution – the so-called Individual <strong><strong>Clear</strong>ing</strong> Model –offers the<br />
strongest protection and portability with full individual segregation of positions and customer<br />
collateral. At the same time, the service will deliver capital efficiencies to promote cost efficient<br />
compliance with the new regulatory requirements based on a variety of factors including a crossproduct<br />
service portfolio, a broad eligible collateral spectrum and <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> Prisma, the<br />
planned portfolio risk management across listed and OTC derivatives.<br />
”Launching a new OTC clearing service is a complex and challenging undertaking. <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong><br />
has been very responsive in building a solution tailored to the specific needs of our buy-side clients.<br />
We see significant interest from buy-side firms <strong>for</strong> the <strong>Eurex</strong>OTC <strong>Clear</strong> service and continue<br />
to work closely with <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> and our clients to onboard in due time to meet the regulatory<br />
requirements and take advantage of the benefits from CCP clearing,” said Piers Murray, Global<br />
Head of OTC Derivatives <strong><strong>Clear</strong>ing</strong> & PB at Deutsche Bank.<br />
“Credit Suisse welcomes the expansion of OTC clearing in Europe. The <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> plat<strong>for</strong>m<br />
offers our clients additional choice <strong>for</strong> clearing OTC products, which is especially important given<br />
the introduction of mandatory clearing requirements, and we’re very pleased, there<strong>for</strong>e, to have<br />
cleared the first customer trade through <strong>Eurex</strong>OTC <strong>Clear</strong>,” said Alex Lenhart, European Head of<br />
Prime Services Listed Derivatives, OTC <strong><strong>Clear</strong>ing</strong> and FXPB at Credit Suisse.
Media Release, 15 November 2012, page 2<br />
Adam Husted, European Head of Product Development – OTC <strong><strong>Clear</strong>ing</strong> at Barclays stated: “We<br />
are delighted to work closely on this project with <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong>. We are confident that this initiative<br />
will result in a valuable, tailored clearing solution <strong>for</strong> our clients.”<br />
Hester Serafini, Head of Europe and Asia OTC <strong><strong>Clear</strong>ing</strong> at J.P. Morgan confirmed: “To deliver the<br />
full benefits to buy-side clients the industry needs to have Client <strong><strong>Clear</strong>ing</strong> Documentation finalized.<br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> – together with major market participants – is very engaged in this industry<br />
ef<strong>for</strong>t. Launching the service in mid-November allows clearing brokers and clients to get ready<br />
<strong>for</strong> the start of the European clearing obligation that we expect to begin in the second half of<br />
2013.”<br />
Guus Warringa, Chief Legal Counsel, Member of the Board, APG Asset Management, said: “The<br />
clearing obligation will alter our business in an unprecedented way. A full segregation solution <strong>for</strong><br />
clients, a capital efficient margining process and a broad range of eligible collateral are essential<br />
elements <strong>for</strong> us in any CCP offering. We welcome <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong>’s OTC offering as it addresses<br />
major requirements of end clients.”<br />
“Over the last months we have jointly shaped our new clearing service. A lot of progress has<br />
been made with the support of market participants, and we are excited to deliver a superior solution<br />
<strong>for</strong> OTC client clearing in Europe. Based on our expertise in risk management and our established<br />
clearing of listed derivatives, we will be able to offer a strong solution in terms of product<br />
coverage, Client Asset Protection and capital efficiency,” added Andreas Preuss, CEO <strong>Eurex</strong>.<br />
With its new service <strong>Eurex</strong>OTC <strong>Clear</strong> <strong>for</strong> IRS, <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> will fully integrate the clearing and<br />
collateralization of OTC and listed derivatives in a single clearing house within one single framework.<br />
The new service, which will be further expanded in 2013, is one important element of <strong>Eurex</strong><br />
<strong><strong>Clear</strong>ing</strong>’s comprehensive roadmap in preparing <strong>for</strong> the changing regulatory environment.<br />
Media Contact:<br />
Heiner Seidel, phone: +49-69-2 11-1 15 00, e-mail: heiner.seidel@eurexgroup.com<br />
About <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong><br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> is one of the leading central counterparties globally – assuring the safety and integrity of<br />
markets while providing innovation in risk management, clearing technology and client asset protection.<br />
<strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> provides fully-automated, straight-through post trade services <strong>for</strong> derivatives, equities,<br />
bonds, secured funding & financing and energy transactions, as well as industry-leading risk management<br />
technologies.<br />
As part of <strong>Eurex</strong> Group, <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong> serves more than 110 clearing members in 10 countries, managing<br />
a collateral pool of around 45 billion euros and processing gross risks valued at almost 10 trillion euros<br />
every month. In 2011, we cleared over two billion derivatives contracts – nearly half of which were traded<br />
OTC.<br />
Find out more at www.eurexclearing.com<br />
<strong>Eurex</strong> Group is comprised of <strong>Eurex</strong> Exchange, the International Securities Exchange, the European Energy<br />
Exchange, <strong>Eurex</strong> <strong><strong>Clear</strong>ing</strong>, <strong>Eurex</strong> Bonds and <strong>Eurex</strong> Repo. <strong>Eurex</strong> Group is owned by Deutsche Börse AG<br />
(Xetra: DB1).