Contact
QR code for the current URL

Press release Box-ID: 192295

Gruppe Deutsche Börse AG Neue Börsenstr. 1 60487 Frankfurt am Main, Germany http://www.deutsche-boerse.com
Contact Gruppe Deutsche Börse AG +49 69 21111500
Company logo of Gruppe Deutsche Börse AG
Gruppe Deutsche Börse AG

Eurex Clearing plans to build European CCP platform for clearing services in OTC derivatives

Initial phase will focus on credit index clearing/ Service complements existing market infrastructure to offer effective counterparty risk management

(PresseBox) (Frankfurt am Main, )
Eurex Clearing evaluates different formats to introduce a central counterparty(CCP) solution for products which are today handled bilaterally over the counter (OTC). It aims to complement current US initiatives with a European
solution. The European OTC CCP platform could utilize existing Eurex Clearing functionality as well as new functionality for trade and risk management.

Eurex Clearing is in discussions with several infrastructure providers concerning their involvement in a new platform. The initial product scope will be the credit default swap (CDS) market, focusing on iTRAXX index exposures that are mainly traded out of Europe. The start for the new clearing solution is envisaged for first half of 2009. An extension to other asset classes (e.g. equity, fixed income) can be handled flexibley according to market demand.

A European OTC CCP platform would increase capital efficiency by reducing balance sheet exposure. It seeks to promote the optimal use of margin deposits, eliminates manual process errors and effectively covers the OTC market's counterparty default risk. "The benefits of our service extension would be increased market stability and capital efficiency. Customers would profit from straight through processing, enhanced collateral management and multilateral netting for OTC trades which currently account for 84 percent of all derivatives traded", says Thomas Book, responsible for Clearing on the Eurex Executive Board.

The new service can deliver an optimal solution for effective risk management services and is designed to address recent developments in the OTC market which suggest that concerns about systemic risk due to the backlog of transaction confirmation and potential counterparty defaults require improvements in the market's infrastructure.

About Eurex Clearing Eurex Clearing is one of the world's leading clearinghouses offering central counterparty services for instruments traded on Eurex, Eurex Bonds and Eurex Repo as well as the Frankfurt Stock Exchange (Xetra® and floor trading) and the Irish Stock Exchange. Central counterparty clearing services provide effective risk management and strengthen financial market integrity. Eurex Clearing is a wholly owned subsidiary of Eurex Frankfurt AG and is jointly operated by Deutsche Börse AG and SWX Swiss Exchange.
The publisher indicated in each case is solely responsible for the press releases above, the event or job offer displayed, and the image and sound material used (see company info when clicking on image/message title or company info right column). As a rule, the publisher is also the author of the press releases and the attached image, sound and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.
Important note:

Systematic data storage as well as the use of even parts of this database are only permitted with the written consent of unn | UNITED NEWS NETWORK GmbH.

unn | UNITED NEWS NETWORK GmbH 2002–2022, All rights reserved

The publisher indicated in each case is solely responsible for the press releases above, the event or job offer displayed, and the image and sound material used (see company info when clicking on image/message title or company info right column). As a rule, the publisher is also the author of the press releases and the attached image, sound and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.