Eurex Clearing starts offering swap trades for US-based end clients

Eurex reports 192.1 million traded contracts in June

Eurex Clearing, part of Deutsche Börse Group, has successfully executed its very first swap trade for US-based end clients. The company’s swap clearing service has been well-received by US firms with Citibank being the first major firm to offer its clients swap clearing using the Eurex service.

Eight other major financial services companies have also partnered with Eurex to offer its services to their clients located in the US.

Eurex Clearing started offering clearing services for swap transactions to clients of futures commission merchants (FCMs) domiciled in the U.S., in December 2018.

This swap transaction opens a new chapter for Eurex in its US expansion plan given that it currently offer futures clearing to its US-domiciled clients. The firm has been licensed by the Commodity Futures Trading Commission (CFTC) to provide the swaps and futures clearing services within the USA.

Eurex has established a robust legal framework for its clearing service in line with the CFTC’s Legally Segregated Operationally Commingled (LSOC) requirements.

According to Tim Gits, Eurex’s Head of Fixed income Sales within the Americas:

Legal recognition was a prerequisite for offering U.S.-based customers an alternative for swap clearing. We are pleased that Citi is the first FCM to successfully connect several fund companies which are now filling this model with business.

Citi’s Head of OTC Clearing for North America Ms. Mariam Rafi stated that:

Citi is pleased to pioneer FCM connectivity and to partner with Eurex on the launch of the LSOC model. Providing this solution responds to our clients’ desire to access new liquidity venues for euro interest rates. Citi is proud to offer our clients agnostic clearing connectivity to support their evolving business needs.

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