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Dutch bank De Volksbank joins Eurex’s ISA Direct



International derivatives exchange and a member of the Deutsche Börse Group, Eurex, has just announced that Utrecht-based financial services provider, De Volksbank is the first Dutch bank to join its ISA Direct model.

The announcement noted that ABN AMRO Clearing Bank is acting as Clearing Agent.

Adam Husted, Head of Membership Sales and Relationship Management at Eurex, said:

Adam Husted, Eurex
Adam Husted
Source: LinkedIn

We are delighted to welcome de Volksbank to ISA Direct, and thank both them and ABN AMRO Clearing for supporting this initiative. With several notable recent client wins, our direct access model – which offers the market real benefits in terms of balance sheet optimization and risk management – continues to grow in strength.

ISA Direct allows a vast number of institutions to benefit from large liquidity pools and greater capital efficiencies by providing a direct clearing connection. This setup also includes augmented security from Eurex’s risk management framework. In this way, ISA Direct offers tangible benefits over traditional clearing models or maintaining bilateral arrangements.

Eurex

The original announcement noted that the onboarding of de Volksbank shows ISA Direct’s versatility. The statement highlighted that a range of institutions, including banks, stand to benefit from the reduced balance sheet impact that comes from opening a direct clearing relationship with the CCP.

Edwin de Hoogen, at de Volksbank, commented:

The benefits of combining OTC IRS and repo clearing make Eurex’s ISA Direct a very attractive proposition for us, and the new TARGET2 functionality has really enhanced the business case. Onboarding at Eurex was extremely smooth and we are grateful to ABN AMRO Clearing for their work as Clearing Agent.

Alexander Jacobs at ABN AMRO Clearing Bank, added:

We were once again happy to act as Clearing Agent and facilitate the onboarding of another client for Eurex’s innovative ISA Direct model. The introduction of a separate TARGET2 account has certainly enhanced the functionality on offer.  This additional feature makes it a safe and highly resilient solution, for both agents and members.

Eurex recently announced broadening its presence across Asia, with the launch of options and futures on the MSCI China Hong Kong Listed Large Cap as well as the MSCI Hong Kong Listed Large Cap indexes.

Eurex revealed in March it is expanding its equity index segment with 12 new factor futures as the demand for factor-based instruments increases. The company also recently decided to expand the EURO STOXX 50 Total Return Futures as a response to strong demand from market participants.

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Dutch bank De Volksbank joins Eurex’s ISA Direct

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