Eurex Clearing, one of the world’s leading central counterparties, will offer clearing services for swap transactions to clients of futures commission merchants (FCMs) domiciled in the U.S., thus expanding its offering. This follows notice by the Commodity Futures Trading Commission (CFTC) that Eurex Clearing has fulfilled all requirements to offer these in addition to the clearing services for futures already provided.
In this context, Eurex Clearing has launched a refined legal framework that complies with the LSOC (Legally Segregated Operationally Commingled) requirements stipulated by the CFTC for the clearing of swap transactions for clients. Citi is among the first banks to connect through the LSOC framework and serve Eurex Clearing‘s new service to their clients.
“The U.S. is an important market for us, and the recognition of our Derivatives Clearing Organizations license and associated LSOC model is very good news as we further expand our global distribution and are now able to serve clients of FCM clearing members,” says Erik Müller, CEO of Eurex Clearing. “With this step, our services have reached the next level, and it underlines Eurex Clearing’s commitment to our clients in the U.S. market.”
“Citi is excited to expand its industry-leading, global clearing offering to support clients who desire to clear swaps with Eurex via the FCM model,” says Christopher Perkins, Global Head of OTC Clearing and FX Prime Brokerage at Citi. “We remain committed to supporting our clients by providing scalable clearing services on clearing houses based on their demand, which has been very strong for the Eurex LSOC offering.”