Eurex Clearing launches incentive program to support Brexit preparations

Eurex Clearing introduces a CCP Switch Incentive Program until year-end 2019 to support market participants in migrating OTC interest rate derivatives positions.

Regulators and central banks have recently renewed their call on market participants to prepare for all possible Brexit scenarios and reiterated that the EU’s temporary measures for CCPs expire in March 2020.

The incentive program of Eurex Clearing provides for a 100 per cent discount on booking fees for portfolio switches in OTC interest rate derivatives to Eurex Clearing until end of 2019.

Matthias Graulich, Member of the Eurex Clearing Executive Board: “With the Eurex Partnership Program we have built a liquid OTC clearing alternative in the EU27 together with international market participants. The switch incentive program is an important step to help clients migrate positions into the EU27. Switching existing business and conducting new business at Eurex Clearing now seems to be a no-regret move for many firms. We see very competitive euro swap execution prices, and market participants can also take advantage of secondary benefits like lower funding costs”.

Following the launch of the Eurex Clearing Partnership Program at the start of 2018, Eurex Clearing has established a viable EU27-based alternative to clear OTC interest rate derivatives. In the meantime more than 80 Clearing Members and over 250 clients have been on-boarded for swaps clearing. Market share in Euro denominated outstanding volume has been continuously growing to currently 13 per cent.

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