12.17.2020

Bpifrance Switches Swap Book To Eurex Clearing

As the legal and regulatory framework for transactions processed or managed from UK territory will be impacted by Brexit, the French public investment bank Bpifrance has transferred its entire portfolio of derivatives, composed mainly of interest rate swaps, from London Clearing House LCH to EU27-based Eurex Clearing.

The transaction was made possible thanks to BNP Paribas who acted as counterparty and clearing broker for Bpifrance. The portfolio was thus transferred smoothly and without any disruption or market impact.

Erik Müller, Chief Executive Officer of Eurex Clearing: “We are pleased that Bpifrance, a major European partially state-owned bank, chose to switch their swap book to Eurex Clearing. Our service provides clients with a liquid EU alternative to clear their interest rate swaps. The volume of long-dated interest rate swaps cleared at Eurex rose to a new record of EUR 56.5 billion (average daily volume) in November, a roughly 4-fold increase over the first half of 2020.”

Source: Eurex

Related articles

  1. Brexit Muddles Future of UK-EU Linkage

    European firms could operate temporarily in the UK after Brexit while seeking full authorisation.

  2. Brexit Muddles Future of UK-EU Linkage

    The total value of UK financial services exports remained stable in 2020.

  3. Brexit Muddles Future of UK-EU Linkage

    Temporary equivalence was set to expire on June 30, 2022.

  4. Bank of England Endorses SEFs Ahead of European Clearing Launch

    The Bank has new powers for reviewing CCPs following Brexit.

  5. Restricting access to London CCPs would result in collateral damage for EU banks and end users.