Eurex Admits First US-Based General Clearing Member
In times of crisis, resilience and robustness are essential. In the frequent discussions about the topic, greater diversification of risks among clearing service providers is a recurring theme. We are about to make a valuable contribution by expanding our clearing services to the U.S.
We expand our Clearing Member network for listed derivatives to the US and welcome INTL FC Stone US as our first admitted US-based General Clearing Member (GMC). https://t.co/4ThfowCWqD pic.twitter.com/9P5SfGcYPr
— Eurex (@EurexGroup) June 25, 2018
INTL FC Stone US, a provider of customized financial services, has become our first admitted U.S.-based General Clearing Member (GCM) for Exchange Listed Derivatives.
Matthias Graulich, Member of the Executive Board of Eurex Clearing AG, welcomes the first GCM from the U.S.: “Broadening direct CCP membership reduces the concentration risk inherent in fewer clearing service providers, an important contribution to the stability of the trading and clearing ecosystem.”
The launch of clearing memberships from the U.S. permits eligible firms to clear own and client accounts for CFTC-certified instruments. This allows them to better serve their regional clients, to reduce costs by improving process efficiency and to more flexibly leverage their domestic capital base.
Currently, Eurex Clearing serves about 200 Clearing Members in now 21 countries, managing a collateral pool of over EUR 50 billion and clearing trades valued at over EUR 500 billion each day. The U.S. Market accounts for over 20% of global Eurex ETD volume in CFTC-certified derivative products, representing a daily volume of roughly 2.5 million contracts.
Temporary equivalence is set to expire on June 30 2022.
IRS trading volumes have fragmented without an equivalence agreement.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.
CEDX opened on 6 September, offering contracts on Cboe Europe single country and pan-European indices.