02.11.2019

Eurex Clears First Swap For US End Clients

Eurex Clearing, one of the world’s leading central counterparties (CCP), has cleared its first swap transaction for end clients domiciled in the U.S. Citi is the first futures commission merchant (FCM) offering client swap clearing through Eurex Clearing. Eight fund companies have already joined Citi to take advantage of this service.

The transaction is the next important milestone in Eurex’s strategy to expand its U.S. distribution. As recently as December 2018, the CCP received approval from the Commodity Futures Trading Commission (CFTC) to offer customer swap clearing in addition to the clearing services for futures already provided.

In this context, Eurex Clearing had launched a refined legal framework that complies with the LSOC (Legally Segregated Operationally Commingled) requirements stipulated by the CFTC for the clearing of customer swap transactions.

Tim Gits, Head of Fixed Income Sales Americas at Eurex: “Legal recognition was a prerequisite for offering U.S.-based customers an alternative for swap clearing. We are pleased that Citi is the first FCM to successfully connect several fund companies which are now filling this model with business.”

Mariam Rafi, North American Head of OTC Clearing at Citi: “Citi is pleased to pioneer FCM connectivity and to partner with Eurex on the launch of the LSOC model. Providing this solution responds to our clients’ desire to access new liquidity venues for euro interest rates. Citi is proud to offer our clients agnostic clearing connectivity to support their evolving business needs.”

Source: Eurex

Related articles

  1. 'Brexit' Won't Remove EU Compliance Mandates

    The regulator wants to limit the risk of disruption in central clearing.

  2. This may be the first time a Tier 1 bank will use a public cloud for critical infrastructure.

  3. Instinet Europe Doubles Client Volumes

    MiFID II boosts trading venue's executions of interest rate derivatives.

  4. European CSA Usage to Expand Ahead of MiFID II

    The deals come into force if the UK leaves the EU without a withdrawal agreement.

  5. Renminbi to Become Top Five Currency by 2020

    London wants to be a hub for trading the Chinese currency.