Eurex鈥檚 ISA Direct gains first EU-domiciled bank as member
11 November 2019 Frankfurt
Image: Shutterstock
Eurex Clearing has welcomed its first EU-domiciled bank, Raiffeisenlandesbank Nieder枚sterreich-Wien AG (RLB N脰-Wien), as a member of its direct-access model for the buy side, ISA Direct.
The ISA Direct was launched to support the buy and sell sides in addressing today鈥檚 more onerous capital requirements, which have sometimes led to higher fees and wider spreads in the clearing space.
It brings together elements of the traditional client clearing service relationship with direct access for the buy side, allowing a new principal-client relationship between these market participants and the central counterparty.
RLB N脰-Wien is now a direct clearing member of the central counterparty鈥檚 ISA Direct service, with ABN Amro acting as a clearing agent.
According to Alexander Jacobs, head of over-the-counter (OTC) clearing at ABN Amro Clearing, acting as clearing agent, rather than a clearing member, optimises the impact on ABN Amro鈥檚 balance sheet and creates opportunities to further expand its central clearing services.
Jochen Bonk, head of fixed income management at RLB N脰-Wien, added: 鈥淗aving a direct relationship with Eurex Clearing provides us with a range of advantages in terms of both costs and collateral management.鈥�
鈥淎longside lower fees, we can now make use of a much wider variety of collateral compared to our previous arrangements with intermediaries,鈥� he added. 鈥淚mproving the portability of our assets in this way has opened up significant capital and operational efficiencies.鈥�
RLB N脰-Wien鈥檚 addition to the programme follows Swiss Life Asset Managers and PGGM, the Dutch pension fund, which both joined ISA Direct earlier this year.
There are now eight basic clearing members and four agents live on OTC interest rate swaps and repo.
The ISA Direct was launched to support the buy and sell sides in addressing today鈥檚 more onerous capital requirements, which have sometimes led to higher fees and wider spreads in the clearing space.
It brings together elements of the traditional client clearing service relationship with direct access for the buy side, allowing a new principal-client relationship between these market participants and the central counterparty.
RLB N脰-Wien is now a direct clearing member of the central counterparty鈥檚 ISA Direct service, with ABN Amro acting as a clearing agent.
According to Alexander Jacobs, head of over-the-counter (OTC) clearing at ABN Amro Clearing, acting as clearing agent, rather than a clearing member, optimises the impact on ABN Amro鈥檚 balance sheet and creates opportunities to further expand its central clearing services.
Jochen Bonk, head of fixed income management at RLB N脰-Wien, added: 鈥淗aving a direct relationship with Eurex Clearing provides us with a range of advantages in terms of both costs and collateral management.鈥�
鈥淎longside lower fees, we can now make use of a much wider variety of collateral compared to our previous arrangements with intermediaries,鈥� he added. 鈥淚mproving the portability of our assets in this way has opened up significant capital and operational efficiencies.鈥�
RLB N脰-Wien鈥檚 addition to the programme follows Swiss Life Asset Managers and PGGM, the Dutch pension fund, which both joined ISA Direct earlier this year.
There are now eight basic clearing members and four agents live on OTC interest rate swaps and repo.
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