厙惇勛圖

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
≔ Menu
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Derivatives news
  3. Eurex Clearing expands incentives to switch OTC swap portfolios into the EU
Derivatives news

Eurex Clearing expands incentives to switch OTC swap portfolios into the EU


03 November 2020 Frankfurt
Reporter: Natalie Turner

Generic business image for news article
Image: rh2010 / Adobestock.com
Eurex Clearing, the Deutsche Boerse-owned central counterparty (CCP), has sweetened the terms of its switch incentive programme and extended the deadline by three months until June 2021.

The programme is designed to support and encourage clearing members to transfer existing over-the-counter (OTC) interest rate swap and overnight index swap portfolios at other CCPs to Eurex Clearing.

As part of the incentives, Eurex offers a complete waiver of booking fees for OTC interest rate swaps and overnight index swaps for banks and institutional investors for portfolios transferred to Eurex Clearing.

In order to further entice clearing members, Eurex is now also offering a substantial fee rebate voucher on future transactions in OTC interest rate derivatives. This new voucher rebate model will be applicable until June 2022.

A statement by Eurex reveals: By switching a swaps portfolio of 250 billion, a clearing member would realize an economic benefit of up to 1.5 million.

Eurex Clearing has also renewed its discounts on its gold fee packages giving clearing members a discount of 33 percent, equating to a 3 million saving over this three-year period.

Matthias Graulich, member of the Eurex Clearing executive board, comments: With the expansion of our CCP switch incentive programme, we want to make it easier for market participants to comply with the demands of the regulators and transfer swap business into the EU.

With our offering to clear OTC interest rate swaps within the EU, we are contributing to a more resilient and competitive clearing ecosystem.

Following the launch of the programme, Eurex Clearing has established a EU 27-based alternative liquidity pool for OTC interest rate derivatives. More than 500 banks and buy-side firms have been on-boarded for swaps clearing.

According to Eurex Clearing, the market share in euro-denominated OTC interest rate derivatives in terms of outstanding volume has been continuously growing and currently stands at around 19 percent.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 厙惇勛圖 Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Interest Rate Swap
→ Liquidity

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →