In a joint statement on the partnership, Eurex stated that onboarding of KfW significantly increases the liquidity of EurexOTC and makes its offering even more attractive.
Eurex Clearing has recorded a 30 percent increase in swaps volumes cleared by EurexOTC Clear since the beginning of 2017. The notional outstanding is now more than €1.2 trillion.
The European Market Infrastructure Regulation (EMIR) requires standardised IRS transactions to be centrally cleared, but KfW is exempted from this requirement.
The bank will voluntarily clear swaps in order to increase settlement efficiency of the transactions it uses to hedge against interest rate changes.
“With KfW we won an additional and very important member for our service EurexOTC Clear,” said Erik Müller, CEO of Eurex Clearing.
“At a time of rising regulatory requirements and continuing geopolitical uncertainty, we deliver attractive and efficient solutions that we build out in constant dialogue with our customers.”
Günther Bräunig, a board member at KfW responsible for capital markets, added: “We welcome the expansion of our cooperation with Eurex Clearing by the clearing of Euro denominated interest rate derivatives.”