05 April 2017
Frankfurt
Reporter: Drew Nicol

Eurex secures KfW as IRS clearing client


German government-owned investment bank KfW has looked to Eurex Clearing for interest rate swaps (IRS) clearing services.

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.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
No further SFT regulations on the horizon, says European Commission
20 October 2017 | Paris | Reporter: Jenna Lomax
article synopsis 300 characters only so it fits to three lines. always add three periods to finish synopsis...
LEI compliance is non-negotiable, says ESMA
20 October 2017 | Paris | Reporter: Jenna Lomax
Steven Maijoor, chair of ESMA stated that there is no room for negotiation where legal entity identifiers are concerned
US appeals court dismisses US equity lending mismanagement case
20 October 2017 | Missouri | Reporter: Drew Nicol
Allegations of mismanagement of a securities lending programme brought by two US Bank pension beneficiaries was dismissed by the US Court of Appeals for the Eighth Circuit this week
Clearstream promises post-Brexit services continuity
19 October 2017 | London | Reporter: Jenna Lomax
Clearstream confirmed it will continue to offer stable custody services to its UK-based clients no matter how the Brexit negotiations evolve
EU commission lays down the law on MiFID II compliance
19 October 2017 | Brussels | Reporter: Jenna Lomax
Belgium, Malta, France, Greece, Luxembourg, Netherlands, Portugal, Spain and Sweden are among the 19 infringing member states due to face the commission’s wrath
Margin rules depress derivative contract terms, survey finds
19 October 2017 | Brussels | Reporter: Jenna Lomax
Only few changes were reported regarding credit terms and conditions with respect to non-centrally cleared OTC derivatives
AAOI and Euronav top FIS hot stocks lists
18 October 2017 | London | Reporter: Jenna Lomax
The Belgium-based operator of crude oil tankers and storage facilities, has been a regular feature on the list in the last month