麻豆传媒

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
麻豆传媒
Leading the Way

Global 麻豆传媒 Finance News and Commentary
≔ Menu
麻豆传媒
Leading the Way

Global 麻豆传媒 Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Derivatives news
  3. Eurex expands OTC clearing services to Japan
Derivatives news

Eurex expands OTC clearing services to Japan


13 March 2020 Frankfurt
Reporter: Drew Nicol

Generic business image for news article
Image: Shutterstock
Eurex鈥檚 central counterparty (CCP) is now able to offer its clearing services in Japan, after gaining a licence from the country鈥檚 Financial Services Agency.

Eurex Clearing can now operate as a 鈥榝oreign financial instruments clearing organisation鈥 and allow Japanese financial institutions to directly access its swaps clearing services and combine their listed and over-the-counter (OTC) euro yield curve business in one single place.

The service extension into one of the largest fixed income markets is driven by client demand and will support the momentum of the CCP鈥檚 EU-based liquidity pool for euro Swaps, Eurex says.

The service is already available throughout the EU and US.

In the US, Eurex operates under the associated legally segregated, operationally commingled (LSOC) model. Since it first set out its stall in the US , Eurex says it has onboarded more than 20 clients with over 3,500 registered funds.

In a statement on the new licence, Eurex explains that access to the Japanese market is 鈥渁 logical next step鈥 to expand its liquidity pool.

Japanese institutions are very active in European fixed income futures on Eurex and also have significant exposure in the euro swap market. Japan is one of the largest exchange-traded derivatives and OTC derivatives markets globally.

Christopher Perkins, global head of OTC clearing and foreign exchange prime brokerage at Citi, says: 鈥淐iti is very pleased to extend our unique and differentiated cleared swap connectivity on Eurex to the Japanese market.

鈥淲e look forward to working with Eurex to onboard new clients in Japan.鈥

According to Eurex Clearing, it has developed a strong liquidity pool for clearing euro-denominated interest rate derivatives, mainly through its partnership programme launched in early 2018.

This market-led initiative is designed to further accelerate the development of a liquid, EU-based alternative for the clearing of OTC interest rate derivatives.

It benefits clients and the broader market place through greater choice and competition, improved price transparency as well as reduced concentration risk, says Eurex.

Total notional outstanding of over 鈧18 trillion (as of the end of February) keeps Eurex鈥檚 overall market share at about 18 percent.
← Previous derivatives article

LCH clears first SORA swaps
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 麻豆传媒 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
→ Liquidity
→ Yield
→ Yield Curve

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →