The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Eurex Clearing Releases Details for its Credit Derivatives Clearing Solution

Originally appeared in MiFID Monitor

Following the announcements by players such as CME and ICE last week, Eurex Clearing has finally revealed more details about its planned central clearing solution for credit derivatives. According to Eurex, the Deutsche Bundesbank has indicated its support for a European central clearing solution for OTC credit derivatives that will enhance the soundness and stability of European financial markets.

Thomas Book, member of the Eurex Executive Board and responsible for clearing, claims: “Eurex Clearing’s central counterparty clearing model has proven resilient and robust for listed futures and options products, especially during the recent turbulence in the financial markets.

Eurex says it intends to build a consortium structure to provide shared governance and control of the platform. The solution consists of two stages and the first involves Eurex offering a ready to use solution for iTraxx index contracts, as well as certain single name CDS products.

CDX contracts will be added at a later point, subject to signing a license arrangement with Markit, says Eurex. In the first half of 2009, this offering will be complemented by an OTC clearing solution for International Swaps and Derivatives Association (ISDA) documented credit derivatives. The Eurex Clearing solution will also be directly linked into the existing data warehouse infrastructure.

Book says: “Eurex and Eurex Clearing firmly believe that central clearing services are the most suitable option to effectively mitigate existing counterparty risk in OTC credit markets and improve market transparency – both elements are key to a sustainable reduction of systemic risk in credit markets on a global scale.”

Related content

WEBINAR

Recorded Webinar: A new way of collaborating with data

Digital transformation in the financial services sector has raised many questions around data, including the cost and volume of reference data required by each financial institution. Firms want to pick and choose the reference data they need to fulfil their requirements. Emerging solutions with the potential to decrease the cost of data and increase flexibility...

BLOG

Alveo and AquaQ Partner to Integrate Alveo Prime with AquaQ kdb+

Alveo and AquaQ Analytics have partnered to offer advanced data management and analytics for financial services firms. An early deliverable is the integration of Alveo’s Prime data mastering and data quality management solution with AquaQ’s kdb+ data capture solution. The bi-directional integration allows users to take mastered pricing and reference data from Prime into kdb+...

EVENT

TradingTech Summit Virtual

TradingTech Summit (TTS) Virtual will look at how trading technology operations can capitalise on recent disruption and leverage technology to find efficiencies in the new normal environment. The crisis has highlighted that the future is digital and cloud based, and the ability to innovate faster and at scale has become critical. As we move into recovery and ‘business as usual’, what changes and technology innovations should the industry adopt to simplify operations and to support speed, agility and flexibility in trading operations.

GUIDE

Enterprise Data Management, 2010 Edition

The global regulatory community has become increasingly aware of the data management challenge within financial institutions, as it struggles with its own challenge of better tracking systemic risk across financial markets. The US regulator in particular is seemingly keen to kick off a standardisation process and also wants the regulatory community to begin collecting additional...