Barclays to offer its U.S. clients alternative liquidity pool in euro interest rate swap clearing via EurexOTC Clear

Barclays to offer its U.S. clients alternative liquidity pool in euro interest rate swap clearing via EurexOTC Clear

Barclays to offer the Eurex’s OTC clearing services through its U.S. registered FCM

(PRESS RELEASE) FRANKFURT AM MAIN, 14-Jun-2019 — /EuropaWire/ — EurexOTC Clear has just announced that the transatlantic consumer and wholesale bank Barclays has joined its OTC clearing services in the United States. Together with Barclays, EurexOTC Clear will expand its distribution network in the U.S. as well its global footprint. The bank has indeed become the first European bank to offer Eurex’s OTC clearing services through its U.S. registered futures commission merchant (FCM) to U.S. clients. EurexOTC Clear and Barclays have just successfully cleared their first transaction.

The addition of Barclays to the EurexOTC Clear, is an indication of the continuing increase in U.S. demand for Eurex’s OTC clearing services. Furthermore, Citi has become the first U.S.-based FCM to start offering its clients swap clearing through Eurex Clearing in the first quarter of 2019. In addition to Citi and now Barclays both Bloomberg and Tradeweb, two U.S.-based Swap Execution Facilities (SEF), have recently (early 2019) established direct connectivity with Eurex OTC clearing granting U.S. clients the ability to directly submit their executed swap transactions to Eurex Clearing.

Commenting on the connection of Barclays to Eurex Clearing, Stephen Li, Barclays Head of ADS Americas said:

“We are pleased to connect to Eurex Clearing from the U.S. as it demonstrates Barclays’ commitment to provide choice and meet clients’ needs for an alternative liquidity pool in euro interest rate swap clearing.”

Eurex’s Head of Fixed Income Sales Americas, Tim Gits, commented further:

“Barclays is a great addition to our EurexOTC Clear offering and a testament to the growing interest we are experiencing in the U.S. The growth we have seen from U.S. institutions since receiving CFTC approval in late 2018 has been very encouraging, and the number of FCMs and clients in the pipeline is very promising.”

The Commodity Futures Trading Commission (CFTC)’s approval for Eurex Clearing in order to offer customers swap clearing in the U.S. has been received in December 2018. Following the CFTC approval, Eurex Clearing now offers both futures and swap clearing services.

The CFTC has LSOC (Legally Segregated Operationally Commingled) requirements in place for the clearing of customer swap transactions and Eurex Clearing had launched a legal framework that is in compliance with those requirements.

About Eurex Clearing

Eurex Clearing offers clearing services to some 200 Clearing Members in 20 countries, and manages a collateral pool of EUR 56 billion and clearing trades valued at EUR 23 trillion (double counted) every month.

About Barclays

Barclays has over 325 years of history and expertise in banking. While the bank is strong in its home markets the UK and the US it operates in over 40 countries around the world. Barclays has more than 83,000 employees globally.

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SOURCE: Deutsche Börse Group