Eurex takes step into USD swap market
05 November 2021 Germany
Image: Nuthawut/stock.adobe.com
Eurex has announced that it will partner with several banks to strengthen its USD clearing services.
Deutsche Bank, J.P. Morgan and LBBW are now the first movers providing electronic Eurex USD prices on Tradeweb’s interest rate swaps platform, with further banks preparing to start streaming soon.
Owing to the increasing demand from EU end-clients for additional currencies, Eurex says this move will better allow them to migrate their euro-heavy portfolios to Eurex, whilst keeping their full exposure in a single clearing house.
The visibility of two-way Eurex USD prices from dealers is therefore said to be an important step in Eurex’s efforts to create a stable and competitive ecosystem for euro clearing in Europe.
Danny Chart, head of fixed income business development at Eurex, says: “Our primary target is to build a liquid alternative for euro swaps in the EU. However, it is important for many EU-based firms that predominantly run euro portfolios, to be able to clear their multi-currency portfolio in a single CCP. We therefore truly appreciate the contributions of the banks supporting USD clearing.”
Dr. Thilo Roßberg, head of FICC Markets at LBBW, comments: “Our focus as a swaps market maker is to provide competitive prices at Eurex, with USD being a key part of this. As a pioneer in streaming Eurex USD swaps, we have long been providing our customers with a reliable supply of liquidity in order to establish a viable EU based CCP liquidity pool.”
Deutsche Bank, J.P. Morgan and LBBW are now the first movers providing electronic Eurex USD prices on Tradeweb’s interest rate swaps platform, with further banks preparing to start streaming soon.
Owing to the increasing demand from EU end-clients for additional currencies, Eurex says this move will better allow them to migrate their euro-heavy portfolios to Eurex, whilst keeping their full exposure in a single clearing house.
The visibility of two-way Eurex USD prices from dealers is therefore said to be an important step in Eurex’s efforts to create a stable and competitive ecosystem for euro clearing in Europe.
Danny Chart, head of fixed income business development at Eurex, says: “Our primary target is to build a liquid alternative for euro swaps in the EU. However, it is important for many EU-based firms that predominantly run euro portfolios, to be able to clear their multi-currency portfolio in a single CCP. We therefore truly appreciate the contributions of the banks supporting USD clearing.”
Dr. Thilo Roßberg, head of FICC Markets at LBBW, comments: “Our focus as a swaps market maker is to provide competitive prices at Eurex, with USD being a key part of this. As a pioneer in streaming Eurex USD swaps, we have long been providing our customers with a reliable supply of liquidity in order to establish a viable EU based CCP liquidity pool.”
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