Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Repo news
  3. Eurex’s ISA Direct gains first EU-domiciled bank as member
Repo news

Eurex’s ISA Direct gains first EU-domiciled bank as member


11 November 2019 Frankfurt
Reporter: Maddie Saghir

Generic business image for news article
Image: Shutterstock
Eurex Clearing has welcomed its first EU-domiciled bank, Raiffeisenlandesbank Niederösterreich-Wien AG (RLB NÖ-Wien), as a member of its direct-access model for the buy side, ISA Direct.

The ISA Direct was launched to support the buy and sell sides in addressing today’s more onerous capital requirements, which have sometimes led to higher fees and wider spreads in the clearing space.

It brings together elements of the traditional client clearing service relationship with direct access for the buy side, allowing a new principal-client relationship between these market participants and the central counterparty.

RLB NÖ-Wien is now a direct clearing member of the central counterparty’s ISA Direct service, with ABN Amro acting as a clearing agent.

According to Alexander Jacobs, head of over-the-counter (OTC) clearing at ABN Amro Clearing, acting as clearing agent, rather than a clearing member, optimises the impact on ABN Amro’s balance sheet and creates opportunities to further expand its central clearing services.

Jochen Bonk, head of fixed income management at RLB NÖ-Wien, added: “Having a direct relationship with Eurex Clearing provides us with a range of advantages in terms of both costs and collateral management.”

“Alongside lower fees, we can now make use of a much wider variety of collateral compared to our previous arrangements with intermediaries,” he added. “Improving the portability of our assets in this way has opened up significant capital and operational efficiencies.”

RLB NÖ-Wien’s addition to the programme follows Swiss Life Asset Managers and PGGM, the Dutch pension fund, which both joined ISA Direct earlier this year.

There are now eight basic clearing members and four agents live on OTC interest rate swaps and repo.
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 Securities 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
→ Collateral
→ Repo

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →