Eurex Clearing to clear Dutch State Treasury Agency interest rate swaps
08 May 2018 Frankfurt
Image: Shutterstock
The Dutch State Treasury Agency has decided to enable central clearing of euro-denominated interest rate swaps via Eurex Clearing in Frankfurt for the State of the Netherlands.
As a debt management office, the Dutch State Treasury Agency is exempt from the obligation to clear swaps through a central counterparty (CCP).
However, it has investigated options to clear its interest rate swaps centrally for risk management reasons and opted for the services of Eurex Clearing.
It is expected to operationally start clearing at the end of the year at the earliest, having signed an agreement on 8 May.
Erik Müller, chief executive of Eurex Clearing, said: “The Dutch State Treasury Agency is a very important new clearing member for us. We continue to expand our services for the over-the-counter markets to best support the needs of the financial industry, policymakers and regulators.”
In the official announcement of the agreement, Eurex Clearing noted strong demand for clearing services for over-the-counter derivatives.
It added that central clearing of such transactions significantly increases the safety and stability of the financial system. CCPs calculate risks in real-time and demand adequate collateral. Moreover, they guarantee settlement of transactions.
Eurex Clearing said that swap volumes cleared by it continue to grow. Since the beginning of this year, it said, it has recorded a very significant increase of clearing volumes as part of its partnership programme.
The notional outstanding has reached more than €5 trillion as per April this year.
As a debt management office, the Dutch State Treasury Agency is exempt from the obligation to clear swaps through a central counterparty (CCP).
However, it has investigated options to clear its interest rate swaps centrally for risk management reasons and opted for the services of Eurex Clearing.
It is expected to operationally start clearing at the end of the year at the earliest, having signed an agreement on 8 May.
Erik Müller, chief executive of Eurex Clearing, said: “The Dutch State Treasury Agency is a very important new clearing member for us. We continue to expand our services for the over-the-counter markets to best support the needs of the financial industry, policymakers and regulators.”
In the official announcement of the agreement, Eurex Clearing noted strong demand for clearing services for over-the-counter derivatives.
It added that central clearing of such transactions significantly increases the safety and stability of the financial system. CCPs calculate risks in real-time and demand adequate collateral. Moreover, they guarantee settlement of transactions.
Eurex Clearing said that swap volumes cleared by it continue to grow. Since the beginning of this year, it said, it has recorded a very significant increase of clearing volumes as part of its partnership programme.
The notional outstanding has reached more than €5 trillion as per April this year.
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