Eurex Clearing offers cross-margining of swaps and futures to buy side
27 January 2022 Germany
Image: AdobeStock/simpLine
Eurex Clearing has enhanced its cross-product margining algorithm, enabling buy-side firms to offset margin for fixed-income futures and interest rate swaps cleared through its platform.
The Deutsche Börse-owned clearing entity confirms that Societe Generale and BNP Paribas are now offering cross-product margining services to clients and that the first multi-strategy hedge fund, with multi-billion assets under management, is now taking advantage of this facility.
Given the growing liquidity in euro clearing at Eurex, large asset managers are now considering the possibility of bundling their portfolios across listed and OTC interest rate business and reaping the benefit of margin and capital efficiencies, notes the Frankfurt-based clearer.
Eurex says that it recently adjusted its cross-product margin algo, removing maturity constraints and enabling optimisation across the full euro yield curve. It has also improved access to its margin calculator, which is now available via application programming interface (API).
Matthias Graulich, member of the executive board at Eurex Clearing, says: “To assist regulators with their continued calls to reduce euro swaps exposure outside of the EU, cross margining is another piece in the puzzle to grow our share in euro clearing.
“While the functionality has been available on the Eurex side for a while, the strong and robust euro swaps liquidity picture has triggered client demand and implementation on the clearing member side, making this functionality available to their clients.”
Societe Generale’s head of prime brokerage clearing for EMEA Jamie Gavin adds: “Societe Generale is pleased to be at the forefront of continued innovation within the futures and cleared OTC markets, offering cross product margin capabilities to our clients and enabling significant margin and capital efficiencies that they bring.”
The Deutsche Börse-owned clearing entity confirms that Societe Generale and BNP Paribas are now offering cross-product margining services to clients and that the first multi-strategy hedge fund, with multi-billion assets under management, is now taking advantage of this facility.
Given the growing liquidity in euro clearing at Eurex, large asset managers are now considering the possibility of bundling their portfolios across listed and OTC interest rate business and reaping the benefit of margin and capital efficiencies, notes the Frankfurt-based clearer.
Eurex says that it recently adjusted its cross-product margin algo, removing maturity constraints and enabling optimisation across the full euro yield curve. It has also improved access to its margin calculator, which is now available via application programming interface (API).
Matthias Graulich, member of the executive board at Eurex Clearing, says: “To assist regulators with their continued calls to reduce euro swaps exposure outside of the EU, cross margining is another piece in the puzzle to grow our share in euro clearing.
“While the functionality has been available on the Eurex side for a while, the strong and robust euro swaps liquidity picture has triggered client demand and implementation on the clearing member side, making this functionality available to their clients.”
Societe Generale’s head of prime brokerage clearing for EMEA Jamie Gavin adds: “Societe Generale is pleased to be at the forefront of continued innovation within the futures and cleared OTC markets, offering cross product margin capabilities to our clients and enabling significant margin and capital efficiencies that they bring.”
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