Eurex Clearing has announced it has successfully transferred all customer positions and wound down all proprietary positions of Lehman Brothers International (Europe) in an orderly and tim
Eurex Clearing has announced it has successfully transferred all customer positions and wound down all proprietary positions of Lehman Brothers International (Europe) in an orderly and timely manner. The exposure was at all times fully covered by collateral placed by the Lehman subsidiary at Eurex Clearing.
Lehman Brothers International (Europe) was placed into administration on September 15, a move followed by the suspension of its clearing licenses by Eurex Clearing. The process was handled in co-ordination with PricewaterhouseCoopers as administrator, Lehman Brothers International (Europe), as well as the affected general clearing members taking over Lehman customer positions and all affected non-clearing members.
The outcome of this combined effort saw 99 percent of all customer positions successfully transferred by the close of business on September 19, with the balance completed on September 22.
Open proprietary positions were also smoothly unwound in co-operation with Lehman Brothers International. There was no need at any time to draw on any of the lines of defense of the clearing house, such as the Clearing Fund.
‘The professional assistance of Lehman Brothers International staff and all third parties involved in conjunction with Eurex Clearing ensured a speedy, controlled and auditable transfer in the interest of all customers and the marketplace,’ says Thomas Book, a member of the Eurex executive board and head of clearing.
‘This was a unique situation, one that required tried and tested clearing processes combined with robust risk management systems, further underlining the benefits that state-of-the-art clearing houses offer to the financial markets.’
