BofA Merrill Lynch and Goldman Sachs have become clearing members of EurexOTC Clear for Interest Rate Swaps (IRS).
By joining this new central counterparty (CCP) for over-the-counter (OTC) derivatives, the clearing members and their clients will be able to expand their preparations for the impending OTC clearing obligations in Europe.
Brooks Stevens, managing director, EMEA head of futures & options and OTC clearing at BofA Merrill Lynch says: “We are committed to offering a market leading clearing solution. EurexOTC Clear provides an additional choice to take advantage of the efficiencies clearing brings, particularly when mandated clearing of OTC products is rolled out in Europe.”
“Goldman Sachs and Eurex have enjoyed strong working relationships through the development of new market initiatives, including EurexOTC Clear for IRS. We have cooperated closely on the individual segregation model which resulted in our joint ability to offer the first client access to this robust asset protection model. We look forward to continuing to partner with the industry and Eurex on this market evolution,” says Stuart Connolly, EMEA head of OTC clearing, Goldman Sachs International.
“We are very pleased to on-board BofA Merrill Lynch and Goldman Sachs as clearing members. This move proves our appealing approach for large sell-side banks. By joining our OTC clearing service, they and their clients are able to realise capital efficiencies while benefitting from enhanced safety and transparency,” says Matthias Graulich, head of business relations and OTC development, Eurex Clearing.
With its new service EurexOTC Clear for IRS, launched on 13 November 2012, Eurex Clearing, a subsidiary of Deutsche Börse, fully integrates the clearing and collateralisation of OTC and listed derivatives in a single clearing house within one single framework. The new service, which will be further expanded in 2014, is one element of Eurex Clearing’s roadmap in preparing for the changing regulatory environment.