Singapore’s United Overseas Bank (UOB) has joined Eurex Clearing, becoming the first Asian member of the derivatives marketplace and clearing house.
UOB can now clear business of Asian and international Eurex trading members and provide the respective services to them.
UOB Bullion and Futures (UOBBF), a wholly-owned subsidiary of UOB, has been a trading member of Eurex Exchange since August 2008 (as a non-clearing member). In 2012, Eurex Clearing received regulatory non-objection from the domestic regulator, Monetary Authority of Singapore, to admit remote clearing members from Singapore.
Terence Ong, head of global markets and investment management at UOB and the chairman of UOBBF, says: “UOB’s Eurex Clearing membership complements the derivative trading services that UOBBF provides on the Eurex Exchange. Our dual membership allows us to offer our clients one-stop broking and clearing solutions that provide lower associated risks and greater peace of mind.”
“We are very pleased that UOB has become our first clearing member in Asia. Having one of the largest banking institutions of the region with its strong financial performance and credit rating on-board is an important step to extend the offering of our clearing capabilities into the Asian time zone and significantly increase our clearing footprint in Asia,” says Thomas Book, CEO of Eurex Clearing.
The admission is another milestone of Deutsche Börse Group’s Asia strategy. Currently, the group is in the process of establishing a new clearing house in Singapore to provide new products and a robust infrastructure across the entire Asian time zone in the long-term.
UOB’s clearing membership is also a boost for the Eurex/TAIFEX Link which was launched yesterday. With this link, Eurex members can trade and clear TAIEX futures and options as daily expiring futures on Eurex Exchange. UOB supports Eurex trading member firms as it offers clearing services for several dozen local trading participants and brokers which intend to trade the new Eurex TAIFEX products out of Taiwan.
“The TAIEX contracts are one of the most heavily traded derivatives in Asia. We believe that trading demand will continue to grow following the launch of the Eurex futures. With UOB Group’s strong regional network, we are able to support our global and regional clients as they trade these contracts outside of Asian time zones and tap into greater market liquidity,” says Ong.