SEB is the first financial institution to receive full remote clearing membership of both the Chicago Mercantile Exchange and the Chicago Board of Trade.
The Chicago Board of Trade (CBOT?) and Chicago Mercantile Exchange, Inc. (CME) confirmed that European remote clearing for their products is being utilised for the first time via Skandinaviska Enskilda Banken (SEB), which now has the ability to directly clear transactions in CBOT and CME products from its European offices.
SEB's strategy is to create a global, central clearing operation with direct connection to all major derivative exchanges from its derivatives centre in London.
Ulla Nilsson, Global Head of SEB Futures, said: "It is a unique opportunity to acquire full membership of the USA's largest derivative exchanges direct from London. European clients active on the exchanges are now able to trade directly with a member in their own time zone. Through our membership we can now also offer our clients more effective handling of their transactions, while at the same time improve our risk management and reduce the operational risk."
As a full remote clearing member on the Chicago exchanges, SEB strengthens its position as a strong international player.
CBOT Chief Operating Officer Bryan T. Durkin said, "Remote clearing for CBOT products is a valuable tool for our market users in Europe as well as Asia. It provides customers with local processing and allows them to achieve significant cost savings as they trade the CBOT's markets, such as our highly liquid U.S. Treasury futures and options. Through our clearing agreement with the CME, we seek to serve customers globally. This announcement illustrates how cooperation with the CME continues to result in the best value for users of both exchanges."
Kimberly Taylor, Managing Director and President, CME Clearing House Division, said, "When CME launched our transaction processing agreement with the CBOT we expected to provide significant improvements for customers around the world. Extending our ability to remotely clear transactions for European customers provides customers and clearing member partners with additional flexibility in structuring their business to be cost efficient. This remote clearing capability further demonstrates CME's technology leadership capabilities and the benefits customers can realize from our cooperation with the CBOT."
The CME/CBOT Common Clearing Link, which was fully implemented in January 2004, is delivering capital requirement reductions of USD 1.7 billion to users of both exchanges' markets. The agreement included the creation of a single guarantee fund and lowered performance bond collateral requirements.