Starting November 2008, Eurex Clearing is to offer three different service packages for clearing of cash market transactions.
As alternatives to the current comprehensive offering (to be called ‘Full Service’ in the future),Eurex Clearing will also offer a ‘Basic Net Service’ and an ‘Extended Net Service’. In the ‘Basic Net Service’, all transactions will be automatically netted at the end of the trading day with the clearing participant being informed about the remaining net position. With the ‘Extended Net Service’, clearing participants will also have the option of further managing their net positions until settlement date.
The new service packages primarily address the requirements for proprietary trading and of institutional investors, for example in algorithmic trading. ‘Full Service’, which will continue to be offered, enables clearing participants to manage each individual trade until fulfilment.
‘Eurex Clearing is the first Clearing House offering differentiated service packages for netting. This innovation allows our clearing members to provide their own clients with individual offers tailored to their business models,’ says Thomas Book, Eurex Board Member for clearing. New prices apply along with the different service offerings, which allow cost savings of up to 40 percent for clearing customers depending on the selected clearing model. In particular, customers with lower information needs and high trading volumes will benefit.
On the basis of the volume figures of the first half of 2008, Eurex Clearing members would benefit from savings for clearing Xetra transactions of a projected EUR 25 million per year – depending on the change to the new service offerings. Due to the price sensitivity of trading models, Deutsche Börse expects positive impacts on transaction volumes and a correspondingly large compensation of the price effects on turnover.