DZ BANK has successfully commenced clearing its interest rate swaps (IRS) business through SwapClear, LCH.Clearnet Ltd’s (LCH.Clearnet) market leading over-the-counter (OTC) IRS clearing service. The total number of SwapClear clearing members now stands at 56.
DZ BANK, a corporate and investment bank, is the fourth largest bank in Germany providing centralised services to more than 900 German cooperative banks. Within the Volksbanken Raiffeisenbanken cooperative financial network, which is one of Germany’s largest private-sector financial services organisations, the DZ BANK Group is one of Germany’s leading “Allfinanz” providers for the local cooperative banks with strong market positions. By joining SwapClear, DZ BANK will be able to reduce risk, better manage capital and balance sheet exposures and move a step closer to conforming with emerging global standards. DZ BANK will also be well-positioned to comply with G20 commitments concerning OTC derivatives by the December 2012 deadline.
Dr Ulrich Walter, DZ BANK’s head of Capital Markets Trading, Fixed Income and Equity, says: “Interest rate swaps are a very important part of our business and clearing will enable us to improve our counterparty risk management and also lead to a more efficient allocation of risk capital."
Michael Davie (pictured), CEO of SwapClear, says: “We are delighted to welcome DZ BANK to LCH.Clearnet’s SwapClear service where they will immediately benefit from credit and operational risk benefits within a large network of members. We particularly welcome DZ BANK’s adoption of the SwapClear service ahead of upcoming regulatory change and look forward to working with them to broaden participation in this service among the German financial community.”
