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Joint CCorp
and Eurex Media Release
CCorp and Eurex Applaud CFTC
Approval of Phase I of the Global Clearing Link
Chicago, October 22, 2004-The
Clearing Corporation ("CCorp") and Eurex Clearing
AG applauded the approval by the Commodity Futures Trading
Commission ("CFTC") of Phase 1 of the Global Clearing
Link, slated to be implemented as soon as possible.
Phase I enables CCorp clearing
participants to clear certain European benchmark derivatives*
that are traded on Eurex in Europe and to consolidate their
US and Eurex European customer positions in a single segregated
clearing account. Thus, CCorp clearing participants will be
able to benefit from portfolio margining between European
and U.S. products and one common collateral pool. In addition,
CCorp clearing participants will be able to leverage Eurex
Clearing's infrastructure as a result of clearing European
benchmark derivatives through their accounts at CCorp. An
important feature of the Link is that U.S. traders clearing
European products through CCorp clearing participants will
be able to keep their margin funds in a segregated environment,
subject to U.S. rules regarding fiduciary obligations of intermediaries
and the U.S. insolvency regime.
"The CFTC's approval of
Phase I of the Global Clearing Link embraces the concept of
international electronic trading with markets and financial
systems interlinked via the clearing process," said Dennis
Dutterer, CEO of The Clearing Corporation, the oldest independent
futures clearinghouse in the world. "When the Link is
fully implemented, market participants throughout the world
will realize significant benefits and cost savings through
our visionary strategic alliance with Eurex Clearing."
Michael Dawley, Chairman of
The Clearing Corporation added, "The Clearing Corporation
is eager to move forward with implementation of the Global
Clearing Link. Approval of Phase I is an important step in
the development of global clearing and settlement."
Rudolf Ferscha, CEO of Eurex,
added: "This marks a further step towards the creation
of the Eurex Global Liquidity Network. With our U.S. trading
engine Eurex US we offer market participants U.S. jurisdiction
trading access, and with the first phase of the Global Clearing
Link, customers worldwide have the choice to either use U.S.
or European clearing for trades executed on Eurex. In a further
step and subject to regulatory approval we want to offer the
same choice to customers of Eurex US. This would also allow
for products to be cross-listed on Eurex and Eurex US and
enable the expansion of trading in European benchmark products
from 12 to 21 hours".
The Clearing Corporation and
Eurex Clearing AG are working with the CFTC regarding the
next phase of the Global Clearing Link.
About The Clearing Corporation
The Clearing Corporation, a stockholder-owned, Delaware corporation
now in its 79th year of business, is the only active independent
futures clearinghouse in the world. Additional information
on The Clearing Corporation is available at
www.clearingcorp.com.
About Eurex
Eurex is the world's largest derivatives exchange. It provides
access to a broad range of international benchmark products.
Additional information on Eurex is available at
www.eurexchange.com.
Media Contacts
Deutsche Börse/Eurex - U.S. Press Office
Bill Ferri and Whitney Knecht
phone: + 1-212-750-2108
Eurex Media Relations
Walter Allwicher and Candice Adam
phone: +49 (0)69 211-11500
The Clearing Corporation
Andy Yemma
Phone: + 1-212-888-6115
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