|
GCL
Phase 1 final presentation
Eurex and CCorp
to immediately roll out Phase I of the Global Clearing Link
First transatlantic clearing
link to go live/
Lower cost clearing access for U.S. traders/
Margin offsets and collateral pooling between USD and EUR
products for the first time.
The Clearing Corporation (CCorp)
and Eurex Clearing AG today announced they will immediately
roll out Phase I of their Global Clearing Link. The Global
Clearing Link is the first transatlantic clearing link to
go live. It will significantly increase the efficiency of
global derivatives markets. It will facilitate low cost clearing
access to Eurex from the U.S. and will substantially reduce
costs through margin offsets and collateral pooling between
USD- and EUR-denominated products. The Global Clearing Link
provides the U.S. clearing community with direct access to
European trading, bringing new business opportunities to the
U.S.
The Global Clearing Link builds
on Eurex's remote clearing concept, first introduced in 2000.
Phase I of the Link extends Eurex's immediate distribution
to the U.S. by leveraging CCorp's existing network of clearing
participants. The number of clearing partners eligible to
be connected to the network will increase by 66 percent.
"With the Global Clearing
Link we are connecting the U.S. and European derivative markets
and offering clearing choice for the first time. The partnership
with CCorp allows us to immediately leverage connectivity
to the U.S. clearing community to the benefit of our mutual
customers", said Rudolf Ferscha, CEO of Eurex. "This
substantially reduces costs of access to Eurex from the U.S.
and increases clearing flexibility".
Dennis Dutterer, President
and CEO of The Clearing Corporation, commented "The benefits
of Phase I of the Global Clearing Link are consistent with
CCorp's long-standing model of offering clearing services
on a cost competitive basis to clearing participants. The
link enables us to extend our business model internationally,
thereby expanding client access and increasing market efficiency".
The first phase of the Global
Clearing Link brings immediate benefits to customers: cost
reductions through lower clearing fees and higher capital
efficiencies, as well as clearing access to European trading
within the U.S. regulatory framework. The Global Clearing
Link will result in the lowest transatlantic clearing fees,
bringing the cost for small and midsize participants down
to the level of wholesale pricing. It allows more efficient
use of capital through portfolio margining and the use of
one common collateral pool for EUR and USD products. New products
to be introduced on Eurex US will benefit from immediate offset
against the European benchmark range.
Phase I of the Global Clearing
Link enables CCorp clearing participants to consolidate in
a single clearing account at CCorp their U.S. positions traded
on Eurex US and their positions in certain European benchmark
derivatives traded at Eurex. CCorp clearing participants will
also be able to benefit from portfolio margining between EUR
and USD products and one common collateral pool, greatly reducing
costs. A further important feature of the Global Clearing
Link is that traders clearing European products through CCorp
clearing participants will be able to keep their margin funds
in a segregated environment, benefiting from U.S. rules regarding
fiduciary obligations of intermediaries and the U.S. insolvency
regime.
In Phase II, members of Eurex
Clearing will be able to clear USD and EUR benchmark products
traded at Eurex US, and use one common collateral pool to
portfolio-margin European and U.S. products. Certain European
benchmark derivatives currently traded exclusively on Eurex
will be cross-listed on Eurex US, allowing for 21 hours of
trading and full fungibility of these products. Implementation
of Phase II is subject to regulatory approval from the Commodity
Futures Trading Commission and European regulators.
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:
CCorp Andrew Yemma, Intermarket
Communications +1-212-888-6115 x 225
EUREX Walter Allwicher/Candice Adam/Frank Hartmann +1-49-69-21
11-15 00
|
Printer
Friendly Version