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CCorp Requests
CFTC Approval for Phase II of
Global Clearing
Link with Eurex Clearing
Chicago,
March 14, 2005
The
Clearing Corporation ("CCorp") has submitted a request
to the Commodity Futures Trading Commission ("CFTC")
for regulatory approval to implement Phase II of the Global
Clearing Link with Eurex Clearing AG.
The
Global Clearing Link will significantly increase the efficiency
of global derivatives markets by facilitating low-cost clearing
access to the markets of Eurex A.G. from the United States
and to Eurex US from Europe.
Phase
II will permit members of Eurex Clearing to carry U.S. Dollar
and Euro benchmark products traded at Eurex US, and use one
common collateral pool to portfolio-margin European and U.S.
products. European benchmark derivatives such as the Euro-Bund
future and futures on the DAX and Euro STOXX 50, currently
traded exclusively on Eurex, will be cross-listed on Eurex
US, extending their trading hours from 12 to 23 and facilitating
fungibility of these products.
Brett
Paulson, President and Chief Operating Officer of The Clearing
Corporation, said: "Phase II of the Global Clearing Link
will benefit U.S. market participants by extending the benefits
of segregated funds treatment to a wider range of risk management
activities. Phase II facilitates portfolio-margining and collateral
management and provides greater access to a broader array
of trading products for customers world-wide. We will continue
to work with the CFTC to complete the approval process that
is necessary for CCorp to more fully realize our vision with
Eurex."
"The
Global Clearing Link is an example of true innovation in the
global futures industry and the first fully fungible linkage
between U.S. and European derivatives markets," said
Rudolf Ferscha, CEO of Eurex. "It further expands Eurex's
distribution into the U.S. and the Asia-Pacific region: For
the first time Eurex products will become available in the
U.S. afternoon and Asia-Pacific daylight trading hours. This
innovation has only become possible due to the cooperation
between U.S. and European regulators coming to a new level."
The
Clearing Corporation and Eurex Clearing AG implemented Phase
I of the Link last fall following approval from the CFTC.
Phase I enabled CCorp clearing participants to clear certain
European benchmark derivatives that are traded on Eurex in
Europe and to consolidate their customers' US and Eurex European
positions in a single segregated clearing account.
About The Clearing Corporation
The Clearing Corporation is a stockholder-owned, Delaware
corporation now in its 80th year of business. The Clearing
Corporation serves numerous clients in a variety of markets
and is the only active independent futures clearinghouse in
the world. Additional information on The Clearing Corporation
is available at www.clearingcorp.com.
Media contacts:
CCorp Andrew Yemma, Intermarket Communications +1-212-888-6115
x 225
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