The Danske Bank is the first Nordic bank to join Eurex Clearing’s Partnership Program and to become a General Clearing Member for Eurex Clearing’s OTC IRD clearing service. So far, 30 firms have joined the Partnership Program to support the common objective of building a liquid alternative to clear EUR-denominated OTC interest rate derivatives in the EU27.
“With Danske Bank, we did not only win an additional very important clearing member; we are particularly pleased that we are now also receiving support from a large regional dealer from the Scandinavian region,” says Erik Müller, CEO of Eurex Clearing. “This improves our reach and distribution capabilities in Nordic countries.” Müller is expecting other Scandinavian institutions to follow.
Henrik Meinertz, Head of FI&C Danske Bank, welcomes Eurex Clearing’s Partnership Program: “We are looking forward to support a competitive EU27 solution which allows for greater choice, improved price transparency and quality as well as greater robustness of financial markets, bringing the EU closer to the G20 objective of strengthening financial stability.”
Eurex Clearing’s Partnership Program is designed to create a liquid, EU-based alternative for the clearing of interest rate swaps. The CCP shares a significant part of the economics of its Interest Rate Swap segment with the ten most active participants. In addition, it has opened up its governance structure, ensuring that clients participate in the strategic development of Eurex Clearing.
Average daily cleared volume in Interest Rate Derivatives multiplied 18 fold to EUR 64 billion in August 2018 from EUR 3.6 billion last August. Notional outstanding stood at EUR 9.2 trillion compared to EUR 1.6 trillion end of August 2017. This means that Eurex Clearing now holds a market share of roughly 10 percent1) in the global EUR-denominated interest rate derivatives market.“
