Eurex Clears its First Interest Rate Swaps from Japan

Source: Regulation Asia Editors, Regulation Asia 2020-06-18

The FSA granted Eurex Clearing a licence as a foreign financial instruments clearing organisation in March, allowing it to offer clearing services in Japan.

Eurex Clearing has cleared its first OTC interest rate swap transaction for a Japanese securities house, a transaction executed by SMBC Nikko Securities with Citibank Global Markets acting as their clearing member.

“This is an important step as client demand from one of the world’s largest fixed income markets will support the strong momentum of Eurex Clearing’s EU-based liquidity pool for euro swaps,” it said in a statement.

In March, Eurex Clearing was granted a licence as a “foreign financial instruments clearing organisation” by the FSA (Financial Services Agency), allowing it to offer clearing services in Japan. The licence allowed Japanese financial institutions to directly access Eurex Clearing for swap clearing, and to combine their listed and OTC euro yield curve business in one place.

“Adding Japan as an eligible jurisdiction for our OTC Clearing offering, followed by the first transaction cleared for SMBC Nikko Securities, marks a very important milestone for Eurex Clearing on our way to become the home of the euro yield curve,” said Eurex head of fixed income sales Markus Georgi.

Eurex Clearing has developed a strong liquidity pool for clearing euro-denominated interest rate derivatives, with an 18% market share of the EUR 19 trillion total notional outstanding as of the end of May.

Eurex Clears its First Interest Rate Swaps from Japan

Subscribe to Our Newsletter!

Subscribe to Our Newsletter!