Eurex Taps into USD Swap Market in Partnership with Major Banks

Eurex, the leading European derivatives exchange and one of the leading clearing houses globally, has formed a partnership with several banks, including Deutsche Bank, J.P. Morgan, and LBBW, to further cement its USD clearing services.

Reportedly, the above-mentioned three banks are now the first movers providing electronic Eurex USD prices on Tradeweb’s interest rate swaps platform, with further banks preparing to start streaming soon. 

The strategy will better allow EU end-clients to migrate their euro-heavy portfolios to Eurex while at the same time keeping their full exposure in a single clearing house. The visibility of two-way Eurex USD prices from dealers is therefore an important step in Eurex’s efforts to create a stable and competitive ecosystem for euro clearing in Europe.  

“Our primary target is to build a liquid alternative for euro swaps in the EU. However, it is important for many EU-based firms who pre-dominantly run euro portfolios to be able to clear their multi-currency portfolio in a single CCP. We therefore truly appreciate the contributions of the banks supporting USD clearing,” said Danny Chart, Head of Fixed Income Business Development, Eurex.