EUREX PROMOTES CONSORTIUM PLAN AS SOLUTION FOR E.U. CALL FOR
IMPROVED DERIVATIVES TRADING AND CLEARING
Posted October 22, 2008
FRANKFURT – Eurex, the derivatives exchange and clearing house operated
by Eurex Clearing AG, is supporting European Uniopn Commissioner Charles
McCreevy’s call to improve trading and clearing in derivatives markets,
particularly OTC derivatives, including credit default swaps (CDSs).
“We agree with Commissioner McCreevy’s view that standardized trading
and central clearing services will strengthen market integrity and
stability in the credit derivatives market,” says Andreas Preuss, Chief
Executive Officer of Eurex. “Eurex has an immediately available
‘ready-to-use’ solution for trading and clearing of CDS. We are open to
create a consortium with the CDS users to share governance and control
of the CDS services.”
Eurex announced its offer to build a consortium for shared governance
and control, earlier this month. The proposed consortium would have two
stages: a ready-to-use solution for iTraxx index contracts and some
single-name CDSs, then in the first half of 2009, an OTC clearing
solution for credit derivatives.
“A central clearing service will improve risk management and capital
efficiency and at the same time mitigate counterparty risk,” says Thomas
Book, Executive Board Member of Eurex. “Eurex Clearing has the largest
European clearing house will bring its proven expertise and
state-of-the-art risk management to the CDS market.”
Eurex has also presented its consortium proposal to European
authorities, such as the European System of Central Banks and to the US
Federal Reserve Bank in