Landesbank Baden-Württemberg (LBBW) has become a further clearing member of EurexOTC Clear for Interest Rate Swaps.
By connecting to Eurex Clearing's central counterparty (CCP) for OTC derivatives, the bank is preparing for the clearing obligation for OTC derivatives in Europe, which is set to gradually take effect from the summer of this year. LBBW also acts as a service provider for its clients and aims to offer them corresponding client clearing services.
“We are delighted that we have been able to implement the connection to Eurex Clearing’s OTC clearing service so quickly. This means we can offer our clients the additional option of clearing their OTC interest rate derivatives at one CCP with documentation under German law, in good time before the clearing obligation under EMIR enters into force. They will also benefit from stable processes in settlement, collateralization and risk management,” says Dirk Kipp, Head of Treasury and Capital Markets – Trading at LBBW.
“We are delighted to welcome LBBW, one of the leading German public banks, as user of our OTC clearing service, which will considerably expand our presence in the public banking sector. Our OTC CCP offers LBBW and its customers the opportunity to manage their OTC transactions with greater capital efficiency as well as more security and transparency,” says Matthias Graulich, Chief Client Officer, member of the Eurex Clearing Executive Board.
With EurexOTC Clear, Eurex Clearing, part of Deutsche Börse Group, offers fully integrated execution with clearing and collateral management of OTC and listed derivatives in a single clearing house within one single legal and operational framework. The clearing activity is continuously increasing at EurexOTC Clear with a total cleared notional volume of more than EUR130 billion.