Connected via Deutsche Bank as clearing broker and using the Individual Clearing Model
Eurex Clearing: Union Investment, one of the largest German asset managers for private and institutional investors, is a new user of EurexOTC Clear for Interest Rate Swaps (IRS). The company has been connected as an individually segregated client since end of March and has cleared the first transactions using EurexOTC Clear via its clearing member Deutsche Bank. Union Investment is the first major asset manager to have fully concluded onboarding using the German clearing framework agreement. More than 120 further buy-side firms are currently in the connection process to use Eurex Clearing’s OTC service.
Union Investment is a member of the cooperative financial services network (genossenschaftliche FinanzGruppe). The company is one of the largest fund management companies in Germany, with around 4.2 million clients and over €200 billion in assets under management.
“We are delighted that Union Investment, one of the leading asset managers in Germany, has decided to use our service for the clearing of Interest Rate Swaps. It underlines the capital efficiency of our offering and the strength of our Individual Clearing Model,” said Matthias Graulich, Chief Client Officer, Eurex Clearing.
With EurexOTC Clear for IRS, Eurex Clearing, a Deutsche Börse Group company, offers integrated clearing and collateralization of OTC transactions and exchange-traded derivatives under the umbrella of a single clearing house in a uniform legal framework covering all products. The new OTC clearing service sets new standards in security and efficiency. Eurex Clearing’s segregation solution, the Individual Clearing Model, provides maximum protection of client assets and includes portability of positions and collateral. It also ensures cost-efficient compliance with the new regulatory requirements. Several components contribute to this, such as the service portfolio extending to all products, a broad range of eligible collateral and Eurex Clearing Prisma, the portfolio-based risk management system for exchange- and OTC-traded derivatives that will support cross-margining of interest rate derivatives from May 2014.
