Active participation in Eurex Clearing’s service for interest rate swaps planned to start in Q4/2015
Eurex Clearing, one of Europe’s leading clearinghouses and part of Deutsche Börse Group, has admitted another major participant for EurexOTC Clear – the German Bund represented by the Bundesrepublik Deutschland – Finanzagentur GmbH (the Federal Republic of Germany – Finance Agency). The Finance Agency, which has been responsible for the borrowing and debt management of the Federal Republic of Germany (Bund) and its funds since 2000, plans to be active as a direct clearing member of EurexOTC Clear on behalf of the Federal Republic in the fourth quarter of 2015.
The Finance Agency is already a user of the services of the Eurex companies Eurex Repo and Eurex Bonds. It acts solely in the name of Germany and for its account on the financial market. Its key tasks include ensuring the solvency of the Bund, and preserving and expanding its benchmark position as issuer of government bonds in the euro area.
In the future, the Bund will take advantage of the highest possible market depth and liquidity that a clearing service offers as well as the reduction of operational risks during the settlement process for its interest rate swap transactions,“ said Tammo Diemer and Carsten Lehr, Co-CEOs of the Finance Agency.
“We are delighted that the Bund will use our service to clear OTC interest rate swaps. This underscores the strength of the offering and adds an important new user to the broad and diverse business mix of our service,” said Matthias Graulich, Chief Client Officer and member of the Eurex Clearing Executive Board.
About the Federal Republic of Germany – Finance Agency
The Federal Republic of Germany – Finance Agency (Bundesrepublik Deutschland – Finanzagentur GmbH) was founded by the Federal Republic of Germany on September 19, 2000 as an institution for borrowing and debt management. It is wholly owned by the Federal Republic of Germany, represented by the Federal Ministry of Finance. It is responsible for performing functions in connection with budget and short-term liquidity funding for the Federal Republic and its funds on the financial markets. These include issuing German government securities, borrowing in the form of promissory notes (Schuldscheindarlehen), money and capital market transactions, management of debt, financing instruments and the federal debt register. The Agency’s strategy is aimed at optimizing funding of the federal budget through interest rate swap transactions as well as other means, while reacting quickly and flexibly to changing market conditions. The Finance Agency currently has around 250 employees at its offices in Frankfurt am Main and acts as the interface between politics and the financial markets. It has to address both the requirements of the financial market and the needs of the Federal Government.
About Eurex Clearing
Eurex Clearing is one of the leading central counterparties globally – assuring the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection. Eurex Clearing provides fully-automated, straight-through post-trade services for derivatives, equities, bonds and secured funding & financing, as well as industry-leading risk management technologies.
With EurexOTC Clear, Eurex Clearing 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 OTC clearing service sets new standards in security and efficiency.
As part of Eurex Group, Eurex Clearing serves 176 clearing members in 17 countries, managing a collateral pool of around EUR 50 billion and processing gross risks valued approx. EUR 16 trillion every month.
Eurex Group is comprised of Eurex Exchange, the International Securities Exchange (ISE), the European Energy Exchange (EEX), Eurex Clearing, Eurex Bonds and Eurex Repo.
Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
