Eurex has outlined a medium-term plan, putting
expansion into Asia and the growth of its OTC clearing business at the
forefront of its ambitions.
The German exchange said it is in ‘advanced
talks’ with regulators in Singapore to launch its clearing house, while
cross-listing and market data deals with Asian exchanges are also on the
“The focus of many exchanges has
been Europe,” said Eric Müller, member of the executive board at Eurex
Clearing, pointing to the organic growth of CME and ICE’s acquisition of NYSE
Euronext. “For us now is the opportune time to focus efforts on growth in
Last year, ICE completed its acquisition of
NYSE Euronext and spun off the Euronext part of the business early this year to
focus its European operations on the London-based Liffe exchange. CME also
launched a derivatives and commodities exchange in Europe this year.
Additionally, ICE has been working to relaunch the Singapore Mercantile
Exchange and its associated clearing house that it acquired in 2013,
highlighting the strategic importance for global exchange groups to move into
the Asian market.
“We are working on a CCP in Singapore,
right now we are in a consultation phase. We have a number of very interesting
dialogues in the region around indexes.”
Regulations pushing swaps towards central
clearing have made the OTC derivatives clearing business lucrative for Europe’s
central counterparties (CCP).
Eurex believes its existing interest rate
swap futures and OTC clearing capabilities will present margin offset
opportunities to the buy-side.
The exchange is aiming to win 25% of dealer
to client business in interest rate clearing by 2017, and hopes to earn €50-100 million in revenues over that time.
“We expect a bigger wave of uptake in the
first half of next year,” said Thomas Book, CEO of Eurex Clearing. “The impact
can be huge, there are portfolios which could save 70-80% of their margin
The exchange said real momentum will take
place when SunGard, its software partner, roll out its services in the first
half of 2015.