POST TRADE

Eurex announces clearing profit share scheme

Biggest IRS clearing clients can benefit from profit share and enhanced role at Eurex Clearing.

By John Bakie john.bakie@strategic-i.com October 09, 2017 9:21 AM GMT

Eurex Clearing has announced a profit sharing scheme for its swaps clearing business.

The program will award its 10 most active participants with a “significant” profit share of its multi-currency interest rate swaps business.

Those large clients will also be included within the governance and committee structure of Eurex Clearing.

The program is open to all clearing members and registered clients of Eurex Clearing, with registration open from 9 October. Those who register before 20 November will also benefit from an additional reward.

Several clients have already registered, including Bank of American Merrill Lynch, Citigroup, Commerzbank, Deutsch Bank, JP Morgan and Morgan Stanley.

Eric Müller, CEO of Eurex Clearing, said: “This market-led initiative will benefit clients and the broader market place through greater choice and competition, improved price transparency as well as reduced concentration risk.”

The move could be aimed at bolstering participation in Eurex Clearing’s interest rate swap clearing service after other providers have recently pulled out of the market.