Eurex approved for US swaps clearing

Eurex Clearing is the sixth non-US CCP to win CFTC approval for derivatives clearing.

The US derivatives regulator has approved Eurex Clearing to provide swaps clearing services for US banks.

The registration from the Commodity Futures Trading Commission (CFTC) will come into effect after the Frankfurt-based clearing house meets its “straight-through processing” requirements.

The approval makes Eurex Clearing the sixth non-US clearing house to register with the CFTC, in a bid to improve cross-border clearing of derivatives.

Under CFTC rules, clearing of futures contracts can take place outside of the US as long as a clearing house complies with its “dual registration framework.”

“This dual registration framework has been in place for many years, and is part of the foundation on which the derivatives market—and in particular the swaps market—has become global,” said CFTC chairman Timothy Massad.

“Its (Eurex Clearing) registration will further enhance the global trading and clearing of derivatives. That helps the many businesses around the world that rely on these markets for price discovery and to hedge commercial risk.”

The announcement of the registration comes as US and European regulators look to finalise agreements over international derivatives rules.