The Global Clearing Link established by independent clearing house The Clearing Corporation (CCorp) and Eurex Clearing has processed and cleared more than 23 million contacts during its first two years, CCorp announced today.
Brett Paulson, President and Chief Operating Officer of The Clearing Corporation, said approximately 13 million contracts have been cleared through the link thus far in 2006, which represents a growth of over 40% from the same period last year. The Euro-Link was approved by the Commodity Futures Trading Commission (CFTC) in October 2004 and implemented shortly afterwards.
In theory, CCorp clearing participants can gain direct access to CFTC-approved European benchmark derivatives traded at Eurex, consolidate their positions in a single clearing account at CCorp, and use a common collateral pool, greatly reducing costs. European products cleared through CCorp also receive segregated treatment and benefit from U.S. rules regarding fiduciary obligations of intermediaries.
“Our clearing participants continue to embrace the concept and use of the Global Clearing Link which increases the efficiency of global derivatives markets,” says Paulson. “This is evident in the growing volume of trades cleared on the link. In 2007, we anticipate more firms will participate in the Global Clearing Link, thus increasing volume substantially.”
Peter Reitz, a Member of the Executive Board of Eurex AG, says Eurex is pleased with the significant growth in clearing link volume. “With the Global Clearing Link, Eurex and The Clearing Corporation have been able to realize the vision of offering clearing choice for customers worldwide,” he says.