Eurex Clearing strengthens its CCP Switch Incentive Program
Eurex Clearing today announces that it is strengthening its CCP Switch Incentive Program and is extending it until June 2021.
A complete waiver of booking fees for OTC interest rate swaps (IRS) and overnight index swaps (OIS) applies for banks and institutional investors for portfolios transferred to Eurex Clearing. Additionally, Clearing Members receive on the back of such portfolio transfers a substantial fee rebate voucher on future transactions in OTC interest rate derivatives. By switching a swaps portfolio of EUR 250 billion, a Clearing Member would realize an economic benefit of up to EUR 1.5 million.
Furthermore, Eurex Clearing renews its discounts on the Gold “All-Clear” fee packages. Clearing Members purchasing the 3-year Gold fee pack receive a discount of 33% and save up to 3 million EUR over this 3-year period.
With this step, the clearing house further supports market participants in meeting the requests of regulators. Eurex notes that, after prolonging the equivalence of UK CCPs for another 18 months, the European Commission had recently renewed its call on the industry to use that period to substantially reduce their exposures to UK Market Infrastructures.
After the launch of the Eurex Clearing Partnership Program at the start of 2018, Eurex Clearing has established a viable EU27-based alternative liquidity pool for OTC interest rate derivatives. In the meantime, more than 500 banks and buy-side firms have been on-boarded for swaps clearing.
Market share in Euro denominated OTC interest rate derivatives in terms of outstanding volume has been continuously growing and currently stands at circa 19%.