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Eurex Clearing gets Emir approval
11 April 2014
German regulator gives the CCP the green light to act as a registered European clearinghouse under new regulation
Eurex Clearing is the fourth central counterparty (CCP) to
receive approval under the European Market Infrastructure
The German regulator BaFin issued the approval on April
Eurex Clearing follows the recent licenses given to the
Polish clearinghouse KDPW_CCP, Nasdaq OMX
Clearing and the European Central Counterparty.
"Our Emir authorisation is an important milestone and confirms
full compliance of our clearing services with the Emir rules,"
said Thomas Book, CEO of Eurex Clearing.
"We are very happy that at this stage Eurex Clearing can
provide its clients and members with the clarity and
reassurance needed to undertake their readiness planning and
onboarding preparation for the looming clearing mandate in
The CCP applied for Emir authorisation in August last year.
The announcement follows the publication of a study by Eurex
Clearing on the capital efficiencies of central clearing.
New regulations such as Basel III, Capital Requirements
Directive IV (CRD IV) and Emir raise capital and collateral
requirements for derivatives and securities finance
The paper, commissioned to Oliver Wyman, found that market
participants on both the sell and buy sides could lower their
capital and funding costs by pooling clearing on an integrated
One of the study's main findings was that the use of an
integrated cross-product CCP structure could save the European
sell- and buy-sides by up to €4-5bn ($5.6bn-$7bn) in
incremental costs for interest-rate derivatives, repo and
securities lending. This figure would be in addition to the
€5bn-7bn estimated costs of centrally clearing through a