The Dutch State Treasury Agency has announced it will voluntarily begin central clearing of euro-denominated interest rate swaps through Eurex Clearing.
Despite the Agency’s exemption from the obligation to clear swaps through a central counterparty (CCP), on the basis that it is a debt management office, the Dutch State Treasury Agency has opted to use Eurex Clearing to clear interest rate swaps centrally for risk management reasons.
The agency is expected to begin clearing interest rate swaps through Eurex by the end of this year “at the latest”.
“The Dutch State Treasury Agency is a very important new clearing member for us,” said Erik Müller, CEO of Eurex Clearing. “We continue to expand our services for the over-the-counter markets to best support the needs of the financial industry, policy makers and regulators.”
During April this year, Eurex Clearing recorded notional outstanding exceeding €5 trillion and the addition of the Dutch State Treasury Agency is expected to push this figure higher.