EurexOTC Clear Lands LBBW as Clearing Member

EurexOTC Clear has signed up Landesbank Baden-Württemberg (LBBW), one of Germany’s leading public banks, as its latest clearing member for interest rate swaps.

LBBW will also act as a service provider for its clients, and aims to offer corresponding client clearing services.

“This means we can offer our clients the additional option of clearing their OTC interest rate derivatives at one CCP with documentation under German law, in good time before the clearing obligation under EMIR enters into force. They will also benefit from stable processes in settlement, collateralization and risk management,” said Dirk Kipp, head of Treasury and Capital Markets Trading, LBBW.

The enrollment of LBBW marks a win for Eurex as it looks to expand its clearing offering to the public banking sector.

“Our OTC CCP offers LBBW and its customers the opportunity to manage their OTC transactions with greater capital efficiency as well as more security and transparency,” adds Matthias Graulich, chief client officer, member of the Eurex Clearing Executive Board.

In January, EurexOTC Clear signed up Natixis, making it the first French bank to join as a clearing member. It also boasts BNP Paribas and Morgan Stanley as clearing members.

Europe’s banks are preparing for the onset of mandatory clearing of OTC derivatives in the later half of this year.