Germany’s Finance Agency will become a direct clearing member of EurexOTC Clear, Eurex’s clearing service for interest rate swaps, in the fourth quarter.
The clearing membership means Germany will become the first Eurozone sovereign to settle its derivatives transactions through a central counterparty (CCP).
The Finance Agency is already a user of Eurex Repo and Eurex Bonds. Its key tasks include ensuring the solvency of the Bund, and preserving and expanding its benchmark position as issuer of government bonds in the euro area.
“In the future, the Bund will take advantage of the highest possible market depth and liquidity that a clearing service offers as well as the reduction of operational risks during the settlement process for its interest rate swap transactions,“ states Tammo Diemer and Carsten Lehr, Co-CEOs of the Finance Agency.
German Finance Agency to Join EurexOTC Clear
Germany’s Finance Agency will become a direct clearing member of EurexOTC Clear, Eurex’s clearing service for interest rate swaps, in the fourth quarter.