Eurex Clearing transferred all customer positions and wound down all proprietary positions of Lehman Brothers International (Europe) in an orderly and timely manner. The exposure was at all times fully covered by collateral placed by Lehman Brothers International (Europe) at Eurex Clearing and all clearing house processes worked according to Eurex Clearings industry leading standards.
Lehman Brothers International (Europe) was placed into administration on Monday, 15 September, followed by a suspension of its clearing licenses by Eurex Clearing. The process was handled in close coordination with PriceWaterhouseCoopers LLP as administrators, Lehman Brothers International
(Europe), as well as the affected General Clearing Members taking over Lehman Brothers International (Europe) customer positions and all affected Non-Clearing Members. The outcome of this combined effort saw 99% of all customer positions successfully transferred by the close of business on 19 September, with the balance completed on 22 September. Open proprietary positions were also smoothly unwound in close cooperation with Lehman Brothers International (Europe). There was no need at any time to draw on any of the lines of defense of the Clearing House, e.g. the Clearing Fund.
“The professional assistance of Lehman Brothers International (Europe) staff and all third parties involved in conjunction with Eurex Clearing ensured a speedy, controlled and auditable transfer in the interest of all customers and the marketplace,” says Thomas Book, member of the Eurex Executive Board and in charge of clearing. “This was a uniquesituation, one that required tried and tested clearing processes combined with robust risk management systems, further underlining the benefits that state-of-the-art clearing houses offer to the financial markets.”
D.C.