United Overseas Bank (UOB), Singapore, has become a member of Eurex Clearing, making it the first Asian-based Eurex Clearing member.
As a member, UOB can clear business of Asian and international Eurex trading members and provide the respective services to them. UOB’s subsidiary UOB Bullion and Futures (UOBBF) has been a trading member of Eurex Exchange since 2008 as a non-clearing member, and then in 2012, Eurex Clearing received regulatory non-objection from the Monetary Authority of Singapore to admit remote clearing members from Singapore.
“UOB’s Eurex Clearing membership complements the derivative trading services that UOBBF provides on the Eurex Exchange. Our dual membership allows us to offer our clients one-stop broking and clearing solutions that provide lower associated risks and greater peace of mind,” says Terence Ong, head of Global Markets and Investment Management at UOB and the chairman of UOBBF.
“We are very pleased that UOB has become our first clearing member in Asia. Having one of the largest banking institutions of the region with its strong financial performance and credit rating on-board is an important step to extend the offering of our clearing capabilities into the Asian time zone and significantly increase our clearing footprint in Asia,” says Thomas Book, CEO of Eurex Clearing.
The addition of UOB coinicides with the Asia strategy of Eurex-owner Deutsche Börse Group, in which the firm is in the process of establishing a new clearing house in Singapore to provide new products and infrastructure across the entire Asian time zone in the long term.
UOB’s membership also comes a day after Eurex and the Taiwan Futures Exchange (TAIFEX) launched their trading link, in which Eurex members can trade and clear TAIEX Futures and Options as daily expiring futures on Eurex Exchange. UOB will be able to support Eurex members, as UOB offers clearing services for several dozen local trading participants and brokers which intend to trade the new Eurex TAIFEX Products out of Taiwan, says Eurex.
“The TAIEX contracts are one of the most heavily traded derivatives in Asia. We believe that trading demand will continue to grow following the launch of the Eurex futures. With UOB Group’s strong regional network, we are able to support our global and regional clients as they trade these contracts outside of Asian time zones and tap into greater market liquidity,” says Ong.
UOB Becomes First Asian-Based Member of Eurex Clearing
United Overseas Bank (UOB), Singapore, has become a member of Eurex Clearing, making it the first Asian-based Eurex Clearing member.
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