The Global Clearing Link will significantly increase the efficiency of global derivatives markets by facilitating low-cost clearing access to the markets of Eurex A.G. from the United States and to Eurex US from Europe.
Phase II will permit members of Eurex Clearing to carry U.S. Dollar and Euro benchmark products traded at Eurex US, and use one common collateral pool to portfolio-margin European and U.S. products. European benchmark derivatives such as the Euro-Bund future and futures on the DAX and Euro STOXX 50, currently traded exclusively on Eurex, will be cross-listed on Eurex US, extending their trading hours from 12 to 23 and facilitating fungibility of these products.
Brett Paulson, President and Chief Operating Officer of The Clearing Corporation, said: "Phase II of the Global Clearing Link will benefit U.S. market participants by extending the benefits of segregated funds treatment to a wider range of risk management activities. Phase II facilitates portfolio-margining and collateral management and provides greater access to a broader array of trading products for customers worldwide. We will continue to work with the CFTC to complete the approval process that is necessary for CCorp to more fully realize our vision with Eurex."
"The Global Clearing Link is an example of true innovation in the global futures industry and the first fully fungible linkage between U.S. and European derivatives markets," said Rudolf Ferscha, CEO of Eurex. "It further expands Eurex's distribution into the U.S. and the Asia-Pacific region: For the first time Eurex products will become available in the U.S. afternoon and Asia-Pacific daylight trading hours. This innovation has only become possible due to the cooperation between U.S. and European regulators coming to a new level."
The Clearing Corporation and Eurex Clearing AG implemented Phase I of the Link last fall following approval from the CFTC. Phase I enabled CCorp clearing participants to clear certain European benchmark derivatives that are traded on Eurex in Europe and to consolidate their customers' US and Eurex European positions in a single segregated clearing account.