Eurex, an international derivatives exchange and a member of the Deutsche Börse Group, announced today that De Volksbank, the Utrecht-based financial services provider, has joined the ISA Direct model of Eurex.
According to an official announcement, De Volksbank is the first Dutch bank to join the direct access model of the exchange. Eurex added that ABN AMRO clearing bank is acting as a clearing agent.
ISA Direct service of the exchange allows a large number of institutions around the world to take advantage of broad liquidity pools and capital efficiencies. Eurex also highlighted the benefits of ISA Direct over traditional clearing models.
Commenting on the latest announcement, Adam Husted, Head of Membership Sales and Relationship Management at Eurex, said: “We are delighted to welcome de Volksbank to ISA Direct, and thank both them and ABN AMRO Clearing for supporting this initiative. With several notable recent clients wins, our direct access model, which offers the market real benefits in terms of balance sheet optimization and risk management, continues to grow in strength.”
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Recently, the derivatives exchange reported its trading numbers for May 2021 and saw a significant jump in the total number of contracts. Eurex reported a total of 137.4 million contracts in May 2021.
Eurex’s ISA Direct was initially developed for buy-side clients, but it has attracted a broad range of financial institutions including banks. Eurex mentioned that ISA Direct has enhanced security because of the strong risk management framework adopted by the exchange.
“The benefits of combining OTC IRS and repo clearing make Eurex’s ISA Direct a very attractive proposition for us, and the new TARGET2 functionality has really enhanced the business case. Onboarding at Eurex was extremely smooth, and we are grateful to ABN AMRO Clearing for their work as Clearing Agent,” Edwin de Hoogen, Money Markets Manager at de Volksbank mentioned in the announcement.
Earlier this month, Eurex expanded its presence in Asia through the introduction of new derivatives including the launch of futures on the MSCI China Tech 100 Index.