Eurex Expands US Footprint with Barclays Partnership

Barclays has joined EurexOTC Clear to offer Eurex’s services through its futures commission merchant.

Eurex Group, an exchange operator, announced this Thursday that Barclays has joined EurexOTC Clear, to support the expansion of the distribution network in the United States.

Under the agreement, Barclays will offer the group’s over-the-counter (OTC) clearing services through its US registered futures commission merchant (FCM) to clients based in America.

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Barclays is the first European bank to provide a gateway for clients to access Eurex’s OTC services in the US. According to the statement, the first transaction has already been cleared.

Commenting on the collaboration, Stephen Li, Barclays Head of ADS Americas said: “We are pleased to connect to Eurex Clearing from the U.S. as it demonstrates Barclays’ commitment to provide choice and meet clients’ needs for an alternative liquidity pool in euro interest rate swap clearing.”

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US Demand Continues to Rise for Eurex Clearing

The partnership with Barclays demonstrates an uptick in demand for Eurex’s services in the US, the statement said. Citi was the first US-based FCM to offer its clients swap clearing through Eurex Clearing.

Following on from this Bloomberg and Tradeweb, two Swap Execution Facilities (SEF) based in the US, set up direct connectivity with the group’s OTC clearing. This allowed US clients to submit their executed swap transactions to Eurex Clearing.

Towards the end of 2018, Eurex Clearing received approval from the Commodity Futures Trading Commission (CFTC) to offer swap clearing in the US, as Finance Magnates reported.

Tim Gits of Eurex
Tim Gits, Head of FI Sales Americas at Eurex

“Barclays is a great addition to our EurexOTC Clear offering and a testament to the growing interest we are experiencing in the U.S,” added Tim Gits, Head of Fixed Income Sales Americas at Eurex.

“The growth we have seen from U.S. institutions since receiving CFTC approval in late 2018 has been very encouraging, and the number of FCMs and clients in the pipeline is very promising.”

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