Eurex Clearing Receives CFTC Mandate as a Derivatives Clearing Organization
- Eurex has received authorization to provide its suite of clearing services for swaps for US clearing members, exchanges, and market participants
The US Commodity Futures Trading Commission (CFTC) has granted Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term operator, Eurex Clearing AG, official registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act (CEA), helping solidify Eurex’s centralized clearing capabilities in the US, according to a CFTC statement.
Per the new order and recognition, Eurex will be authorized to provide its suite of clearing services for Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term for US clearing members, exchanges, and market participants, conditional upon Eurex meeting several obligatory measures by the CFTC – this includes the regulator’s straight-through processing (STP) requirements.
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Upon request, Eurex had also requested an additional registration measure which entails the compliance of the CFTC’s aforementioned requirements at a future date, whilst satisfying parallel European STP measures. The lag in requirements and requisite compliance has been due in large part to delays in the implementation of the European Commission’s Markets in Financial Instruments Directive II (MiFID II), which at this juncture is slated for 2017.
In addition, the CFTC has also permitted Eurex to continue its clearing mandate over proprietary positions in interest rate swaps for US clearing members – the decision follows on the heels of a previous relief, which the CFTC has provided since mid 2013. Unfortunately for Eurex, the lag in STP requirement satisfaction has thus far prevented the group from clearing FCM customer positions in the US, though this is the next logical step for the group following the adoption of its compliance regime.
Eurex made headlines yesterday after it reported its monthly volumes for January 2016, which saw key measures of its business in positive territory, catapulting higher MoM when measured against its December 2015 counterpart. This included double-digit growth in ADV across a YoY timeframe.
The US Commodity Futures Trading Commission (CFTC) has granted Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term operator, Eurex Clearing AG, official registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act (CEA), helping solidify Eurex’s centralized clearing capabilities in the US, according to a CFTC statement.
Per the new order and recognition, Eurex will be authorized to provide its suite of clearing services for Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term for US clearing members, exchanges, and market participants, conditional upon Eurex meeting several obligatory measures by the CFTC – this includes the regulator’s straight-through processing (STP) requirements.
Can you pass the Finance Magnates exam? Give it a go, there are prizes...
Upon request, Eurex had also requested an additional registration measure which entails the compliance of the CFTC’s aforementioned requirements at a future date, whilst satisfying parallel European STP measures. The lag in requirements and requisite compliance has been due in large part to delays in the implementation of the European Commission’s Markets in Financial Instruments Directive II (MiFID II), which at this juncture is slated for 2017.
In addition, the CFTC has also permitted Eurex to continue its clearing mandate over proprietary positions in interest rate swaps for US clearing members – the decision follows on the heels of a previous relief, which the CFTC has provided since mid 2013. Unfortunately for Eurex, the lag in STP requirement satisfaction has thus far prevented the group from clearing FCM customer positions in the US, though this is the next logical step for the group following the adoption of its compliance regime.
Eurex made headlines yesterday after it reported its monthly volumes for January 2016, which saw key measures of its business in positive territory, catapulting higher MoM when measured against its December 2015 counterpart. This included double-digit growth in ADV across a YoY timeframe.