Eurex adds Japan to bolster its euro clearing battle with London

Citi Port Financial Services

12/03/2020 11:24

LONDON, March 12 (Reuters) - Eurex said on Thursday it has
been granted regulatory permission to clear euro-denominated
swaps for Japanese customers in a move that should help the
German clearing house compete better with rival LCH in London.
    Eurex, a derivatives trading and clearing unit that is part
of the Deutsche Boerse Group  DB1Gn.DE , said permission from
Japan's Financial Services Agency means it can now offer euro
clearing to customers based in Japan.
    It already serves customers in the United States and the
European Union.
    "With this step, we further geographically expand our
service offering into Asia and underline our commitment to
becoming the global home of the euro yield curve," Eurex
Clearing CEO Erik Mueller said in a statement.
    Citi bank said in the same statement that it would now use
its link between Eurex and the Japanese market to "onboard" new
derivatives clearing clients in Japan.
    Eurex said Japanese institutions are very active in European
fixed income futures on Eurex, and have also significant
exposure in the euro swap market.
    LCH, unit of the London Stock Exchange, remains the world's
largest clearer of euro-denominated interest rate swaps, but
Eurex has said it is gaining market share.  urn:newsml:reuters.com:*:nL5N2AQ7H8
    Some EU policymakers and central bankers want to see large
chunks of London-based euro clearing moved to the euro zone
because of Britain's departure from the EU in January.

 (Reporting by Huw Jones
Editing by Chizu Nomiyama)
 ((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters
Messaging: huw.jones.thomsonreuters.com@reuters.net))