Eurex and BOTCC in global clearing accord

Eurex, the Swiss-German derivatives exchange, has signed up the US Board of Trade Clearing Corporation (BOTCC) to clear the contracts that will be traded on the futures exchange that Eurex plans to launch early next year. BOTCC customers will have direct access to Eurex's benchmark products and will be able to clear them via both Eurex Clearing and the BOTCC.

Eurex and the BOTCC said that the initiative, which they described as “a long-term clearing partnership to create a global clearing solution”, will mean that customers benefit from lower margin requirements, cross margining and reduced collateral requirements through the use of collateral pools for a wider range of products.

The exchange and clearinghouse said their customers will have access to additional product ranges at no additional infrastructure cost on a global basis. They said that the new US exchange, together with the clearing link and Eurex's a/c/e trading platform, will allow for 24-hour electronic trading in global benchmark products, with clearing options in both time zones.