Eurex pilots direct clearing for the buy side

CCP predicts 80% reduction in capital charges for banks acting as clearing agents

Deutsche Börse-owned Eurex Clearing is launching direct membership for buy-side firms

Eurex has become the first central counterparty (CCP) to pilot a service in which buy-siders become direct members – a change it hopes will help reverse the flow of banks exiting the clearing business.

Sources close to the project – known as ISA Direct – estimate an 80% cut in the capital currently consumed by clearing banks, which traditionally sit between their clients and a CCP, executing back-to-back trades with each.

In the ISA Direct model, clients have a contractual relationship with the