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Eurex takes important step into USD swap market

Datum: 04. Nov 2021 | Eurex

Eurex takes important step into USD swap market

- Three banks streaming Eurex USD swap prices on Tradeweb
- The service targets EU based clients

Eurex is partnering with several banks to strengthen its USD clearing services. Deutsche Bank, J.P. Morgan, and LBBW are now the first movers providing electronic Eurex USD prices on Tradeweb’s interest rate swaps platform, with further banks preparing to start streaming soon. This is in addition to the already established request for quote and voice market for Eurex USD swap prices.

There is an increasing demand from EU end-clients for additional currencies. This would better allow them to migrate their euro-heavy portfolios to Eurex while at the same time keeping their full exposure in a single clearing house. The visibility of two-way Eurex USD prices from dealers is therefore an important step in Eurex’s efforts to create a stable and competitive ecosystem for euro clearing in Europe.  

Danny Chart, Head of Fixed Income Business Development, Eurex: “Our primary target is to build a liquid alternative for euro swaps in the EU. However, it is important for many EU-based firms who pre-dominantly run euro portfolios to be able to clear their multi-currency portfolio in a single CCP. We therefore truly appreciate the contributions of the banks supporting USD clearing.”

Dr. Thilo Roßberg, Head of FICC Markets, LBBW: “Our focus as a swaps market maker is to provide competitive prices at Eurex, with USD being a key part of this. As a pioneer in streaming Eurex USD swaps, we have long been providing our customers with a reliable supply of liquidity in order to establish a viable EU based CCP liquidity pool.”

Eurex’s notional outstanding in long-dated euro-denominated OTC interest rate swaps was above 10 trillion at the end of October, up 30 percent year-on-year. Market share stood at 18 percent in October. Total notional outstanding in Eurex OTC interest rate derivatives was above 20 trillion at the end of October translating to a market share of 20 percent.

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