Eurex pilots direct clearing for the buy side
CCP predicts 80% reduction in capital charges for banks acting as clearing agents
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
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