De Volksbank is the first Dutch bank to join Eurex’s ISA Direct model, designed to offer the benefits of direct clearing membership to a broader range of institutions. ABN AMRO Clearing Bank is acting as Clearing Agent.
By providing a direct clearing connection, ISA Direct allows a greater number of institutions to benefit from large liquidity pools and greater capital efficiencies. This innovative setup also includes the enhanced security that comes from Eurex’s strong risk management framework. ISA Direct thus offers tangible benefits over traditional clearing models or maintaining bilateral arrangements.
Originally designed for buy-side clients, the onboarding of de Volksbank shows ISA Direct’s versatility: a range of institutions, including banks, stand to benefit from the reduced balance sheet impact that comes from opening a direct clearing relationship with the CCP.
"We are delighted to welcome de Volksbank to ISA Direct, and thank both them and ABN AMRO Clearing for supporting this initiative," says Adam Husted, Head of Membership Sales and Relationship Management at Eurex. "With several notable recent client wins, our direct access model – which offers the market real benefits in terms of balance sheet optimization and risk management – continues to grow in strength."
Edwin de Hoogen, at de Volksbank: "The benefits of combining OTC IRS and repo clearing make Eurex’s ISA Direct a very attractive proposition for us, and the new TARGET2 functionality has really enhanced the business case. Onboarding at Eurex was extremely smooth and we are grateful to ABN AMRO Clearing for their work as Clearing Agent."
"We were once again happy to act as Clearing Agent and facilitate the onboarding of another client for Eurex’s innovative ISA Direct model," says Alexander Jacobs at ABN AMRO Clearing Bank. "The introduction of a separate TARGET2 account has certainly enhanced the functionality on offer. This additional feature makes it a safe and highly resilient solution, for both agents and members."
Eurex stands for the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. Being architects of trusted markets characterized by market liquidity, efficiency and integrity, we provide our customers with innovative solutions to seamlessly manage risk.
About ABN AMRO Clearing
ABN AMRO Clearing is one of the world’s leading providers of clearing and financing services for listed derivatives and cash securities, OTC products, warrants, commodities and FX. With 10 offices globally and employing more than 800 staff, ABN AMRO Clearing services clients on 160+ exchanges, MTFs and FX liquidity centres and consistently ranks as a top 3 clearer in most time zones. We consistently post over 20% market shares of transactions cleared on most relevant derivatives exchanges globally. ABN AMRO Clearing offers an integrated approach to global transaction processing, financial logistics and risk management and processes over 18 million trades per day.