A member of
Eurex Clearing
Landesbank Baden-Württemberg (LBBW) has become a further clearing member of EurexOTC Clear for Interest Rate Swaps. By connecting to Eurex Clearing's central counterparty (CCP) for OTC derivatives, the bank is preparing for the clearing obligation for OTC derivatives in Europe, which is set to gradually take effect from the summer of this year. LBBW also acts as a service provider for its clients and aims to offer them corresponding client clearing services.
“We are delighted that we have been able to implement the connection to Eurex Clearing’s OTC clearing service so quickly. This means we can offer our clients the additional option of clearing their OTC interest rate derivatives at one CCP with documentation under German law, in good time before the clearing obligation under EMIR enters into force. They will also benefit from stable processes in settlement, collateralization and risk management,” said Dirk Kipp, Head of Treasury and Capital Markets – Trading at LBBW.
“We are delighted to welcome LBBW, one of the leading German public banks, as user of our OTC clearing service, which will considerably expand our presence in the public banking sector. Our OTC CCP offers LBBW and its customers the opportunity to manage their OTC transactions with greater capital efficiency as well as more security and transparency,” added Matthias Graulich, Chief Client Officer, member of the Eurex Clearing Executive Board.
With EurexOTC Clear, Eurex Clearing, part of Deutsche Börse Group, offers fully integrated execution with clearing and collateral management of OTC and listed derivatives in a single clearing house within one single legal and operational framework. The clearing activity is continuously increasing at EurexOTC Clear with a total cleared notional volume of more than 130 billion euros.
About LBBW
Landesbank Baden-Württemberg (LBBW) is both a commercial bank and the central bank of the savings banks in Baden-Württemberg, Saxony and Rhineland-Palatinate. With total assets of EUR 274 billion and around 11,300 employees (as of 31 Dec 2013), LBBW is one of the largest banks in Germany, and in its core market Baden-Württemberg it is by far the most important one. Its core activities are the business with corporate customers, in particular small and medium-sized enterprises and the private customer business, as well as savings banks. A further focus is placed on real-estate financing as well as the customer-oriented capital market business with banks, savings banks and institutional investors. Together with its regional customer banks Baden-Württembergische Bank (BW-Bank), Rheinland-Pfalz Bank and Sachsen Bank, LBBW services around 900,000 private customers and 25,000 corporate customers in about 200 branch offices – for many of these customers, they have been the main banker for many years. Specialised subsidiaries such as leasing, factoring, real estate or asset management round out the product and service range of LBBW Group.
About Eurex Clearing
Eurex Clearing is one of the leading central counterparties globally – assuring the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection. Eurex Clearing provides fully-automated, straight-through post-trade services for derivatives, equities, bonds and secured funding & financing, as well as industry-leading risk management technologies.
With EurexOTC Clear, Eurex Clearing offers integrated clearing and collateralization of OTC transactions and exchange-traded derivatives under the umbrella of a single clearing house in a uniform legal framework covering all products. The OTC clearing service sets new standards in security and efficiency.
As part of Eurex Group, Eurex Clearing serves 176 clearing members in 17 countries, managing a collateral pool of around EUR 50 billion and processing gross risks valued approx. EUR 16 trillion every month.
Eurex Group is comprised of Eurex Exchange, the International Securities Exchange (ISE), the European Energy Exchange (EEX), Eurex Clearing, Eurex Bonds and Eurex Repo.
Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
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