Eurex and Board of Trade Clearing Corporation (BoTCC) announced their much-anticipated deal last week that will create a new cross Atlantic clearing platform for Eurex products in the US and Europe early next year.
The long-term contract, which runs between four and ten years, will allow BoTCC customers a choice in clearing at BoTCC or Eurex Clearing, as well as direct access to Eurex benchmark products. Eurex customers, likewise, will be able to clear Eurex US products on Eurex's clearing house or at BoTCC.
Beyond clearing choice, Eurex contracts and future US products will be listed in the US and Europe and will be fungible. That also allows for lower margin requirements, cross margining and reduced collateral requirements through the use of...