Battle Lines Are Drawn | Who Will Win in Rates?


My latest article in the Calypso Ci Magazine is out, where consideration is given to the competitive position between the five big Exchange / Clearing verticals, including ICE, CME, LSEG, Nasdaq and Eurex. You can read the article over at the Ci website here, or we'll publish it later on this too.

Update: Supplementary Information About Eurex Repo

Eurex indeed have a busy Repo clearing business, which in comparison to LCH.Clearnet has an integrated Default Fund, meaning over time Eurex can combine positions across markets into a combined IM calculation, something covered previously in explaining their plans for cross-margining in this three part article. Previously Byron has explained how Eurex have a plan to faciliate cross-margining by placing products into Liquidation Groups, which provide equivalence of margin treatment and default management. Given the positioning and each of the commercial groups below, the Eurex assets of a strong ETD business, with the Repo business, integrated Default Fund and cross-margining capability gives them advantages that none of the other groups currently have. Eurex also have Swap Futures, in addition to the ability to offset ETD and OTC positions, you can read more about their hybrid products at their site here.

Updated Diagram Showing Eurex Repo Clearing