Clearing Corporation seeks regulatory approval for global clearing

The Clearing Corporation (CC) has requested regulatory approval from the Commodity Futures Trading Commission (CFTC) to implement the first phase of a 'global clearing link' joint project with Eurex Clearing.

The first phase, expected to launch upon completion of the CFTC review, will allow CC’s US-based clients to clear derivatives traded on Eurex in Frankfurt. The arrangement will allow US customers to maintain combined collateral pools for both their US dollar positions and their positions in Euro-denominated derivatives, including futures and options referencing the German Bund and Dow Jones Euro Stoxx 50.

The next phase of implementation will allow members of Eurex Clearing to clear and portfolio margin US and European benchmark products traded on Eurex US.

Full implementation is expected by the third quarter, and is subject to further approval from the CFTC, which is accepting public comment until May 14.