Eurex Credit Clear Successfully Starts CDS Clearing

First credit default swap transaction cleared on 30 July/ Eurex Credit Clear major step to improve market safety and integrity for OTC derivatives

Eurex Clearing, Europe’s largest central counterparty (CCP), announced today that Eurex Credit Clear, the European OTC clearing solution for Credit Default Swaps (CDS), successfully cleared the first transaction on 30 July. Eurex Credit Clear offers the benefits of CCP clearing to the OTC derivatives market and thereby improves market safety and integrity.

“I am very pleased that our first credit clearing members used our new clearing solution for CDS at the earliest opportunity”, said Thomas Book, member of the Eurex Executive Board and responsible for clearing. “Eurex Credit Clear has successfully completed its first production cycle and effectively delivers OTC clearing for CDS for the first time in Europe.”

Eurex Credit Clear has a distinguished service offering as it operates the only CCP for both index and single name CDS. The new service is also accessible for buy-side firms from day one.

Eurex Credit Clear achieved operational readiness by 27 July 2009. As of today, the first market participants achieved market readiness with more members expected to connect to Eurex Credit Clear in the upcoming weeks.

On 23 July, the U.S. Securities and Exchange Commission (SEC) approved a conditional exemption that allows Eurex Clearing to operate as a central counterparty for CDS clearing. The new clearing service is also accessible for UK market participants after regulatory approval by the Financial Services Authority (FSA) on 24 July.