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08 May 2013

German banks set standard framework for clearing OTC derivatives


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A legal framework for the standardised clearing of OTC derivatives has been established in Germany with the approval of standardised documentation by the German Banking Industry Committee, the Deutsche Kreditwirtschaft.


The DK has published the framework agreement, called the CRV – Clearing-Rahmenvereinbarung – for use by German banks and their buy-side customers with immediate effect. The document offers central counter-party users a uniform, binding contractual basis in German and under German law, setting out the legal relationship between clearing members and their customers in OTC derivatives clearing.

The move was welcomed by Eurex Clearing, which said that it can be used with its Individual Segregation Model and EurexOTC Clear for Interest Rate Swaps. “We would like to express our thanks for the good, close cooperation in producing the German clearing framework agreement, which is tailored to the needs of market participants in Germany”, said Thomas Book, chief executive of Eurex Clearing. “With this framework agreement, Eurex Clearing can now offer an individual segregation solution complying with EMIR standards in a standard documentation. Eurex Clearing customers thereby benefit from an exclusively German legal framework for clearing their OTC derivatives and minimal paperwork.”

Full article



© BankingTech.com


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