Natixis has become a clearing member of Eurex Clearing’s Securities Lending central counterparty (CCP) as well as EurexOTC Clear. The Lending CCP now has six clearing members, while EurexOTC Clear has more than 40.
“The CCP model for Natixis will not only help manage the rising burden of balance sheet regulation and costs, we believe it will also prompt new stock lending structures and business opportunities with non-standard profile counterparties,” says Gregoire Froehlich, Trader-Securities Lending & Borrowing, Natixis.
“Going live with EurexOTC Clear is a key milestone in our strategy of offering our clients a large choice of CCPs ahead of the EMIR mandatory clearing roll-out. We are delighted that capital efficiency, cross margining and collateral management mechanisms proposed by EurexClearing are now available to both Natixis and its clients,” says Nicolas Chauvet, Head of Derivatives, Treasury and Forex Operations at Natixis.
“We welcome Natixis as early user of our Lending CCP and are very pleased that such an important French financial services provider also uses our OTC clearing service. Natixis and its clients will be able to realise significant operational and capital efficiencies through our unique integrated cross product clearing service. This model allows not only for x-margin benefits, but even more important it allows for the highest collateral efficiency across securities lending, repo and derivatives,” says Matthias Graulich, Chief Client Officer and member of the Eurex Clearing Executive Board.
Eurex Clearing’s Securities Lending CCP brings the benefits of central clearing to a significant and so far largely bilateral market segment. The current product scope includes equities from Belgium, France, Germany, the Netherlands and Switzerland as well as a wide range of international fixed-income instruments and exchange-traded funds. Currently, six clearing members are admitted to the service. The Securities Lending CCP service is based on Eurex Clearing’s established systems and industry leading risk management standards. Securities lending transactions from Eurex Repo’s SecLend Market or via Pirum’s CCP Gateway can be cleared by Eurex Clearing. The service is integrated with two tri-party collateral agents, Clearstream Banking Luxembourg and Euroclear Bank.
EurexOTC Clear is designed for clients who are focused on safety and efficiency for their OTC derivatives exposure. At the same time, the service delivers capital efficiencies to promote cost-efficient compliance with regulatory requirements based on a variety of factors including a cross-product service portfolio, a broad eligible collateral spectrum and the Eurex Clearing Prisma risk management system across listed and OTC derivatives.
Eurex Clearing offers fully integrated execution with clearing and collateral management of OTC and listed derivatives in a single clearing house within one single legal and operational framework.
Natixis is the corporate, investment and financial services arm of Groupe BPCE, the 2nd-largest banking group in France with 36 million clients spread over two retail banking networks, Banque Populaire and Caisse d’Epargne.
With more than 16,000 employees, Natixis has a number of areas of expertise that are organized into three main business lines: Wholesale Banking, Investment Solutions & Insurance, and Specialised Financial Services.
A global player, Natixis has its own client base of companies, financial institutions and institutional investors as well as the client base of individuals, professionals and small and medium-sized businesses of Groupe BPCE’s banking networks.
