With the UK still headed for a Brexit in 2020, subject to December’s General Election, German banking group DekaBank, the securities services provider of the German Savings Banks Finance Group, has successfully transferred a substantial portion of its swap book from UK-based LCH to Frankfurt-based Eurex Clearing in a single day.
What the firm calls a “complex” transaction involving thousands of line items and a dealer bank as transfer agent was carried out without any disruption or market impact.
DekaBank says it has been an early supporter of Eurex Clearing’s initiative to develop a liquid alternative for interest rate derivative clearing within the EU27. To further support clients in migrating positions from London to Frankfurt, Eurex Clearing recently announced a 100 percent discount on booking fees for portfolio switches until end of 2019.
Dmitrij Senko, member of the Executive Board and Eurex’s chief risk officer, says, “We are delighted that the switch, with over 7000 individual transactions, went flawlessly in just one day. Demand from EU27 firms considering switching their portfolios is growing, with a number of transfer agents being ready to support these switches.”