SIX, through its Spanish Central Counterparty (CCP) BME Clearing, broadened its clearing services to include multi-currency Interest Rate Swaps (IRS), addressing regulatory requirements and market demands. This expansion aligns with the European Commission’s EMIR 3.0 regulation, which mandates active accounts with European CCPs for EUR-denominated IRS clearing.
Clearing Services Extended to Six New Currencies
The newly supported currencies include USD, SEK, NOK, CHF, DKK, and GBP, in addition to EUR. This development positions SIX as a competitive option for market participants needing IRS clearing across multiple currencies. According to José Manuel Ortiz-Repiso, Head of Clearing and Repo Operations at SIX, the service may further expand to accommodate additional currencies in the future.
SIX’s multi-asset class clearing services encompass derivatives on equity indices, single stocks, interest rates, energy commodities, and cash instruments. The addition of multi-currency swaps is designed to provide cost-effective and regulatory-compliant alternatives for European market participants.
Simplified Pricing and Revenue Opportunities
SIX introduced a simplified pricing model to reduce clearing costs while offering revenue-sharing opportunities for liquidity providers. Integrated tools, such as transparent risk models and margin simulation capabilities, enhance operational efficiency. The clearing platform also supports Independent Software Vendor solutions for collateral and clearing management.
Client assets are safeguarded under the LSOC (Legally Segregated, Operationally Commingled) principle, with account structures designed for flexibility, catering to both house accounts and client clearing.
“SIX is focused on mitigating the challenges of additional costs and portfolio fragmentation by supporting multi-currency IRS and delivering cost-efficient solutions,” noted Ortiz-Repiso.
Revenue-Sharing Partnership Programs
To attract participants, SIX has launched partnership programs offering revenue-sharing opportunities and CCP fee reductions for eligible clients. These initiatives aim to strengthen SIX’s position as a leading alternative for IRS clearing in the Eurozone, particularly as compliance with EMIR 3.0 reshapes market requirements.
By extending its clearing capabilities and enhancing its service offerings, SIX provides a robust solution for participants navigating the complexities of multi-currency IRS clearing and regulatory obligations.
