Eurex Clearing plans to enable buy-side to circumvent banks
Eurex Clearing is working on a clearing model that will enable buy-side members to clear directly, circumventing bank clearing members. Their plans have caused some concern with European regulators over risk from lower-rated counterparties.

Buy-side derivatives users are mulling becoming direct members of Eurex Clearing under a new agency model developed by the central counterparty (CCP) - but regulators are wary of the risks posed by introducing less regulated entities into the clearing house.

The German CCP is developing a framework to allow buy-side entities, in particular pension funds, supranationals and large asset managers, to clear their trades directly with a clearing house, instead of via a bank clearing member. The