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Frankfurt Pips London as German Debt Agency Picks Eurex Clearing 

September 8, 2015

Brian Parkin, Bloomberg Business

The German government chose EurexOTC Clear to settle its future interest swap transactions in a boon for Frankfurt as the sovereign’s bond issuer seeks to benefit from new rules that require central clearing of derivatives.

The Federal Finance Agency GmbH will become a clearing member of the Deutsche Boerse AG platform in the fourth quarter, the Frankfurt-based debt management company said in an e-mailed statement on Monday. The step is tied to compliance with new rules dubbed EMIR and Germany’s goal to cut transaction costs while lowering operational risks, it said.

The choice of EurexOTC Clear over London-based competitor LCH.Clearnet is a fillip for Frankfurt, which is increasing in prominence as an international financial center after obtaining approval to clear and settle payments in yuan last year.

Read more: Bloomberg Business

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