ESM selects Eurex Clearing for voluntary clearing of IRS
15 May 2025 Europe
Image: ESM
The European Stability Mechanism (ESM) has selected Eurex Clearing to voluntarily clear OTC interest rate swaps (IRS), in a bid to strengthen the EU financial ecosystem.
The ESM was welcomed as a clearing member during the Bell Ringing ceremony at the Frankfurt Stock Exchange on 15 May, in the presence of ESM Managing Director Pierre Gramegna, Chief Financial Officer Kalin Anev Janse, and Deutsche B枚rse鈥檚 CEO Stephan Leithner.
"The ESM鈥檚 decision to CCP clear IRS in the EU is a key contribution to reinforcing financial stability and strategic autonomy within the region 鈥� a significant step forward for the entire European market,鈥� says Leithner.
By voluntarily committing to CCP clearing, the ESM鈥檚 decision aims to contribute to the objectives of the third edition of the European Market Infrastructure Regulation (EMIR 3.0).
It also looks to strengthen Europe's attractiveness, actively supporting the development of a robust and resilient clearing ecosystem, and reducing the EU鈥檚 dependence on third-country clearing houses.
The ESM provides financial assistance to euro-area member states experiencing or threatened with severe financing difficulties.
Interest rate swaps are essential instruments for the ESM to manage its financial obligations and ensure cost-effective lending programmes.
By clearing its OTC IRS through an EU clearing house, ESM plans to mitigate counterparty risk, reduce risk management costs, and streamline its operational processes.
This step also aims to contribute to the broader objectives of the EU's Savings and Investment Union by increasing market efficiency and transparency.
Central clearing helps to create a more attractive investment environment and contributes to wider and more integrated European capital markets, according to the ESM.
Pierre Gramegna, managing director at ESM, adds: 鈥淭his move is a message of trust in the European financial system and demonstrates the ESM's commitment to innovation and progress.
鈥淚t also supports the broader objective of deepening European capital markets, fostering economic growth and competitiveness.鈥�
The ESM was welcomed as a clearing member during the Bell Ringing ceremony at the Frankfurt Stock Exchange on 15 May, in the presence of ESM Managing Director Pierre Gramegna, Chief Financial Officer Kalin Anev Janse, and Deutsche B枚rse鈥檚 CEO Stephan Leithner.
"The ESM鈥檚 decision to CCP clear IRS in the EU is a key contribution to reinforcing financial stability and strategic autonomy within the region 鈥� a significant step forward for the entire European market,鈥� says Leithner.
By voluntarily committing to CCP clearing, the ESM鈥檚 decision aims to contribute to the objectives of the third edition of the European Market Infrastructure Regulation (EMIR 3.0).
It also looks to strengthen Europe's attractiveness, actively supporting the development of a robust and resilient clearing ecosystem, and reducing the EU鈥檚 dependence on third-country clearing houses.
The ESM provides financial assistance to euro-area member states experiencing or threatened with severe financing difficulties.
Interest rate swaps are essential instruments for the ESM to manage its financial obligations and ensure cost-effective lending programmes.
By clearing its OTC IRS through an EU clearing house, ESM plans to mitigate counterparty risk, reduce risk management costs, and streamline its operational processes.
This step also aims to contribute to the broader objectives of the EU's Savings and Investment Union by increasing market efficiency and transparency.
Central clearing helps to create a more attractive investment environment and contributes to wider and more integrated European capital markets, according to the ESM.
Pierre Gramegna, managing director at ESM, adds: 鈥淭his move is a message of trust in the European financial system and demonstrates the ESM's commitment to innovation and progress.
鈥淚t also supports the broader objective of deepening European capital markets, fostering economic growth and competitiveness.鈥�
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