European Stability Mechanism selects Eurex Clearing for voluntary clearing of interest rate swaps

The European Stability Mechanism (ESM) has selected Eurex Clearing to voluntarily clear over-the-counter (OTC) interest rate swaps, demonstrating a clear commitment to strengthening the EU financial ecosystem. This decision recognizes the critical role of central clearing in promoting financial stability and actively supports Eurex Clearing’s efforts to enhance the strong alternative liquidity pool within the EU, thereby advancing the European sovereignty agenda.

The ESM was welcomed as a clearing member during today’s Bell Ringing ceremony at the Frankfurt Stock Exchange in the presence of ESM Managing Director Pierre Gramegna, CFO Kalin Anev Janse and Deutsche Börse´s CEO Stephan Leithner.

Strengthening the EU clearing ecosystem

By voluntarily committing to CCP clearing, the ESM’s decision contributes to the objectives of EMIR 3.0 and significantly strengthens Europe's attractiveness, actively supports the development of a robust and resilient clearing ecosystem in Europe and reduces the EU’s dependence on third country clearing houses.

The ESM provides financial assistance to euro area member states experiencing or threatened with severe financing difficulties, thereby safeguarding financial stability in the eurozone. Interest rate swaps are essential instruments for the ESM to manage its financial obligations and ensure cost-effective lending programs. By clearing its OTC IRS through an EU clearing house, ESM is taking proactive steps to mitigate counterparty risk, reduce risk management costs and further streamline its operational processes. Its decision in line with the EU Commission’s call to public sector entities in EMIR 3.0 will increase the scope of active players and strengthen the EU based clearing environment, making an important contribution to enhancing safety and strategic sovereignty.

Supporting the Savings and Investment Union

This step also contributes 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. The move strengthens Eurex Clearing's position as a central pillar of the European clearing landscape and reinforces its commitment to promoting financial stability and market integrity.

"We are delighted to welcome the ESM as a clearing member," said Stephan Leithner, CEO of Deutsche Börse AG. "The ESM’s decision to CCP clear interest rate swaps in the EU is a key contribution to reinforcing financial stability and strategic autonomy within the region – a significant step forward for the entire European market. This underscores Eurex Clearing's vital role in providing secure and efficient clearing services, and positions us for continued growth and innovation within the evolving European financial landscape."  

“This move is a message of trust in the European financial system and demonstrates the ESM's commitment to innovation and progress. It also supports the broader objective of deepening European capital markets, fostering economic growth and competitiveness,” ESM Managing Director Pierre Gramegna said.  “I am very pleased to have Eurex as the ESM’s partner in this journey.” 

About Eurex

Eurex is the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk.

About European Stability Mechanism

The European Stability Mechanism (ESM) has the mandate to preserve financial stability in the euro area by providing financial assistance to Member States with severe financing problems. It is a permanent inter-governmental institution, operating since October 2012. The shareholders of the ESM are the 20 euro area Member States. All financial assistance to Member States is linked to appropriate conditionality. The ESM finances its assistance by issuing bonds and other debt instruments. It has a total subscribed capital of approximately €708 billion, which comprises €81 billion in paid-in capital and €627 billion in committed callable capital. The ESM’s maximum lending capacity is €500 billion.

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Please find here the photos of Stephan Leithner and Pierre Gramegna

Media contact:
Niels Tomm
+49 172 3009640
[email protected]