The Eurex Exchange, a subsidiary of Deutsche Börse and Europe’s largest trading platform for derivatives and the third largest in the world, is now expanding the offerings of its clearing mechanism to include EUR/USD and GBP/USD cross-currency swap transactions. Industry observers see this move as one more step towards central clearing for the forex industry. Banks are quite content with Interbank clearing, but there remains an opportunity for the Central Counterparty (CCP) model to prosper. Eurex Clearing has spearheaded CCP, wherein it acts as a counterparty to each and every transaction, as opposed to multiple ... (full story)