Risk management, OTC client clearing services: interest rate derivatives clearing
How you can benefit from Commerzbank’s client clearing services, Full service for your derivatives transactions
Onboarding expertise
Providing full-service legal, project, and technical support for straightforward integration into your current systems and processes.
Client portal
Benefit from real-time collateral management, trade reporting, and customised reports, executed at the times you specify, and delivered via SFTP in various formats, including Excel, CSV, and PDF.
Dedicated clearing support
A specialised OTC clearing team ensures reliable compliance with regulatory requirements, with minimal impact on your business activities, internal resources, and infrastructure.
Different stages in the life of a cleared derivative trade
Trade execution
- Execution can be with or away from Commerzbank.
- Execution can be via voice or electronic affirmation.
Trade affirmation
- Following trade execution, the trade will be entered into affirmatio platform of choice.
- Clients will need to allocate trades and assign a clearing broker.
Commerzbank Clearing Broker
- Commerzbank as clearing member will receive the trade and process it for clearing.
- The CCP will then accept the trade for clearing.
- If the CCP rejects the trade from clearing, then the trade falls back and is governed by the execution agreement.
Daily margining
- Once a trade is cleared, Commerzbank will absorb any intraday margin call if applicable and issue a single margin call on T+1.
- Commerzbank has developed a market-leading web platform for real-time reporting and margin calls with customizable reports.
Client clearing: your benefits
Preserves equity
Lower risk weightings can be applied when clearing derivatives transactions via central counterparties, which preserves equity.
Increases protection
Cleared derivatives and associated collateral are segregated from other clients and the clearing member, providing you with a higher level of protection in the event of a counterparty default.
Gaining access to clearing in three steps
First contact
Get in touch. For example by filling out and sending us the request for proposal.
Review & offer
If our review yields a positive result, we will send you a formal offer with all information and documents required for your admission to the clearing service (Segregation Information EMIR, fee schedule, onboarding manual).
Onboarding process
In this last step, we will (i) discuss all outstanding functional and technical questions regarding clearing access in detail, and (ii) set up the technical infrastructure.