Eurex Clearing is actively participating in the second wave of the Eurosystem’s exploratory work on new technologies for wholesale central bank digital money settlement. These trials aim to explore the potential of distributed ledger technology (DLT).
The ECB has now officially confirmed the Wave 2 stakeholders which include Eurex Clearing and other market participants along with DLT operators like Clearstream.
As part of Wave 1 of the exploratory work, Eurex Clearing has been also engaged in testing the Trigger Solution developed by Deutsche Bundesbank. The use case focuses on a centrally cleared repo transaction. The repo instrument is a native digital commercial paper traded on Eurex Repo’s F7 platform; issued and settled on Clearstream’s D7 DLT-capable digital securities platform.
In Wave 2, Eurex Clearing is involved in trials that settle cash amounts via the ledger of the Banque de France’s Full DLT Interoperability Solution. The Wave 2 trials encompass two use cases: cleared repo transactions, similar as in Wave 1, and intraday margin calls.
Matthias Graulich, Member of the Executive Board, Eurex Clearing AG: “We are proud to be part of the second wave of ECB trials as well. As one of the world's leading central counterparties, we recognize the great potential of new technologies such as DLT. They can undoubtedly contribute to greater cost efficiency and process optimization in clearing and settlement.”
As a trusted financial market infrastructure, Eurex Clearing is actively preparing for the digital transformation of the financial industry, ensuring that its risk models and methodologies uphold market integrity and safety. The exploratory work will lay the basis for future industry standards, particularly for interoperability between DLT platforms and traditional finance, in which financial market infrastructures like CCPs will play a crucial role.