Deutsche Boerse Signs Up Seven Banks for Rate Clearing

Deutsche Boerse AG plans to sign up seven of the largest dealers, including Deutsche Bank AG and JPMorgan Chase & Co., to its new clearing service for over-the-counter interest-rate swaps as it seeks to compete with LCH.Clearnet Group Ltd.

Eurex Clearing, a unit of Frankfurt-based Deutsche Boerse, said it will enter into agreements with Deutsche Bank, JPMorgan, Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG and Morgan Stanley. The new clearing service will be called EurexOTC Clear, the exchange said in a statement today. The product will be ready by the beginning of July and the exchange expects to roll it out in the second half of the year.