De Volksbank Becomes the First Dutch Bank to Join Eurex’s ISA Direct

Eurex, an international derivatives exchange and a member of the Deutsche Börse Group, announced today that De Volksbank, the Utrecht-based financial services provider, has joined the ISA Direct model of Eurex.

According to an official announcement, De Volksbank is the first Dutch bank to join the direct access model of the exchange. Eurex added that ABN AMRO clearing bank is acting as a clearing agent.

ISA Direct service of the exchange allows a large number of institutions around the world to take advantage of broad Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pools and capital efficiencies. Eurex also highlighted the benefits of ISA Direct over traditional clearing models.

Commenting on the latest announcement, Adam Husted, Head of Membership Sales and Relationship Management at Eurex, said: “We are delighted to welcome de Volksbank to ISA Direct, and thank both them and ABN AMRO Clearing for supporting this initiative. With several notable recent clients wins, our direct access model, which offers the market real benefits in terms of balance sheet optimization and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, continues to grow in strength."

Recently, the derivatives exchange reported its trading numbers for May 2021 and saw a significant jump in the total number of contracts. Eurex reported a total of 137.4 million contracts in May 2021.

ISA Direct

Eurex’s ISA Direct was initially developed for buy-side clients, but it has attracted a broad range of financial institutions including banks. Eurex mentioned that ISA Direct has enhanced security because of the strong risk management framework adopted by the exchange.

"The benefits of combining OTC IRS and repo clearing make Eurex’s ISA Direct a very attractive proposition for us, and the new TARGET2 functionality has really enhanced the business case. Onboarding at Eurex was extremely smooth, and we are grateful to ABN AMRO Clearing for their work as Clearing Agent,” Edwin de Hoogen, Money Markets Manager at de Volksbank mentioned in the announcement.

Earlier this month, Eurex expanded its presence in Asia through the introduction of new derivatives including the launch of futures on the MSCI China Tech 100 Index.