Eurex, the German derivatives exchange, is seeking approval from U.S. regulators to allow domestic investors route over-the-counter trades through its European clearinghouse.

The exchange is looking for U.S. recognition of Eurex Clearing in lieu of setting up its own U.S.-based clearinghouse, according to Heike Eckert, Eurex's head of U.S. operations.

Eurex, which is co-owned by Deutsche Boerse (DB1.XE) and SWX Swiss Exchange, is setting up its own European clearinghouse for credit credit default swaps after an unsuccessful effort to create a U.S. platform.

Its plans were disclosed Wednesday in a filing with the U.S. Commodity Futures Trading Commission.

The goal is to allow U.S.-based clients of Eurex Clearing to clear block trades and other transactions in a variety of OTC instruments, including credit derivatives, Eckert said in an interview with Dow Jones Newswires.

U.S. regulators have approved new OTC clearing platforms for CME Group Inc. (CME), IntercontinentalExchange Inc. (ICE) and NYSE Euronext (NYX). The exchanges are also eyeing European platforms.

Eurex's application for multilateral clearing organization status, which the CFTC submitted for public comment Wednesday, would recognize Eurex Clearing's oversight by German and U.K. regulators.

Ekhert said Eurex Clearing hasn't given up on the prospect of setting up a separate entity to clear U.S. credit derivative trades, and that the exchange remains in discussions with the Federal Reserve, the CFTC and the Securities and Exchange Commission on that front.

"We filed [this] application because it's still unclear who the regulator might be" for credit default swaps, Ekhert said.

Eurex recently has sought to bolster its Washington presence as it encourages U.S. recognition of foreign regulatory practices.

In Europe, Eurex is one of several exchanges battling to clear credit default swaps, and officials expect to begin handling trades in July.

-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117; jacob.bunge@dowjones.com