To maintain the highest standards, only companies that meet certain stringent criteria are eligible for clearing membership; our admission standards are the first step in a comprehensive system of safeguards designed to maximize the safety and integrity of the markets operated by Eurex Clearing’s CCP services.
We recognize that markets are continually fluctuating. To ensure that our Clearing Members are sufficiently capitalized to deal with changing market conditions, we set capital requirements for Clearing Licenses. These capital requirements are set in line with estimated risk levels and are reviewed quarterly to reflect developments in the markets.
Irrespective of the minimum amounts of own funds* (capital) specified below, the actual amount of own funds that we require our Clearing Members to demonstrate and maintain is equal to the higher amount of:
The level of the own funds is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter.
|Capital requirements GCM|
(in EUR millions)
|Capital requirements DCM|
(in EUR millions)
|Securities Lending Clearing License||200||50|
The minimum capital requirements for own funds is calculated for multiple licenses in different asset classes.
* The term own funds was introduced pursuant to the European Capital Requirements Directive 2013/36/EU (CRD IV) and the European Capital Requirements Regulation (EU) No. 575/2013 (CRR). It replaces the term “liable equity capital”. For additional information on own funds, please refer to the Clearing Conditions for Eurex Clearing AG.
In order to ensure continued market integrity, we operate stress-tested lines of defense of which the Default Fund is one. Eurex Clearing maintains a Default Fund in order to protect market participants in the event of a Clearing Member default. In addition, the Default Fund is reviewed every quarter to ensure the fund is aligned with current market risk.
Based on the Clearing Member’s status Direct Clearing Member (DCM), General Clearing Member (GCM) or OTC Clearing Member (OTC CM)), the minimum Default Fund contribution is determined by Eurex Clearing as follows (minimum requirement):
In addition, the Default Fund requirements are dynamic considering the overall risk exposure of the single Clearing Member towards the CCP. The Default Fund requirement is determined by the highest single
amount of the following components:
The total margin requirement includes all products and asset classes cleared by the Clearing Member.
Initial margin corresponds to the sum of futures spread margin and additional margin.
Every well-built house starts with a strong foundation. In the case of our clearing house we have built it on a sound framework of safeguards - which we call our lines of defense - to protect our customers and to enhance the markets integrity.
We offer Clearing Members flexibility when setting up pledge securities accounts and settlement accounts that are required for Clearing Membership. They can choose to set up accounts at either Clearstream Banking AG, Frankfurt or SIS SegaInterSettle AG, Zurich for pledge securities accounts.
Account setup for participants
Securities accounts for equity loan securities at CSDs
Tri-Party Collateral Agent (TPCA)
EUR: TARGET2 account of a national central bank in the Eurozone
GBP: Bank cash account with a bank recognized by Eurex Clearing.
or alternatively a multicurrency cash account with:
Belgium ESES/Euroclear Belgium
- Clearstream Banking Luxembourg (CBL)
- Euroclear Bank (EOC)
Collateral management at Tri-Party Collateral Agents
Eurex Clearing's CCP service for securities lending makes use of the services of Tri-Party Collateral Agents (TPCA) for the management of the non-cash Principal Collateral of loan transactions. Currently Clearstream Banking Luxembourg (CBL), BNY Mellon (BNYM) and Euroclear Bank (EB) have been integrated in the CCP service for securities lending.
Lender and Borrower have to agree to use the same Tri-Party Collateral Agent, either Clearstream Banking Luxembourg (CBL), BNY Mellon (BNYM) or Euroclear Bank (EB). No cross-collateralization between the Tri-Party Collateral Agents is permitted.
The Tri-Party Collateral Agent manages the Principal Collateral based on the principal exposure information that is calculated and sent by the CCP. For this service, the Tri-Party Collateral Agents apply eligibility criteria.
As we strive to maintain high qualification levels of clearing firms for reasons of clearing house integrity, it is required to register at least one "Qualified Clearing Staff" (QCS) in the back-office with Eurex Clearing.
The Clearing Member has the following possibilities to provide proof of the qualification of the staff member that shall be in QCS:
All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.
If the Clearing Member is outsourcing its clearing, back office or risk management functions to an Insourcer, either the Clearing Member or the Insourcer has to have a QCS.
Each Clearing Member has to appoint and register at least one employee as emergency contact for Eurex Clearing. This emergency contact needs to be available during business hours and needs to be able to initiate necessary measures in emergency cases.
Since 18 May 2015, the emergency contact is included in the Member Section, where the Clearing Member can maintain this data.
If you wish to apply for Securities Lending services you may find all mandatory forms available here.
06 Apr 2017
This Upload sheet is used by Clearing Members (CMs) and Holders of a Specific Lender License (SLLH) to provide Cash Accounts for Securities Lending Cash Transactions.