A member of
Eurex Clearing
The Regulation of European Market Infrastructure (European Market Infrastructure Regulation (EMIR)) and the applicable specifications of such regulation require central counterparties to manage their exposure towards each of their counterparties. The respective requirements are defined in Article 46 EMIR and further specified in the European Securities and Markets Authority (ESMA) Technical Standards.
In particular, Article 40 EMIR requires the Central Counterparty (CCP) to conduct a credit assessment and monitoring of each Clearing Member (CM), while Article 42 of the ESMA Technical Standards sets-out principles for prudent management of concentration risks. Moreover, Article 39 of the ESMA Technical Standards (in conjunction with Annex I, Section 1) defines strict requirements for monitoring so-called wrong-way risks by the CCP.
In this circular, Eurex Clearing introduces key principles for the assessment and monitoring of credit risks, concentration risks and wrong-way risks (referred to as the “additionally monitored risks”). Based on these key principles, Eurex Clearing assesses the additionally monitored risks for its CMs.
Attached to this circular you will find the updated sections of the Clearing Conditions for Eurex Clearing AG as approved by the Executive Board of Eurex Clearing AG after previous consultation with the Risk Committee on 23 October 2013. The changes will come into effect on 11 November 2013.