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Aug 08, 2017

Eurex Clearing

Amendments of Special Provisions regarding the Default Management Process

As announced in Eurex Clearing circular 066/17, Eurex Clearing AG (Eurex Clearing) intends to:

  1. Clarify the DMP regarding the FWB Transactions in case a defaulted Clearing Member has been acting as a seller;
  2. Clarify the definition of the “Liquidation Group Ratio” for the Dedicated Amount consumption;
  3. Clarify the provisions relating to the OTC Interest Rate Derivatives Transactions auction format;
  4. Clarify the Default Management Auction Rules; and
  5. Further clarify the Default Management Committee Rules.

The amendments relate to Special Provisions of the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) with the consequences that a consultation process (Consultation) was initiated, which started on 6 July 2017 and ended on 7 August 2017. During the Consultation, Eurex Clearing did not receive comments from its customers regarding the contemplated amendments.

In line with the internal effort to coordinate the amendments of the Clearing Conditions, the Default Management Auction Rules, and the Default Management Committee Rules, the proposed changes will come into effect on 4 September 2017. The amended sections of the Clearing Conditions, the Default Management Committee Rules and the Default Management Auction Rules, as concluded by the Executive Board of Eurex Clearing, are attached to this circular.