22 Jul 2021

Eurex Clearing

Eurex Clearing Readiness Newsflash | Introduction of Daily Futures on USD/KRW FX Futures – prerequisites for clearing

Eurex Clearing Readiness Newsflash | Introduction of Daily Futures on USD/KRW FX Futures – prerequisites for clearing


Dear Clearing Participant,

With this newsflash, Eurex Clearing would like to provide more detailed information regarding the requirements for clearing of the new Daily Futures on USD/KRW FX Futures to be introduced on the Eurex/KRX Link, as announced in Eurex circular 050/21 and Eurex Clearing circular 046/21

Please be reminded that the effective launch date for these new products is 26 July 2021 and the simulation environment has been available for testing since 18 June 2021. 

Other KRW products (Daily Futures on Equity Index KOSPI Futures and Options) which are currently traded via Eurex/KRX Link can be found on the following link on the Eurex website: Eurex/KRX Link

To support clearing activities, please find below additional guidance for affected Clearing Members:

Existing Clearing Members which currently clear existing KRW products:

  • The requirement for Clearing Members is similar to clearing the existing Eurex KOSPI products, i.e. having KRW payment infrastructure ready prior to activation for clearing KRW capacity. New products will be assigned to the same capacity (i.e. Cash KRW) and the existing Clearing Members who have been assigned to this capacity can automatically clear the new products (i.e. no additional Legal Info and resigning of forms required).
  • Furthermore, Clearing Members need to have the KRW payment infrastructure set up with one of the nominated settlement banks: Shinhan or HSBC Seoul. Further information on direct bank account with one of the settlement banks can be found on the Eurex Clearing website on the Cash collateral page under the following link: Services > Collateral management > Cash collateral.

Existing Clearing Members which do not currently clear existing KRW products but wish to join: 

  • For Clearing Members which do not currently clear existing KRW products and would like to do so, the required action is to follow existing onboarding procedures to set up a clearing account in KRW at one Korean settlement bank in order to be able to settle cash obligations.
  • Clearing Members need to complete the relevant form “Application for Set-up/Deletion/Change of Collateral Accounts and Clearer Cash Accounts” which your Clearing Key Account Manager can provide you with. Please note that the participation form to activate the capacity does not need to be dually signed by both CM and DCMP. It can be signed by CM with information of KRX brokers for its respective DCMPs or signed by DCMP itself.

We encourage Clearing Members and Independent Software Vendors to participate in simulation in order to prepare for the launch of these new products. In addition, Korea Exchange (KRX) will support the participating Eurex and KRX Members to simulate the positions transfer process at KRX.

Learn now more about the Eurex Daily USD/KRW Futures on our dedicated initiative page under the following link: Support > Initiatives & Releases > Product Readiness. System documentation, circulars, timeline and much more information will be available there for you.

Please also refer to the  Eurex/KRX Link Member Readiness Guide available on the Eurex website under the following path: Markets > FX > Daily USD/KRW Futures > Find it fast >  Eurex/KRX Link Member Readiness Guide.

If you have any further questions or comments, please send an e-mail to: client.services@eurex.com.

Kind regards,
Your Client Services Team
 

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Recipients:

All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors

Target groups:

Front Office/Trading, Middle + Back Office, IT/System Administration

Contact:

client.services@eurex.com

Related circulars:

Eurex Clearing circular 050/21,  
Eurex Clearing circular 046/21

Web:

Support > Initiatives & Releases > Product Readiness