Eurex Clearing Readiness Newsflash | Introduction of Eurex Daily Futures on KOSPI 200 Futures – prerequisites for clearing

Dear Clearing Member,

With this newsflash, Eurex Clearing would like to provide more detailed information regarding the requirements for clearing of the new Eurex Daily Futures on KOSPI 200 Futures to be introduced on the Eurex/KRX Link, as announced in Eurex circular 013/21 and Eurex Clearing circular 008/21.

The effective launch date for these new products is 22 March 2021. Simulation will start on 
15 February 2021.

New Eurex KOSPI products being added to Eurex/KRX Link:

• Daily Futures on KOSPI 200 Futures (FBK2)

These new products will be available on the Eurex/KRX Link following the existing trading mechanism and requirements. These new daily expiring futures at Eurex are designed to be cash settled in South Korean won (KRW), in the same fashion as the existing Eurex KOSPI products:

Eurex KOSPI products currently available on Eurex/KRX Link:

• Daily Futures on KOSPI 200 Options (OKS2)
• Daily Futures on mini-KOSPI 200 Futures (FMK2)

The requirement for Clearing Members is the same as for clearing the existing Eurex KOSPI products, i.e. having a KRW payment infrastructure ready prior to activation for clearing the KRW capacity.

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

Existing Eurex Clearing Members who have been clearing the existing KOSPI products:

There is no new requirement for Clearing Members as they can use the existing KRW payment bank and have the same clearing procedure as the current products.

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).

Existing Eurex Clearing Members who have not been clearing the current KOSPI products but wish to join: 

• Follow the existing process and 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 to set up an account in KRW at one Korean settlement bank in order to be able to settle cash obligations. 

There is no additional technical implementation required on the clearing side.

We encourage Clearing Members and Independent Software Vendors to participate in simulation in order to prepare for the launch of these new products. The Eurex Daily Futures on KOSPI 200 Futures (FBK2) will be available in the Eurex simulation environment as of 15 February 2021. In addition, Korea Exchange (KRX) will support the participating Eurex and KRX Members to simulate the positions transfer process at KRX during 15 February 2021 to 12 March 2021.

All details about the Eurex KOSPI  products  can be found on the dedicated Eurex website. Please also refer to the Eurex/KRX Link Member Readiness Guide available on this website.

If you have any further questions or comments, please contact your Clearing Key Account Manager or send an e-mail to: client.services@eurex.com.

Kind regards,
Your Client Services Team
 

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