05 May 2021

Eurex Clearing

Eurex Clearing Readiness Newsflash | Simulation focus week for EurexOTC Clear Release 11.2 and Cross-margining

Eurex Clearing Readiness Newsflash | Simulation focus week for EurexOTC Clear Release 11.2 and Cross-margining


Dear Clearing Member,

With this Newsflash, Eurex Clearing announces a focus week in the simulation environment for EurexOTC Clear Release 11.2 and cross-margin testing. The focus week will run from Tuesday, 25 May 2021 until Tuesday, 1 June 2021.

Learn now more about Eurex OTC Release 11.2 on our dedicated initiative page under the following link: Support > Initiatives & Releases > EurexOTC Clear Release 11.2. System documentation, circulars, timeline and much more information will be available there for you 

...and on the go via the personalized Eurex App.

As introduced in Eurex Clearing Circular 007/21, the simulation environment of EurexOTC Clear Release 11.2 will be opened for Clearing Members starting on 12 May 2021. To support your simulation activities, there will be six consecutive batch days in simulation that will allow Clearing Members to test newly added functionalities and check for report changes. All information about this release is available on our dedicated initiative page EurexOTC Clear Release 11.2.

Additionally, during the week from 25 May until 1 June 2021, all Clearing Members can test the cross-margining functionality. Cross-margining can yield a margin reduction of up to 70 percent via risk netting between listed and OTC trades. This reduces Clearing Broker exposures and lowers collateral and liquidity demands as well as default fund contribution requirements. The focus week is for cross-margining under the principal model, cross-margining for the LSOC model is not included.

We invite all Clearing Members to use this opportunity and make themselves familiar with the cross-margining procedure. 

The specific benefits of cross-margining for our clients and for the clearing house are:

  • higher capital efficiency,
  • consistent framework aligned with the Default Management Process,
  • stability and robustness,
  • flexibility,
  • regulatory robustness.

A detailed explanation of cross-margining can be found in the “User Guide: Cross Margining”. The document is available in the Member Section of Deutsche Börse Group under the following path:

Resources > Eurex Clearing > Documentation & Files > Eurex Clearing Prisma > Release Documents > Document and Circulars > Documents Release 1.0 – 5.1 > Documents Release 3.0.

Updated simulation calendars for each system are available on the Eurex Clearing website under the following link:

Support > Initiatives & Releases > Simulation calendar.

Please be aware that some reports will not be correct on day one. 

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, FCM 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

Web:

Support > Initiatives & Releases > EurexOTC Clear Release 11.2