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Aug 08, 2017

Eurex Clearing

Update on the clearing of Section 871 (m) Internal Revenue Code (IRC) transactions through Eurex Clearing AG

This circular contains further information with respect to the clearing of Section 871 (m) IRC transactions through Eurex Clearing AG (Eurex Clearing). Particularly, the provision of required information and a confirmation regarding combined transactions are addressed.

  • Retroactively as of 1 January 2017, Eurex Clearing acts as Qualified Derivatives Dealer (QDD). As Eurex Clearing requested all its Clearing Members in Eurex Clearing circular 028/17 to act either as QDD or as primary withholding Qualified Intermediary (QI) in potential 871 (m) IRC transactions, no withholding by Eurex Clearing is required on such transactions.
  • All Clearing Members are requested to provide Eurex Clearing with required information for the purposes of Form 1042/1042-S Reporting and Reporting Reconciliation.
  • Eurex Clearing hereby confirms that it does not employ any combined transaction strategies despite potentially entering into multiple transactions over the same underlying security.