Introduction of a discount for OTC IRS & ZCIS Gold Packs, introduction of OTC IRD Basic Pack for Clearing Members’ own Accounts and extension of CCP Switch Incentive Program

1.   Introduction

Effective 2 January 2020, Eurex Clearing will:

A.   refresh the OTC IRD Pricing Packages for 2020 by

B.   renew its CCP Switch Incentive Program by

A. Refresh of the OTC IRD Pricing Packages for 2020

Limited Special Offers GOLD Pack:

Features of the Discounted GOLD Pack for bookings until 20 December 2019:

• Available to all Clearing Members and groups of Clearing Members
• Unlimited clearing of all OTC IRD products including IRS, OIS, Basis, FRA and ZCIS across all currencies – no limits on cleared or outstanding volumes apply
• Subscription deadline: 20 December 2019
• Term: 2 January 2020 to 31 December 2020
• Monthly instalments: EUR 175,000 (up to ~33% discount on combined Gold Packs)

Features of the Discounted GOLD Pack for bookings between 21 December 2019 and 31 January 2020:

• Available to all Clearing Members and groups of Clearing Members
• Unlimited clearing of all OTC IRD products including IRS, OIS, Basis, FRA and ZCIS across all currencies – no limits on cleared or outstanding volumes apply
• Subscription deadline: 31 January 2020
• Term: 2 January 2020 to 31 December 2020
• Monthly instalments: EUR 200,000 (up to ~23% discount on combined Gold Packs)

-> For a detailed overview and comparison of the OTC IRD GOLD Packs, please refer to the attachment.

Eurex Clearing makes all OTC IRD Gold Packs (including the Discounted Gold Pack) available for groups of affiliated Clearing Members with respect to their own accounts with effect from 2 January 2020. As of this date, all benefits of the OTC IRD Gold Packs may be shared by all Clearing Members that form part of the same group for the same fixed fee.

Limited Special Offers BASIC Pack:

Features of the Discounted BASIC Pack for bookings until 31 January 2020:

• Available to all Clearing Members
• Included Volume [EUR bn]:
  • Cleared notional for IRS, OIS, Basis: 200
  • Cleared notional for FRA: 500
  • Notional outstanding for IRS, OIS, Basis: 300
• Benefits: Up to 40% implied discount¹; 10 CCP Switch days included for free
• Subscription deadline: 31 January 2020
• Term: 2 January 2020 to 31 December 2020
• Monthly instalments: EUR 100,000 (equals 20% discount compared to regular Basic Pack)

¹ Discount compared to Standard Pricing Model in case of using the product specific volume thresholds as outlined in the description/attachment.

Regular BASIC Pack:

Features of the regular BASIC Pack:

• Available to all Clearing Members
• Included Volume [EUR bn]:
  • Cleared notional for IRS, OIS, Basis: 200
  • Cleared notional for FRA: 500
  • Notional outstanding for IRS, OIS, Basis: 300
• Benefits: Up to 25% implied discount¹
• Subscription deadline: n/a
• Term: 12 months, following subscription of Discounted Basic Pack
• Monthly instalments: EUR 125,000

-> For a detailed overview and comparison of the OTC IRD BASIC Packs, please refer to the attachment.

B. CCP Switch Incentive Program

Eurex Clearing will offer its CCP Switch Incentive Program for OTC IRD for Clearing Members and Disclosed Clients (DC) with System Access and Basic Disclosed Clients (DC) without System Access with effect from 2 January 2020 to 30 June 2020. Under the prerequisites of the CCP Switch Incentive Program 2020 Clearing Members and Disclosed Clients receive a 100 percent discount on all regular booking fees on individually selected switch days for IRS and OIS transactions. 

-> For a detailed overview of the CCP Switch Incentive Program, please refer to the attachment.

2. Required action

Registration for an OTC IRD Pricing Pack:

Clearing Members may apply for either of the previously described packs by way of the respective registration form. To subscribe to the Discounted Gold Pack or Discounted Basic Pack, please proceed the following steps:

i.    Fill in the respective registration form to apply for the preferred pricing pack 

• Registration for Gold Pack: Fill in the attached EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-Gold-Pack and select both Gold Packs (IRS, FRA, OIS and ZCIS) to subscribe to the Discounted Gold Pack; optional select “Registration of affiliated Clearing Members for Gold Pack Rebate Scheme” to apply the Gold Pack to an Affiliated Group. 
• Registration for Basic Pack: Fill in the attached EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-Basic-Pack and select Basic Pack (IRS, FRA, OIS) to subscribe to the Basic Pack.

ii.    Submit the signed form to your Key Account Manager Clearing latest by 20 December 2019 respectively 31 January 2020 to benefit from the Discounted Gold Pack, Discounted Basic Swap Pack from 2 January 2020 onwards.

Registration for CCP Switch Incentive Program:

Clearing Members and Disclosed Clients (via their Clearing Member) may register for the CCP Switch Incentive Program by way of the attached application form; please proceed the following steps:

i.    Fill in the respective CCP Switch Incentive Program application form for Clearing Members or Disclosed Clients respectively.
ii.   The signed form is to be sent to your dedicated Key Account Manager Clearing in advance of the planned switch activity.
 

3.   Details of the initiative

A. OTC IRD Pricing Packages for 2020

a) The Discounted Gold Pack allows subscribing Clearing Members unlimited clearing of all OTC IRD products including IRS, Overnight Index Swaps (OIS), Basis, Forward Rate Agreements (FRA) and ZCIS across all currencies from 2 January until 31 December 2020. The existing OTC IRD Gold Packs are offered at a discount of ~33 percent for bookings until 20 December 2019. For bookings between 21 December 2019 and 31 January 2020 a discount of ~23 percent on the existing OTC IRD Gold Packs will be granted.

b) Furthermore, Eurex Clearing makes all OTC IRD Gold Packs (including the Discounted Gold Pack) available for groups of affiliated Clearing Members with respect to their own accounts with effect from 2 January 2020. As of this date, all benefits of the OTC IRD Gold Packs may be shared by all Clearing Members that form part of the same group for the same fixed fee. The fixed fee will be allocated monthly to the group affiliates according to their individual performance measured as the sum of the monthly undiscounted gross revenues.

c) Effective 2 January 2020, Eurex Clearing will introduce the OTC IRD Basic Pack rebate scheme for the products IRS, OIS, Basis and FRA. The Basic Pack will replace the OTC IRS Bronze and Silver Pack rebate schemes in the Price List of Eurex Clearing AG (section 10.4 of the Price List) and allows for clearing of IRS, OIS, Basis and FRA on special terms upon pre-defined thresholds. The Basic Pack will be offered at an initial discount of 20 percent for bookings until 31 January 2020. In addition, every subscriber that books the Basic Pack until 31 January 2020 will receive 10 CCP switch days for Eurex Clearing’s renewed CCP Switch Incentive Program for free which can be used to transfer existing OTC IRD portfolios to Eurex Clearing until 30 June 2020 without any additional booking fee charges. 

B. CCP Switch Incentive Program

A. Offer for Clearing Members:

• The CCP Switch Incentive Program for Clearing Members is available for all Clearing Members (CM) including FCM Clearing Members (FCM) and Basic Clearing Members (BCM) (collectively referred to in the following as “Clearing Members”). The program allows enrolled Clearing Members to switch of OTC IRS and OIS Own Transactions from another CCP to Eurex Clearing (i.e. transactions on its house/P accounts) on individually selected Business Days between 2 January and 30 June 2020 on special terms as set out below. 
• Clearing Members can choose between a 5-day or a 10-day switch package for EUR 50,000 or EUR 100,000, respectively. The CCP Switch Incentive Package allows enrolled Clearing Members to individually select five or ten Business Days, respectively, and receive a 100% discount on all regular booking fees on these specific days. This offering is not limited in terms of notional volumes, number of trades or switch mechanisms.
• Enrolled clients notify Eurex Clearing of the individually selected switch day using a provided online form (https://www.eurexclearing.com/clearing-en/survey/ccp-switch-incentive-program). Selected switch days are to be notified at the latest by the end of the Business Day following the switch day.
• Interested Clearing Member may register for the CCP Switch Incentive Program for Clearing Members by way of the attached application form. The completed application form is to be sent to your Key Account Manager.
• The General Terms and Conditions of the CCP Switch Incentive Program for Clearing Members’ Own Transactions apply.

B. Offer for Disclosed Clients:

• The CCP Switch Incentive Program for Disclosed Clients is available for all Disclosed Clients (DC) with System Access and Basic Disclosed Clients (DC) without System Access (collectively referred to in the following as “Disclosed Clients”). The program allows enrolled Disclosed Clients to switch OTC IRS and OIS transactions from another CCP to Eurex Clearing on individually selected Business Days between 2 January and 30 June 2020 on special terms as set out below.
• Subject to submission of the application form, a Disclosed Client may apply for a 3-day switch package* which is free of charge. The CCP Switch Incentive Package allows enrolled Disclosed Clients to individually select three Business Days and receive a 100 percent discount on all regular booking fees on these specific days. This offering is not limited in terms of notional volumes, number of trades or switch mechanisms.
• Enrolled Disclosed Clients notify Eurex Clearing of individually selected switch days via the Clearing Member using a provided online form (https://www.eurexclearing.com/clearing-en/survey/ccp-switch-incentive-program). Selected switch days are to be notified at the latest by the end of the Business Day following the switch day.
• Interested Disclosed Clients may register for the CCP Switch Incentive Program for Disclosed Clients by way of the attached application form. The completed application form is to be sent via the Clearing Member to the Key Account Manager. In order to enjoy the maximum benefit, it is recommended for Disclosed Direct Clients with multiple Clearing Members to register all relationships. The discount will only be applied to registered relationships.
• The General Terms and Conditions of the CCP Switch Incentive Program for Own Transactions of Disclosed Direct Clients apply.

* Please note: Disclosed Clients do not need to apply for more than three switch days, also in case of a multiple clearing relationship setup.

The CCP Switch Incentive Program is designed to support CCP switch activity to transfer existing OTC Interest Rate Swap (IRS) and Overnight Index Swap (OIS) portfolios at other CCPs to Eurex Clearing.

As of the effective date, the full version of the amended Price List of Eurex Clearing AG will be available for download on the Eurex Clearing AG website www.eurexclearing.com under the following link: 

Resources > Rules and Regulations

The changes and amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG within the first ten (10) Business Days after publication. Any ordinary right of Eurex Clearing AG to terminate the respective contract (including a Clearing Agreement, if applicable) shall remain unaffected.

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.

Attachments: 

• 1 – Overview of OTC IRD Fee Packs for Clearing Members in 2020 and CCP Switch Incentive Program 
• 2 – Registration form for OTC IRD Gold Pack
• 3 – Registration form for OTC IRD Basic Pack
• 4 – Application form for the participation in the CCP Switch Incentive Program for Clearing Members with Terms and Conditions
• 5 – Application form for the participation in the CCP Switch Incentive Program for Disclosed Clients with Terms and Conditions
• 6 – Amended sections of the Price List of Eurex Clearing AG

Further information