Further amendments to the Clearing Conditions of Eurex Clearing AG - End of Consultation

1.    Introduction

As announced and further explained in Eurex Clearing circular 095/19, Eurex Clearing AG proposed the following changes and amendments and conducted a Consultation pursuant to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions):

• Discontinuation of the Individual Clearing Model (ICM) and the Value Based Allocation Method under the Elementary Clearing Model as of 31 December 2019;
• Deletion of "Exchange Price Approach" for the calculation of Difference Claims;
• Extended flexibility for the setup of Basic DCs, Undisclosed Direct Clients and Indirect Clients;
• Client Clearing for the OTC Currency Clearing service, and
• Minor amendments subject to the Consultation

Eurex Clearing received comments that led to further changes as described under item 3. below. Eurex Clearing has not received any requests for the application of the Prolonged Notification Period. 

The changes and amendments as notified in the above-mentioned Eurex Clearing circular and all further changes and amendments as further outlined under item 3. below will come into effect on 2 January 2020.

2.    Required action

Clearing Members, Basic Clearing Members, FCM Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors and all other affected contractual parties should take the amendments to the Clearing Conditions into account.

3.    Details

For further details on the initial changes and amendments, please refer to Eurex Clearing circular 095/19.

The further changes based on comments received during the Consultation are as follows:

• Editorial changes to Chapter I Part 1 Number 1.1.15, Number 8.1, Number 10.5, Number 10.7 and Number 12.1.
• With respect to Clearing Members who will not have changed (i) from Value Based Allocation to Asset Based Allocation or (ii) from the Individual Clearing Model Provisions to other clearing models with respect to all of their ICM Clients prior to 2 January 2020, Eurex Clearing introduced transitional provisions under Chapter I Part 1 Number 18 of the Clearing Conditions. 

All of the above changes to the Clearing Conditions are consolidated in Attachment 1 and will become effective on 2 January 2020.

Please also see Attachment 2, which, for transparency reasons, highlights only the further changes due to comments received during the Consultation Period.

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

Resources > Rules and Regulations > Clearing Conditions

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: 

• Attachment 1 – Amended sections of Chapters I, II, IV, V, VIII and IX of the Clearing Conditions, Appendices 1, 3, 4, 7, 8, 13 and 14 to the Clearing Conditions, Number 6.3 of the Default Management Auction Rules (consolidated version of amendments pre and post Consultation Period)
• Attachment 2 – Amended sections of Chapter I Part 1 Number 1.1.15, Number 8.1, Number 10.5, Number 10.7, Number 12.1 and Number 18 of the Clearing Conditions (amendments post Consultation Period only)

Further information