A member of
Eurex Clearing
1. Introduction
This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) and introduces amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the Auction Terms of Eurex Clearing AG (Auction Terms) regarding the following topics:
| A. | Additional representation for Clearing Members (CM) with regards to Eurex Transactions for Direct Clients domiciled in the United States (U.S.), | |
| B. | Introduction of the Direct Margin Transfer Agreement and amendments to the relevant provisions under the Individual Segregated Account (ISA) Provisions, and | |
| C. | Minor amendments to the liability clauses under the Clearing Conditions and the Auction Terms. |
The amendments above will become effective as of 2 March 2020.
2. Required action
There is no required action for the participants.
3. Details of the initiative
| A. | Additional representation for Clearing Members (CM) with regards to Eurex Transactions for Direct Clients domiciled in the United States (U.S.) |
In relation to Eurex Transactions, the Clearing Member represents and warrants to Eurex Clearing that it maintains policies and procedures reasonably designed to ensure that it will, with respect to Direct Clients located in the United States, only enter an order or quote for a Eurex Transaction, and only request the transfer of a Eurex Transaction, if such order, quote, or transfer complies with the applicable regulatory requirements and restrictions under U.S. law.
To reflect the changes, the following provisions will be amended as outlined in Attachment 1:
| B. | Form of agreement for the Direct Margin Transfer under the Individual Segregated Account (ISA) Provisions |
To facilitate the offering of direct margin transfers and retransfers with respect to ISA Transactions, as offered in Chapter I Part 4 Number 6.7 of the Clearing Conditions, the Direct Margin Transfer Agreement between Eurex Clearing, the Clearing Member and the Disclosed Direct Client will be made available on the website of Eurex Clearing.
To reflect the changes, the following provisions will be amended as outlined in Attachment 2:
| C. | Minor amendments to the liability clauses under the Clearing Conditions and the Auction Terms |
To provide more clarity with respect to the limitation of Eurex Clearing's liability under Chapter I Part 1 Number 14.1 of the Clearing Conditions, Eurex Clearing slightly adjusts the wording with respect to the explanation of "essential obligation".
To reflect the changes, the following provisions will be amended as outlined in Attachments 3 and 4:
As of the effective date, the full version of the amended Clearing Conditions and the Auction Terms will be available for download on the Eurex Clearing website www.eurexclearing.com under the following link:
Resources > Rules and Regulations
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.
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.
Attachments:
Further information
| Recipients: | All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors, and other affected contractual parties |
| Target groups: | Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination |
| Contact: | client.services@eurexclearing.com |
| Web: | www.eurexclearing.com |
| Authorised by: | Heike Eckert |