Amendment to the Clearing Conditions and the FCM Regulations of Eurex Clearing AG

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 and the FCM Regulations of Eurex Clearing AG regarding the following topics:

The amendments under A. to C. will become effective as of 1 December 2020, the amendments under D. will become effective as of 4 January 2021.

2. Required action

There is no required action for the Participants.

3. Details

A.    Clarification of Representation by Clearing Members and FCM Clearing Members with regards to clients from the People’s Republic of China (PRC) 

The representations with regards to Chinese Clients in the Clearing Conditions as well as FCM Regulations will be amended to provide additional clarity with regards to the definition of Chinese Clients as well as the obligations of Clearing Members and FCM Clearing Members. 

Affected Clearing Members and FCM Clearing Members must ensure by obtaining representation from the respective Disclosed Direct Client, Indirect Client and/or FCM Client that any original bilateral transaction was not concluded OTC or off-book between two entities located in PRC. Additionally, the affected Clearing Members or FCM Clearing Members represent to Eurex Clearing that any entities domiciled in the PRC that they on-board as Disclosed Direct Clients, Indirect Clients and/or FCM Clients qualify as eligible investors under the relevant PRC laws. In the case of Indirect Clients, affected Clearing Members or FCM Clearing Members may also obtain such representation from the Direct Client.

Eurex Clearing does not hold any license under PRC laws and cannot provide services in the PRC.

To reflect the changes, the following provisions will be amended as outlined in Attachment 1 and Attachment 2:

• Chapter I Part 1 Number 1.14 of the Clearing Conditions
• Chapter I Number 1.7.2 of the FCM Regulations

B.    Editorial change with regards to a reference in Chapter II Part 1 Number 1.1.2 (5)

Chapter II Part 1 Number 1.1.2 (5) of the Clearing Conditions currently refers to Chapter I Part 1 Number 2.1.2 (4) (a) (gg). Due to amendments made with respect to Chapter I Part 1 Number 2.1.2 (4) (a) in the past, the reference under Chapter II Part 1 Number 1.1.2 (5) of the Clearing Conditions is not correct anymore. As a result, the reference will be corrected accordingly.

To reflect the change, the following provision will be amended as outlined in Attachment 3:

• Chapter II Part 1 Number 1.1.2 (5) of the Clearing Conditions 

C.    Extension of EUR cash collateral withdrawal cut-off time

The cut-off time for EUR cash collateral withdrawal is 09:30 CET currently. This limits the possibility to substitute collateral once clients deliver their own collateral to the Clearing Member. Eurex Clearing is therefore going to extend until further notice the cut-off time for EUR cash collateral in order to provide more flexibility. The new cut-off time for EUR withdrawal will be set to 13:00 CET.

To reflect the change, all affected websites will be amended accordingly.

D.    Introduction of permission for Eurex Clearing to direct debit Eurex-Fees on the basis of its price list in effect

Eurex Clearing shall be entitled to directly debit fees according to the Price List of Eurex Clearing AG. All possible account types are explicitly stated. A direct debit authorisation has to be given by the Clearing Member. Therefore, the respective permission will be introduced.

To reflect the change, the following provision will be amended as outlined in Attachment 4:

• Chapter I Part 1 Number 5.1 of the Clearing Conditions 

As of the effective date, the full versions of the amended Clearing Conditions and FCM Regulations will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Rules & Regs > 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: 

• Attachment 1: Chapter I Part 1 Number 1.14 of the Clearing Conditions
• Attachment 2: Chapter I Number 1.7.2 of the FCM Regulations
• Attachment 3: Chapter II Part 1 Number 1.1.2 (5) of the Clearing Conditions
• Attachment 4: Chapter I Part 1 Number 5.1 of the Clearing Conditions

Further information