Introduction of additional CCP switch initiative for 2020 as an add-on to the CCP Switch Incentive Program and to Discounted GOLD and BASIC Packs for 2020

1. Introduction

With effect from 18 November 2020, Eurex Clearing will introduce an additional CCP switch initiative for 2020 as an add-on to the CCP Switch Incentive Program and to the OTC IRD GOLD and BASIC Packs for 2020.

Under this initiative, Clearing Members (including, for this purpose, FCM Clearing Members and Basic Clearing Members) may, with respect to their Own Transactions or transactions relating to a certain Disclosed Direct Client or FCM Client which are own transactions of such client, notify five days as switch days in 2020.

Eligible OTC Interest Rate Swaps (IRS) and Overnight Index Swaps (OIS) transactions novated on such a switch day will receive a 100 percent discount on the regular transaction-based booking fees. In addition, if certain volume thresholds are exceeded on those switch days, a one-off rebate of up to EUR 75,000 per Clearing Member or Disclosed Direct Client or FCM Client to whom the transactions relate will be applied to the next invoice(s).

The details of this initiative are further outlined below.

2. Required action

a) For transactions in respect of which Clearing Members have neither registered for the CCP Switch Incentive Program and nor booked an OTC IRD GOLD or BASIC Pack for 2020:

Clearing Members may register for the relevant CCP Switch Incentive Program using the attached application form; please proceed the following steps:

1. Fill in the respective CCP Switch Incentive Program application form for Clearing Members or Disclosed Clients, respectively. The application form and further details on the CCP Switch Incentive Program may be found in Eurex Clearing circular 092/20.
2. Send the signed form to your dedicated Key Account Manager in advance of the switch activity.
3. Nominate 2020 CCP Switch Days as further outlined below.

b) For transactions in respect of which Clearing Members have already registered for the CCP Switch Incentive Program:

1. No additional registration is required.
2. Nominate 2020 CCP Switch Days as further outlined below.

c) For transactions in respect of which Clearing Members have already booked an OTC IRD GOLD or BASIC Pack for 2020:

1. No additional registration is required.
2. Nominate 2020 CCP Switch Days as further outlined below.

3. Details of the initiative

The following lays out the details of the additional OTC IRD Rebate Scheme for 2020 (the “2020 CCP Switch Initiative”) that is offered as an addon to the CCP Switch Incentive Program and to the OTC IRD GOLD and BASIC Pack for 2020.

This 2020 CCP Switch Initiative is designed to support CCP switch activity to transfer existing OTC Interest Rate Swap (IRS) and/or Overnight Index Swap (OIS) portfolios at other CCPs to Eurex Clearing. The initiative is offered separately for Clearing Member Own Transactions (i.e. transactions on its house/P accounts) and for transactions relating to a specific Disclosed Direct Client or FCM Client (each a “Disclosed Client”) that are own transactions of such Disclosed Client (i.e. transactions on its house/P accounts). The initiative is free of charge.

Under this 2020 CCP Switch Initiative, a Clearing Member may, with respect to its Own Transactions and/or eligible transactions relating to (a) specific Disclosed Client(s), nominate up to five Business Days (between 18 November 2020 until and including 21 December 2020) as switch days (each such day a “2020 CCP Switch Day”) via the following online form:

CCP Switch Incentive Program

If a nomination is made in respect of eligible transactions relating to a Disclosed Client, and such client has multiple clearing relationships with different Clearing Members, the total number of days nominated in respect to such client as 2020 CCP Switch Days across all relevant Clearing Members cannot exceed five. If more days are nominated, Eurex Clearing will consider only the first five nominations.

Each nomination of a day as a 2020 CCP Switch Day shall also constitute a nomination of the same day as a CCP Switch Day under the Terms and Conditions of the CCP Switch Incentive Program for Clearing Member Own Transactions or the Terms and Conditions of the CCP Switch Incentive Program for own transactions of Disclosed Direct Clients/FCM Client Transactions as outlined in Eurex Clearing circular 092/20 (to the extent such terms and conditions are applicable).

A. 100 percent discount on certain booking fees on 2020 CCP Switch Days

If a day is nominated as a 2020 CCP Switch Day for Clearing Member Own Transactions, the regular transaction-based booking fees for OTC IRS and OIS Own Transactions (cf. No. 10.2.1.1 of the Price List) on such day will receive a 100 percent discount.

If a day is nominated as a 2020 CCP Switch Day in relation to a specific Disclosed Client, the regular transaction-based booking fees for OTC IRS and OIS transactions that constitute own transactions of such Disclosed Client (cf. 10.2.1.1, 10.2.2.1, 10.3.1 (as applicable) of the Price List) applicable to the nominating Clearing Member on such day will receive a 100 percent discount.

B. 2020 CCP Switch Rebate Model

To further incentivise the execution of a CCP switch in 2020, if the cleared volume on the 2020 CCP Switch Days exceeds an 2020 CCP Switch Volume Threshold as outlined below, an additional 2020 CCP Switch-related Rebate will be applied to (i) the respective monthly invoice(s) of the Clearing Member for booking and/or maintenance fees (according to the Price List) for OTC Interest Derivative Transactions that are Clearing Member Own Transactions or eligible transactions of the respective Disclosed Client or (ii) monthly instalments for the respective OTC IRD GOLD or BASIC Pack. Pay-outs, credits against special offers (other than the (discounted) OTC IRD GOLD or BASIC Pack for 2020) are not possible.

The determination whether any 2020 CCP Switch Volume Thresholds are exceeded will take place per Member ID, i.e., in particular, if a Disclosed Client has multiple clearing relationships and days are nominated as 2020 CCP Switch Days under different Clearing Members in relation to such client, the cleared volumes under the different clearing relationships will not be summed up.

The 2020 CCP Switch-related Rebate will be firstly applied against the respective invoice or instalment for December 2020. Any 2020 CCP Switch-related Rebate that may not be applied to a monthly invoice or instalment may be transferred to the next month for application against the next invoice or instalment until (and including) the invoice or instalment for March 2021. Any remaining 2020 CCP Switch-related Rebate that may not be applied until and including the invoice or instalment for March 2021 will expire without further notice.

Any applicable CCP Switch-related Rebate under the terms and conditions of the CCP Switch Incentive Program (as outlined in in Eurex Clearing circular 092/20) will be applied first against an invoice before application of the 2020 CCP Switch-related Rebate.

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.

For the purposes of this Circular, the term “Clearing Member” shall include Clearing Members, FCM Clearing Members and Basic Clearing Members.

Further information