20 Nov 2020

Eurex Clearing

EurexOTC Clear: Introduction of a specific provision with respect to the novation of CCP Transactions resulting out of a CCP Portfolio Switch: Amendments to the Clearing Conditions of Eurex Clearing AG

Eurex Clearing Circular 102/20 EurexOTC Clear: Introduction of a specific provision with respect to the novation of CCP Transactions resulting out of a CCP Portfolio Switch: Amendments to the Clearing Conditions 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 of Eurex Clearing AG (Clearing Conditions) regarding the following topic:

  • Introduction of a specific provision with respect to the novation of CCP Transactions resulting out of a CCP Portfolio Switch

The amendments will become effective as of 14 December 2020.

2.  Required action

There is no required action for the participants.

3.  Details of the initiative

Under the new provision, Clearing Members participating in a CCP switch may request a novation of certain OTC transactions on portfolio basis instead of a novation per transaction. For each such request, Clearing Members need to provide a list of all transactions forming a switch portfolio. If Eurex Clearing agrees, the legal effectiveness of the novation of the transactions forming a portfolio is subject to the additional condition precedent that all novation reports relating to all transactions of the portfolio are made available by Eurex Clearing. This allows to treat the transactions subject to a CCP Switch as a portfolio.

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

  • Chapter VIII Part 1 Number 1.2.7 of the Clearing Conditions 

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

Rules & Regs > 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.

Attachment:

  • Updated sections of the Clearing Conditions of Eurex Clearing AG


Further information

Recipients:

All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors

Target groups:

Front Office/Trading, Middle + Backoffice

Contact:

client.services@eurexclearing.com

Web:

www.eurex.com/ec-en

Authorised by:

Dmitrij Senko


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