18 Dec 2020

Eurex Clearing

Amendments to the Clearing Conditions, the Default Management Committee Rules, the FCM Regulations and the Price List of Eurex Clearing AG - Consultation

Eurex Clearing Circular 114/20 Amendments to the Clearing Conditions, the Default Management Committee Rules, the FCM Regulations and the Price List of Eurex Clearing AG - Consultation


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, the Default Management Committee Rules, the FCM Default Rules and the Price List of Eurex Clearing AG (Price List) regarding the following topics:

A.    Amendments to the Price List of Eurex Clearing AG regarding new product group IDs for Single Stock Dividend Futures

B.    Amendments to the Clearing Conditions, Default Management Committee Rules and the FCM Default Rules regarding the establishment of Default Management Committees

The amendments under A. will become effective as of 1 February 2021

The amendment of the Clearing Conditions and Default Management Committee Rules under B. are subject to a consultation process (Consultation); the Consultation will end on 18 January 2021 (Consultation Period). The planned effective date of these amendments is 1 March 2021, depending on the outcome of the Consultation which will be communicated in a separate Eurex Clearing circular.  

2. Required action

There is no required action for the Participants with regards to the amendments under A.

As the amendments of the Clearing Conditions and Default Management Committee Rules under B. are subject to a Consultation which will end with the expiry of 18 January 2021, Eurex Clearing herewith invites all Affected Customers to submit comments on the proposed changes and amendments within the Consultation Period.

3. Details

A.    Amendments to the Price List of Eurex Clearing AG regarding new product group IDs for Single Stock Dividend Futures

In prevision of future Single Stock Dividend Futures (SSDFs) launches on Austrian and Portuguese names, the new product group IDs AT21 (Austrian) and PT21 (Portuguese) are introduced in the Price List.

To reflect this amendment, the following provision will be amended as outlined in Attachment 1:

  • Numbers 3.1, 3.3 and 3.4 of the Price List 

B.    Amendments to the Clearing Conditions, Default Management Committee Rules and the FCM Default Rules regarding the establishment of Default Management Committees

According to the current wording of the Clearing Conditions, the Default Management Committee Rules and the FCM Default Rules it is not entirely clear whether a Default Management Committee (DMC) could be established in relation to more than one Liquidation Group.

Currently, there are two DMCs established for two Liquidation Groups, i.e. one for the Fixed Income (FI) and one for the Equity Liquidation Group.

The propose of the contemplated amendments intend to introduce a clear provision that a DMC could be established for one specific or two / or more Liquidation Groups.

To reflect the changes, the following provisions will be amended as outlined in the Attachments 2, 3 and 4:

  • Chapter I Part 1 Number 7.5.1 of the Clearing Conditions
  • Numbers 1.1, 1.3, 2.1.1 and 2.1.2 of the Default Management Committee Rules, and
  • Numbers 4.1.1, 4.1.2 and 4.1.4 of the FCM Default Rules

Consultation with respect to the amendments to the Clearing Conditions and Default Management Committee Rules  

Pursuant to Chapter I Part 1 Number 17 of the Clearing Conditions, the proposed changes and amendments to the Clearing Conditions and Default Management Committee Rules are subject to a Consultation which will end with the expiry of 18 January 2021.

Eurex Clearing herewith invites all Affected Customers to submit comments on the proposed changes and amendments within the Consultation Period.

During the Consultation Period, comments on proposed changes or amendments shall be only submitted through a web-based commenting service for which a registration form is available on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Clear > Find > Forms

The form has to be duly signed and returned to Eurex Clearing via e-mail to SpecialProvisions@eurexclearing.com, in order to obtain a User ID and Password together with a link for accessing the web-based commenting service.

To the extent that Eurex Clearing decides to implement any comments received during the Consultation, the so-amended version of the Clearing Conditions and Default Management Committee Rules will be published after the Consultation.

The currently envisaged effective date of the changes is 1 March 2021. However, after the Consultation Period, Eurex Clearing will issue a separate circular to announce the concrete date on which the proposed changes (as the case may be, implementing comments received during the Consultation) will come into effect. 

This announcement will be made with at least 15 Business Days’ notice (Regular Notification Period). However, if Eurex Clearing should receive a request for a Prolonged Notification Period from more than two Affected Customers during the Consultation Period, a Prolonged Notification Period as set out in the Clearing Conditions will be applied and Eurex Clearing will notify all affected parties accordingly.

Publication of amendments to the Price List, Clearing Conditions, Default Management Committee Rules and the FCM Default Rules

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

Clear > Rules & Regs > Rules and Regulations

The changes and amendments to the Price List, Clearing Conditions, FCM Regulations and the FCM Default Rules 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 the FCM 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, the FCM Regulations, the FCM Default Rules or the Price List, as applicable.

Attachments:

Amended sections of the following Rules and Regulations, in particular: 

  1. Numbers 3.1, 3.3 and 3.4 of the Price List 
  2. Chapter I Part 1 Number 7.5.1 of the Clearing Conditions
  3. Numbers 1.1, 1.3, 2.1.1 and 2.1.2 of the Default Management Committee Rules
  4. Numbers 4.1.1, 4.1.2 and 4.1.4 of the FCM Default Rules

Further information

Recipients:

All Clearing Members, Basic Clearing Members, Disclosed Direct Clients and FCM Clearing Members 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@eurex.com

Web:

www.eurex.com/ec-en/

Authorised by:

Jens Janka


clearing-circular