Amendments to the Clearing Conditions of Eurex Clearing AG: Introduction of Clearstream Banking S.A. as additional settlement location for settlement of Repo transactions, further amendments to settlement-related provisions

1.  Introduction

This circular contains information about the required amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) due to the introduction of Clearstream Banking S.A., Luxembourg, (CBL) as an additional settlement location for Eurex Clearing for the settlement of Repo transactions.

The respective changes will become effective as of 8 March 2021.

2.  Required action

There is no action required.

3.  Details

As announced in Eurex Clearing Circular 115/20, Eurex Clearing will set up a new settlement account at CBL for the settlement of Repo transactions (Repo specials) with CCP Release 18.5 (production start: 15 March 2021). The new account will replace today’s CCP CBF(i) account 67525 for the Repo Special settlements. As a consequence, amendments to the Clearing Conditions are required to add CBL as an additional settlement location for the settlement of Repo transactions.

In this context, in particular the settlement-related provisions (including the provisions regarding Eurex Clearing’s authorisation to pledge securities to a settlement location in the context of the settlement) will be extended to cover all kinds of securities. Further, it is clarified that the current provisions in Chapter IV of the Clearing Conditions regarding physical deliveries only apply to German-law governed securities held in collective safe custody (“Girosammelverwahrung”).

The following provisions will be amended as outlined in the Attachments:

• Chapter I, Preamble and Chapter I Part 1 Numbers 1.4.2, 1.4.3 of the Clearing Conditions 
• Chapter IV Part 2 Number 2.2 of the Clearing Conditions 

As of the effective date, the full version of the amended documents will be available for download on the Eurex Clearing website under the following link:

Clear > Rules & Regs > Rules and Regulations > Clearing Conditions

The 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 15 Business Days (or, in respect of amendments to the Price List, within the first 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:

• 1 – Amended sections of Chapter I of the Clearing Conditions of Eurex Clearing AG
• 2 – Amended sections of Chapter IV of the Clearing Conditions of Eurex Clearing AG

Further information