Eurex Clearing
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 Price List and other related documents of Eurex Clearing AG regarding the following topics:
A. Inclusion of entities domiciled in Puerto Rico in the definition of “U.S. Direct Client”
B. Discontinuation of clearing services for the securities lending market
C. Clarification of the application of the OTC Interest Rate Derivatives High (IRD) Turnover pricing model basis fee
The amendments under A. and B. will become effective as of 3 May 2021, the amendments under C. will become effective as of 1 May 2021.
2. Required action
There is no required action.
3. Details
A. Inclusion of entities domiciled in Puerto Rico in the definition of “U.S. Direct Client”
The representation with regards to regulatory requirements and restrictions under U.S. law with respect to Eurex Transactions will be amended to provide additional clarity that the definition of "U.S. Direct Client” includes entities domiciled in Puerto Rico.
To reflect these amendments, the following provisions will be amended as outlined in Attachment 1:
B. Discontinuation of clearing services for the securities lending market
Eurex Clearing plans to discontinue the clearing services for the securities lending market as of 15 April 2021.
To reflect the respective changes, the following provisions of Eurex Clearing will be amended as partly outlined in Attachments 2 to 4:
C. Clarification of the application of the OTC IRD High Turnover pricing model basis fee
Eurex Clearing will amend the Price List to clarify that only active clients (i.e. essentially clients that clear at least one OTC IRD transaction per month and/or have existing notional outstanding or a margin requirement greater than zero at any point during the given month) are subject to the OTC IRD High Turnover pricing model basis fee.
To reflect the change, the following provision will be amended as outlined in Attachment 5:
Publication of amendments to the Price List and the Clearing Conditions
As of the effective date, the full versions of the amended Price List and 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
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:
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 |
