OTC Interest Rate Derivatives Clearing: OTC IRD BASIC Pack Special Offer for Clearing Members

1. Introduction

Effective 1 January 2022, Eurex Clearing will:

• Introduce an OTC IRD BASIC Pack Special Offer which includes a fixed-fee based clearing of own OTC Interest Rate Derivative Transactions (IRS, OIS and FRA and basis swaps) and Zero-Coupon Inflation Swaps (ZCIS) for EUR 125,000 per month for 2022.

Compared to the Basis pack as outlined in Number 10.4 of the Price List, the included volume thresholds are circa 50 percent higher, and also unlimited clearing of ZCIS is included.

Features of the OTC IRD BASIC Pack Special Offer:

• The offer is available to all Clearing Members and to a group of affiliated Clearing Members and eligible affiliated Disclosed Clients which fulfil the personal prerequisites for a clearing license. 
• Term: Month of subscription (latest 31 March 2022) to 31 December 2022 
• The BASIC Pack Special Offer allows the clearing of IRS, OIS, FRA, Basis swaps and ZCIS without extra booking fees and maintenance fees up to certain volume thresholds (see below). 
• Booking Fees: No booking fees up to the following volume thresholds (cumulated cleared notional, measured as of the month of subscription until 31 December 2022):
  • IRS/OIS/Basis: EUR 300 bn (instead of EUR 200 bn as in the standard Basic pack according to the Price List)
  • FRA: EUR 750 bn (instead of EUR 500 bn as in the standard Basic pack)
  • ZCIS: unlimited (not included in the standard Basic pack)
• Maintenance Fees: No maintenance fees up to the following thresholds (outstanding notional at the end of a month covered by the BASIC Pack Special Offer subscription):
  • IRS/OIS/Basis: EUR 750bn (instead of EUR 300 bn as in the standard Basic pack)
  • FRA: n/a
  • ZCIS: unlimited (not included in the standard Basic pack)
• Price: EUR 125,000 per month (no further rebates may be applied)
• Cleared volumes covered by other rebate schemes such as the CCP Switch Rebate Scheme do not count against the volume thresholds of this OTC IRD BASIC Pack Special Offer.

2. Required action

Registration for the OTC IRD BASIC PACK Special Offer:

Clearing Members may register for the OTC IRD BASIC PACK Special Offer by way of submitting the attached registration form until 31 March 2022. Please proceed the following steps:

i.    Registration for the OTC IRD BASIC PACK Special Offer: Complete the attached EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-BASIC-Pack-Special-Offer and select the OTC IRD BASIC PACK Special Offer; if desired, select “Registration of affiliated Clearing Members and Disclosed Clients for OTC IRD BASIC PACK Special Offer” to apply the OTC IRD BASIC PACK Special Offer to a group of affiliates.
 
ii.    Submit the signed form to your Key Account Manager Clearing latest by 31 March 2022 to benefit from the OTC IRD BASIC PACK Special Offer until 31 December 2022. 

3. Details

Overview of Discounted OTC IRD BASIC PACK Special Offer

The OTC IRD BASIC Pack Special Offer allows subscribers the clearing of own transactions (that are booked to the respective house account (i.e. P-account) for all OTC IRD products including Interest Rate Swaps (IRS), Overnight Index Swaps (OIS), Basis Swaps, Forward Rate Agreements (FRA) and Zero-Coupon Inflation Swaps (ZCIS) across all currencies without extra booking fees and maintenance fees up to the following volume thresholds:

• Booking Fees: No booking fees up to the following volume thresholds (cumulated cleared notional, measured as of the month of subscription until 31 December 2022):
  • IRS/OIS/Basis: EUR 300 bn (instead of EUR 200 bn as in the standard Basic pack according to the Price List)
  • FRA: EUR 750 bn (instead of EUR 500 bn as in the standard Basic pack)
  • ZCIS: unlimited (not included in the standard Basic pack)
• Maintenance Fees: No maintenance fees up to the following thresholds (outstanding notional at the end of a month covered by the BASIC Pack Special Offer subscription):
  • IRS/OIS/Basis: EUR 750bn (instead of EUR 300 bn as in the standard Basic pack)
  • FRA: n/a
  • ZCIS: unlimited (not included in the standard Basic pack)

All transactions above these volume thresholds are billed according to the Standard Pricing Model A (as set out in the Price List) and will be charged in addition to the monthly fee for the OTC IRD Basic Pack Special Offer.

The OTC IRD BASIC Pack Special Offer applies from the month of subscription (with January 2022 being the earliest possibility) until 31 December 2022. For each month a participant (or a group of participants – see below) has subscribed to the OTC IRD BASIC Pack Special Offer, a flat fee of EUR 125,000 per month is payable by such participant or group of participants which is not eligible for further rebates.

The legally binding details of the OTC IRD BASIC Pack Special Offer are set out in the attached registration form and the corresponding terms and conditions.

Eligible Participants of the OTC IRD BASIC Pack Special Offer

The OTC IRD BASIC Pack Special Offer is available to all Clearing Members, groups of affiliated Clearing Members and eligible affiliated Disclosed Clients which fulfil the personal prerequisites for a clearing license according to Chapter I Part 1 Number 2.1.2 (2) of the Clearing Conditions. 

If a group registers for the OTC IRD BASIC Pack Special Offer, all benefits of the Discounted OTC IRD BASIC Pack may be shared by all Clearing Members and eligible Disclosed Clients that form part of the same group. The fixed fee will be allocated monthly to the group affiliates according to their individual performance measured as the sum of the monthly undiscounted gross revenues with regards to covered products.

Consideration of further rebate schemes and eligibility of Clearing Members

The fixed fee of EUR 125,000 per month for the OTC IRD BASIC Pack Special Offer may not be subject to additional rebates. 

Any other rebates a Clearing Member may qualify for with respect to booking fees and/or maintenance fees for products covered by the OTC IRD BASIC Pack Special Offer will expire with the registration to the OTC IRD BASIC Pack Special Offer, expect for CCP Switch-related rebates. Transactions benefitting from CCP Switch-related rebates will not count towards the volume thresholds under the OTC IRD BASIC Pack Special Offer.

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. In this circular, the term Clearing Members shall include FCM Clearing Members.

Attachments:

1. Registration form for the OTC IRD BASIC Pack Special Offer
2. Overview: OTC IRD BASIC Pack Special Offer for 2022

Further information