As part of the annual review of OTC Interest Rate Derivative Transactions, Eurex Clearing will introduce the following amendments:
A. Prolongation of the CCP Switch Incentive Program until 31 December 2022:
Under the CCP Switch Incentive Program, Clearing Members and Disclosed Direct Clients receive a 100 percent discount on all regular booking fees on individually selected switch days for OTC Interest Rate Swap (IRS), Overnight Index Swap (OIS) and Zero Coupon Inflation Swap (ZCIS) transactions. Clearing Members may apply for a 5-day switch package whereas Disclosed Direct Clients may apply for a 10-day switch package. Registration for either switch package is free of charge. Also Clearing Members and Disclosed Direct Clients which have participated in a CCP switch incentive program in the past may register again for this CCP Switch Incentive Program.
B. Clarification of clearing fees for bunched order transactions in the OTC IRD Standard Pricing Model B:
Eurex Clearing will clarify the applicable clearing fees for bunched order transactions in the OTC IRD Standard Pricing Model B.
The amendments regarding point B will become effective on 23 May 2022.
2. Required action
Regarding point A: Registration for CCP Switch Incentive Program(s):
Clearing Members and Disclosed Clients (via their Clearing Member) may register for the relevant CCP Switch Incentive Program(s) by way of the attached application form; please proceed with the following steps:
i. Fill in the respective CCP Switch Incentive Program application form for Clearing Members or Disclosed Direct Clients, respectively.
ii. The signed form is to be sent to your dedicated Key Account Manager in advance of the switch activity.
iii. Nominate CCP Switch Dates as further outlined in the respective terms and conditions.
Regarding point B: Clarification of clearing fees for bunched order transactions in the OTC IRD Standard Pricing Model B:
There is no required action for the participants.
3. Details of the initiatives
A. Prolongation of the CCP Switch Incentive Program until 31 December 2022
a) Offer for Clearing Members:
b) Offer for Disclosed Clients:
* Please note: Disclosed Clients must not apply for more than ten switch days under this program (also in case of a multiple clearing relationship setup).
The CCP Switch Incentive Program is designed to support CCP switch activity to transfer existing OTC Interest Rate Swap (IRS), Overnight Index Swap (OIS) and Zero Coupon Inflation Swap (ZCIS) portfolios at other CCPs to Eurex Clearing.
B. Clarification of clearing fees for bunched order transactions in the OTC IRD Standard Pricing Model B
Eurex Clearing will clarify that under application of Standard Pricing Model B the initial novation of bunched order transactions in designated Bunch Order Suspense Accounts is free of charge, and the transfer fee which applies for the allocation of transactions on a Bunch Order Suspense Account to another transaction account via trade transfer/account transfer amounts to 100 percent of the applicable booking fee. The transfer fee will be charged to the transferee Clearing Member.
To reflect the amendments, the following provisions will be revised as outlined in the attachment with effect as of 23 May 2022:
Additionally, the discount of 15 percent on the applicable booking fees for the Standard Pricing Model B, which was announced in Eurex Clearing Circular 111/21 on 20 December 2021, shall also apply to the transfer fee in Standard Pricing Model B related to the allocation of OTC IRD bunched order transactions from a Bunch Order Suspense Account to another transaction account via trade transfer/account transfer (Number 10.2.2.4 of the Price List, as amended by the above). This temporary fee discount in Standard Pricing Model B is set to expire on 31 December 2022.
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 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.
All Clearing Members, FCM Clearing Members, Basic Clearing Members, Disclosed Direct Clients, vendors of Eurex Clearing AG and other affected contractual parties
Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination