Amendments to the Clearing Conditions and FCM Regulations of Eurex Clearing AG

1.  Introduction

This circular contains information with respect to amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the FCM Regulations of Eurex Clearing AG (FCM Regulations) regarding the following topics:

A.  Enhancement of the service offering regarding the clearing of OTC IRD and NDF transactions
B.  References made to 2006 ISDA Definitions and 2000 ISDA Definitions 
C.  Clearing of SONIA-based OTC Interest Rate Derivative Transactions

The amendments to the Clearing Conditions and FCM Regulations will come into effect as of 27 June 2022. 

2.  Required action

Clearing Members, Basic Clearing Members, Disclosed Direct Clients, FCM Clearing Members, vendors and other affected contractual parties should take the amendments to the Clearing Conditions and FCM Regulations into consideration.

3.  Details of the initiative

A.  Enhancement of the service offering regarding the clearing of OTC IRD and NDF transactions

Eurex Clearing will enhance its service offering for the clearing of OTC IRD and NDF transactions to capture transactions concluded within the same legal entity. Launch of this service will be on 27 June 2022.

The service expansion will be conditionally activated by Eurex Clearing on request using the “EurexOTC Clear Interest Rate Derivatives Static Data Form”. For further information or activation of the extended service, please contact your direct Key Account Manager under client.services@eurex.com.

To reflect the changes, the following provisions will be amended as outlined in Attachment 1:

• Chapter VIII Part 1 Number 1.2.8 of the Clearing Conditions

B.  References made to 2006 ISDA Definitions and 2000 ISDA Definitions

Eurex Clearing will update its references made to 2006 ISDA Definitions and 2000 ISDA Definitions in the Clearing Conditions or FCM Regulations to become static in accordance with ISDA communication that no further updates will be published to these documents.

To implement the changes, the following provisions will be amended as outlined in Attachments 1 and 2:

• Chapter VIII Part 1 Number 1.7 (9) of the Clearing Conditions
• Chapter II Part 1 Number 1.7 (6) of the FCM Regulations

C.  Clearing of SONIA-based OTC Interest Rate Derivative Transactions

Changes will be made so that for SONIA-based Original OTC Interest Rate Derivative Transactions that will be newly included into clearing, payments in GBP that were due under the original bilateral transaction on the day of novation will not become part of (and be owed under) the cleared transaction. This behavior now follows the general standard applied by Eurex Clearing when clearing OTC Interest Rate Derivative Transactions. 

To implement this change, the following provisions will be amended as outlined in Attachments 1 and 2:

• Chapter VIII Part 2 Number 2.2.1 (3) of the Clearing Conditions
• Chapter II Part 2 Number 2.2.1 (3) of the FCM Regulations

Publication of amendments to the Clearing Conditions and the FCM Regulations

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

Rules & Regs > Eurex Clearing Rules and Regulations

The changes and 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 ten (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 VIII of the Clearing Conditions
• 2 – Amended sections of Chapter II of the FCM Regulations

 
Further information