This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) as well as corresponding amendments to the Clearing Conditions of Eurex Clearing (Clearing Conditions) and the FCM Regulations of Eurex Clearing (FCM Regulations) regarding the following services to be offered as part of the Eurex ESG Clearing Compass:
A. ESG Portfolio Assessment
B. ESG Visibility Hub
The amendments for the services under A. and B. will become effective as of 3 April 2023.
2. Required action
Clearing Members, ISA Direct Clearing Members, FCM Clearing Members (Clearing Members), Disclosed Direct Clients, vendors and other affected contractual parties should take the amendments to the Clearing Conditions into consideration. Clearing Members should assess whether they would like to submit ESG (environmental, social and governance) Information for inclusion in the ESG Visibility Hub on the Eurex Clearing website.
3. Details of the initiative
Eurex Clearing is introducing new services in order to support Clearing Members and their clients with regards to their sustainable transformation activities. The Eurex ESG Clearing Compass aims to contribute to more transparency which lays the foundation for further decisions or actions, e.g. decarbonization of portfolios or including ESG factors in counterparty assessments. The provided information is neither to be understood as advice nor recommendation for action.
The ESG Portfolio Assessment with regards to delivered margin collateral and the ESG Visibility Hub are initial steps. Eurex Clearing envisages to expand these services in due course.
A. ESG Portfolio Assessment
Eurex Clearing will offer Clearing Members an assessment of securities delivered as Margin, excluding Buffer Margin, and Contributions to the Default Fund on a portfolio level with the following climate metrics, as applicable:
The climate and rating data is provided by ISS ESG. ISS ESG methodologies have been applied with regards to the aggregation emissions and carbon data.
FCM Client Margin Sub-Accounts, collateral provided to cover a shortfall with regards to Own Funds and the Internal Buffer Margin Accounts are not included in the ESG Portfolio Assessment.
Individually segregated clients with access to the Common Report Engine (CRE) will also receive an assessment of their margin collateral.
Eurex Clearing will provide Clearing Members and individually segregated clients a new daily report, Daily Collateral Climate Metrics (CDESG), on the CRE. This report will source the non-cash Margin, excluding Buffer Margin, and Contributions to the Default Fund from the Daily Collateral Valuation (CD031) and Claim Amount Based Collaterals (CD037).
Details with regards to the available metrics, aggregation of data on portfolio level as well as the structure and field definitions of the report (Daily Collateral Climate Metrics (00RPTCDESGABCFRYYYYMMDDYBCFR.CSV)) will be available at launch in the ESG Portfolio Assessment Manual on the Eurex Clearing website www.eurex.com/ec-en under the following link:
To reflect these amendments, the following provisions will be amended as outlined in Attachments 1, 2 and 3:
B. ESG Visibility Hub
Eurex Clearing will offer Clearing Members the opportunity to add relevant ESG Information to the clearing contact list that is published on Eurex Clearing’s website to make sustainability related efforts more visible to the clearing community.
Clearing Members can submit the following ESG Information to be displayed as part of the ESG Visibility Hub:
All Clearing Members are eligible to participate. To submit the ESG Visibility Hub form provided by Eurex Clearing, it is necessary to provide a PIN to identify the person submitting the ESG Information as authorized. The PIN can be obtained from your firm’s Central Coordinator. Please contact us at email@example.com if you need information regarding your firm’s Central Coordinator.
The ESG Visibility Hub form is available on the Eurex Clearing website under the following link:
To reflect these amendments, the following provisions will be amended as outlined in Attachments 1, 2 and 4:
As of the effective date, the full versions of the amended legal framework of Eurex Clearing, as specified under items A. and B., will be available for download on the Eurex Clearing website www.eurex.com/ec-en under the following link:
Rules and Regulations > Eurex Clearing 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 prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties.
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, ISA Direct Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, all FCM Clearing Members, vendors and other affected contractual parties
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