EurexOTC Clear Release 16.0: Amendments to the Clearing Conditions and the 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:

• EurexOTC Clear Release 16.0
• Further minor amendments

The amendments to the Clearing Conditions and FCM Regulations will come into effect as of 20 November 2023.

2.   Required action

Clearing Members, ISA Direct 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

A. EurexOTC Clear Release 16.0

Eurex Clearing AG (Eurex Clearing) is introducing the automated trade offset functionality to all EurexOTC Clear clients (Clearing Members, Direct Clients and Fund Managers) through the Approved Trade Sources (ATS) connected to Eurex Clearing’s Trade Entry API and is subject to the adoption of the service by the ATS. This functionality will be enabled by default for all EurexOTC Clear clients.

This authorizes Eurex Clearing to share trade economics with an ATS upon validation of the respective client's request received from the ATS. The ATS would then automatically create offsetting positions based on the trade economics acquired from Eurex Clearing, ready to be executed and submitted for clearing by the client. 

This functionality can be disabled by contacting the Key Account Manager or Eurex Clearing’s Onboarding team. The Clearing Conditions (Chapter VIII) and FCM Regulations (Chapter II) will be amended to incorporate this functionality.

Furthermore, the Clearing Conditions (Chapter VIII) and FCM Regulations (Chapter II) are updated to incorporate the following product changes:

• introduction of Overnight Interest Swap (OIS) on DKK-DESTR (Denmark Short-Term Rate) index with maximum maturity 11 years
• the minimum clearing eligible term for Zero Coupon Inflation Swaps (ZCIS) is amended from 28 calendar days to 1 year
• Polish Zloty denominated IRD products which are eligible for clearing under the Clearing Conditions (Chapter VIII) are also included in and eligible under the FCM Regulations (Chapter II).

B. Further minor amendments

Eurex Clearing applies further minor amendments to the Clearing Conditions (Chapter VIII) and FCM Regulations (Chapter II) to harmonize both these chapters and to align the precision rules imposed on the fixed rate with the existing implementation.

To reflect the aforementioned enhancements and changes, the following provisions will be amended as outlined in Attachment 1 and Attachment 2:

• Chapter VIII Part 1 Numbers 1.2.1 and 1.2.4, Part 2 Numbers 2.1.5.1 and 2.2.5 of the Clearing Conditions
• Chapter II Part 1 Numbers 1.2.1, 1.2.4 and 1.7, Part 2 Numbers 2.1.3.1, 2.1.5.1 and 2.2.5 of the FCM Regulations

As of the effective date, the full version of the amended legal framework of Eurex Clearing will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the 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.

Attachments:

• 1 – Amendments to Chapter VIII of the Clearing Conditions
• 2 – Amendments to Chapter II of the FCM Regulations

Further information