A member of
Eurex Clearing
1. Introduction
This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) and introduces amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the FCM Default Rules of Eurex Clearing AG (FCM Regulations) regarding the following topics:
The amendments to the Clearing Conditions under item A. are subject to a consultation process (Consultation). The Consultation will end with the expiry of 12 January 2026 (Consultation Period). The planned effective date of these amendments is 2 March 2026, depending on the outcome of the Consultation which will be communicated in a separate Eurex Clearing circular.
The amendments to the Clearing Conditions under item B. and to the FCM Default Rules under item C. will become effective as of 2 February 2026.
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 into consideration.
The amendments to the Clearing Conditions regarding topic A. are subject to a Consultation, which will end with the expiry of 12 January 2026.
Eurex Clearing herewith invites all Affected Customers to submit comments on the proposed changes and amendments within the Consultation Period.
3. Details
A. Introduction of additional Cross Default Termination Events
In the last years, the number of Clearing Members clearing under different clearing relationships at the same time (such as: ECM/ISA, ISA Direct and ISA Direct Indemnified) has significantly increased, with the consequence that also the need for cross default termination events increased.
The intended changes introduce the right for Eurex Clearing to terminate all clearing relationships whenever a termination event occurs only under one clearing relationship.
To reflect the amendment, the following provisions shall be amended as outlined in Attachment 1 (Clearing Conditions):
B. Introduction of a set-off right regarding replacement costs in case of a termination under the ISA Direct Light Clearing Model
In case of a default of an ISA Direct Light Clearing Member, a different termination process is initiated. Instead of a close-out process and the calculation of a Difference Claim, all open repo transactions are accelerated with the consequence that all delivery and payment obligations remain valid and shall become immediately due. As a result, the relevant ISA Direct Light Clearing Member remains obliged to re-deliver the deal securities, which Eurex Clearing can use for restoring a matched book by entering into replacement Transactions.
However, when entering into such replacement transactions, Eurex Clearing may suffer a loss due to prefinancing obligations or changes to the value of the deal securities. With the proposed amendments, Eurex Clearing introduces a set-off right which will allow to set off such replacement losses against the repurchase price Eurex Clearing has to pay to the ISA Direct Light Clearing Member under the accelerated transactions.
To reflect the amendment, the following provisions shall be amended as outlined in Attachment 2 (Clearing Conditions):
C. Alignment of FCM Default Rules with the Clearing Conditions regarding the normalization of the Default Waterfall for the ISA Direct Clearing Model
This is the necessary alignment of FCM Default Rules with the Clearing Conditions regarding the harmonization of the order of priority of the realization of the Default Fund for ISA Direct Clearing Members.
The respective change of the Clearing Conditions is already effective since 18 November 2024 after having been subject to a Consultation.
Please refer to Eurex Clearing Circulars 071/24 and 078/24 for more information.
Thus, content-wise, this addresses the missing alignment of FCM Default Rules with the Clearing Conditions.
To reflect the amendment, the following provisions shall be amended as outlined in Attachment 3 (FCM Default Rules):
Consultation with respect to the proposed amendments to the Clearing Conditions under item A.
Pursuant to Chapter I Part 1 Number 17 of the Clearing Conditions, the proposed changes and amendments to the Clearing Conditions regarding topic A are subject to a Consultation which will end with the expiry of 12 January 2026.
Eurex Clearing herewith invites all Affected Customers to submit comments on the proposed changes and amendments within the Consultation Period.
During the Consultation Period, comments on proposed changes or amendments shall be submitted only via e-mail to the following address: specialprovisions@eurex.com.
To facilitate the internal processing of comments, please add “Comments to Rulebook Amendments” to the subject line of the e-mail.
To the extent that Eurex Clearing decides to implement any comments received during the Consultation, the so-amended version of the Clearing Conditions will be published after the Consultation.
The currently envisaged effective date of the changes is 2 March 2026. However, after the Consultation Period, Eurex Clearing will issue a separate circular to announce the concrete date on which the proposed changes (as the case may be, implementing comments received during the Consultation) will come into effect.
This announcement will be made with at least 15 Business Days’ notice (Regular Notification Period). However, if Eurex Clearing should receive a request for a Prolonged Notification Period from more than two Affected Customers during the Consultation Period, a Prolonged Notification Period as set out in the Clearing Conditions will be applied and Eurex Clearing will notify all affected parties accordingly.
Publication of amendments as outlined under items B. and C.
As of the effective date, the full versions of the amended Clearing Conditions and FCM Default Rules will be available for download on Eurex Clearing's website www.eurex.com/ec-en/ under the following link:
Eurex Clearing Rules & 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:
Further information
Recipients: | All Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients and FCM Clearing Members of Eurex Clearing AG, vendors and other affected contractual parties | |
Target groups: | Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination | |
| Contact: | client.services@eurex.com | |
| Web: | www.eurex.com/ec-en/ | |
| Authorized by: | Dmitrij Senko |