Equity Index Derivatives: Capacity Group reclassification in accordance with clearing requirements of sec.871(m) IRC derivatives transactions cleared by Eurex Clearing AG

1.  Introduction

Effective 2 March 2026, the ‘capacity group’ for the Equity Index Derivatives specified in the Attachment will be reclassified in accordance with the clearing requirements of sec.871(m) IRC¹ derivatives transactions cleared by Eurex Clearing AG (hereafter: Eurex Clearing) as reporting party in front of the IRS (U.S. Internal Revenue Service). 

The corresponding new ‘capacity group’ for each of the products in scope is outlined in the Attachment.

¹ IRC = Internal Revenue Code (USA)

2.  Required action

For Capacity Groups = Cash Section 871m USD or Cash Section 871m USD – CFTC

Clearing Members need to be documented with a valid W8-IMY U.S. form confirming the status as “Qualified Intermediary (QI)” and assuming primary withholding responsibilities and/or “Qualified Derivatives Dealer (QDD)” assuming primary withholding responsibilities in front of Eurex Clearing. Clearing Members not providing such documentation are unable to clear such potentially in-scope products for sec.871(m) IRC derivatives transactions.

Further, the Clearing Members clearing derivatives transactions in products potentially in-scope for sec.871(m) IRC need to provide Eurex Clearing with the reportable data in-scope for sec.871(m) IRC derivatives transactions covering the respective tax reporting period. (Please refer to Eurex Clearing Circular 046/24 published on 11 July 2024 and the information in the Clearing Conditions of Eurex Clearing AG, Chapter II, Part 1 Number 1.7 para. (1) to (6)).

For Capacity Group Cash USD – CFTC, Cash USD or Cash EUR - CFTC

Clearing Members are advised that, in the event of a product reassignment/reclassification to a new clearing capacity, existing settings are not carried over. Previous product de-assignments must therefore be newly configured by the Clearing Member for the respective clearing capacity as well as their trading client/s.

The affected Clearing Members would be required to ensure their correct treatment regarding withholding requirements and reporting obligations under U.S. Regulations and Treasury tax laws.

3.  Details

Eurex Clearing performs an internal classification of products at the beginning of each calendar year to comply with the reporting requirements of the IRS. This assessment of Eurex Clearing as the “Reporting Party” is for information purposes only and represents the treatment of Eurex Clearing of respective products; participating (eligible) Clearing Member/s, acting as the "Determining/Responsible Party," are responsible for the correct obligations in connection with the withholding tax obligations and reporting requirements under sec.871(m) IRC derivatives transactions towards the IRS and Eurex Clearing as part of the transaction chain in derivatives products.

Clearing Member Status and requirements

Eurex Clearing has classified its Clearing Member as eligible or non-eligible with respect to the clearing of potential in-scope products for sec.871(m) IRC derivatives transactions based on the documentation (W8-IMY) provided by the Clearing Member.

In case of potential “undocumented Clearing Member” (no valid tax documentation to cover sec. 871(m) IRC derivatives transactions), and the subsequent withholding tax obligation on income payments, the concerned Clearing Member needs to submit a W8-IMY tax form with a so-called “affidavit with unchanged status²”, to confirm to the withholding tax agent/Eurex Clearing the relevant withholding tax obligation out of the Status as QI/QDD for the period in question as soon as applicable. 

Furthermore, we would like to emphasize that Clearing Members remain responsible, pursuant to the Clearing Conditions of Eurex Clearing AG, for ensuring that all U.S. tax withholding requirements and reporting obligations related to their trading client/s under sec.871(m) IRC are duly fulfilled.

² Affidavit of unchanged status

Under the penalties of perjury, I declare that I have examined and signed the accompanying Form W8-IMY, signed on [Date of signature/s] and hereby confirm that the information contained herein was true, correct, and complete since the date I established my account/s and has remained the same and unchanged to date. I further understand that this certification will be used to determine the amount of U.S. Tax to be withheld from potential payments made by us during this period.

(Please attach a separate and valid signed statement if any information has changed.) Such Statement is only in conjunction with the provided U.S. tax form to be used.

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.

Attachment:

• Products in scope with previous and new capacity groups
   

Further information