Amendments to the Clearing Conditions of Eurex Clearing AG

1. Introduction 

This circular announces amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) to enhance clarity for the following topics: 

A. Clarification of “Affiliate” definition with respect to U.S. Clearing Members  
B. Obligations under U.S. tax law, including potential transactions subject to Section 871(m) of the U.S. Internal Revenue Code 
C. Comprehensibility of porting provisions. 

In this context, the following amendments will become effective as of 3 August 2026. 

2. Required action 

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

3. Details of the initiative 

A. Clarification of “Affiliate” definition with respect to U.S. Clearing Members 

The amendments clarify that the “Affiliate” definition with respect to U.S. Clearing Members (i.e., U.S. Clearing Members clearing Eurex Transactions) applies to both Proprietary Trading Firms and SEC-Licensed Proprietary Trading Firms. 

The initiative aims to harmonize Clearing Condition provisions and ensure consistency with all client categories. 

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

• Chapter I Part 1 Number 2.5.1 of the Clearing Conditions (Attachment 1) 

B. Obligations under U.S. tax law, including potential transactions subject to Section 871(m) of the U.S. Internal Revenue Code 

The amendments to Number 1.7 materially strengthen the Section 871(m) IRC framework by clarifying scope, enhancing documentation and QI/QDD requirements, tightening ongoing reporting obligations, and allocating tax and reporting responsibilities more explicitly to Clearing Members. 

Key Changes 

• Clarification of the scope of potentially relevant transactions
  The amended provision clarifies that the relevant framework applies to potential Section 871(m) transactions, including transactions that may give rise to dividend equivalent payments within the meaning of the applicable U.S. Treasury Regulations. 
• Enhanced tax documentation requirements 
  Clearing Members participating in potentially relevant transactions must provide Eurex Clearing AG with the applicable tax documentation, including Form W-8IMY for non-U.S. domiciled entities or Form W-9 for U.S. domiciled entities, as applicable. 
• More explicit QI / QDD requirements 
  The amended provision more clearly addresses the role of Clearing Members acting as Qualified Intermediary (QI) and/or Qualified Derivatives Dealer (QDD), including related primary withholding and reporting responsibilities under the applicable U.S. tax framework. 
• Monthly information obligations 
  Relevant information and documentation must be submitted to Eurex Clearing AG by the 10th calendar day of each month in the form and substance specified by Eurex Clearing AG. 
• Strengthened notification obligations 
  Clearing Members must notify Eurex Clearing AG without undue delay, and no later than within two days, of any change in circumstances affecting compliance with the relevant requirements, including any change or termination of QI / QDD status. 
• Expanded suspension rights 
  Non-compliance with the amended obligations may result in immediate suspension from participation in the clearing of new transactions, subject to the applicable Clearing Conditions. 
• Clearer indemnity and risk allocation 
  The amended provision introduces or strengthens indemnification and reimbursement obligations in relation to taxes, penalties, interest and other liabilities arising from incomplete, inaccurate or late information or documentation provided by the Clearing Member, including liabilities connected to Form 1042-S or other U.S. tax reporting. 

Repo Transactions in non-U.S. domiciled securities 

Eurex Clearing AG would like to inform members about certain documentation and compliance requirements applicable to U.S. Clearing Members intending to clear Repo Transactions in non-U.S. domiciled securities. 

These requirements are intended to support a transparent and reliable operational and tax documentation framework for the relevant clearing activity. This circular is relevant for U.S. Clearing Members admitted to trading at Eurex Repo that intend to clear Repo Transactions in non-U.S. domiciled securities. 

Summary of requirements 

Affected U.S. Clearing Members are kindly requested to note the following: 

• Form 1042-S 
  A copy of the relevant Form 1042-S filed with the U.S. Internal Revenue Service should be provided to Eurex Clearing AG for each relevant fiscal tax reporting period. 
  To facilitate timely processing, this should be submitted by 28 February of each calendar year. 
• Own Transactions only 
  Repo Transactions may only be cleared by U.S. Clearing Members as Own Transactions. 
• Broker-dealer registration 
  U.S. Clearing Members clearing such Repo Transactions are required to be registered as broker-dealers with the U.S. Securities and Exchange Commission under Section 15(b) of the U.S. Securities Exchange Act. 
• Valid Form W-9 
  U.S. Clearing Members intending to clear Repo Transactions in non-U.S. domiciled securities are requested to provide Eurex Clearing AG with a valid Form W-9, including the relevant U.S. Tax Identification Number. 
• Notification of changes 
  If there is a change in circumstances, or if a member becomes aware that it may no longer meet the relevant requirements, Eurex Clearing AG should be informed in writing without undue delay. 
  Such notification should be submitted within two days after becoming aware of the relevant change or issue and, where applicable, should be accompanied by an updated Form W-9. 

Further, the Clearing Members need to ensure:  

• that the correct U.S. Tax form is on file and current 
• that the QI/QDD Status is valid and operationally supported 
• that monthly reporting processes are in place, if applicable 
• that changes affecting tax compliance are identified and notified in time 
• that submitted information is complete, accurate and timely 

If needed, Clearing Members should update their internal processes and controls in advance of the effective date.

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

• Chapter I Part 1 Number 2.6 of the Clearing Conditions (Attachment 2) 
• Chapter II Part 1 Number 1.7 of the Clearing Conditions (Attachment 3) 

C. Comprehensibility of Porting Provisions 

The Porting Provisions for clients in the Elementary Clearing Model (ECM) as well as in the Individual Segregated Accounts Provisions (ISA) have been the first porting provisions described in the Clearing Conditions.  

They have now been linguistically revised and harmonized with the provisions for other models. Especially, the description for margin securities collateral transfer processes has been revised to improve the respective processes and, hence, foster comprehensibility. 

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

• Chapter I Part 2 Subpart C Number 8 of the Clearing Conditions (Attachment 4) 
• Chapter I Part 4 Number 10 of the Clearing Conditions (Attachment 4) 

As of the effective date, the full version of the amended Rules and Regulations will be available for download on the Eurex Clearing 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 considering 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 – Amended sections of Chapter I Part 1 Number 2.5.1 of the Clearing Conditions 
• 2 – Amended sections of Chapter I Part 1 Number 2.6 of the Clearing Conditions
• 3 – Amended sections of Chapter II Part 1 Number 1.7 of the Clearing Conditions 
• 4 – Amended sections of Chapter I Part 2 Subpart C Number 8 & Part 4 Number 10 of the Clearing Conditions

Further information