1. Corporate structure and governance
2. Treasury
Eurex Clearing has access to the intraday credit facility of the Deutsche Bundesbank.
Yes. Eurex Clearing has adequate credit facilities with a number of investment grade rated banks in place which, together with other liquidity sources, cover Eurex Clearing's intraday and overnight financing needs.
3. Regulation
On 10 April 2014, Eurex Clearing received a permission from the German Federal Financial Supervisory Authority to perform clearing services pursuant to Article 17 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (European Market Infrastructure Regulation, EMIR). The authorisation as EMIR-compliant CCP also determines Eurex Clearing as a qualifying CCP under Capital Requirements Regulation (CRR).
Eurex Clearing is also a credit institution under the German Banking Act and fulfils the requirements under the European legislation, in particular Capital Requirements Regulation (CRR) / Capital Requirements Directive (CRD IV).
Eurex Clearing is registered with the Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organisation (DCO) for clearing OTC interest rate swaps for US Clearing Members in accordance with the Commodity Exchange Act.
Eurex Clearing AG has been recognized by the Swiss Financial Market Supervisory Authority FINMA as a foreign central counterparty and is considered by the Swiss National Bank as a systemically important financial market infrastructure for the stability of the Swiss financial system.
As a consequence, the list of the relevant authorities can be found below:
BaFin
Marie-Curie-Str. 24-28
60439 Frankfurt
Deutsche Bundesbank
(Central Administrations Center Frankfurt / Main)
Taunusanlage 5
60313 Frankfurt am Main
Deutsche Bundesbank
(Head Office) Wilhelm-Eppstein-Str. 14
60431 Frankfurt am Main
Swiss National Bank (SNB)
Börsenstr. 15
CH-8022 Zürich
Swiss Financial Market Supervisory Authority FINMA
Laupenstr. 27
CH-3003 Bern
Financial Conduct Authority (FCA)
25 The North Colonade, Canary Wharf
London E14 5HS
Yes, Eurex Clearing provides reporting to regulators due to different regulatory prescriptions and in different time periods.
Eurex Clearing reports to the following public authorities
For further information, please contact our regulatory section.
4. Compliance
Eurex Clearing AG is audited by an external auditor. The auditor is PricewaterhouseCoopers (PwC) and the audit takes place on a yearly basis.
Eurex Clearing AG rules are stipulated in the Clearing Conditions which are part of the general terms and conditions. Eurex Clearing AG reserves the right to amend the Clearing Conditions at any time; those amendments and additions shall be announced via electronic circular to the Clearing Members, Basic Clearing Members and/or other customers ("Affected Customers") at least fifteen (15) business days (Regular Notification Period) prior their effective date fixed in the relevant notice.
If Special Provisions are to be changed or amended, Eurex Clearing AG will carry out a Consultation and invite all Affected Customers to submit comments to the proposed changes and amendments and/or to express their desire for the application of a Prolonged Notification Period within one month after the publication of the relevant invitation. In case three or more Affected Customers request the application of a prolonged notification period, the notification period will be extended to three (3) months (“Prolonged Notification Period”).
Each Affected Customer accepts each amendment and addition to the Clearing Conditions, unless it objects by written notice to Eurex Clearing AG within the Regular Notification Period or the Prolonged Notification Period, Unless otherwise provided in the Clearing Conditions, all information to be published according to these Clearing Conditions shall be displayed for at least three business days, available here.
Every employee and external service provider of Deutsche Börse Group is obliged to adhere to the “Guideline for Keeping Professional and Banking Secrecy”. Professional Secrecy is the obligation for any employee to treat information obtained pursuant to professional activities confidential. Banking Secrecy is derived from this by adding specific provisions while limiting its application to employees of regulated entities. All information received within the conduct of professional activities must therefore be treated in the strictest confidence by employees and external service providers and must not be disclosed to any unauthorized party.
The adherence of client confidentiality is ensured by the implementation of diverse control systems like the Internal Control System (ICS), Group Compliance and Internal Auditing.
For further information please see also our annual report.
5. Services, membership and admission
Please click here to find comprehensive information.
Membership comes in two categories at Eurex Clearing - General Clearing Membership and Direct Clearing Membership.
As a result, legal relationships are essentially concluded between Eurex Clearing and a given Clearing Member, and in turn between that Clearing Member and the respective NCM.
Applicants must be authorized and entitled by their respective regulatory authorities to operate in the custody and loan business as well as to accept receipt of margins in the form of cash and/or securities. In addition, Clearing Members must show evidence of a certain minimum level of own funds and must pay a contribution to Eurex Clearing’s Clearing Fund. Both the level of contribution to the Clearing Fund and the level of own funds depend on the status of the Clearing Member (GCM or DCM).
Own fund requirements, in EUR mn
Contribution to Clearing Fund, in EUR mn
*Initial margin corresponds to the sum of futures spread margin and additional margin.
Additional admission requirements for all our Clearing Members include different accounts that they need to set up. Every member must hold accounts at a central securities depository for the deposit of collateral and execution of settlement related payments. Further, we require evidence of cash accounts for clearing related payments, e.g. premiums.
With our fee model, we encourage our members to conduct business at Eurex Clearing in multiple markets by taking advantage of economies of scale. For a first membership, applicants are charged a one-off admission fee as well as an annual membership fee. If a company wishes to become a Clearing Member for additional markets that we clear, no additional admission or membership fees are levied. In line with the markets that we serve, companies may apply for one or more of the following clearing licenses:
For further information, please also consult our webpage. Click here.
All forms necessary for the registration to the various Eurex Clearing service offerings can be found on our webpage under here.
We charge applicants a one-off admission fee of EUR 50,000 to become a Clearing Member, as well as an annual membership fee of EUR 25,000. We designed our fee model to encourage Members to take advantage of all the markets that we serve. For this reason, if you wish to become a Clearing Member for any of the other markets we clear we do not charge any additional admission or membership fees.
Additional fees with regard to different connection components and transaction volumes can be found on the Eurex Clearing Price List.
Please click here to find comprehensive information.
Please click here to find comprehensive information.
6. Risk
Please click here to find comprehensive information.
Please click here to find comprehensive information.
Please click here to find comprehensive information.
Eurex Clearing Prisma calculates combined risks across all markets cleared by Eurex Clearing. Cleared products that share similar risk characteristics are assigned to the same so-called Liquidation Group, which results in more comprehensive risk calculations enabling cross margining across positions within any Liquidation Group. Our margining method and default management process are closely aligned.
Please click here to find comprehensive information about liquidation group setup.
7. Collateral
Collateral deposit
The Clearing Member delivers the securities to the relevant account directly within the system of the chosen (I)CSD i.e. Clearstream Banking Frankfurt (CBF), Clearstream Banking Luxembourg (CBL) or SIX SIS. All deposits are reflected near-time within the collateral management system of Eurex Clearing® C7. If a deposited ISIN cannot be accepted (due to ineligibility of the security or breach of concentration limit), Eurex Clearing instructs a near-time transfer back to the member's redelivery account.
In case a tri-party collateral management system is used, the Clearing Member needs to instruct an increase of a Collateral Claim.
Collateral withdrawal
Securities withdrawal instructions are entered using the “Collateral Transaction Entry” window of the Eurex Clearing® C7 system. Once confirmed by Eurex Clearing Operations that the margin requirement is still covered without the securities requested, the securities are transferred from the respective collateral account into the member's redelivery account. If a withdrawal request leads to an under-collateralization in the member’s account, the transfer of the requested securities is optionally postponed until the next business day or intraday until the appropriate amount of funds is in the account to fully cover the margin requirements.
Collateral Claim decreases need to be instructed via the tri-party collateral management system of the respective depository. Once confirmed by Eurex Clearing Operations that the margin requirement is still covered with the reduced claim amount, the tri-party collateral management system will move securities with a value up to the free amount to the respective source account.
Information about collateral
The Clearing Member may manage collateral on several windows on the Eurex Clearing® C7 GUI.
Please click here to find comprehensive information.
8. Clearing operations
At Eurex, position limits exist according to § 14.7 of the Exchange Rules of Eurex Deutschland. The size of the respective limits can be learned from the product specifications on the Eurex Exchange website.
Trading Surveillance Eurex Deutschland is monitoring the adherence of the position limits intraday and is informing the Börsenaufsichtsbehörde Hessen as well as the Executive Board of Eurex in case of breach of the Exchange Rules. They then decide on whether to forward the statement of affairs to the sanction committee of Eurex Deutschland. In succession, the sanction committee is able to impose sanctions up to an amount of EUR 250.000 and/or to impose a temporary or definite expulsion from trade.
9. Disaster recovery/ IT-security
Yes, Deutsche Börse Group has implemented a formal crisis management process with defined responsibilities. The process applies Group-wide for all activities and organizational or legal entities, including Eurex Clearing AG.
The Crisis Management Team is composed of the Incident and Crisis Managers from the different divisions of Deutsche Börse Group. It is their role to ensure a coordinated incident response, including internal and external communication.
Yes, the BCM plans address the unavailability of systems, workspace, staff and suppliers. Supplier unavailability preparedness is regularly reviewed and generally addressed by service level agreements or multiple vendor arrangements.
All Systems but Xetra® and Xetra® International Market are set up with an automatic fail-over process which makes the take over immediate. Xetra® and Xetra® International Market are set up fault tolerant, but disaster recovery requires a restart of the system at the back up site, which typically should be done within an hour. However, the general recovery time objective of Deutsche Börse Group in case of a disaster is 2 hours.
10. Business continuity
In case of technical issues emergency information is provided via the following media:
Information on technical issues is distributed immediately if impact on members of Eurex has been recognized.
The responsibilities of Eurex and Eurex Clearing in an outage scenario are described within Section 12 on “Technical Problems” of the Technical Implementation Regulations of Eurex Deutschland and Eurex Zürich Concerning Technical Equipment.
