Cash collateral

Handling of excess cash collateral

Auto-repay of clearing currency

Auto-repay of excess cash collateral in the nominated clearing currency is available at the individual pool level. If auto-repay is switched on then all excess cash will be automatically credited back to the Clearing Member's main account in the morning as part of the end of day process. If not selected, then all excess collateral will stay at the segregated pool until a withdrawal is requested. 

The excess variation margin is always automatically returned to the Clearing Member's cash account after any potential offsets against initial margin shortfalls.

Permanent cash balance (PCB)

PCB is a pre-defined cash amount that a Clearing Member or client wants to hold with Eurex Clearing. The PCB can be set up per segregated pool. Clearing Members can maintain the PCB via the C7 Clearing GUI PCB Maintenance Window. 

Activation of the PCB might lead to a cash movement in the morning:

  • mandatory cash call if cash balance in the respective collateral pool and currency falls below the predefined PCB - regardless of collateralization level
  • auto-return of excess cash above the predefined PCB in the respective collateral pool and currency - only if there is no under-collateralization

The permanent cash balance functionality is available for EUR, CHF and GBP.

Permanent Cash Holding

In addition, Clearing Members can use Permanent Cash Holding functionality to keep with Eurex Clearing pre-defined USD, EUR, CHF, GBP and JPY balances in the chosen collateral pool overnight. Permanent Cash Holding can be instructed via the C7 Clearing GUI Collateral Transaction Input window with type of money “term”.