Default Handling under ISA Direct Model

General overview

Please note: If not mentioned otherwise, the following is relevant for the ISA Direct model provisions as well as the ISA Direct Indemnified model provisions, the ISA Direct Clearing Member as well as the ISA Direct Indemnified Clearing Member resp. the Clearing Agent as well as the Indemnified Clearing Agent.

Under the ISA Direct Model provisions, the occurrence of a Termination Event or an Insolvency Termination Event with respect to a Clearing Agent does not necessarily lead to the termination of the relevant ISA Direct Clearing Member Transactions as the affected ISA Direct Clearing Member Standard Agreement (including all ISA Direct Clearing Member Transactions thereunder) is directly established between Eurex Clearing and the relevant ISA Direct Clearing Member. In general, each ISA Direct Clearing Member may choose between the three following options:

i) to continue the Clearing of all Transactions under the ISA Direct Clearing Member Standard Agreement with a Replacement Clearing Agent ("Replacement Election") or

ii) to continue the Clearing of its Transactions ("DCM Election") or 

iii) to terminate and close-out its Transactions ("Termination Election"). 


Upon the occurrence of an (Insolvency) Termination Event and a Termination Date regarding a Clearing Agent or if Eurex Clearing published a Replacement Notice:

  • the Clearing of new ISA Direct Clearing Member Transactions is suspended, 
  • all Redelivery Claims of the Affected ISA Direct Clearing Members with respect to ISA Direct Clearing Member Margin in the form of cash and ISA Direct Clearing Member Variation Margin are to be deferred, and, 
  • Eurex Clearing will not provide any ISA Direct Clearing Member Variation Margin to the Affected ISA Direct Clearing Members.
  • Eurex Clearing will refrain from paying any amounts owed to the ISA Direct Clearing Member to any ISA Direct Clearing Member Cash Account that is held by the Clearing Agent and instead pay such amounts to any account of the Basic Clearing Member notified by the ISA Direct Member to Eurex Clearing AG from time to time.

For ISA Direct Clearing Members that use their own accounts in daily business, there can be an extension of the replacement period until T+5 13:00 CET. 


Eurex Clearing AG
Customer Functional Support

From Mon 01:00 until Fri 18:00 CET

T +49 69 211 10 333

client.services@deutsche-boerse.com