Fixed Income Risk

Eurex Clearing OTC IRD Trade Transfer

As derivable from its name one or more trades can be transferred. The transfer is always a transfer to a different Clearing Member ID. A trade transfer always terminates the existing trade and re-opens a new trade with the same attributes and a new trade id. 

A trade transfer can be performed via the Eurex OTC Clear GUI (Production/Simulation). It is the same process for both environments.

FAQ

1. Who can initiate a trade transfer?

  • A Clearing Member or Disclosed Client with system access to the EurexOTC Clear GUI.

  • For each transfer, a member needs two users with respective access rights for the OTC Clear GUI to initiate and confirm the action. 

2. How does the transfer work?

Clearing Member or Disclosed Clients with system access can trigger the transfer.
Who needs to approve it? 

  • In any case both old and new Clearing Member need to accept the transfer 
  • By 4EP there is always a 2nd approval necessary (i.e., in general always remember: two users from one Clearing Member)

The second approver (old Clearing Member) can find the trade(s) to be approved for transfer under the authorization required window (Eurex OTC Clear GUI):

TT_2.1


 


 
After clicking on the number, the second approver can see the following (EUREX OTC Clear GUI after clicking on the number behind "Authorization required"):

TT_2



  • The second approver cannot make any changes, just accept or reject.   

The new Clearing Member will then find the trades for take-up in as follows in the OTC Clear GUI: 

TT_2.3




  • At this point the account can be changed on which the trade should be booked (and - if necessary – adjust the respective Source System Client ID, if you get an error message). 

TT_2.5(neu)



TT_2.5




The second approver (new Clearing Member) can find the trade(s) to be approved for transfer under the authorization required window: 

TT_2.6





TT_2.7



In the Eurex OTC Clear GUI after clicking on the number behind "Authorization required" 

  • The second approver cannot make any changes, just accept or reject.

If there is enough collateral to fulfill the margin requirements, then the trade will be in status verified! 

3. When can a trade transfer be performed?

At any time during the business hours: 

  • Production: 8am – 10pm CET 
  • Simulation: 8am – 6pm CET 

4. From where and where to can a trade be transferred?

  • A trade can be transferred from one Clearing Member ID to another one. 
  • This also includes client trades moved from one Clearing Member to another one.

5. How many trades can be transferred at once?

Configurable box allows to select up to 100 trades at once when initiating a transfer in the GUI. If you wish to transfer more than 100 trades, then you will have to perform the procedure several times. 

  • There is also an option of a portfolio transfer to trigger a transfer with no limitation on the number of trades in the respective portfolio - but this is a different process. 

  • Portfolio Transfer can also be done via EUREX OTC Clear GUI and more information on this can be found here (Portfolio Transfer within postal).

6. Can I also just transfer a part of the trade?

  • Yes, when triggering the transfer the nominal of the trade to be transferred has to be set in any case.
  • The cell of the transfer amount is prefilled with the nominal of the original trade. 
  • If decided to transfer a trade with smaller nominal than the original trade a trade with the remaining nominal will prevail. 

Trade Transfer Window in the EUREX OTC Clear GUI: 

TT_3 (1)





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7. What happens with the old trade id in case of a partial trade transfer?

  • In any case the old trade will be terminated, i.e. the old trade id is not valid anymore. 
  • In case of a partial trade transfer a new trade with a new trade id and the remaining notional will be created.

8. Can I add fees to the trade transfer?

  • Yes, directly when triggering the transfer.

  • The direction of the fee (pay / receive) can be selected and the payment date specified. 

  • Additionally, a comment can be entered (e.g. to explain purpose of the fee). 
     

EUREX OTC Clear GUI: 

TT_5 (1)




EUREX OTC Clear GUI Trade Transfer Window: 

TT_6 (1)











9. How do I know for which direction I am the paying or receiving party?

  • The direction of the payment always refers to the member listed under “We”.

  • The direction is also visible for the second user who needs to approve the transfer from the sending party by the sign of the amount (EUREX OTC Clear GUI). 
     

TT_7 (1)




 









10. Can I add any payment date for the fee? 

  • Any future date can be entered as payment date. 
  • If the current date or a past date is entered, then the following error message appears in the EUREX OTC GUI: 
     

TT_8 (1)






11. How can I find the transferred trade in the new account since it has a new trade id? 

The new trade id will be displayed when the transfer needs to be accepted by the second user (as in the screenshot under 4.) in the Trade Transfer (Take-Up) window.

12. Are there further details or restrictions to be considered for the values to be entered when triggering the transfer? Is there any further information on this? 

Yes, there are restrictions e.g. for the fee payment date . Further information and a step-by-step manual is available (EUREX OTCCLEAR User Guide). 

13. Where can I find the EUREX OTCCLEAR User Guide?

You can find it on the Member Section or via Help in the OTC Clear GUI:

Member Section: 

  • Login to the Member Section of Eurex Clearing 
  • Go to Resources > EurexOTC Clear > System Documentation > GUIs
     

Help Functionality in the OTC Clear GUI:

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  • This will directly provide the manual to be opened or saved 

14. Why is the trade stuck in status WAIT_MARGIN? 

In case the trade is in status WAIT_MARGIN there is not enough collateral on either the old or new account or both! 

15. When can the WAIT_MARGIN status appear?

When the new Clearing Member tries to pick up the trades.

16. Why is there additional collateral necessary?

  • Depending on changes in the market value additional collateral is necessary for the transfer to be able to be processed.
  • These can affect the old Clearing Member as well as the new Clearing Member. 
     
    Possible effects for the old Clearing Member: 

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Possible effects for the new Clearing Member: 

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17. What status might be relevant for the transfer? 

The relevant status are: 

  • TO_BE_TERMINATED 

  • VERIFIED 

  • WAIT_MARGIN  

  • WAIT_TAKE-UP 

More information on the status and the meaning can be found in chapter 11.2 “Portfolio and portfolio event status changes” in the EUREX OTCCLEAR GUI User Guide available via the Member Section

18. Which reports reflect the trade transfer? 

The trade daily summary report (CI201 / CB201) shows all terminations and novations due to post trade events like the trade transfer.

OTC Team

In case of questions on the process, please contact the OTC Clear team via e-mail at: OTCClear@eurex.com or via phone at +49 69 211 12828.

Clearing Data

In case of questions about access rights/ password requests for the EUREX OTC Clear GUI contact us at: clearingdata@eurex.com or at +49 69 211 12453.

CTS Team

In case you have any questions about the accessibility of reports, please contact the CTS team via e-mail at: cts@deutsche-boerse.com.

If you require further information, please contact us at client.services@eurex.com.


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