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Sep 19, 2018

Eurex Clearing

Collateral management: Exclusion of unsecured bank bonds following changes in European Central Bank’s eligibility criteria

The European Central Bank (ECB) announced in a press release that it will exclude senior unsecured bank bonds from its eligibility list after 31 December 2018.

In general, central bank eligibility is one prerequisite of Eurex Clearing AG (Eurex Clearing) for eligibility of most of the cleared bond products as well as for the eligibility as collateral for margins or secured financing products.

In line with the changes in ECB eligibility, affected instruments may also lose Eurex Clearing eligibility, as collateral eligible for margins, GC Pooling® and Principal Collateral or as cleared product for Repos (GC & Special) and Securities Lending (Loan Securities and Principal Collateral).

Impacted Clearing Members are requested to prepare the substitution of instruments that might become ineligible following the changing eligibility criteria of ECB until 31 December 2018.

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