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Dec 20, 2018

Eurex Clearing

Launch of refined LSOC service offering; Amendments to the FCM Regulations of Eurex Clearing AG

This circular contains information with respect to Eurex Clearing AG´s (“Eurex Clearing”) LSOC (Legally Segregated Operationally Commingled) service offering.

In February 2016, the U.S. Commodity Futures Trading Commission ("CFTC") granted Eurex Clearing registration as a Derivatives Clearing Organization ("DCO“) for the clearing of swap transactions for entities located in the U.S. In this context, Eurex Clearing now launches a refined client-clearing framework which is in compliance with the LSOC require­ments stipulated by the CFTC. The relevant FCM Clearing Conditions have been published and announced with Eurex Clearing circular 072/18 on 24 August 2018 and can be found on the website of Eurex Clearing www.eurexclearing.com.

The initial service offering will provide for a file-based model allowing for “LSOC With Excess”. The functional roll-out for “LSOC Without Excess” is planned for 2019.

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The market status window is an indication regarding the current technical availability of the trading system. It indicates whether news board messages regarding current technical issues of the trading system have been published or will be published shortly.

Please find further information about incident handling in the Emergency Playbook published on the Eurex webpage under Support --> Emergencies and safeguards. Detailed information about incident communication, market re-opening procedures and best practices for order and trade reconciliation can be found in the chapters 4.2, 4.3 and 4.5, respectively. Concrete information for the respective incident will be published during the incident via newsboard message. 

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