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Aug 13, 2018

Eurex Clearing

Taxation of U.S. derivatives (Section 871 (m) IRC) and migration to new product group

Under Section 871 (m) Internal Revenue Code (IRC), withholding taxes are being levied on “dividend equivalent amounts” (DEAs) paid or deemed paid pursuant to derivative contracts that reference United States (U.S.) equity security(ies).

Based on the U.S. tax documentation received (Form W-8IMY or W 9), Eurex Clearing AG (Eurex Clearing) has classified its Clearing Members as either Section 871 (m) IRC eligible or Section 871 (m) IRC non-eligible within the meaning of the Clearing Conditions of Eurex Clearing AG (Clearing Conditions).

Derivative products, which are potentially subject to Section 871 (m) IRC, will be migrated to new product assignment groups. Only Clearing Members with the appropriate U.S. tax status (Primary Withholding Qualified Intermediary (QI) and/ or Qualified Derivatives Dealer (QDD)) will be assigned to the new product groups from 3 September 2018 onwards.

 

Market Status

XEUR

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. 

We strongly recommend not to take any decisions based on the indications in the market status window but to always check the production news board for comprehensive information on an incident.

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