EurexOTC Clear Release 18.0: Amendments to the Clearing Conditions and FCM Regulations of Eurex Clearing AG

1. Introduction

This circular contains information with respect to amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the FCM Regulations regarding the following topics:

A.    EurexOTC Clear Release 18.0
B.    Further minor amendments

The amendments to the Clearing Conditions and the FCM Regulations will come into effect as of 18 November 2024.

Learn more about the EurexOTC Clear Release 18.0 on our dedicated initiative page on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Support > Initiatives & Releases > EurexOTC Clear Releases > EurexOTC Clear Release 18.0. Circulars, timeline and much more information are available there for you.

2. Required action

Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients, FCM Clearing Members, vendors and other affected contractual parties should take the amendments to the Clearing Conditions and FCM Regulations into consideration. 

3. Details 

A.    EurexOTC Clear Release 18.0

The following enhancements of EurexOTC Clear Release 18.0 require an update of the Clearing Conditions and the FCM Regulations:

Eurex Clearing extends its existing product offering for Standard Coupon Inflation Swaps (SCIS) by supporting the French Inflation Consumer Price Index excluding Tobacco (FRCPIx) and the UK Retail Price Index (UKRPI). SCIS trades with stubs will be allowed where each leg of a SCIS trade can have maximum one stub. In case each leg has one stub, both stubs must be of the same type, i.e., both are either front or back stubs.

Furthermore, Eurex will offer the clearing of linked trades submitted via MarkitWire. Clearing Members and clients can link multiple trades together using MarkitWire's "Package Trade" function and submit such linked trades for clearing on a trade-by-trade basis. All linked trades will be queued by the EurexOTC Clear system until the last trade with the same linker identifier is received. Subsequently the group of trades is considered for novation and the incremental risk check is performed on package level. The group is cleared on an All or Nothing basis. Once novated, trades that are submitted with a common linker identifier will be booked independently, and any post-trade event on these linked trades after novation must be performed on a trade level rather than a group level.
 
In addition, the transfer functions (trade, account and portfolio transfer) are enhanced by an optional “MTM Adjustment”. If requested by the initiating Member, EurexOTC Clear will automatically attach a “MTM Adjustment” amount to the transfer which compensates the previous day’s trade value and allows the transfer without prefunding of the NPV.

The conditions under which Eurex Clearing allows transfers were established and defined in the rulebooks. 

B.    Further minor amendments

Eurex Clearing applies further minor amendments to the Clearing Conditions and the FCM Regulations by removing references to the decommissioned USD LIBOR index and required updates to the rate that is used for PAI determination of DKK Interest Rate Derivatives was made.

To reflect the aforementioned enhancements and changes, the following provisions will be amended as outlined in Attachment 1 and Attachment 2:

• Chapter VIII of the Clearing Conditions: Part I No 1.2.3; Part 2 No. 2.1.3, No 2.1.5.1, No. 2.1.7, No. 2.2.5 and No. 2.7; Part 5 No. 5.4
• Chapter II of the FCM Regulations: Part 1 No. 1.2.3; Part 2 No. 2.1.5.1, No. 2.2.1, No. 2.2.5, No. 2.7 

As of the effective date, the full version of the amended Rules and Regulations will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Rules & Regs > Eurex Clearing Rules and Regulations

The amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties. 

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.

Attachments:

• Amended sections of Chapter VIII of the Clearing Conditions of Eurex Clearing AG
• Amended sections of Chapter II of the FCM Regulations of Eurex Clearing AG 

Further information