| 0. Overview | |
| 0.0 Date Finalised and Effective Date | Date Finalised: June 15, 2019Date of Most Recent Update: January 23, 2026 |
| 0.1 Products Cleared | Clearing of derivatives transactions concluded at Eurex Deutschland or off-book (Chapter II of the Clearing Conditions for Eurex Clearing AG) (the “Service“)Products:Based on the Rules, under the Service, the CCP provides the clearing of the following products (the “Products“):Money Market Futures ContractsFixed Income Futures ContractsIndex Futures ContractsFutures Contracts of Exchange Traded Fund SharesVolatility Index Futures ContractsSingle Stock Futures Contracts Index Dividend Futures ContractsCommodity Index Futures ContractsFX Rolling Spot FuturesSingle Stock Dividend FuturesFutures Contracts on Xetra-GoldFutures Contracts on Exchange Traded Commodities SecuritiesFX Futures ContractsVariance Futures ContractsIndex Total Return Futures ContractsBond Index Futures ContractsEurex Market-on-Close Futures ContractsEquity Total Return Futures ContractsStock Tracking FuturesOptions Contracts on Money Market Futures ContractsOptions Contracts on Fixed Income Futures ContractsIndex Options ContractsOptions Contracts on Shares of Exchange-Traded Funds (EXTF Options)Options Contracts and Low Exercise Price Options on SharesIndex Dividend Options ContractsOptions Contracts on Xetra-GoldCommodity Index Options ContractsOptions Contracts and Low Exercise Price Options on Exchange-Traded Commodities SecuritiesOptions Contracts on FX Futures ContractsOptions Contracts on Volatility Index Futures ContractsFutures Contracts on BTCetc – ETC Group Physical BitcoinEurex Daily USD/KRW Futures Contracts on US Dollar Futures of the Korea Exchange (KRX)Crypto Index Futures ContractsThe CCP clears Eurex Off-Book Trades for the following Products:Basket Trades of Equity Total Return Futures ContractsBlock TradesExchange for Physicals for FinancialsExchange for Physicals for Index-Futures/FX-FuturesExchange for SwapsVola TradesTrade-at-Market-(TAM) Tradein each case to the extent that these are of a product type recognised by the CCP as published on its website.All responses apply to all Products, unless otherwise specified. |
| 0.2 Other products and clearing services of the CCP | Other clearing services offered by the CCP and products cleared under such clearing services:Clearing of transactions at Eurex Repo GmbH (Chapter IV)Eurex Repo TransactionsGC Pooling Repo TransactionsClearing of transactions at Frankfurter Wertpapierbörse (“FWB”) (Chapter V)Transactions in securities and rights concluded at the Frankfurter WertpapierbörseOTC Transactions in securities and rights, provided that such OTC Transactions are transmitted for Clearing to Eurex Clearing AG via the electronic trade system of the FWB or via a financial service provider or credit institution active at the FWBClearing of OTC derivative transactions (Chapter VIII)OTC Interest Rate Derivative TransactionsOTC NDF TransactionsClearing of OTC Interest Rate Derivative Transactions for entities that are futures commission merchants as defined in the CFTC Regulations (a “FCM Clearing Member” or “FCM CM”) under a separate rulebook (the “FCM Clearing Conditions“) that consists of a U.S. law governed part (the “FCM Regulations“) and a German law governed part (the “FCM Default Rules“)This document does not consider the implications of any clearing service other than the Service |
| 0.3 Regulators & Key Statutes/Regulations | Regulators: German Federal Agency for Financial Services Supervision (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) Key statutes and regulations:The CCP is regulated under EMIR and by the BaFin as the competent authority under EMIR.The CCP is a credit institution under the German Banking Act (Kreditwesengesetz).*The CCP has been authorised as a central counterparty under EMIR.The CCP has been notified as a “system” under the Settlement Finality Directive.The CCP is established as a German stock corporation (Aktiengesellschaft) and subject to German corporate law (including the German Stock Corporation Act (Aktiengesetz)** and the German Insolvency Code (Insolvenzordnung)***). * The German Banking Act (German version) is available under http://www.gesetze-im-internet.de/kwg/.** The German Stock Corporation Act (German version) is available under http://www.gesetze-im-internet.de/aktg/.*** The German Insolvency Code (German version) is available under http://www.gesetze-im-internet.de/inso/. |
| 0.4 US/EU registration Status | US registration status: Not applicableEU authorisation/recognition status: Authorised under EMIRThe CCP has been granted authorisation as a Central Counterparty (CCP) under the European Market Infrastructure Regulation (EMIR) effective from 10 April 2014. |
| 0.5 QCCP status | Treated as a QCCP under the EU Capital Requirements Regulation by virtue of authorisation under EMIR. |
| 0.6 Documents Reviewed | 1. Clearing Conditions for Eurex Clearing AG 12. DM Auction Rules23. DMC Rules 34. Disciplinary Procedures Rules45. Statutes for the Disciplinary Committee56. Statutes for the FIC Board Advisory Committee67. Statutes for the Credit Sub-Committee78. Statutes for the EMIR Risk Committee89. Price List for Eurex Clearing AG910. Exchange Rules of Eurex Deutschland1011. Conditions for Trading at Eurex Deutschland1112. FCM Regulations1213. FCM Default Rules13Hide note1 Chapter I: 01.01.2026, Chapter II: 15.12.2025; Appendix 1: 27.06.2022, Appendix 7: 28.04.2025, Appendix 10: 15.07.2022, Appendix 11: 24.10.2022, Appendix 12: 10.01.2018, Appendix 14: 24.10.2022;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536742 03.11.2025;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536743 02.01.2026;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536744 15.07.2021;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536745 15.07.2021;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536746 01.01.2026;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536747 01.08.2025 ;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/5.-Ancillary-Clearing-Documents-2824830813.01.2025;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/Clearing-Conditions-536749 01.01.2026;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations10 01.12.2025;https://www.eurex.com/ex-en/rules-regs/eurex-rules-regulations/Exchange-rules-5358611 01.12.2025;https://www.eurex.com/ex-en/rules-regs/eurex-rules-regulations/Trading-conditions-5363612 Chapter I, 14.07.2025; Chapter II, 22.01.2026; Appendix 1, 14.07.2025; Appendix 2, 20.09.2021; Appendix 3, 17.09.2018;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/FCM-Regulations-139421613 01.07.2025;https://www.eurex.com/ec-en/rules-regs/rules-and-regulations/FCM-Regulations-1394216 |
| 0.7 Reviewing Law Firms | Primary Reviewer: Linklaters LLP |
| 1. Requirements for Client business services | |
| 1.1 Do the Rules contemplate Client business? | Yes, subject to the ECM (GOSM and NOSM) and the ISA Model. The subject matter of this Client Clearing Module is the ISA Model. Separate Client Clearing Modules are available for the NOSM and the GOSM. |
| 1.2 What are the non-documentary requirements for a CM to offer Client business services? | StatusThe Rules differentiate between different categories of membership.A general Clearing License, which entitles its holder to clear Client Contracts for Eurex Contracts, or a direct Clearing License, which entitles its holder to also clear Client Contracts for Eurex Contracts provided that, in case of DC-related Contracts, the relevant DC Market Participant, or, in case of Contracts relating to an Indirect Client Market Participant, the relevant Indirect Client Market Participant is an affiliated company of the holder of the direct Clearing Licence, may be granted to (General prerequisites for Clearing Licenses):1(1) (i) a credit institution or investment firm: a credit institution within the meaning of point (1) of Art 4 (1) of Regulation (EU) No 575/2013 (“CRR”) or an investment firm within the meaning of point (1) of Article 4 (1) of Directive 2014/65/EU domiciled in a member state of the European Union (“EU“) or (ii) an undertaking domiciled in Switzerland whose functions correspond to those of a credit institution or an investment firm in the aforementioned sense and which is supervised by the Swiss Financial Market Supervisory Authority (Eidgenössische Finanzmarktaufsicht – FINMA);(2) a branch domiciled in a member state of the EU (i) qualifying as a branch of a credit institution pursuant to point (17) of Art 4 (1) of the CRR or as a branch of an investment firm pursuant point (30) of Article 4 (1) of Directive 2014/65/EU and the credit institution or investment firm is domiciled in a member state of the EU (“Host Member State”) (ii) a notification procedure has been completed in the Host Member State, and (iii) the branch and the credit institution or investment firm comply with certain conditions.(3) a branch within the meaning of Article 2 Paragraph 1 of the Swiss Federal Banking and Savings-Bank Act (Schweizer Bundesgesetz über die Banken und Sparkassen) in connection with Section 1 et seq. of the Regulation of the Swiss Financial Market Supervisory Authority concerning Foreign Banks in Switzerland (Verordnung der Eidgenössischen Finanzmarktaufsicht über die ausländischen Banken in der Schweiz), provided that such branch complies with certain conditions; (4) an undertaking domiciled outside the EU or Switzerland (i) whose functions correspond to those of a credit institution or an investment firm pursuant to no (1) above, (ii) which is supervised in its country of domicile according to standards equivalent as determined by the CCP to the regulatory standards of the EU applicable to credit institutions or investment firms, and (iii) the competent supervisory authority is a signatory to Appendix A of the IOSCO Multilateral Memorandum of Understanding or has signed an applicable bilateral memorandum of understanding with the BaFin;(5) a branch not falling within one of the categories pursuant to (2) to (4) above, provided that (i) the branch and the main office are domiciled outside the EU or Switzerland, such branch and main office comply with the certain conditions and (ii) depending on whether the brand and/or the main office are domiciled outside the EU or Switzerland, such branch and/or main office meet certain further conditions;(6) with respect to a direct Clearing License relating to house business only, an insurance undertaking, reinsurance undertaking, collective investment undertaking (in the case of an unincorporated fund, a sub-fund or a fund segment, acting through an authorised manager) as defined in Article 4 Paragraph 1 of the CRR or an institution for occupational retirement provision as defined in the Occupational Pension Funds Directive 2003/41/EC, provided that, in each case, (i) it is domiciled in a member state of the EU or in Switzerland, or (ii) it is domiciled outside the EU or Switzerland and whose functions correspond to those described in lit. (i) and which is supervised in its country of domicile according to a standard equivalent to the applicable regulatory standards of the EU as determined by the CCP, or(7) with respect to a direct Clearing License relating to house business and Client business (where the relevant Client is an affiliated company of the CM), a proprietary trading firm legally organised and with its principal place of business in the United States of America which is sufficiently supervised (as determined by the CCP).Certain applicants must provide a written guarantee on first demand issued vis-à-vis the CCP by the institution to which the applicant belongs, to the effect that such institution will guarantee all obligations of its branches, offices or branch offices arising out of, and in connection with, the clearing of transactions by these branches, offices and branch offices.The key prerequisites for the granting of a Clearing License are set out in item 11.2 of the Base Module.Consents and/or agreementsBefore offering Client business to Disclosed Direct Clients, a CM must provide to the CCP information regarding the identity of such Disclosed Direct Clients in accordance with the CCP’s client identification requirements as set out in the Rules and agree to obtain written consent of each of its Disclosed Direct Clients to the transmission of information related to such Disclosed Direct Clients by the CCP.3Hide note1 Chapter I Part 1 Numbers 2.1.1 (4), 2.1.2 (2); Chapter II Part 1 Number 1.1.12 Chapter I Part 1 Number 2.1.2 (2) (a) (hh)3 Chapter I Part 1 Number 15.1.4 |
| 1.3 What are the non-documentary requirements for a Client to receive Client business services? | StatusOnly Disclosed Direct Clients (Clients that are known to the CCP) may be subject to the ISA Model. According to the Clearing Conditions, a Disclosed Direct Client is either:a DC Market Participant, i.e. an entity (other than a CM) that is a trading participant at Eurex Deutschland to which the CM outsources the post-trade management for DC-related Contracts relating to such DC Market Participant by default. The DC Market Participant must have a technical connection to the systems of the CCP unless it (i) re-transfers the post-trade management to the CM or a third party, (ii) participates under the ECM or the ISA Model and (iii) does not make any entries into the systems of the CCP1, ora DC With System Access or a Basic DC.Each DC With System Access or Basic DC must be:2a legal entity (juristische Person);an investment fund with own legal personality;an investment fund without own legal personality (which may only act through a manager, general partner or trustee);a sub-fund of 2. or 3.;a fund segment (i.e. a pool of assets and obligations segregated for book-keeping and technical settlement purposes) of 2., 3. or 4.A CM transfers to the DC With System Access the post-trade management with respect to all DC-related Contracts relating to such DC With System Access. Accordingly, the DC With System Access must have a technical connection to the systems of the CCP.3A DC With System Access may not already participate in the clearing through any other CM as a DC Market Participant with respect to Eurex Contracts.4Consents and/or agreementsA Disclosed Direct Client is not directly bound by the Rules. It is the responsibility of the CM and its Disclosed Direct Client to agree on a bilateral basis on the terms governing the Client Legs between a CM and a Disclosed Direct Client.5Hide note1 Chapter I Part 1 Number 1.1.92 Chapter I Part 1 Number 1.1.10 (DC With System Access), Number 1.1.11 (Basic DC)3 Chapter I Part 1 Number 1.1.10 (1)4 Chapter I Part 1 Number 1.1.10 (3)5 Chapter I Part 4 Number 1.5 |
| 1.4 What documents must the CCP, CM and Client exchange, enter into or agree to for a CM to offer Client business services to a particular Client? | A precondition for the offering of Client business is that the CM enters into a Clearing Agreement for house business.1 This Clearing Agreement also serves as a basis for the clearing of DC-related Contracts.CMs that want to grant margin in the form of securities by way of a pledge under the ISA Model will have to enter into a pledge agreement.2CMs that want to grant margin in the form of securities held on a securities account of a third party account holder by way of full title transfer under the ISA Model will have to enter into a full title transfer agreement.3Hide note1 Chapter I Part 4 Number 1.3; Appendix 12 Appendix 73 Appendix 14 |
| 1.5 Detail whether these Client clearing arrangements are based on an FCM structure (i.e., agency) or principal to principal arrangements or both. | The Client clearing arrangements are based on principal to principal arrangements. |
| 2. Required provisions in CM Client Clearing Agreements | |
| 2.1 Do the Rules specify any provisions that must be included in a CM’s Client Clearing Agreement (e.g., provisions specified as Mandatory CCP Provisions)? | Yes. |
| 2.2 If so, please specify each provision. | Each CM is required to separately demand initial margin and variation margin from its Disclosed Direct Client in an amount which shall at least be equal to the relevant margin requirement for the Standard Agreement relating to the relevant Disclosed Direct Client.Hide noteChapter I Part 4 Numbers 6.1.4 and 7.1.4 |
| 3. Specified Core Provisions | |
| 3.1 Do the Rules specify any provisions as Core Provisions? | The Rules do not expressly specify any Core Provisions within the meaning of the ISDA/FOA Client Clearing Addendum. |
| 3.2 If so, please specify each provision. | N/A. |
| 4. Indirect Client business and Indirect Clients | |
| 4.1 Do the Rules contemplate Indirect Client business? | Yes. The Rules provide that the CCP opens and maintains with respect to Indirect Client business of a CM one or more of the following accounts:1one or more accounts, in each case relating to Indirect Client business with respect to one particular Indirect Client of the relevant Disclosed Direct Client; andone or more accounts, in each case relating to Indirect Client business of more than one Indirect Client of the relevant Disclosed Direct Client.The Rules also provide that a trading participant at Eurex Deutschland may be set up as an Indirect Client (Indirect Client Market Participant) in the systems of the CCP.2 With respect to each Indirect Client Market Participant, the CCP opens and maintains two accounts for Eurex Contracts relating to contracts of such Indirect Client Market Participant and two market maker accounts.3Hide note1 Chapter I Part 4 Number 3.1.1; Chapter II Part 1 Number 1.3.12 Chapter I Part 1 Number 1.1.14 (2)3 Chapter II Part 1 Number 1.3.1 (2) |
| 4.2 If so, please describe any specific requirements applicable to Indirect Clients. | Such requirements are only specified in the Clearing Conditions with respect to Indirect Client Market Participants. An Indirect Client Market Participant may, in the systems of the CCP, be set up as a client of a Disclosed Direct Client. The account relating to contracts of the Indirect Client Market Participant will either be linked to the account relating to house business of the relevant Disclosed Direct Client or, if no such account exists, to a virtual Disclosed Direct Client account of the CM.1The CCP may reject an Indirect Client Market Participant on the basis of its compliance checks.2Furthermore, the CCP may, upon written request by the CM, re-classify any DC Market Participant as an Indirect Client Market Participant.3Hide note1 Chapter I Part 1 Numbers 1.1.13 (2) and (5) and 1.1.14 (4)2 Chapter I Part 1 Number 1.1.14 (4)3 Chapter I Part 1 Number 1.1.15 |
| 4.3 Please describe the CM’s role, if any, in an Indirect Client obtaining access to the CCP. | The CM provides the CCP with the information regarding the identity of an Indirect Client Market Participant in accordance with the CCP’s client identification requirements as set out in the Rules.1The CM outsources the post-trade management for Contracts relating to an Indirect Client Market Participant to such Indirect Client Market Participant. The Indirect Client Market Participant must have a technical connection to the systems of the CCP unless it (i) re-transfers the post-trade management to the CM or a third party and (ii) does not make any entries into the systems of the CCP.2Hide note1 Chapter I Part 1 Number 1.1.14 (1) in conjunction with Number 1.1.72 Chapter I Part 1 Number 1.1.14 (6) in conjunction with Number 1.1.9 (2) to (4) |
| 4.4 If Indirect Clients are contemplated in the Rules, do the Rules require a CM to monitor risks associated with these types of arrangements? | The CM is required to monitor risks associated with the set-up of Indirect Client Market Participants given that all entries made by an Indirect Client Market Participant are directly binding for and against the CM.1Furthermore, the CM is required to procure that its Indirect Client Market Participants are prepared to handle clearing-related business, including the assessment of reports and notifications.2Hide note1 Chapter I Part 1 Number 1.2.2 (1) (b)2 Chapter I Part 1 Number 1.2.6 (2) |
| 4.5 How does the CCP manage a default of an Indirect Client? | There are only specific default rules for Indirect Client Market Participants (but not for other Indirect Clients).If an event of default occurs in respect of an Indirect Client Market Participant, the CM may:require the management board of Eurex Deutschland in writing (and shall inform the CCP immediately about this request) to exclude such Indirect Client Market Participant from trading on Eurex Deutschland or restrict the trading by the Indirect Client Market Participant to certain Contract types or specified products for the duration of such failure in accordance with the rules and regulations of Eurex Deutschland; if the management board of Eurex Deutschland follows the CM’s request, the Indirect Client Market Participant is no longer entitled to enter into the relevant contracts; ordeclare vis-à-vis Eurex Deutschland and the CCP by way of a respective entry (“Stop Button”) in the systems of Eurex Deutschland or the system of the CCP that it is no longer willing to conduct the clearing of Eurex Contracts relating to this Indirect Client Market Participant. Such system entry of the CM also constitutes an application to Eurex Deutschland and the CCP that the Indirect Client Market Participant shall be excluded from trading on Eurex Deutschland as long as the default continues. This also applies to certain pre-trade limits (see item 8 of this Client Module).If an Indirect Client Market Participant has been excluded from trading on Eurex Deutschland or has been restricted to the trading of certain Contract types (other than Eurex Contracts) or specified products cleared by the CCP, the CM may, upon prior notification to the CCP, close (Glattstellung) the Eurex Contracts relating to such Indirect Client Market Participant or transfer such Eurex Contracts to another CM.The CM shall immediately inform the Indirect Client Market Participant about its intention to close the Eurex Contracts relating to such Indirect Client Market Participant.The CM is obliged to agree, prior to the entering into the relevant Eurex Contract, with each relevant Client (or the relevant direct client that is not set up as Client in the systems of the CCP) that such client and the Indirect Client Market Participant agree (i) to the closing of its relevant corresponding contract by the conclusion of (an) inverse contract(s) or the transfer of the relevant Eurex Contract to another CM, (ii) that they may in this case not close the contract corresponding to the Eurex Contract opened by them or exercise or close positions or take measures opposing a closing or transfer of their relevant contracts or positions and (iii) that they are obliged to support their CM in closing their corresponding contracts or in transferring these contracts to another CM (e.g. by giving necessary approvals) and to make all entries in the system of the CCP required for a closing or transfer of positions.Upon a termination or closing (Glattstellung) of the Client Leg between the CM and the relevant Client, the relevant Eurex Contract shall be credited to the account for house business of the CM, unless otherwise instructed by the CM.Hide noteChapter I Part 1 Number 10 |
| 5. Client default rules and processes | |
| 5.1 Are there any specific rules relating to a Client default? | Specific default rules apply in respect of DC Market Participants and DCs With System Access/Basic DCs.DC Market Participants:1If an event of default occurs in respect of a DC Market Participant, the CM mayrequire the management board of Eurex Deutschland in writing (and shall inform the CCP immediately about this request) to exclude such DC Market Participant from trading on Eurex Deutschland or restrict the trading by the DC Market Participant to certain Contract types or specified products for the duration of such failure in accordance with the rules and regulations of Eurex Deutschland; if the management board of Eurex Deutschland follows the CM’s request, the DC Market Participant is no longer entitled to enter into the relevant contracts, ordeclare vis-à-vis Eurex Deutschland and the CCP by way of a respective entry (“Stop Button”) in the systems of Eurex Deutschland or the system of the CCP that it is no longer willing to conduct the clearing of Eurex Contracts for this DC Market Participant. Such system entry of the CM at the same time constitutes an application to Eurex Deutschland and the CCP that the DC Market Participant shall be excluded from trading on the respective market(s) as long as the default continues. This also applies to certain pre-trade limits (see item 8 of this Client Module).If a DC Market Participant has been excluded from trading on Eurex Deutschland or has been restricted to the trading of certain Contract types (other than Eurex Contracts) or specified products cleared by the CCP, the CM may, upon prior notification to the CCP, close (Glattstellung) the DC-related Contract relating to such DC Market Participant or transfer such Eurex Contract to another CM.The CM shall immediately inform the DC Market Participant about its intention to close the DC-related Contract relating to such Indirect Client Market Participant.The CM is obliged to agree, prior to the entering into the relevant Eurex Contract, with each relevant DC Market Participant that such DC Client Market Participant agrees (i) to the closing of its relevant corresponding Client Leg by the conclusion of (an) inverse contract(s) or the transfer of the relevant Eurex Contract to another CM, (ii) that it may in this case not close the Client Leg corresponding to the Eurex Contract opened by it or exercise or close positions or take measures opposing a closing or transfer of its relevant Client Leg or positions and (iii) that it is obliged to support its CM in closing its Contract or in transferring this Contract to another CM (e.g. by giving necessary approvals) and to make all entries in the system of the CCP required for a closing or transfer of positions.Upon a termination or closing (Glattstellung) of the Client Leg between the CM and the relevant DC Market Participant, the relevant DC-related Contract shall be credited to the account for house business of the CM unless otherwise instructed by the CM.DCs With System Access/Basic DCs:2If an event of default occurs in respect of a DC With System Access/Basic DC, the CCP will – upon written request to the CCP by the CM – exclude such DC With System Access/Basic DC in its system from the clearing and reject the registration of DC-related Contracts with respect to the relevant DC With System Access/Basic DC for the duration of such event of default. If a DC With System Access/Basic DC has been excluded from the clearing, the relevant CM (at its own cost) is obliged to close its DC-related Contracts with the CCP with respect to such DC With System Access/Basic DC.Upon a termination or closing (Glattstellung) of Client Legs between the CM and the relevant DC With System Access/Basic DC, the relevant DC-related Contract relating to such DC With System Access/Basic DC shall be credited to the house account or a different Client account of the CM in accordance with the instructions of the CM.Hide note1 Chapter I Part 1 Number 102 Chapter I Part 1 Number 11 |
| 5.2 Are there separate default processes for house business and Client business? | No. While the scope of the close-out netting and the provisions on default porting for Client business differ depending on the applicable clearing model, the default process equally applies. See items 31 – 40. |
| 5.3 If so, please describe the differences. | N/A. |
| 6. CM rights to reject Client Transactions | |
| 6.1 Will a CM always need to “accept” a Client Transaction for clearing or does the CM have a right of rejection prior to registration of a Contract? | All entries made by a DC Market Participant or an Indirect Client Market Participant in its capacity as market participant into the trading system of Eurex Deutschland are directly binding for and against the relevant CM. Whenever an order or quote entered into the trading systems of Eurex Deutschland by a DC Market Participant or an Indirect Client Market Participant is matched with another order or quote, in each case a DC-related Contract with identical terms shall be concluded between the CCP and the relevant CM.As regards the CM’s right to reject the registration of a Contract following a default with respect to a DC Market Participant and an Indirect Client Market Participant, see item 5.1.Hide noteChapter I Part 1 Number 1.2.2 (1); Chapter II Part 4 Number 4.1.1 |
| 7. CCP trading limits for Client business | |
| 7.1 Can the CCP impose trading limits in respect of Client business? | The Rules only provide for limits applicable to both house and Client business. The CCP may impose such limits for Eurex Contracts (see also item 39.1 of the Base Module). The CCP is also entitled to define one or more credit risk thresholds in order to mitigate credit risk relating to a CM.Hide noteChapter I Part 1 Number 12.8, 1.6.2 |
| 7.2 If so, what types of limits may be imposed? | See items 39.1 and 39.4 of the Base Module. |
| 7.3 Is there a notice period before new limits become effective? | Not addressed in the Rules. See item 39.4 of the Base Module. |
| 7.4 Is there a shorter (or zero) notice period in special or emergency circumstances, and what are the notice period and circumstances? | Not addressed in the Rules. |
| 7.5 Can separate limits be applied in respect of separate Clients? | Not addressed in the Rules. |
| 8. CM trading limits for Client business | |
| 8.1 Can the CM impose trading limits in respect of one or more of its Clients or Client accounts at the CCP level prior to registration? | Yes. The CM and a DC Market Participant may agree on the limitation of, and, in respect of any of its Indirect Client Market Participant, the CM may set limits for, orders or quotes which may be entered into the systems of Eurex Deutschland by such DC Market Participant, such Indirect Client Market Participant or the CM (“Pre-Trade Limits”).1In addition to Pre-Trade Limits, a CM may agree with its DC Market Participant or Indirect Client Market Participant on additional obligations and additional restrictions with respect to the entry or the execution of orders or quotes into the systems of Eurex Deutschland.2Hide note1 Chapter I Part 1 Number 12.2.12 Chapter I Part 1 Number 12.3.1 |
| 8.2 If so, what types of limits may be imposed? | Pre-Trade Limits may include one or more of the following restrictions:(1) Maximum number of contracts with regard to a product per order or per quote, i.e. (a) maximum number of contracts per order or quote (excluding combined orders or combined quotes) or (b) maximum number of contracts per combined order or combined quote, related to specific products.(2) For contracts concluded off-book: maximum number of contracts per transaction concluded off-exchange, related to specific products.(3) Maximum aggregate margin requirement or maximum margin requirement with respect to specific eligible margin assets, which in each case the CM is obliged to fulfil in accordance with the Rules as a result of Contracts related to the DC Market Participant or Indirect Client Market Participant.An automatic limitation by the system in respect of Pre-Trade Limits is only available if the CCP’s Prisma system is available.Orders and quotes of the DC Market Participant or the Indirect Client Market Participant will only be matched with other quotes and orders, if the Pre-Trade Limits are complied with.Hide noteChapter I Part 1 Number 12.2.2 |
| 8.3 What is the usual notice period before new limits become effective? | Not addressed in the Rules. |
| 8.4 Is a CM liable for all of its Client accounts? | Yes, the Rules provide for a principal-to-principal model so that the CM is liable for all its Contracts with the CCP. |
| 9. Physical Settlement | |
| 9.1 In case of products subject to physical delivery, what are the obligations of a CM in case a Client fails to meet its delivery obligations? | The Rules provide for a principal-to-principal model so that the CM is obliged to fulfil its obligations under the Contract irrespective of a default of the Client. The obligations of the CM differ depending on the relevant product (see item 42.1 of the Base Module). |
| 9.2 Is it mandatory for the CM to ensure physical settlement or can such CM use alternative delivery procedures/cash settle to discharge its obligation on behalf of Clients? | In this respect there is no difference between house business and Client business. |
| 10. Liability of CMs for Clients | |
| 10.1 Is a CM liable for non-compliance by its Clients with the Rules or applicable law in relation to the clearing services? | The Rules provide for a principal to principal model. Accordingly, a CM is, in principle, only liable for its obligations vis-à-vis the CCP. |
| 10.2 Is a CM required to make any representations on behalf of its Clients or confirm that its Clients meet certain criteria? | With respect to Options on FX Futures Contracts, each CM is required to represent and warrant to the CCP that, at the time it enters into a Clearing Agreement or into an Option on FX Futures Contract, it will not submit any Client related transaction for clearing to the CCP, unless the CM (a) has either obtained a representation from the relevant Client that the Client reasonably believes that it does not fall within any of the U.S. Person Categories and believes in good faith that it would not otherwise be deemed to be a “U.S. person” under the Interpretive Guidance, or (b) in case the CM has not obtained a representation as described under (a) above, reasonably believes that the relevant Client does not fall within any of the U.S. Person Categories and/or believes in good faith that the relevant Client would not otherwise be deemed to be a “U.S. person” under the Interpretive Guidance.“U.S. Person Categories” means the enumerated categories of “U.S. persons” that are provided in the “Cross-Border Application of the Registration Thresholds and Certain Requirements Applicable to Swap Dealers and Major Swap Participants”, (85 Fed.Reg. 56,924, Sept. 14, 2020) or the “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations”, (78 Fed. Reg. 45,292, Jul. 26, 2013) by the Commodity Futures Trading Commission (the “CFTC”) (the “Cross-Border Guidance”) within its jurisdiction pursuant to Section 722(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as may be amended or otherwise interpreted in writing by the CFTC from time to time.1With respect to a Disclosed Direct Client, the CM shall provide the CCP at any time or upon request of the CCP with (i) any update of the “disclosed client information” (as described in item 1.2), (ii) a list of authorised signatories of a Disclosed Direct Client of such CM that are entitled to represent such Disclosed Direct Client and (iii) any information in relation to any of its Disclosed Direct Clients that the CCP reasonably requires or requests in order to comply with any statutory or regulatory obligations. The CCP may, at any time, rely on the respective information provided by the CM and will not conduct own investigations in this regard.2With respect Eurex Contracts, CMs are required to represent and warrant to the CCP that they maintain policies and procedures reasonably designed to ensure that they will, with respect to relevant Clients located in the United States of America, (i) only enter an order or quote into the trading systems of the Eurex Exchange with respect to a Client Contract relating to the relevant Client and (ii) only request the transfer of an Eurex Contract to a Transaction Account of the CM relating to the relevant Client, if entering into the relevant Client Contract or the transfer of the relevant Eurex Contract complies with the applicable regulatory requirements and restrictions under US law.3A CM that (i) is a bank or financial institution domiciled and/or incorporated in Singapore pursuant to the Companies Act (Chapter 50 of Singapore) or (ii) is or acts through a Singapore-registered branch of a foreign bank or financial institution holding the requisite capital markets services licence issued by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289 of Singapore) (“SFA”) (or which is duly exempted from holding such licence) is required to represent and warrant by way of an independent guarantee and irrespective of fault (selbständiges, verschuldensunabhängiges Garantieversprechen) to the CCP that any Direct Clients and Indirect Clients of the CM that are domiciled and/or incorporated in Singapore are accredited investors, institutional investors and/or expert investors for the purposes of the SFA.4Regarding Chinese Clients (as defined below) that are Disclosed Direct Clients, the CM is required to represent and warrant by way of an independent guarantee and irrespective of fault (selbständiges, verschuldensunabhängiges Garantieversprechen) to the CCP that, with regard to Eurex Off-Book Trades relating to a Chinese Client, it will use reasonable endeavors to obtain a representation from its Chinese Clients that (i) the Chinese Client will not submit for clearing any such Eurex Off-Book Trade that was originally concluded between the respective Chinese Client and another party that fulfils the requirements under (i) – (iii) of the definition of Chinese Client (a “Chinese Party”), and (ii), if the Eurex Off-Book Trade is entered into with a party other than a Chinese Party, that any such transaction is entered into by the Chinese Client in compliance with the laws of the PRC (as defined below) (including but not limited to PRC’s restrictions on cross border Contracts).Regarding Chinese Clients that are Indirect Clients, the previous paragraph shall apply mutatis mutandis, provided that the CM may obtain the representation either from its Disclosed Direct Client through which the Chinese Client clears or from the Chinese Client itself. If the representation is obtained from the Disclosed Direct Client, the CM shall use reasonable endeavors to oblige the Direct Client to obtain a comparable representation from its Indirect Client.The term “Chinese Clients” shall cover Disclosed Direct Clients and Indirect Clients (i) that are domiciled in the People’s Republic of China (for this purpose, excluding Hong Kong, Macau and Taiwan – “PRC”), (ii) that are incorporated in accordance with PRC’s laws (but, in respect of (i) and (ii), excluding any clients insofar as they act through a branch outside the PRC) and/or (iii) insofar as they act through a branch in the PRC.5Further, the CM is required to represent and warrant by way of an independent guarantee and irrespective of fault (selbständiges, verschuldensunabhängiges Garantieversprechen) to the CCP that it will not clear Transactions for (i) any UDC that is domiciled in Ontario (Canada), and (ii) for any Indirect Client of a Direct Client that is domiciled in Ontario (Canada).6 Any CM that is legally organised and has its principal place of business in the United States of America (or any state thereof) is required to represent and warrant by way of an independent guarantee and irrespective of fault (selbständiges, verschuldensunabhängiges Garantieversprechen) to the CCP that it will repo transactions relating to an underlying security which the SEC considers to be a “U.S. security” for purposes of Section 17A of the U.S. Securities Exchange Act of 1934 in accordance with any applicable U.S. law or decisions, orders or publications by the SEC.7 Any CM that is legally organised and has its principal place of business in Switzerland that is a public entity and/or a cantonal bank is required to represent and warrant (and is deemed to repeat such representations and warranties whenever it entered into a Transaction) that all Transactions and eligible margin assets delivered to the CCP constitute financial (Finanzvermögen/patrimoine financier) rather than administrative assets (Verwaltungsvermögen/patrimoine administratif) of the CM and are not subject to immunity.8Hide note1 Chapter I Part 1 Number 1.92 Chapter I Part 1 Number 1.7.73 Chapter I Part 1 Number 1.104 Chapter I Part 1 Number 1.135 Chapter I Part 1 Number 1.146 Chapter I Part 1 Number 1.15 7 Chapter I Part 1 Number 1.16 8 Chapter I Part 1 Number 1.17 |
| 11. CM indemnities for its Client | |
| 11.1 Does the CM provide an indemnity for the conduct of its Client? | No. |
| 12. Compression services in respect of Client business | |
| 12.1 If the CCP offers compression services, does it apply to Client business in the same way as to house business? Please explain any differences. | N/A. |
| 13. Participants in the CCP that are not CMs | |
| 13.1 Are there specific rules relating to participants in the CCP that are not CMs? | Specific rules (including those referred to in items 1.2, 1.3 and 1.4) relate to Disclosed Direct Clients, i.e. Clients known to the CCP but with no contractual relationship with the CCP.Specific rules (including those referred to in item 4) also relate to Indirect Client Market Participants, i.e. Indirect Clients known to the CCP and, to a limited extent, to Indirect Clients (other than Indirect Client Market Participants) that are unknown to the CCP. Both such types of Indirect Clients have also no contractual relationship with the CCP.The Rules relating to Disclosed Direct Clients and Indirect Clients only apply to the CM and not directly to the relevant Disclosed Direct Clients or Indirect Clients. |
| 13.2 Are such participants treated as Clients or is there additional documentation that CMs must sign? | No additional documentation must be signed by a CM for the clearing of Client Contracts relating to Disclosed Direct Clients.Appendix 1, Appendix 7 (if the CM wants to grant margin in the form of securities by way of pledges) and Appendix 14 (if the CM wants to grant margin in the form of securities held on a securities account of a third party account holder by way of full title transfer) serve as a basis for the clearing of DC-related Contracts. |
| 14. Types of Client accounts | |
| 14.1 What types of Client account are made available by the CCP for the CM (omnibus vs. individual account)? | Under the ISA Model, a CM is permitted to provide Client business for the clearing of Eurex Contracts on an individually segregated basis by opening one or more of the following types of accounts with respect to each Disclosed Direct Client:one or more internal accounts for Contracts1;one or more internal cash accounts2; andone or more internal margin accounts3.The CM may request separate operational sub pools.4In addition, the CCP may open separate internal margin accounts in respect of supplementary margin.5Hide note1 Chapter I Part 1 Number 4.2.1; Part 4 Number 3.1.1, Chapter II Part 1 Number 1.3.12 Chapter I Part 4 Number 3.43 Chapter I Part 4 Number 3.34 Chapter I Part 4 Number 3.55 Chapter I Part 1 Number 3.5 (5) |
| 14.2 For each type of Client account please provide the account structure for Contracts, both cash and securities with respect to Client collateral along with related margining processes, i.e., Client omnibus gross model, Client omnibus net model, individual segregation of Clients, detail of whether Client is known to CCP, etc. | General: The CCP establishes and maintains internal accounts for each CM, on which the Contracts, cash amounts and margin of such CM are booked. As regards house accounts of the CM, refer to item 67 of the Base Module.Contract account structure:DC Market Participant/DC With System AccessThe CCP establishes and maintains, in its books and records, the following internal accounts with respect to each DC Market Participant/DC With System Access:1two accounts for DC-related Contracts relating to house contracts of each DC Market Participant/DC With System Access of the CM and two accounts as market maker accounts;upon request of the CM, one or more additional accounts with respect to client-related contracts of each DC Market Participant/DC With System Access, in each case relating to contracts of the DC Market Participant/DC With System Access with multiple Indirect Clients; andupon request of the CM, one or more accounts with respect to client-related contracts of each DC Market Participant/DC With System Access in each case relating to contracts of the DC Market Participant/DC With System Access with a particular Indirect Client.The CCP establishes and maintenance an internal premium account with respect to each Contract account in which the premiums for all options Contracts are recorded; the CCP makes the balance of any premium account available for the DC Market Participant/DC With System Access and the relevant CM.Basic DC:The opening and maintenance of internal accounts with respect to each Basic DC depends on the set-up of such Basic DC in the system of the CCP.2 All accounts for Contracts relating to a certain Disclosed Direct Client of the CM and all accounts for contracts of multiple Indirect Clients or a particular Indirect Client relating to such Disclosed Direct Client form a separate “transaction accounts group”.3The rights and obligations between the CCP and the CM under Contracts recorded in accounts allocated to the same transactions accounts group constitute for the purposes of porting and close-out netting a separate arrangement (each such relevant separate arrangement is a Standard Agreement between the CCP and the CM).4Collateral account structureThe CCP establishes and maintains, in its books and records, with respect to each Disclosed Direct Client to which DC-related Contracts under the ISA Model relate, one or more internal margin accounts (or, if the CM requests to establish sub pools (as further described below), a separate internal margin account in relation to each such sub pool) to which collateral delivered to the CCP with respect to such Disclosed Direct Client shall be booked. The collateral so booked shall constitute margin for DC-related Contracts relating to such Disclosed Direct Client.5The CM shall establish and provide to the CCP a specific customer identifier with respect to each Disclosed Direct Client. Any transfer of collateral to the CCP shall clearly refer to the applicable customer identifier.On the CM’s request, the CCP may establish and maintain separate operational sub pools in relation to a Disclosed Direct Client. Each sub pool will operationally be treated separately from other sub pools. However, the maintenance of sub pools is not aimed at meeting regulatory segregation requirements and will, inter alia, not result in additional Standard Agreements or separate difference claims.If the CCP has accepted the CM’s request to create sub pools, the CM shall reflect the sub pools in its internal accounting and include an identifier of the relevant sub pool in the specific customer identifier.6Initial margin requirementThe CCP calculates the margin requirement for Client business with respect to each Client account of such CM. except that the relevant net margin requirement (i) with respect to house transactions of a Disclosed Direct Client shall be calculated across all Client accounts relating to house transactions of such Disclosed Direct Client and (ii) with respect to house transactions of an Indirect Client Market Participant shall be calculated across all Client accounts relating to house transactions of such Indirect Client Market Participant.7The amount of margin assets to be delivered as cover in respect of initial margin for Client business is determined by the CCP separately with respect to each internal margin account (which means that a margin requirement will be separately determined for each sub pool, if any) reflecting the sum of the calculations for all Contract accounts that relate to such internal margin account.8Cash account structureThe CCP establishes with respect to each currency accepted by the CCP (i) in relation to each internal margin account for Client business, one internal cash account (or, if sub pools have been established, one internal cash account per sub pool) for the settlement of claims arising from Contracts booked on a Client account that, as per the specification made by the CM, relates to such internal margin account for Client business including, in particular, all daily settlement payments, option premiums and payments in respect of variation margin but excluding settlement claims and (ii) one internal cash account for settlement claims.9The daily balance of each internal cash account (after taking into account set-offs) shall be debited or credited, as the case may be, to the cash account of the CM to the extent that the CCP does not claim any credit balance in such account as initial margin or variation margin.10The CCP calculates net variation margin requirements separately with respect to each relevant internal cash account for Client business reflecting the sum of the calculations with respect to all Client accounts of such CM that relate to such internal cash account for Client business.11With respect to the bank cash account structure please refer to item 11.2 of the Base Module.Internal records of the CMThe CM shall establish an internal accounting to record in relation to the CCP and the relevant Disclosed Direct Client (i) all Contracts, (ii) all payments and deliveries under Contracts, (iii) all collateral and (iv) all redelivery claims.12Special provisions relating to clearing in compliance with the CASS rulesIf, under the ISA Model, the CM wishes to clear Client Contracts that are Eurex Contracts in accordance with CASS, the following special rules apply:the CM may designate one or several Client transaction accounts groups to constitute (either individually or collectively) a Client account for the purposes of CASS. Each Client account for the purposes of CASS is in the name of the CM;each CASS Contract booked on a Client account that forms part of a Client account for the purposes of CASS qualifies as “CASS Contract”;13the CCP, in its internal systems, establishes and maintains, upon instruction of the CM, for each CM one or more internal margin accounts with respect to CASS Contracts. Any such internal CASS margin account may only and must relate to a CASS Client transaction accounts groups;14margin assets for CASS Contracts shall only secure all present and future claims under any CASS Contract, any difference claim and any other present and future claims, in each case, of the CCP against the CM under any Standard Agreement relating to any CASS Client account of the CM;15non-cash collateral may only be provided by way of granting pledges;16the CCP establishes with respect to each currency accepted by the CCP (i) in relation to each internal margin account for CASS, one internal cash account for the settlement of claims arising from CASS Contracts booked on a Client account that, as per the specification made by the CM, relates to such internal margin account for CASS (including, in particular, all daily settlement payments, option premiums and payments in respect of variation margin but excluding settlement claims) and (ii) one internal cash account for settlement claims;17 andan internal cash account for CASS may only and must relate to one Client account for the purposes of CASS.18The CM may clear with respect to the same Disclosed Direct Client CASS Contracts and non-CASS Contracts. Only for this purpose, one transactions accounts group for CASS Contracts and one transaction accounts group for non-CASS Contracts may be established.19Hide note1 Chapter I Part 1 Number 4.2.1; Part 4 Number 3.1.1; Chapter II Part 1 Number 1.3.12 Chapter II Part 1 Number 1.3.1 (2)3 Chapter I Part 4 Number 3.24 Chapter I Part 4 Number 5.15 Chapter I Part 4 Number 3.36 Chapter I Part 4 Numbers 3.5 and 3.67 Chapter I Part 4 Number 6.1.1; Chapter I Part 1 Number 3.1.28 Chapter I Part 4 Number 6.1.29 Chapter I Part 4 Number 3.410 Chapter I Part 4 Number 3.411 Chapter I Part 4 Number 7.1.212 Chapter I Part 4 Number 413 Chapter I Part 4 Number 14.514 Chapter I Part 4 Number 14.715 Chapter I Part 4 Number 6.3.3.316 Chapter I Part 4 Number 14.617 Chapter I Part 4 Number 14.918 Chapter I Part 4 Number 14.1019 Chapter I Part 4 Number 14.11 |
| 14.3 In whose name (Client/CM/CCP) are these accounts held? | Each Client account is an account in the name of the relevant CM, opened at the CCP, in respect of which the CM acts as principal vis-à-vis the CCP and that relates to a particular Disclosed Direct Client. |
| 15. Segregation of Client accounts | |
| 15.1 If segregated Client account structures exist, are they mandated by the Rules or is such segregation applied at the discretion of each CM? | The account structure is generally mandated by the clearing model chosen by the CM (acting on behalf of its Client). The subject matter of this Client Clearing Module is the ISA Model which provides for individual segregation as described under item 14.2. |
| 15.2 Do CMs or Clients have to sign any particular documentation in order to achieve the requisite segregation of collateral? | No. |
| 15.3 Does the CCP have to sign any particular documentation in order to achieve the requisite segregation of collateral? | No. |
| 16. CCP segregation of Client margin | |
| 16.1 Is the CCP obligated to segregate collateral received through margin calls on CMs for Client accounts from the CM’s house margin, the margin of other CMs, or the margin of other Clients? | We understand that cash collateral is not segregated from the CM’s house margin, the margin of other CMs or the margin of other Clients through the use of separate accounts with its custodian(s) but only in the CCP’s books and records as described in item 14.2.Non-cash collateral in the form of securities (which may be provided either by way of pledge or by way of title transfer) is segregated from the CM’s house margin, the margin of other CMs and, or the margin of other Clients either by booking them into separate securities accounts with the custodian or by booking them into a common securities account also relating to other Clients and identifying them by a common identifier (as described above).1Non-cash collateral provided by way of pledges is held in a securities margin account of the CM for the benefit of the CCP with (i) Clearstream Europe AG (or, subject to the requirements described in item 13.1 of the Base Module, of a third party account holder on behalf of the CM), (ii) Clearstream Banking S.A. or (iii) SIX SIS AG or (iv) Euroclear.2Non-cash collateral provided by way of title transfer is held in a securities margin account of the CM for the benefit of the CCP with (i) Clearstream Europe AG (or, subject to the requirements described in item 13.1 of the Base Module, of a third party account holder on behalf of the CM) or (ii) of the CCP with Clearstream Banking S.A.3The CCP further segregates non-cash collateral in its books and records as described in item 14.2.Hide note1 Chapter I Part 1 Number 2.1.2 (4) (a) (bb); Part 4 Numbers 6.3.2.2 (for collateral provided by way of pledges) and 6.3.2.3 (for collateral provided by way of title transfer).2 Chapter I Part 1 Number 2.1.2 (4) (a) (bb)(i); Part 4 Number 6.3.2.23 Chapter I Part 1 Number 2.1.2 (4) (a) (bb)(ii); Part 4 Number 6.3.2.3 |
| 17. Margining of Client Contracts | |
| 17.1 Are Clients’ Contracts margined differently (i.e., higher confidence interval, longer holding period, etc.) than those of CMs? | No. |
| 17.2 If so, please elaborate on these differences. | N/A. |
| 18. Provision of cash collateral in respect of Client business | |
| 18.1 How is cash collateral in respect of Client business provided to the CCP (by way of title transfer or by way of security interest)? | Cash collateral is provided by the CM to the CCP by way of title transfer.Hide noteChapter I Part 1 Number 1.4.1; Part 4 Numbers 6.3.1.1 and 7.2.2 |
| 19. Provision of non-cash collateral in respect of Client business | |
| 19.1 How is non-cash collateral in respect of Client business provided to the CCP (by way of title transfer or by way of security interest)? | Prior to the establishment of each internal margin account (other than for CASS where non-cash collateral may only be provided by way of pledges), the CM must elect in the systems of the CCP whether to provide non-cash collateral in relation to such internal margin account by way of pledges or by way of title transfer.1The CM shall establish and provide to the CCP a specific customer identifier with respect to each Disclosed Client. Any transfer of collateral to the CCP shall clearly refer to the applicable customer identifier.Non-cash collateral provided by way of pledgesUpon maturity of the pledges, the pledges can, in principle, be enforced without prior notice in a private sale or by way of appropriation of such securities.1The security purpose (Sicherungszweck) of the pledges over securities granted by the CM in favour of the CCP comprises all present and future claims relating either to Client business under the ISA Model (other than Client business in accordance with the CASS rules) or Client business under the ISA Model that is cleared in accordance with the CASS rules.2The CCP shall, however, upon a pledge granted by the CM becoming enforceable, only enforce the pledge with respect to such pledged securities, and only apply any proceeds from the enforcement of the pledge over such securities, to satisfy those secured claims that relate to the Standard Agreement for Client business to which such pledged securities, in the books and records of the CCP, have been allocated.3Non-cash collateral provided by way of title transferThe CM shall provide non-cash collateral (securities) to the CCP by instructing either Clearstream Europe AG or Clearstream Banking S.A. (as the case may be) to transfer all right, title and interest in and to the securities to the CCP. That transfer shall be effected, in the case of instructions to Clearstream Europe AG, by crediting such securities to the securities margin account of the CM (or, subject to the requirements described in item 13.1 of the Base Module, of a third party account holder on behalf of the CM) for the benefit of the CCP. In the case of instructions to Clearstream Banking S.A., the transfer shall be effected by crediting the securities to the relevant securities account of the CCP with Clearstream Banking S.A. Special rules apply to the transfer of securities in form of co-ownership interests and German book-entry securities.4The CCP, the CM and the Disclosed Direct Client may separately agree by entering in an agreement in the form published by the CCP on its website (www.eurexclearing.com) that the Disclosed Direct Client may be entitled to directly transfer (by way of title transfer) to the CCP and directly receive from the CCP collateral in the form of securities.5Hide note1 Appendix 7 Clause 2.2.12 (in relation to securities pledged on a securities account with Clearstream Europe AG); Clause 2.4.8 (in relation to securities pledged on a securities account with SIX SIS AG), Schedule 1 to Appendix 7 Clause 6.1 (in relation to securities pledged on a securities account with Clearstream Banking Luxembourg) and Schedule 4 Clause 8.1 (in relation to securities pledged on a securities account with Euroclear)2 Chapter I Part 4 Numbers 6.3.2.2 and 6.3.3.1; Appendix 7 Clause 2.63 Appendix 7 Clause 34 Chapter I Part 4 Number 6.3.2.3; Appendix 145 Chapter I Part 4 Number 6.7 |
| 20. Posting of house collateral in respect of Client Contracts | |
| 20.1 Can the CCP require CMs to post house collateral in respect of Client Contracts? | No. However, a CM may elect to use any excess collateral relating to the CM’s house business to cover any collateral shortfalls relating to the CM’s Client business (see item 44.6 of the Base Module). |
| 20.2 If so, under what circumstances? | N/A. |
| 21. Use of collateral belonging to Clients of a defaulting CM to cover losses of such defaulting CM | |
| 21.1 Could the CCP, under the Rules, utilise collateral belonging to the Clients of a defaulting CM (cash and securities) to cover losses incurred by that CM, or do segregated Client account structures ensure that this would not happen? | No, as a consequence of the individual segregation account structure under the ISA Model, collateral for Client Contracts cannot be used to cover losses relating to house Contracts of a CM. |
| 22. Use of collateral of the non-defaulting Clients of a defaulting CM to cover losses of such defaulting CM’s defaulting Client | |
| 22.1 Could the CCP, under the Rules, utilise collateral of the non-defaulting Clients of a defaulting CM to cover losses incurred by that member’s defaulting Client? | No, not under the ISA Model. As a consequence of the individual segregation account structure, collateral for Client Contracts of a non-defaulting Client cannot be used to cover losses relating to a Client Contract from a defaulting Client of the CM. |
| 23 Close-out of Client Contracts upon Client default | |
| 23.1 Upon the default of a Client, do the Rules permit the transfer of Client Contracts from a Client account into a CM’s house account or the creation of offsetting Contracts between a Client account and the CM’s house account to effect a close-out of one or more Client Contracts? | The CM shall promptly notify the CCP on the occurrence of a termination or closing (Glattstellung) of the Client Leg (i) between the CM and the Disclosed Direct Client or (ii) in case of a Eurex Contract relating to an Indirect Client Market Participant, between the CM and the Disclosed Direct Client or other direct client relating to such Indirect Client Market Participant.Upon such termination or closing (Glattstellung), the relevant DC-related Contract or Contract relating to an Indirect Client Market Participant shall be credited to a house account or a Client account (relating to another Client) of the CM in accordance with the instructions of the CM.For further details please refer to item 5.1.Hide noteChapter I Part 1 Numbers 10 and 11 |
| 24. Return of net/surplus amounts in relation to Client accounts after resolution of a CM default | |
| 24.1 To whom does the CCP return net/surplus amounts in relation to Client accounts after the resolution of a CM default and when does that occur? | Unless a porting of assets and positions in relation to the relevant Standard Agreement relating to the Disclosed Direct Client has occurred and if the CCP is the debtor of the difference claim, then the CCP will pay and discharge such difference claim directly to the relevant Disclosed Direct Client.1 In such case (as well as in a scenario in which the CCP is the creditor of the difference claim, but not all pledged and allocated securities pledged as margin are required to discharge its difference claim) the CCP will transfer title in (remaining) pledged securities (if any) allocated to such relevant Standard Agreement directly to the relevant Disclosed Direct Client (based on a power of attorney granted by the CM).2Any such payment or transfer is subject to (i) receipt by the CCP of any information that it requires or requests from such Disclosed Direct Client in order to comply with any statutory or regulatory obligations with respect to the relevant payment or transfer to such Disclosed Direct Client, and (ii) compliance with any statutory or regulatory obligations applicable to the CCP. The CCP is not required to make such payment or transfer to the relevant Disclosed Direct Client (and shall instead make such payment or transfer to the CM for the account of the relevant Disclosed Direct Client) if it is not satisfied that such payment or transfer would result in a final discharge of the corresponding obligations of the CCP vis-à-vis the CM.3The CCP is entitled to withhold and/or deduct any taxes or charges that are due (fällig) in respect of any amount to be directly paid to the Disclosed Direct Client and any necessary currency conversions can be made by the CCP at a rate of exchange determined by the CCP. If the relevant taxes or charges exceed the return net/surplus amounts in relation to the Disclosed Direct Client, the CCP may (i) discharge its payment obligation with respect to the difference claim by paying the relevant amounts to the defaulted CM for the account of such Disclosed Direct Client or (ii) allow the Disclosed Direct Client to pay to the CCP the required amount with respect to any withholding or deduction in whole (or in part) to avoid (or reduce) the reduction of the difference claim.4Hide note1 Chapter I Part 4 Number 13.12 Chapter I Part 4 Number 13.23 Chapter I Part 4 Number 13.34 Chapter I Part 4 Number 13.4 |
| 24.2 How do the Rules address fluctuations in the value of the collateral in such cases? | The Rules do not contain any particular provisions as to this issue.Fluctuations in the value of the collateral will, in the case of title transfer collateral, be reflected in the relevant difference claim. If the CCP is the debtor of the difference claim, the CCP may upon the request of the Disclosed Direct Client discharge the difference claim in whole or in part by delivering securities to the Disclosed Direct Client that are equivalent to securities that have been delivered to the CCP as margin (by way of title transfer) under the relevant Standard Agreement; the securities so delivered shall be taken into account at the price which has been applied for the redelivery claim with respect to such securities in calculating the difference claim.Hide noteChapter I Part 4 Number 13.1 |
| 25. Pre-default porting | |
| 25.1 Does the CCP offer pre-default porting? | Yes, by way of an agreement to be concluded between the Receiving CM and the CCP in the form published by the CCP on its website www.eurexclearing.com and as further described in item 25.2.1In addition, CMs may port Contracts to other CMs via a trade transfer or via a give-up process.2Hide note1 Chapter I Part 1 Number 8.12 Chapter II Part 1 Number 1.3.3 |
| 25.2 If so, what does it cover (Contracts or Contracts and collateral)? | Pre-default porting by way of entering into a transfer agreementA Disclosed Direct Client may replace its Carrying CM as set forth below:1The Carrying CM, the Receiving CM and the CCP may, upon the request of the relevant Disclosed Direct Client, enter into a transfer agreement. The replacement presupposes the existence or conclusion of a (new) Clearing Agreement between the CCP and the Receiving CM covering Client Business.A replacement of the Carrying CM by the Receiving CM (by way of novation) is possible with respect to one or more transaction types and covers the DC-related Contracts and all claims relating to collateral allocated to such DC-related Contracts. The transfer of the Client Leg is a matter of a separate agreement between the Carrying CM, the Receiving CM and the relevant Disclosed Direct Client.A porting of DC-related Contracts belonging to a certain contract type to a Receiving CM together with a change of the relevant clearing model is possible with respect to DC-related Contracts. Such porting (by way of novation) covers the relevant DC-related Contracts and the claims relating to the collateral allocated to such DC-related Contracts.A pre-default porting may also be initiated by an Indirect Client Market Participant.Pre-default porting by way of a trade transfer2Pre-default porting between different CMs may only be made upon confirmation of the entry of the porting as binding by the relevant DC Market Participant, DC With System Access (in case of a porting of a DC-related Contract) or Indirect Client Market Participant (in case of a porting of a Contract relating to an Indirect Client Market Participant) and the relevant CM. Collateral transfers from or to an account may only be made (i) for DC-related Contracts at the request of the relevant Disclosed Direct Client or (ii) for a Contract relating to an Indirect Client Market Participant at the request of such Indirect Client Market Participant.Pre-default porting by way of a give-up3CMs can port Contracts to other CMs via a give-up. The following conditions must be met for a Contract to be available for a give up: the transfer request is entered into the systems of the CCP no later than on the third business day following the conclusion of the Contracts;the person for whose account the Contracts were originally concluded does not change due to the transfer or the transferee CM or Indirect Client Market Participant, as applicable, explicitly indicates that the transfer is required to ensure that the Contracts are correctly recorded in the relevant account; andthe Contracts to be transferred are opening trades (Eröffnungsgeschäfts). Hide note1 Chapter I Part 1 Number 8.12 Chapter II Part 1 Number 1.3.3 (1)3 Chapter II Part 1 Number 1.3.3 (2); http://www.eurexclearing.com/clearing-en/transaction-management/transaction-management-listed-derivatives/give-up-take-up |
| 25.3 If a Client in an omnibus account wishes to port its Contracts to a Receiving CM, is that Client also able to port any collateral associated to those Contracts? | N/A. Please refer to the Client Modules relating to ECM (GOSM or NOSM). |
| 26. Process for pre-default porting of Client Contracts | |
| 26.1 For pre-default porting, what steps must a Client and/or the relevant CMs take and what conditions must be satisfied in order for such Client’s Contracts to be transferred from one CM to another? | For a porting of Client Contracts relating to a Disclosed Direct Client from a Carrying CM to a Receiving CM by way of entering into a transfer agreement, the following documents must be entered into and the following conditions must be satisfied in order for such Client’s Contracts to be transferred from one CM to another CM:the Receiving CM must have entered into a Clearing Agreement in the form set out as Appendix 1 to the Clearing Conditions covering Client business;a transfer agreement in the form published by the CCP on the CCP’s website (www.eurexclearing.com) must have been entered into by the Carrying CM, the Receiving CM and the CCP; andany other document which the CCP reasonably considers to be necessary or useful in connection with such transfer must have been presented.For pre-default porting by way of a trade transfer or by way of give-up refer to item 25.2.Hide noteChapter I Part 1 Number 8.1 |
| 26.2 What is the timeline for pre-default porting of Client Contracts? | Pre-default porting by way of entering into a transfer agreementThe pre-default porting is effected on the beginning of the business day immediately following the date specified in the relevant transfer agreement. The timeline will also depend on the relevant additional agreement between the Carrying CM and the Receiving CM and the absence of objections by the CCP.1Pre-default porting by way of a trade transferThe porting of the relevant positions in the system of the CCP is made as soon as the CM and, in case of a porting of Contracts relating to a Disclosed Direct Client and/or an Indirect Client Market Participant, the relevant DC Market Participant or DC With System Access and/or an Indirect Client Market Participant have confirmed the entry of the porting as binding.2Pre-default porting by way of give-upThe Rules do not provide for a specific timeline.3Hide note1 Chapter I Part 1 Number 8.1.12 Chapter II Part 1 Number 1.3.3 (1)3 Chapter II Part 1 Number 1.3.3 (2); for further details please also refer to http://www.eurexclearing.com/clearing-en/transaction-management/transaction-management-listed-derivatives/give-up-take-up |
| 27. Process for pre-default porting of Client collateral | |
| 27.1 For pre-default porting, what steps must a Client and/or the relevant CMs take and what conditions must be satisfied in order for such Client’s collateral to be transferred from one CM to another? | See items 25.2, 26.1 and 29. |
| 27.2 What is the timeline for pre-default porting of Client’s collateral? | Pre-default porting by way of entering into a transfer agreementThe pre-default porting is effected on the beginning of the business day immediately following the date specified in the relevant transfer agreement. The timeline will depend on the relevant additional agreement between the Carrying CM and the Receiving CM and the absence of objections by the CCP.1Pre-default porting by way of trade transferAny cash payments or credit entries to be made shall always be effected on the business day following the day on which the binding entry of the porting was made in the systems of the CCP. The respective amount is only transferred to the Receiving CM when the Carrying CM has made the payment. In respect of such cash transfer, the CCP and the relevant trading platform shall not have any obligation towards the relevant exchange participant entitled to receive payment.2Hide note1 Chapter I Part 1 Number 8.1.12 Chapter II Part 1 Number 1.3.3 (1) |
| 28. How the CCP and CMs effect pre-default porting of Client Contracts | |
| 28.1 How do the CCP and relevant CMs effect the pre-default porting of Client Contracts? | See item 25.2. |
| 29. How the CCP and CMs effect pre-default porting of collateral | |
| 29.1 How do the CCP and relevant CMs effect the pre-default porting of collateral? | See item 25.2.With respect to a transfer by way of a trade transfer, the CM may elect to effect the transfer together with a cash transfer by entering a reference to the original Contract(s) as determined by the system of Eurex Deutschland.Hide noteChapter II Part 1 Number 1.3.3 (1) |
| 30. Partial pre-default porting | |
| 30.1 For pre-default porting, is partial porting (of some but not all Contracts and/or collateral) permitted? | Pre-default porting by way of entering into a transfer agreementNo, in principle, only porting of all Eurex Contracts relating to the relevant Disclosed Direct Client or Indirect Client Market Participant is permitted. A partial pre-default porting in respect of a Disclosed Direct Client or Indirect Client Market Participant may only be made with respect to certain types of Contract if the relevant Disclosed Direct Client or Indirect Client Market Participant clears more than one type of Contracts.1Pre-default porting by way of trade transferIndividual Contracts may, however, be ported by way of a trade transfer or by way of a give-up.2Hide note1 Chapter I Part 1 Number 8.1.12 Chapter II Part 1 Number 1.3.3 |
| 31. Post-default porting | |
| 31.1 Is post-default porting of Client Contracts to another CM mandated by the CCP within a specified timeframe? | Yes. The post-default porting mechanism as set out in items 31 to 40 applies to porting following the occurrence of an event of default, i.e. an Insolvency Termination Event or any other Termination Event (unless expressly stated otherwise).Under the ISA Model, in order to effect a porting in respect of a Disclosed Direct Client, the relevant Disclosed Direct Client must notify the CCP of its election for a porting. A porting will then occur, if, by 13:00 hours on the business day after the Insolvency Termination Event or (in the case of another Termination Event) after the publication of a notice by the CCP that the porting period commences, various porting requirements (as described in item 31.2) have been met. The CCP may extend the porting period by giving notice to all CMs and all Disclosed Direct Clients of the defaulted CM in accordance with the general provisions on publications (see item 124 of the Base Module).1If, with respect to a Standard Agreement, the porting requirements are not satisfied by the end of the porting period, then a close-out netting will occur with respect to such Standard Agreement.2Hide note1 Chapter I Part 4 Numbers 10.3 and 10.42 Chapter I Part 4 Number 10.2 |
| 31.2 If so, what conditions must be satisfied before a Client may port its Contracts? | Firstly, the porting of assets and positions in relation to an ISA Standard Agreement applies with respect to a CM, if the CCP has determined, based on the legal circumstances in the jurisdiction where such CM is domiciled, that the porting mechanics contemplated in its Rules shall be applicable with respect to such CM (the CCP publishes a list of the relevant jurisdictions in this respect). If the CCP is not able to apply or not fully apply the provisions for the porting of assets and positions in relation to an ISA Standard Agreement due to certain restrictions to the CM in the relevant jurisdiction, the CCP is entitled (i) to deviate from any provisions concerning the porting of assets and positions in relation to an ISA Standard Agreement to facilitate the porting and (ii) to terminate the relevant ISA Standard Agreement by giving written notice thereof to theCM specifying the date and time on which the termination shall occur.Further, the following porting requirements must be fulfilled for each Standard Agreement under the ISA Model:(i) a Replacement CM has agreed with the CCP in writing on the assumption of contract (Vertragsübernahme) of the Client Contracts between the defaulting CM and the CCP in form and substance satisfactory to the CCP;(ii) the Replacement CM has confirmed to the CCP that the relevant Disclosed Direct Client of the defaulting CM, to which Client Contracts under the relevant Standard Agreement relate, has designated, and has taken all necessary steps to allow, the Replacement CM to act as its future CM in respect of its Client Legs that correspond to any DC-related Contracts either under the ECM or the ISA Model;(iii) the Replacement CM has (a) provided the CCP with sufficient collateral to cover any shortfall in margin and variation margin in respect of all Contracts under the relevant Standard Agreement, which are subject to the transfer or (b) undertake to the CCP to provide the relevant amount of collateral without undue delay following the transfer.The CCP may, in its free discretion, waive the requirement set out in (ii) above in whole or in part to the extent alternative arrangements have been made with the Replacement CM with respect to the relevant DC-related Contracts.If the porting requirements are not satisfied by 13:00 hours Frankfurt am Main time on the business day following the termination date or a longer period of time specified by the CCP in the individual case, porting shall not take place and close-out netting shall be effected.Hide noteChapter I Part 4 Numbers 10.1 and 10.4 |
| 31.3 If a Client in an omnibus account wishes to port its Contracts to a Replacement CM, is that Client also able to port any collateral associated to those Contracts? | N/A. Please refer to the Client Modules relating to ECM (NOSM and GOSM). |
| 32. How the CCP and CMs effect post-default porting of Client Contracts | |
| 32.1 How do the CCP and relevant CMs effect the post-default porting of Contracts? | Under the ISA Model, upon the occurrence of a termination date with respect to the Standard Agreement for house business of the CM, each Disclosed Direct Client may determine by giving notice to the CCP by 13:00 hours Frankfurt am Main time on the business day following the termination date at the latest, to (i) proceed with the porting of the Client Contracts between the defaulting CM and the CCP to another CM or (ii) to require the termination of such Client Contracts with the result that porting shall not take place and close-out netting shall be effected. The Disclosed Direct Client also needs to elect whether, as a result of the transfer to the relevant Replacement CM, the Contracts shall become Contracts of the Replacement CM under the ECM or the ISA Model.The CCP may reject the porting election of a Disclosed Direct Client, if such Disclosed Direct Client has not submitted such porting election together with a list of authorised signatories that are entitled to represent such Disclosed Direct Client.See items 31.1 and 31.2.Hide noteChapter I Part 4 Number 10.3 |
| 33. How the CCP and CMs effect post-default porting of collateral | |
| 33.1 How do the CCP and relevant CMs effect the post-default porting of collateral? | Cash collateralIf the Contracts that are subject to the transfer shall become Contracts of the Replacement CM (i) under the ISA Model, cash collateral in respect of Client Contracts is re-allocated to the Replacement CM and all redelivery claims relating thereto are assigned to the Replacement CM1, or (ii) under the ECM, any redelivery claim relating to margin in the form of cash shall become due and shall be discharged by a payment tothe relevant Disclosed Direct Client (subject to the requirements set out in item 24.1) , if the relevant Disclosed Direct Client has so elected in the porting notice; orthe relevant Replacement CM, if no such election has been made by the Disclosed Direct Client.2Non-cash collateral provided by way of pledgesIf the Contracts that are subject to the transfer shall become Contracts of the Replacement CM under the ISA Model, non-cash collateral in the form of securities in respect of Client Contracts provided by way of pledges shall be transferred to the Replacement CM by way of a transfer of title by the CCP (based on an authorisation granted by the defaulted CM), andif the Replacement CM is obliged to provide margin in the form of securities by way of granting pledges, shall, following such transfer, secure all present and future claims of the Replacement CM under the ISA Model;3 orif the Replacement CM is obliged to provide margin in the form of securities by way of title transfer, the Replacement CM shall be obliged to transfer title to such non-cash collateral to the CCP in order to provide margin in respect of the transferred Contracts. The security interests held by the CCP in such securities shall upon the transfer be extended and shall only lapse when title in such securities has been transferred to the CCP by the Replacement CM.4If the Contracts that are subject to the transfer shall become Contracts of the Replacement CM under the ECM, non-cash collateral in the form of securities in respect of Client Contracts provided by way of pledges shall,if the relevant Disclosed Direct Client has so elected in the porting notice, not be transferred to the Replacement CM, but shall be transferred to the relevant Disclosed Direct Client; orif the relevant Disclosed Direct Client has made no such election in the porting notice, be transferred to the relevant ECM pledged securities account of the Replacement CM and shall thenceforth secure the Client Contracts relating to such Disclosed Direct Client;in each case by the CCP (based on an authorisation granted by the defaulted CM) by way of a transfer of title (subject to the requirements set out in item 24.1) and any pledges over such Securities shall be released.5Non-cash collateral provided by way of title transferIf the Contracts that are subject to the transfer shall become Contracts of the Replacement CM under the ISA Model, non-cash collateral in the form of securities in respect of Client Contracts provided by way of title transfer andthe Replacement CM is obliged to provide margin in the form of securities by way of granting pledges, the CCP shall transfer title in such securities to the Replacement CM and such securities shall forthwith be credited to the relevant pledged securities account of the Replacement CM (or, subject to the requirements described in item 13.1 of the Base Module, of a third party account holder on behalf of the CM) and the corresponding redelivery claims of the defaulted CM shall lapse;6 orthe Replacement CM is obliged to provide margin in the form of securities by way of title transfer, the CCP shall transfer title in such securities to the Replacement CM and such securities shall forthwith be credited to the relevant securities account (i) of the Replacement CM with Clearstream Europe AG (or, subject to the requirements described in item 13.1 of the Base Module, of a third party account holder on behalf of the CM) or (ii) of the CCP with Clearstream Banking S.A.7If the Contracts that are subject to the transfer shall become Contracts of the Replacement CM under the ECM, any redelivery claims of the defaulted CM relating to margin in the form of securities provided by way of title transfer shall become due and shall be discharged by a transfer by way of a transfer of title of equivalent securitiesif the relevant Disclosed Direct Client has so elected in the relevant porting notice, to the relevant Disclosed Direct Client (subject to the requirements set out in item 24.1); orif no such election has been made by the Disclosed Direct Client, to the relevant Replacement CM.8In order to effect transfer of non-cash collateral in the form of securities, the Rules provide for an authorisation to the CCP by the defaulted CM to offer to transfer to the Replacement CM, on behalf of the defaulted CM, title in all such securities and to issue all other statements and to take all other acts on behalf of the defaulted CM that the CCP considers necessary or expedient to effect the transfer of such securities to the Replacement CM.Hide note1 Chapter I Part 4 Number 10.4 (ii)2 Chapter I Part 4 Number 10.103 Chapter I Part 4 Numbers 10.8 and 10.8.24 Chapter I Part 4 Number 10.8 and 10.8.35 Chapter I Part 4 Number 10.8.46 Chapter I Part 4 Number 10.9.17 Chapter I Part 4 Number 10.9.28 Chapter I Part 4 Number 10.9.3 |
| 34. Basis for post-default porting | |
| 34.1 Does the CCP allow for Client post-default porting on a per Contract basis or is post-default porting conducted on a bulk/omnibus basis? | Under the ISA Model, the Rules allow for a porting on a Standard Agreement basis only, which means, in case of individual segregation under the ISA Model on a per-Disclosed Direct Client basis.Hide noteChapter I Part 4 Number 10.3 |
| 35. Liquidation of non-defaulting Client Contracts | |
| 35.1 Does the CCP liquidate non-defaulting Client Contracts if post-default porting does not occur within specified timeframes? | If the porting requirements are not fulfilled with respect to a Standard Agreement within the prescribed porting period (or any extension thereof), a termination and close-out netting occurs between the CCP and the CM in respect of the Client Contracts entered into under such Standard Agreement.The effect on the Client Clearing Agreements between the defaulting CM and the relevant Clients depends on the contents of such Client Clearing Agreements.Hide noteChapter I Part 4 Number 8 (iii) |
| 36. Simultaneous porting of Client Contracts and collateral | |
| 36.1 Is Client collateral ported simultaneously with the post-default porting of Client Contracts? | If a porting of Client collateral takes place (see item 33.1) it is effected in connection with the transfer of the relevant Client Contracts between the defaulting CM and the CCP.Hide noteChapter I Part 4 Number 10 |
| 37. Post-default porting consent procedures and back-up porting arrangements | |
| 37.1 For post-default porting, how does the CCP obtain the consent of the CMs to which Client Contracts and collateral are to be ported? | The consent of the defaulted CM to both a transfer of the relevant Client Contracts and the collateral is included in the Rules and is given by the CM when it enters into the relevant Clearing Agreement.The consent of the Replacement CM is provided as part of the transfer agreement to be entered into between the CCP and the Replacement CM.Hide noteChapter I Part 4 Number 10.8.1 |
| 37.2 Are the consent procedures set out in the Rules? | The consent procedures (if required) are set out in the Rules and the related transfer agreement. |
| 37.3 If so, please describe them, including any exceptions. | See item 37.1. |
| 37.4 Are Clients required to have backup porting arrangements in place at all times? | No. |
| 37.5 If so, are these backup arrangements subject to acknowledgement by the backup CM and subsequent vetting by the CCP? | N/A. |
| 38. CCP role in identifying Replacement CMs for Client Contracts | |
| 38.1 Do the Rules indicate that the CCP will assist Clients in identifying an alternate CM that would be willing to take Client Contracts and clear going forward? | No. |
| 39. Execution of Client Contracts during post-default porting process | |
| 39.1 What Contracts of ‘portable’ Clients (i.e., ones with verified porting arrangements) if any are allowed to be executed during the post-default porting process (assuming their CM has defaulted)? | No such Contracts (between the CCP and the defaulting CM) can be executed, because during the porting period the clearing of Client Contracts under the relevant Standard Agreement between the CCP and the defaulting CM is always suspended.To the extent that such Clients enter into new Client Legs with another CM (that has not defaulted), such Client Legs are not affected by the post-default porting and can be executed during the post-default porting process.Hide noteChapter I Part 4 Numbers 8, 9 and 10.15 |
| 40. Client ability to post collateral directly to CCP upon CM default | |
| 40.1 Is there a way for the Client to continue to post collateral directly to the CCP if the Client is facing a defaulting CM and Contracts have not yet been ported? | No. |
| 41. Netting and set-off of Client and house Contracts upon a CCP default | |
| 41.1 What are the rules with respect to the netting and set off of obligations with respect to Client and house Contracts in the event of a CCP default? | The Rules provide for a close-out netting between the CCP and the CM in the event of a default of the CCP (failure to pay event or insolvency event, see item 145 of the Base Module) on a per Standard Agreement basis, so that Client Contracts are not netted or set off with house Contracts.Hide noteChapter I Part 1 Numbers 9, 7.3.2 |
| 42. Allocation of investment profits/losses in respect of Client collateral | |
| 42.1 Are investment profits/losses in respect of Client collateral borne by the CCP or are they distributed back to CMs? | See item 166.1 of the Base Module. |
| 42.2 If they are distributed to CMs, what is the basis of distributing profits/losses? | See item 166.2 of the Base Module. |
| 43. CCP investment of Client cash collateral | |
| 43.1 Do the Rules permit the CCP to invest Client cash collateral? | See item 153.1 of the Base Module. |
| 43.2 If so, what investments are permissible? | See item 153.2 of the Base Module. |
| 44. CCP rehypothecation of Client non-cash collateral | |
| 44.1 Does the CCP have the right to rehypothecate Client non-cash collateral under the Rules? | No. The CCP has only the right to rehypothecate non-cash collateral provided with respect to house business and default fund contributions. See items 94.1 and 156.1 of the Base Module. |
| 44.2 If so, are there any restrictions on this ability? | N/A. |
| 44.3 Will the proceeds or instruments received by the CCP be held in the same manner as the cash or non-cash collateral invested or rehypothecated by the CCP? | N/A. |
| 45. Name under which CCP investment/rehypothecation of CM/Client collateral is made | |
| 45.1 In case the CCP has the ability to invest/rehypothecate CM/Client collateral (per the items 43 – 44 above), please clarify if such investments/rehypothecations are made, in the name of the CM or Client or in the name of the CCP. | Investments (of margin in the form of cash) are made in the name of the CCP. See also item 156 of the Base Module.Note that there is no rehypothecation concept with respect to non-cash collateral under the Rules for the ISA Model.Hide noteChapter I Part 1 Number 3.4.2 |
| 46. Allocation of liability in respect of Client Contracts and collateral upon a CCP default | |
| 46.1 Upon a CCP default, do the Rules or other documentation specify any allocation of liability between the CM and Client in respect of the Client’s Contracts (or Client related Contracts in the principal model) and collateral? | Not addressed in the Rules. |
| Global Glossary of Terms and CCP Specific Glossary of Terms | Eurex Clearing AG – Transactions at Eurex DE Global Glossary (011323) |
| Archive – yearly blacklines | Eurex Clearing AG – Transactions at Eurex DE – CCM3 (01.23.26 against 01.20.25)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.20.25 against 01.24.24)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.24.24 against 01.13.23)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.13.23 against 01.26.22)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.26.22 against 01.22.21)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.22.21 against 01.31.20)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.31.19 against 12.03.18)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (06.15.19 against 08.24.18) |
| Archive spreadsheet | Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.23.26 against 10.18.25)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.18.25 against 07.12.25)Eurex Clearing AG – Transactions at Eurex DE – CCM3 (07.12.25 against 04.17.25)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (04.17.25 against 01.20.25)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.20.25 against 10.18.24)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.18.24 against 07.18.24)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (07.18.24 against 04.16.24)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (04.16.24 against 01.24.24)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.24.24 against 10.18.23)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.18.23 against 07.18.23)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (07.18.23 against 04.18.23)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (04.18.23 against 01.13.23)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.13.23 against 10.17.22)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.17.22 against 07.14.22)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (07.14.22 against 04.12.22)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (04.12.22 against 01.26.22)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.26.22 against 10.21.21)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.21.21 against 07.21.21)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (07.21.21 against 04.23.21)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (04.23.21 against 01.22.21)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (01.22.21 against 10.23.20)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (10.23.20 against 07.22.20)Eurex Clearing AG – Transactions at Eurex DE – CCM 3 (07.22.20 against 04.28.20)Eurex Clearing AG – Transactions at Eurex DE – CCM 4 (04.28.20 against 01.31.20)Eurex Clearing AG – Transactions at Eurex DE – CCM 4 (01.31.20 against 10.31.19)Eurex Clearing AG – Transactions at Eurex DE – CCM 4 (10.31.19 against 06.15.19) |
| Diagrams | Hide noteEurex Clearing AG (Transactions at Eurex Deutschland and Eurex Zürich) – Waterfall StructureEurex Clearing AG (Transactions at Eurex Deutschland and Eurex Zürich) – Default Liability of a Withdrawing CMEurex Clearing AG (Transactions at Eurex Deutschland and Eurex Zürich) – Porting Process for Client Contracts |
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