Eurex Exchange

We recognize that markets are continually fluctuating. To ensure that our members are sufficiently capitalized to deal with changing market conditions, we set capital requirements for Clearing Licenses. These capital requirements are set in line with estimated risk levels and are reviewed quarterly to reflect developments in the markets.

Irrespective of the minimum amounts of own funds* specified below, the actual amount of own funds that we require our Clearing Members to demonstrate and maintain is equal to the higher amount of:

• 20 percent of the 30-day average of the initial margin requirements or
• 20 percent of the 250-day average of the initial margin requirements

The level of the own funds is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter.

* _{The term own funds was introduced pursuant to the European Capital Requirements Directive 2013/36/EU (CRD IV) and the European Capital Requirements Regulation (EU) No. 575/2013 (CRR). It replaces the term “liable equity capital”. For additional information on own funds, please refer to the Clearing Conditions for Eurex Clearing AG.}

In order to ensure continued market integrity, we operate stress-tested lines of defense of which the Default Fund is one. Eurex Clearing maintains a Default Fund in order to protect market participants in the event of a Clearing Member default. In addition, the Default Fund is reviewed every quarter to ensure the fund is aligned with current market risk.

Based on the Clearing Member's status Direct Clearing Member (DCM), General Clearing Member (GCM) or OTC Clearing Member (OTC CM), the minimum Default Fund contribution is determined by Eurex Clearing as follows (minimum requirement):

• EUR 5 million for GCM, OTC CM
• EUR 1 million for DCM

In addition, the Default Fund requirements are dynamic considering the overall risk exposure of the single Clearing Member towards the CCP.

The total margin requirement includes all products and asset classes cleared by the Clearing Member.

For further information on the Default Fund click here.

Every well-built house starts with a strong foundation. In the case of our clearing house we have built it on a sound framework of safeguards - which we call our lines of defense - to protect our customers and to enhance the markets integrity.

Further information on the lines of defense click here.
 

We offer members flexibility when setting up the pledge securities accounts and settlement accounts that are required for clearing membership. Members can choose to set up accounts at Clearstream Banking AG, Frankfurt, SIX SIS AG, Zurich or Euroclear UK & Ireland for settlement purposes, depending on the supported settlement location for a specific security.

For Eurex Derivatives Clearing License holders, we require that members maintain accounts with a Eurozone national central bank (TARGET2), or Schweizerische Nationalbank (SNB) for the provision of funds in  euro and Swiss francs for Delivery vs Payment purpose and accounts with commercial banks for settling funds for clearing related cash payments.

 
¹_{Cash clearing for delivery vs. payment (DvP) via CBF account}

²_{The settlement of physical deliveries in British as well as Irish securities will be carried out via Euroclear UK & Ireland (EUI).}

³_{A list of all admitted Settlement Banks for various currencies is available here.}

As we strive to maintain high qualification levels of clearing firms for reasons of clearing house integrity, it is required to register at least one "Qualified Clearing Staff" (QCS) in the back-office with Eurex Clearing.
The Clearing Member has the following possibilities to provide proof of the qualification of the staff member that shall be in QCS:

• The Compliance Officer of the Clearing Member confirms the respective knowledge of the staff member, or
• The staff member has passed the Clearer Test (Basic Module), or
• The staff member has passed the exam for the Certified Clearing Specialist, or
• The staff member has attended the Core Clearing Knowledge seminar.

All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.

If the Clearing Member is outsourcing its clearing, back office or risk management functions to an Insourcer, either the Clearing Member or the Insourcer has to have a QCS.

Please log into the Eurex Clearings Member Section to receive further information about the application to become a QCS and see the quick links to Eurex Clearing's circulars on the topic.

Each Market Participant (Trading Member) needs to have a Qualified Staff Member in the back-office (QBO). Each Market Participant (Trading Member) has the following possibilities to provide proof of the qualification of the staff member that shall be a QBO:

• The Compliance Officer of each Market Participant (Trading Member) confirms the respective knowledge of the staff member, or
• The staff member has passed the Back-Office Test (Clearer Test market module Eurex exchanges), or
• The staff member has passed the exam for the Certified Clearing Specialist, or
• The staff member has attended the Transaction Management Listed Derivatives seminar.

All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.

Each Market Participant (Trading Member) is not required to have a qualified staff member in the back-office if it outsources all its back-office functions to its Clearing Member or to an Insourcer that has a qualified staff member.

Each Clearing Member has to appoint and register at least one employee as emergency contact for Eurex Clearing. This emergency contact needs to be available during business hours and needs to be able to initiate necessary measures in emergency cases.

The emergency contact is included in the Member Section, where the Clearing Member can maintain this data.