Eurex Clearing
Dear customer,
With this Newsflash, Eurex Clearing announces the decommissioning of the Permanent Cash Balance.
Clearing Members have the option to set via C7-GUI window “Permanent Cash Balance Maintenance” a Permanent Cash Balance (PCB) per collateral pool for cash collateral currencies CHF, EUR, and GBP. The PCB is the pre-defined (minimum) cash amount that a Clearing Member wants to hold with Eurex Clearing start of next day.
A similar functionality allows the deposit of all cash collateral currencies with Type-Of-Money “TERM” via C7-GUI window “Collateral Transaction Input”. The Type-Of-Money “TERM” represents a Permanent Cash Holding without end of day substitution and can be deposited and withdrawn during the general cut-off times per currency by the Clearing Member.
To reduce the complexity in the management of permanent cash collateral for margin purposes Eurex Clearing will decommission the “Permanent Cash Balance” functionality by 2 September 2024. Clearing Members having maintained a Permanent Cash Balance are encouraged to reduce this balance to 0,00 and in parallel reflect the desired amount as a Permanent Cash Holding (deposit Type-Of-Money “TERM” and withdrawal Type-of-Money “Own”) until 29 August 2024.
In case there are outstanding permanent cash balances by 30 August 2024, these amounts will be rebooked by Eurex Clearing with Type-Of-Money “TERM” using following business logic:
a) PCB Amount = Amount of Type of Money “Own”: Re-Booking of PCB Amount
b) PCB Amount > Amount of Type of Money “Own”: Re-Booking of Amount of Type of Money “Own”
c) PCB Amount < Amount of Type of Money “Own”: Re-Booking of PCB Amount
Please note that the rebooking done by Eurex Clearing will be done in C7 only, no cash payment will be instructed to the respective Clearing Member cash account.
Corresponding entitlement privilege for PCB for Clearing Members will be set to “0” on 29 August 2024 end-of-day. In consequence Clearing Members are not able to maintain Permanent Cash Balances anymore. To manage cash transactions with type “TERM” the following existing privileges need to be used:
Clearing Members are invited to test the switch from PCB to Type-Of-Money “TERM” in the Permanent Simulation environment until 14 August 2024. In case of outstanding PCB balances by that date these balances will be reduced to “0,00” by Eurex Clearing. No rebookings in Type-Of-Money “TERM’’ are triggered by Eurex Clearing in Simulation. Afterwards corresponding entitlement privilege for PCB for Clearing Members will be set to “0".
In case of further questions please contact your Key Account Manager.
Kind regards,
Your Client Services Team
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Recipients: | All Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors | |
Target groups: | Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination | |
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