Foreign Exchange (FX) derivatives: Introduction of options on FX Futures and discontinuation of clearing services for FX Options; other amendments to the Clearing Conditions

1. Introduction

This circular contains information with respect to Eurex Clearing’s service offering and corresponding amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the Price List of Eurex Clearing AG (Price List) regarding to the following topics:

A.    Introduction of options on FX Futures
B.    Discontinuation of clearing services for FX Options
C.    Clarification and further editorial changes to the Clearing Conditions

The amendments will come into effect on 14 December 2020.

Please refer to Eurex circular 085/20 for detailed trading-related information as well as the amendments of the relevant Rules and Regulations of Eurex Deutschland.

2. Required action

In order to trade and clear the new options on FX Futures, the form “Application for Participation in Trading FX-Products/ 23h Trading” has to be completed. The form will be available for download on the Eurex website  www.eurex.com under the following link:

Find > Forms > Application for Participation in Trading FX-Products / 23h Trading

In order to use GBP, CHF or JPY as an alternative fee currency for the respective FX products, the form “Choice of alternative fee currencies for FX products” has to be completed. The form will be available for download on the Eurex website www.eurex.com under the following link:

Find > Forms > Choice of alternative fee currencies for FX products

Furthermore, before start of trading and clearing the new options on FX Futures, Clearing Members who did not have a CLS account yet are required to submit the form “Application for Set-up / Deletion / Change of Securities Accounts and Clearer Cash Accounts”.

In this form, please ensure to provide information for the following fields: 

• BIC of the account holder, 
• BIC of the addressed CLS account, 
• SWIFT address of the account holder.

Please refer to Attachment 4 for the form “Application for Set-up / Deletion / Change of Collateral Accounts and Clearer Cash Accounts”.

3. Details of the initiative

A.    Introduction of options on FX Futures

Effective 14 December 2020, Eurex Clearing will offer clearing services for the new options on FX Futures introduced at Eurex Deutschland. 

The following provisions will be amended as outlined in the attachments:

• Chapter 2 Part 2 Number 2.1.2 of the Clearing Conditions
• Chapter 2 Part 3 Number 3.12 of the Clearing Conditions
• Numbers 3.1, 3.7 and 3.8 of the Price List.

a.    Contract Specifications

For the detailed Contract Specifications, please refer to Eurex circular 085/20.

b.    Product group

For the product group of the new products, please refer to Attachment 1.

c.    Transaction fees

Please refer to Attachment 3 for the updated sections of the Price List.

d.    Simulation

Starting 12 November 2020, the new product will be available in the Eurex simulation environment for testing purposes. For further information, please refer to the simulation calendar on the Eurex website www.eurex.com under the following link:

Tech > Simulation calendar

e.    Risk parameters

Margins for the new products are calculated in Prisma. For the risk parameters of the new products, please refer to the Eurex Clearing website www.eurex.com/ec-en/ under the link:

Services > Risk parameters

B.    Discontinuation of clearing services for the current FX Options

In conjunction with the decision taken by the Management Board of Eurex Deutschland to delist the current FX Options, as announced with Eurex circular 085/20, Eurex Clearing will discontinue the clearing services for these products with effect from 14 December 2020.

To reflect the amendments, the following provisions will be amended as outlined in attachments 2 and 3:

• Chapter 2 Part 3 Number 3.12 of the Clearing Conditions 
• Number 3.1, 3.7 and 3.8 of the Price List

C.    Clarification and further editorial changes to the Clearing Conditions

Further minor amendments will be introduced as outlined in Attachment 2. Inter alia, missing specifications regarding Money Market Future contracts will be included into the table for reference times.

To reflect the changes, the following provisions of the Clearing Conditions will be amended as outlined in Attachment 2:

• Chapter II Part 1 Number 1.1.2 and 1.3.2 of the Clearing Conditions
• Chapter II Part 2 Number 2.1.2, 2.4.2, 2.14.2, 2.22.6, 2.25.2 and 2.25.6 of the Clearing Conditions
• Chapter II Part 3 Number 3.1, 3.2.5, 3.3.5, 3.4.3, 3.8.3, 3.8.5, 3.10.5, 3.12.1, 3.12.3, 3.12.5 and 3.13.5 of the Clearing Conditions

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

Rules & Regs > Rules and Regulations > Clearing Conditions

The changes and amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG within the first ten (10) Business Days after publication. Any ordinary right of Eurex Clearing AG to terminate the respective contract (including a Clearing Agreement, if applicable) shall remain unaffected.

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

Attachments:

1. Details of the initiative: A. Introduction of options on FX Futures, b. Product group: Table
2. Amended sections of the Clearing Conditions of Eurex Clearing AG
3. Amended sections of the Price List of Eurex Clearing AG
4. Form: Application for Set-up / Deletion / Change of Collateral Accounts and Clearer Cash Accounts

Further information