EurexOTC Clear Release 12.1 and adoption of 2021 ISDA Interest Derivatives Definitions version 3 and version 4: Amendments to the Clearing Conditions and FCM Regulations of Eurex Clearing AG

1. Introduction

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

A. EurexOTC Clear Release 12.1
B. Adoption of 2021 ISDA Interest Derivatives Definitions version 3 and version 4
C. Further minor amendments 

The amendments to the Clearing Conditions and FCM Regulations will come into effect as of 28 March 2022. 

Learn now more about the EurexOTC Clear Release 12.1 on our dedicated initiative page under the following link: Support > Initiatives & Releases > EurexOTC Clear Releases > EurexOTC Clear Release 12.1. System documentation, circulars, timeline and much more information is available there for you. 

2. Required action

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

3. Details

A. EurexOTC Clear Release 12.1

Eurex Clearing will enhance its portfolio transfer functionality for cleared OTC NDF Transactions. The post trade event functionality provides members the possibility to transfer large numbers of cleared transactions as a portfolio and calculates the risk on a portfolio level, i.e. margin checks are carried out on a net basis across the portfolio of transactions that are to be transferred, as opposed to a check on transaction level as for the normal trade transfer. The functionality was introduced for OTC IRD, FX and XCCY Transactions with OTC Release 11.0.

Details of the portfolio transfer functionality are described in the “EurexOTC Clear Procedures Manual”.

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

• Chapter VIII Part 2 Number 2.1.5.1 of the Clearing Conditions
• Chapter II Part 2 Number 2.1.5.1 of the FCM Regulations

B. Adoption of 2021 ISDA Interest Derivatives Definitions version 3 and version 4

Eurex Clearing started to offer clearing of bilateral OTC transactions that are based on the ISDA Interest Rate Definitions (2021 ISDA Definitions) on 4 October 2021.

ISDA has recently published two updates to the 2021 ISDA Definitions (version 3 and version 4). To the extent the updates are relevant for Eurex Clearing, they are non-material and rather require the update of some references to the 2021 ISDA Definitions.

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

• Chapter VIII Part 1 Number 1.7, 1.8 of the Clearing Conditions
• Chapter II Part 1 Number 1.7, 1.8 of the FCM Regulations

C. Further minor amendments 

Eurex Clearing applies further minor amendments to the Clearing Conditions and FCM Regulations to provide further clarification:

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

• Chapter VIII Part 2 Number 2.7 (8), Part 3 Number 3.8 (8), Part 4 Number 4.9 (8) of the Clearing Conditions
• Chapter II Part 2 Number 2.7 (5) of the FCM Regulations

Publication of amendments to the Clearing Conditions and the FCM Regulations 

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

Rules & Regs > Eurex Clearing Rules and Regulations

The 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. Amended sections of Chapter VIII of the Clearing Conditions
2. Amended sections of Chapter II of the FCM Regulations

Further information