EurexOTC Clear Release 15.0: 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 15.0
B.    Further minor amendments

The amendments to the Clearing Conditions and FCM Regulations will come into effect as of 3 July 2023.

Learn more about the EurexOTC Clear Release 15.0 on our dedicated initiative page on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Support > Initiatives & Releases > EurexOTC Clear Releases > EurexOTC Clear Release 15.0. Circulars, timeline and much more information are available there for you.

2.   Required action

Clearing Members, ISA Direct 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 15.0

To extend the maximum maturity of EUR Zero Coupon Inflation Swaps (ZCIS) from 30 years to 50 years, as part of EurexOTC Clear Release 15.0, the novation criteria in the Clearing Conditions (Chapter VIII) require being updated. 

Furthermore, to facilitate clearing of package trades, the novation criteria in the Clearing Conditions (Chapter VIII) and FCM Regulations (Chapter II) require being updated with the following:

• All trades submitted for clearing as a package must independently meet the ECAG novation criteria,
• The submitted Package trade should only comprise trades belonging to the same product type,
• The submitted Package trade will be novated on an all-or-nothing basis, implying that all trades in the submitted package must be valid and clearable at Eurex for the package trade to be cleared,
• No backloaded trades should be included in the submitted package,
• Bunched order allocations or block trades submitted as part of a package trade will not go through the typical validation checks that are performed for bunched order clearing.

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

• Chapter VIII Part I No 1.2.3 and Part II No 2.1.5.1 of the Clearing Conditions
• Chapter II Part I No 1.2.3 of the FCM Regulations

B.    Further minor amendments

Eurex Clearing applies further minor amendments to the Clearing Conditions and FCM Regulations to harmonize the rulebooks on novation criteria for bunched order clearing, and to align the precision rules imposed on the fixed rate with the existing implementation.

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

• Chapter VIII Part 2 Number 2.1.5.1 (9) of the Clearing Conditions
• Chapter II Part 1 Number 1.2.3 (1) and Part II 2.1.5.1 (8) of the FCM Regulations

As of the effective date, the full version of the amended Rules and 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 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 prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties. 

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