Amendments to the Clearing Conditions of Eurex Clearing AG regarding ISA Direct provisions

1.   Introduction

This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) and introduces amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) regarding the ISA Direct provisions for the following topics:

A. Introduction of multiple Clearing Agent relationships for the General ISA Direct Provisions

B. Introduction of an Automatic Clearing Agent Default Trigger Event for the ISA Direct Indemnified Provisions

The amendments will become effective as of 16 October 2023.

2.   Required action

Clearing Members, ISA Direct Clearing Members and Disclosed Direct Clients of Eurex Clearing should take the amendments to the legal framework of Eurex Clearing specified below into account.

3.   Details

A. Introduction of multiple Clearing Agent relationships for the General ISA Direct Provisions

The amendments to the Clearing Conditions allow ISA Direct Clearing Members the clearing of eligible products under the ISA Direct provision using multiple Clearing Agent relationships.

B. Introduction of an Automatic Clearing Agent Default Trigger Event for the ISA Direct Indemnified Provisions

Implementation of an option whereby the Clearing Agent and the ISA Direct Indemnified Clearing Member can elect an additional default trigger event as an automatic trigger which grants the Clearing Agent in the ISA Direct Indemnified model a termination right to the related ISA Direct Indemnified Clearing Member. 

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

• Chapter I Part 1, Part 6, Part 6 Subpart A and Subpart B of the Clearing Conditions (Attachment 1)
• Appendix 10 to the Clearing Conditions - Clearing Agreement with a Clearing Agent and an ISA Direct Clearing Member (Attachment 2)
• Appendix 11 to the Clearing Conditions – Pledge Agreement (Attachment 3)

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

Rules and Regulations > Eurex Clearing Rules and Regulations > 1. Clearing Conditions

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 – Amendments to Chapter I of the Clearing Conditions
• 2 – Amendments to Appendix 10 to the Clearing Conditions
• 3 – Amendments to Appendix 11 to the Clearing Conditions

Further information