Changes to the Clearing Conditions of Eurex Clearing AG: Exemption for “Penalty Amount” in case of non-deliveries under Fixed Income Futures caused by technical issues during settlement

1.  Introduction

In case of failure to deliver debt securities for the settlement of Fixed Income Future Deliveries, caused by technical issues in the relevant systems involved in the settlement process, Clearing Members should not be obliged to pay a Contractual Penalty (“Penalty Amount”).

To implement this change, the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) will be amended as outlined in the Attachment.

Effective date: 3 June 2024 

2.  Required action

There is no action required.

3.  Details of the initiative

Currently, in case of a non-delivery of debt securities during the settlement of Fixed Income Futures, Eurex Clearing charges a contractual penalty („Penalty Amount“) and an Interest Payment („Interest of Delay“) towards the failing Clearing Member.

With the contemplated amendments, Eurex Clearing intends to waive the charging of the “Penalty Amount” if the failure to deliver the debt securities is not caused by the Clearing Member but by any technical issues in the relevant systems involved in the settlement process.

In this context, the following provision in the Clearing Conditions will be amended as outlined in the Attachment:

• Chapter II Part 2 Number 2.3.5 (4)

The described amendments will become effective as of 3 June 2024.

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

The amendments to the legal framework of Eurex Clearing AG published by this circular shall be deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects in writing 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.

Attachment:

• Amended sections of the Clearing Conditions of Eurex Clearing AG 

Further information