Eurex Clearing
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 following topics:
A. Amendments in context of CSDR SDR RTS Art. 19 changes (CSDR refit 2024)
B. Clarifications on Contractual Penalties paid by Eurex Clearing to Buyers
C. Clarifications on Failure to Deliver Securities and General Provisions
D. Clarification on Corporate Actions Handling for Eurex Transactions
The amendments will become effective as of 2 September 2024.
2. Required action
There is no required action.
3. Details
A. Amendments in context of CSDR SDR RTS Art. 19 changes (CSDR refit 2024)
On 2 September 2024 the amendment of CSDR SDR RTS Art. 19 in Delegated Regulation (EU) 2023/1626 (CSDR refit 2024) will become effective. This will change the reporting and payment processing regarding Central Securities Depositories Regulation (CSDR) penalties: (I)CSDs will directly book CSDR net cash penalties on Eurex Clearing’s cash accounts. Eurex Clearing will no longer be involved in the penalty booking process and will decommission the CCP-specific penalty collection/distribution and reporting process with C7 SCS Release 3.7.
With the amended SDR RTS Art. 19, CCPs are explicitly permitted to allocate any remaining net cash amount of penalties after booking by the (I)CSDs to their own Clearing Members, to achieve the regulatorily intended net flat-zero position of the CCPs in the penalty process. The compensation of a potential monthly CSDR net penalty imbalance for Eurex Clearing will be ensured in a new monthly process on Clearing Member level. The new compensation process will replace the existing pro-rata adjustments. For more details on the process, please also refer to Eurex Clearing Circular 044/24.
To reflect the amendments in the Clearing Conditions, the following provision will be amended as outlined in Attachment 1:
B. Clarifications on Contractual Penalties paid by Eurex Clearing to Buyers
In context of late delivery fines on a dividend record date, the existing process to payout to Buyers 15 percent of the net dividend amount (on request by form) will only be granted if in parallel a Late Seller fails to deliver securities related to the same relevant corporate action event.
As a consequence, Buyers need to be aware that a request towards Eurex Clearing to pay out the contractual penalty amount might be not (fully) granted, e.g. in case of a delayed settlement of securities towards the Buyer due to a technical reason or restrictions on the settlement platform.
To reflect the amendments in the Clearing Conditions, the following provision will be amended as outlined in Attachment 2:
C. Clarifications on Failure to Delivery Securities and General Provisions
The provisions clarify aspects on the invoice currency EUR for Buy-In fee and Cash Settlement fee, on supported cash accounts for payments in context of Buy-Ins and Cash Settlements, on procedures related to late transactions settling at Euroclear UK and International (EUI, “CREST”) and on Pair-Off eligibility requirements. Moreover, for general provisions the wording is streamlined and outdated provisions are removed.
To reflect the amendments in the Clearing Conditions, the following provisions will be amended as outlined in Attachments 2 and 3:
D. Clarifications on Corporate Actions for Eurex Transactions
Provisions on Corporate Actions handling are added for Eurex products with physical delivery of securities for which they were not included yet. Furthermore, two paragraphs in respect to transactions settling at Euroclear UK and International (EUI, “CREST”) are removed as they are obsolete.
To reflect the amendments in the Clearing Conditions, the following provisions will be amended as outlined in Attachment 3:
Publication of amendments to the Clearing Conditions
As of the effective date, the full versions 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 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:
Further information
Recipients: | All Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors and other affected contractual parties | |
Target groups: | Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination | |
| Related circulars: | Eurex Clearing Circulars 011/24, 044/24 | |
| Contact: | client.services@eurex.com | |
| Web: | www.eurex.com/ec-en/ | |
| Authorized by: | Dmitrij Senko |
