Amendments to the Clearing Conditions of Eurex Clearing AG

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 topic:

A.     Exemptions for Public Entities 

The amendments will become effective as of 2 September 2024.

2.    Required action

There is no required action.

3.    Details of the initiative

A.    Exemptions for Public Entities

The contemplated amendments relate to the exemptions for Public Entities within the meaning of Chapter I Part 1 Number 2.1.3 Paragraph (1) of the Clearing Conditions.

In compliance with EMIR Article 1 (4) and (5), Eurex Clearing may exempt certain of its Members from certain requirements in rare cases and applying very strict criteria. For the sake of transparency, Eurex Clearing stipulates the main exemption criteria in its Clearing Condition. For instance, Eurex Clearing requires at least an AA- rating for certain public entities to be eligible for margin or Default Fund exemptions. 

This amendment to the Clearing Conditions intends to clarify two existing exemption-related procedures of Eurex Clearing:

• The generalization of the exemption of Public Entities from the own funds’ requirements, stipulated under Chapter I Part 1 Number 2.1.2 (3) of the Clearing Conditions, as Public Entities are not subject to any regulatory own fund requirements under the CRD V, CRR, IFR or IFD.
• The clarification that the rating requirement of AA- (AA minus) by Standard & Poor’s Financial Services LLC is also required for the granting of an exemption from the participation in DM Auctions during a Default Management Process. Such requirement is already explicitly highlighted for the exemption of other requirement and will continue to apply.

To reflect the changes, the following provisions of the Clearing Conditions will be amended as outlined in the Attachment:

• Chapter I Part 1 Number 2.1.3 (2)

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 & Regs > Eurex Clearing Rules & 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.

Attachment:

• Amendments to Chapter I Part 1 Number 2.1.3 (2) of the Clearing Conditions of Eurex Clearing AG

Further information