Amendments to the Clearing Conditions of Eurex Clearing AG - Consultation

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. Inclusion of representations for Clearing Members out of the Netherlands and Switzerland
• B. Change to the specific provisions and additional continuing obligations for U.S. Clearing Members with respect to Repo Transactions.

The amendments for Topics A. and B. will become effective as of 1 February 2025 

• C. Clarification of appropriation rights in the Pledge Agreement

The amendments to Topic C. Clarification of appropriation rights in the Pledge Agreements are subject to a consultation process (Consultation). The Consultation will end with the expiry of 30 January 2025 (Consultation Period). The planned effective date of these amendments is 1 March 2025, depending on the outcome of the Consultation which will be communicated in a separate Eurex Clearing Circular. 

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 into consideration. 

The amendments of the Clearing Conditions with respect to topic C. are subject to a Consultation which will end with the expiry of 30 January 2025. 

Eurex Clearing herewith invites all Affected Customers to submit comments on the proposed changes and amendments within the Consultation Period. 

3.  Details of the initiative

Regarding Topic A.: Inclusion of representations for Clearing Members out of the Netherlands and Switzerland 

It will be clarified in the Clearing Conditions that for Swiss Clearing Members transactions and collateral provided to Eurex Clearing are classified as financial assets rather than administrative assets and are not subject to any Immunity. Furthermore, the governing law of the Clearing Agents’ power of attorney will be clarified in the ISA Direct Clearing Agreement. 

Regarding Topic B.: Change to the specific provisions and additional continuing obligations for U.S. Clearing Members with respect to Repo Transactions

With regards to Clearing Conditions Chapter I Part 1 Number 2.6 (i), the date until a copy of form 1042-S has to be provided by the U.S. Clearing Member will be changed from 15 March to 28 February. 

Regarding Topic C.: Clarifications of appropriation rights in the Pledge Agreement 

It will be clarified that the scope of the appropriation rights in the Pledge Agreement for Eurex Clearing with respect to Swiss Clearing Members is in line with the Swiss Act on pledges. 

Consultation with respect to the proposed amendments to the Pledge Agreements 

Pursuant to Chapter I Part 1 Number 17 of the Clearing Conditions, the proposed changes and amendments to the Clearing Conditions regarding Topic C. are subject to a Consultation which will end with the expiry of 30 January 2025.

Eurex Clearing herewith invites all Affected Customers to submit comments on the proposed changes and amendments within the Consultation Period. 

During the Consultation Period, comments on proposed changes or amendments shall be only submitted through a web-based commenting service for which a registration form is available on the Eurex Clearing website under the following link: 

Find > Forms: Consultation Form

The form has to be duly signed and returned to Eurex Clearing via e-mail to SpecialProvisions@eurex.com, in order to obtain a User ID and Password together with a link for accessing the web-based commenting service.

To the extent that Eurex Clearing decides to implement any comments received during the Consultation, the so-amended version of the Clearing Conditions will be published after the Consultation. 

The currently envisaged effective date of the changes is 1 March 2025. However, after the Consultation Period, Eurex Clearing will issue a separate circular to announce the concrete date on which the proposed changes (as the case may be, implementing comments received during the Consultation) will come into effect. 

Publication of amendments 

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.

Attachments:

• 1 – Appendix 7 to the Clearing Conditions: Number 2.2.11 of the Pledge Agreement relating to pledges of Eligible Margin Assets in the form of Securities and pledges of eligible Securities as Contributions to the Default Fund
• 2 – Appendix 10 to the Clearing Conditions: Number 11 of the ISA Direct Clearing Agreement with a Clearing Agent and an ISA Direct Clearing Member
• 3 – Amended sections of Chapter I Part 1 Numbers 1 and 2.6 of the Clearing Conditions of Eurex Clearing AG
• 4 – Appendix 11 to the Clearing Conditions: Number 2.2.4 of the Pledge Agreement relating to pledges of Eligible Margins Assets in order to provide ISA Direct Margin in the form of Securities 

Further information