About EurexOTC Clear
Service Offering for PSAs
EMIR 3.0 - active account
CCP Switch
On-boarding
Compression Service
Product Scope
Interest Rate Swaps
Inflation Swaps
Settlement Prices
Cross-Project-Calendar
Readiness for projects
C7 Releases
C7 SCS Releases
C7 CAS Releases
EurexOTC Clear Releases
Prisma Releases
Member Section Releases
Simulation calendar
Archive
User ID Maintenance
Clearing Hours
Clearing Reports
Product Specifications
Clearing on behalf
Delivery Management
Transaction Management
Collateral Management
Collateral
Transparency Enabler Files
Segregation Models
Reports
Default Fund
Intraday Margin Calls
OTC Clear Procedures
OTC Clear Tutorials
Cross Margining Support
Supplementary Margins
Model validation
Stress testing
Default Management Process
Client Asset Protection under EMIR
Client Asset Protection under LSOC
Credit, concentration & wrong way risk
System-based risk controls
Pioneering CCP Transparency
Haircut and adjusted exchange rates
Securities margin groups and classes
Prices Rolling Spot Future
File services
Bond Clusters
Listed derivatives
OTC derivatives
Listed securities
Cash management
Delivery management
CCP eligible instruments
Cut-off times
Investment policy
Clearing currency
Interest Rates with respect to Eligible Margin Assets and Default Fund Contribution in form of Cash
Handling of excess cash collateral
Set-off of cash payments
Deposits and withdrawals of cash collateral
Eurex Clearing Rules & Regulations
EMIR 3.0 - active account
SA-CCR
IBOR Reform
Uncleared Margin Rules
Eurex Newsletter Subscription
Circulars & Newsflashes Subscription
Corporate Action Information Subscription
Circulars & Readiness Newsflashes
News
Videos
Webcasts on demand
Publications
Forms
Events
FAQs
Production Newsboard
Audit and Risk Committee
Compensation Review Committee
Nomination Committee
EMIR Risk Committee
FIC Board Advisory Committee
Repo Board Advisory Committee
ETD Derivatives Clearing Committee
OTC Derivatives Clearing Committee
Securities Clearing and Settlement Committee
Fixed Income Product Committee
Default Management Committees
LSOC is offered for a subset of EurexOTC Clear Swaps products
For initial launch LSOC accommodates Plain vanilla IRS, Overnight Index Swaps and Forward Rate Agreements. Supported product currencies are the main currencies EUR, USD and GBP.
Sound admission criteria take into account the nature of the LSOC market structures
The LSOC model is offered to applicants that are registered as Future Commission Merchants (FCMs) with the CFTC and are members of the National Futures Association (NFA).
Admission is limited initially to entities with principal places of business in New York State.
The relevant FCM Clients' jurisdiction can be found under Resources > Admission requirements > Jurisdictions.
Capital Requirement
Proof is provided by obtaining a copy of the return the CM would usually provide to its home regulator (i.e. CFTC 1-FR-FCM). The minimum static amount required is equivalent to EUR 30 million whereas a dynamic component of 20% of the Initial Margin requirement applies if higher.
Credit Assessment
During the onboarding process Eurex Clearing performs an internal credit assessment and requires the following information from the applicant:
Default Fund
Members must contribute to the CCP default fund.The minimum static amount required is EUR 5 million upon admission (with a dynamic requirement of 9% of the Initial Margin requirement if higher after start of clearing activity).
Risk assessment
CFTC Regulation 39.13 requires Eurex Clearing to review the risk management policies, procedures, and practices of each Clearing Member on a periodic basis. Thus, completing a risk assessment is a prerequisite for membership approval.
Back Office Requirements
All FCM CMs of Eurex Clearing are required to have at least one Qualified Clearing Staff (QCS). In addition, further Clearing contacts have to be entered into the Member Portal of Deutsche Börse Group (Member Section).
Emergency contact
FCM CMs must provide day-to-day contact details via the Eurex Clearing Member Section. An emergency contact must be available during regular business hours (8 AM - 10 PM CET).
Connectivity
With regards to the transaction flow, the LSOC model will be built on the well established EurexOTC Clear Service approach. Upon execution at a connected Approved Trade Source (ATS) between the FCM Client and its counterparty, the transaction is automatically sent to Eurex Clearing comprising a unique identifier of the relevant counterparties (e.g. “Markitwire BIC”).