The transfer of transactions and collateral of a ISA Direct Clearing Member1 to a Replacement Clearing Agent2 is operationally close to the process of a regular Clearer Change. In addition to the fulfilment of the Replacement Requirements,
Eurex Clearing highly recommends getting in touch with the relevant Key Account Manager to discuss the individual implications.
The following requirements must be fulfilled by the end of the Replacement Period:
If the relevant ISA Direct Clearing Member opts to continue the Clearing of its ISA Direct Clearing Member Transactions with a Replacement Clearing Agent, the ISA Direct Clearing Member and the Replacement Clearing Agent need to fulfil the Clearing Agent Replacement Requirements prior to the expiry of the Replacement Period.
From a legal perspective, the replacement of the Clearing Agent is achieved by simultaneously entering into a new ISA Direct Clearing Member Clearing Agreement with the Replacement Clearing Agent and the (automatic) termination of the ISA Direct Clearing Member Clearing Agreement established with the (defaulting) Clearing Agent.
It is the responsibility of the relevant ISA Direct Clearing Member and the Replacement Clearing Agent to fulfil the following requirements prior to the expiry of the relevant Replacement Period.
| Required activities | Related document template |
Provide Election Notice | ISA Direct Clearing Member: Election Notice (Authorised Manager) ISA Direct Indemnified Clearing Member: |
One of the two following options: (i) The Replacement Clearing Agent and the ISA Direct Clearing Member have entered into a ISA Direct Clearing Member Clearing Agreement (Appendix 10 to Clearing Conditions), or (ii) have agreed in form and substance satisfactory to Eurex Clearing to already be bound by the provisions set out in the form of the ISA Direct Clearing Member Clearing Agreement appended to the Clearing Conditions as Appendix 10 and to execute a ISA Direct Clearing Member Clearing Agreement no later than five (5) Business Days after the end of the Replacement Period. | For ISA Direct: ISA Direct Clearing Member Declaration regarding Clearing Agent Replacement Requirements For ISA Direct Indemnified: ISA Direct Indemnified Clearing Member Declaration regarding Clearing Agent Replacement Requirements |
| The Replacement Clearing Agent and the ISA Direct Clearing Member have agreed in form and substance satisfactory to Eurex Clearing that this ISA Direct Clearing Member Clearing Agreement shall cover all ISA Direct Clearing Member Transactions which are booked on the ISA Direct Clearing Member Own Account of the ISA Direct Clearing Member at the end of the Replacement Period, or at such earlier time at which Eurex Clearing determines that the Clearing Agent Replacement Requirements are satisfied | For ISA Direct: Supplement Agreement to the ISA Direct Clearing Member Clearing Agreement For ISA Direct Indemnified: Supplement Agreement to the ISA Direct Indemnified Clearing Member Clearing Agreement |
One of the following options: The ISA Direct Clearing Member (i) has provided Eurex Clearing AG with sufficient Eligible Margin Assets to cover ISA Direct Clearing Member Margin and ISA Direct Clearing Member Variation Margin in respect of all ISA Direct Clearing Member Transactions to which the Replacement relates, or (ii) committed itself in form and substance satisfactory to Eurex Clearing to provide the relevant amount of Eligible Margin Assets without undue delay following the Replacement, for which purposes all Eligible Margin Assets actually delivered prior to such Replacement shall also be taken into account. | None For ISA Direct: ISA Direct Clearing Member Declaration regarding Clearing Agent Replacement Requirements For ISA Direct Indemnified: ISA Direct Indemnified Clearing Member Declaration regarding Clearing Agent Replacement Requirements |
| Required activities | Related document template |
| The Replacement Clearing Agent is a Clearing Member that meets the admission criteria for Clearing Agents pursuant to Chapter I Part 6 Number 2.2 of the Clearing Conditions. | None |
One of the two following options: The Replacement Clearing Agent and the ISA Direct Clearing Member (i) have entered into a ISA Direct Clearing Member Clearing Agreement (Appendix 10 to Clearing Conditions), or (ii) have agreed in form and substance satisfactory to Eurex Clearing to already be bound by the provisions set out in the form of the ISA Direct Clearing Member Clearing Agreement appended to the Clearing Conditions as Appendix 10 and to execute a ISA Direct Clearing Member Clearing Agreement no later than five (5) Business Days after the end of the Replacement Period. | For ISA Direct:
Replacement Clearing Agent Declaration regarding Clearing Agent Replacement Requirements
For ISA Direct Indemnified:
Replacement Clearing Agent Declaration regarding Clearing Agent Replacement Requirements
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| The Replacement Clearing Agent and the ISA Direct Clearing Member have agreed in form and substance satisfactory to Eurex Clearing that this ISA Direct Clearing Member Clearing Agreement shall cover all ISA Direct Clearing Member Transactions which are booked on the ISA Direct Clearing Member Own Account of the ISA Direct Clearing Member at the end of the Replacement Period, or at such earlier time at which Eurex Clearing determines that the Clearing Agent Replacement Requirements are satisfied | For ISA Direct: Supplement Agreement to the ISA Direct Clearing Member Clearing Agreement For ISA Direct Indemnified: Supplement Agreement to the ISA Direct Indemnified Clearing Member Clearing Agreement |
| The Replacement Clearing Agent has made the Contribution to the Default Fund with respect to its capacity as the Clearing Agent of the ISA Direct Clearing Member. | None |
In addition to the previously mentioned documents, please consider that one or more of the following forms/ documents might also be required:
If the Clearing Agent Replacement Requirements are not fulfilled by the end of the Replacement Period, the relevant ISA Direct Clearing Member Standard Agreement (including all ISA Direct Clearing Member Transactions thereunder) shall terminate automatically (Chapter I Part 6 Subpart A Numbers 11.2.5 and 11.3.2 of the Clearing Conditions).
In case the relevant ISA Direct Clearing Member decides to continue the clearing of its ISA Direct Clearing Member Transactions as Direct Clearing Member, it needs to submit an ISA Direct Clearing Member Election Notice making the DCM Election to Eurex Clearing AG and to fulfil the DCM Requirements.
If the DCM Requirements are fulfilled prior to the expiry of the Replacement Period, the ISA Direct Clearing Member Transactions under the relevant ISA Direct Clearing Member Standard Agreement between the ISA Direct Clearing Member and Eurex Clearing will be terminated and new corresponding Own Transactions will be established between Eurex Clearing and the Direct Clearing Member (the former ISA Direct Clearing Member) under the Elementary Proprietary Standard Agreement. Such position transfer is legally achieved via novation.
It is the responsibility of the ISA Direct Clearing Member to fulfil the following:
| Required activities | Related document template |
Provide Election Notice | ISA Direct Clearing Member: Election Notice (Authorised Manager) ISA Direct Indemnified Clearing Member: |
| The ISA Direct Clearing Member meets the admission criteria for Direct Clearing Members pursuant to Chapter I Part 1 Number 2 of the Clearing Conditions and has provided evidence thereof to the satisfaction of Eurex Clearing. | None |
| The ISA Direct Clearing Member has agreed with Eurex Clearing in writing to act as Direct Clearing Member in form and substance satisfactory to Eurex Clearing. | For ISA Direct:
ISA Direct Clearing Member Declaration regarding DCM Requirements
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One of the following options: The ISA Direct Clearing Member (i) has entered into a Clearing Agreement pursuant to Appendix 1 with Eurex Clearing; or (ii) has agreed in form and substance satisfactory to Eurex Clearing to already be bound by the provisions set out in the Clearing Agreement in the form appended to the Clearing Conditions as Appendix 1 and to execute such Clearing Agreement no later than five (5) Business Days after the end of the Replacement Period. | For ISA Direct:
ISA Direct Clearing Member Declaration regarding DCM Requirements
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One of the following options: The ISA Direct Clearing Member (i) (acting as Direct Clearing Member) has provided Eurex Clearing with sufficient Eligible Margin Assets to cover Margin and Variation Margin in respect of all Transactions to which the Replacement relates; or (ii) committed itself to provide the relevant amount of Eligible Margin Assets without undue delay following the Replacement, for which purposes all Eligible Margin Assets actually delivered prior to such Replacement shall be taken into account. | None For ISA Direct:
ISA Direct Clearing Member Declaration regarding DCM Requirements
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| The ISA Direct Clearing Member has made the Contribution to the Default Fund with respect to its capacity as the new Direct Clearing Member. | None |
In addition to the previously mentioned documents please consider that one or more of the following forms/documents might also be required:
If the DCM Requirements are not fulfilled by the end of the Replacement Period, the relevant ISA Direct Clearing Member Standard Agreement (including all ISA Direct Clearing Member Transactions thereunder) shall terminate automatically (Chapter I Part 6 Subpart A Numbers 11.2.5 and 11.3.2 of the Clearing Conditions).
1 The term ISA Direct Clearing Member also comprises ISA Direct Indemnified Clearing Member.
2 The term Clearing Agent also comprises Indemnifying Clearing Agent.
