Collateral Management Support

These are the segregation models supported by Eurex Clearing: 

• Omnibus segregation
• Individually Segregated Accounts and  
• LSOC segregation 

For more information, please refer to:

• Client Asset Protection under EMIR
• Eurex Clearing as a DCO
• Segregation Models

In general, the collateral is evaluated every 10 minutes throughout the day during the clearing hours.   

The cut-off time for collateral deposits and recall are the following:  

• Cash
• Securities

Cash collateral deposits can be initiated via the C7 Clearing GUI, a member's cash deposit request in the C7 Clearing GUI triggers a debit from his cash account and a credit to Eurex Clearing’s account. Upon receipt of cash collateral on Eurex Clearing's account, the collateral balance for the respective collateral pool is updated. 

• Cash collateral withdrawals can be initiated via the C7 Clearing GUI. For cash withdrawals, the approval of the clearing house is always required as the member’s collateral must be sufficient to cover margin requirements at all times.
• Upon a member's withdrawal request in the C7 Clearing GUI, Eurex Clearing checks that the withdrawal would not result in a shortfall. If this is the case, Eurex Clearing will release the requested cash withdrawal and update collateral balances accordingly. Eurex Clearing instructs a cash payment to the member's cash account. 

Interest rates on cash collateral: The daily interest rate can be found in the Member Section as well as in reports CD230/CD231. Customers are debited/credited on the 2nd Business Date of each month with the total interest amount for the previous month (incl. Cash handling Fees)

The PCB is the pre-defined cash amount per pool that a member wants to hold with Eurex Clearing. Activation of the PCB might lead to automated cash movements in the morning:

• Mandatory cash call if the cash balance in the respective collateral pool and currency falls below the predefined PCB - regardless of collateralization level.
• Auto-return of excess cash above the predefined PCB in the respective collateral pool in the clearing currency - only if no under-collateralization exists and auto-repay is set up to “Yes” (the sponsor is able to choose the set-up per collateral pool. Per default, Eurex Clearing sets up omnibus collateral pools with “Auto-repay Yes” and individual segregated collateral pool with “Auto-repay No”. The Standard pools always have auto-repay set to “Yes”).

Clearing Members can inquire and maintain their PCB for EUR, CHF and GBP in the C7 Clearing GUI Permanent Cash Balance window.

In addition, Clearing Members have the option to use Permanent Cash Holding functionality to keep with Eurex Clearing pre-defined USD, EUR, CHF, GBP and JPY balances in the chosen collateral pool overnight. Permanent Cash Holding can be instructed via the C7 Clearing GUI Collateral Transaction Input window with type of money “term”. 

Security deposits must be made through the corresponding collateral location ((I)CSD). The deposits will then be processed via communication between the (I)CSD and Eurex Clearing. After deposits have been received, Eurex Clearing will update collateral balances accordingly. If a deposit is not eligible, Eurex instructs its return. 

• Security collateral withdrawals can be initiated via the C7 Clearing GUI. For security withdrawals, the approval of the clearing house is always required as the member’s collateral must be sufficient to cover margin requirements at all times.
• Upon a member's withdrawal request in the C7 Clearing GUI, Eurex Clearing checks that the withdrawal would not result in a shortfall. If this is the case, Eurex Clearing will release the requested security withdrawal, initiate the return of the security collateral to the member’s redelivery account at the (I)CSD and update collateral balances accordingly. 

Please check file “Admissible securities” under Risk parameters and initial margins.

For security collateral fee please check:

• Security collateral fee
• Report CB235