Terms and Conditions of the OTC IRD Client Activation Program 2023

The OTC IRD Client Activation Program 2023 is designed to promote the clearing at Eurex Clearing AG of OTC Interest Rate Swap (IRS), Overnight Index Swap (OIS), Basis Swap and/or Zero Coupon Inflation Swap (ZCIS) transactions relating to Disclosed Direct Clients, FCM Clients or ISA Direct Clearing Members (collectively referred to as “Disclosed Clients”). Participating Disclosed Clients may qualify for an attractive incentive reward which will be paid out upon conclusion of the OTC IRD Client Activation Program 2023.

Eligible participants and registration

The OTC IRD Client Activation Program 2023 is only available to Disclosed Clients that have not been registered for the Discounted OTC IRD GOLD Pack or Basic Pack or any other rebate scheme offered by Eurex Clearing in relation to OTC IRD.

Disclosed Clients may register for the OTC IRD Client Activation Program 2023 regardless of whether a Member ID has been assigned to the Disclosed Client by Eurex Clearing AG, provided that 

1. if an account manager, fund manager or other authorized representative has been entered as such in the systems of Eurex Clearing AG for one or more Disclosed Clients, including without limitation, in case of a so-called fund manager or account manager set up, the relevant Disclosed Clients may not register individually and only a single registration for the OTC IRD Client Activation Program 2023 by the relevant account manager, fund manager or other authorized representative that has been entered as such in the systems of Eurex Clearing AG shall be permitted and
2. a single Disclosed Client shall only be permitted to register once for the OTC IRD Client Activation Program 2023, including where multiple Member IDs have been assigned to such Disclosed Client or where multiple transaction accounts have been set up for such Disclosed Client.

In no event will Eurex Clearing pay out more than the up to EUR 50,000 per permitted registration. 

Each eligible Disclosed Client may only register for participation in the OTC IRD Client Activation Program 2023 by no later than 31 December 2023 using the online registration form. Registration for the OTC IRD Client Activation Program 2023 is free of charge. 

Main aspects of the OTC IRD Client Activation Program 2023

1. With the OTC IRD Client Activation Program 2023, participating Disclosed Clients may qualify for a swap incentive reward in the amount of EUR 40,000 as well as an inflation incentive reward in the amount of EUR 10,000 which together result in a total incentive reward of up to EUR 50,000. The respective incentive reward will be granted if a participating Disclosed Client satisfies each of the milestones corresponding to the respective incentive by no later than 30 June 2024. An overview of the incentive rewards and corresponding milestones is provided in the following table, which has to be read together with the further explanations below:

Further explanations to the milestones:

Milestone 1: Milestone 1 has been removed and is no longer a requirement to qualify for the swap incentive reward or the inflation incentive reward.

Milestone 2: For the qualification of the swap incentive reward, it is required to clear own IRS, OIS and Basis Swap transactions with a minimum remaining maturity of 2 years at the time of novation and a cumulated cleared notional volume of EUR 2.5 billion in the period from, and including, 1 January 2023 to, and including, 30 June 2024. For the qualification of the inflation incentive reward, it is required to clear own ZCIS transactions with a minimum remaining maturity of 2 years at the time of novation and a cumulated cleared notional volume of EUR 150 million in the period from, and including, 1 January 2023 to, and including,  30 June 2024.

Milestone 3: For the qualification of the swap incentive reward, the initial margin requirement relating to the own OTC Interest Rate Derivatives of the Disclosed Client must at least be equal to EUR 50 million (or equivalent in any other Clearing Currency) on any of the following dates 30 April 2024, 31 May 2024 or 28 June 2024, as determined by Eurex Clearing AG. There is no Milestone 3 which needs to be achieved for the inflation incentive reward.

If the Disclosed Client requested the performance measurement to be limited to certain own transaction accounts, Eurex Clearing AG will disregard any other transactions accounts in its performance determination.   

Payment of the OTC IRD incentive reward

2. The Disclosed Client may qualify for a total incentive reward of up to EUR 50,000, which is composed of a swap incentive reward of EUR 40,000 and an inflation incentive reward of EUR 10,000. The individually achieved incentive reward will be paid out in full as one-off payment via bank transfer to the Disclosed Client in the second half of 2024.

3. Eurex Clearing AG will pay the total achieved incentive reward directly to the Disclosed Client. In order to generate a self-billing invoice (Eurex Clearing AG will issue an invoice for the incentive reward on behalf on the Disclosed Client) and process the payment to the Disclosed Client, the Disclosed Client needs to provide Eurex Clearing AG with its company address, account details (i.e. name of account holder, account number, SWIFT or BIC code etc.) and VAT ID (if the Disclosed Client is located in the EU) by no later than 31 December 2023. If the Disclosed Client does not provide the required payment details to Eurex Clearing AG on time, the Disclosed Client loses its right to the total incentive reward without prior notification by Eurex Clearing AG and without compensation or reimbursement of any kind.

Further terms

4. Unless the context requires otherwise, terms used and not otherwise defined in the above provisions have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions, as applicable.

5. If any provision contained herein is or becomes invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. Such invalid, illegal or unenforceable provision shall be replaced by means of supplementary interpretation (ergänzende Vertragsauslegung) by a valid, legal and enforceable provision, which most closely approximates the parties’ commercial intention. This shall also apply mutatis mutandis to any gaps (Vertragslücken).

6. Third parties shall have no rights under or in connection with the OTC IRD Client Activation Program 2023. 

7. Claims of a Disclosed Client may neither be assigned nor transferred.

8. These provisions shall be governed by and construed in accordance with the laws of the Federal Republic of Germany. Exclusive place of jurisdiction for all disputes arising out of, or in connection with, these provisions is Frankfurt am Main.
 

_{* This version applies to all registered participants of the Client Activation Program 2023. The previous version of the terms & conditions, prior to 31 May 2023, can be provided upon request.}