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Clearing model

Clearing model

We provide the same model for all markets we clear. Our clearing model comes to life via industry leading technology and innovative risk management processes, which also contribute to overall market safety and transparency.

As part of our complete service offering, we maintain links with a number of central depositories which means that not only do we assume counterparty risk on your behalf; we also offer you innovative post-trade services.

When transactions are executed, as a Clearing House, we automatically become the central counterparty to each trade. For both exchange-traded and OTC products, we are the buyer for each seller and the seller for each buyer.

 

Services along the complete value chain

At Eurex Clearing we do much more than act as central counterparty. We safeguard market integrity and also offer our customers ways to streamline their business. Our core functions increase overall efficiency and promote standardization in the clearing and settlement industry. From trade capture to risk management and on to delivery management, we offer you the complete value chain: With Eurex Clearing, you're clear to trade.

Clearing process

Only once you have been admitted as a Clearing Member, can you be a counterparty of Eurex Clearing. Companies are able to become General Clearing Members (GCM) or Direct Clearing Members (DCM) of Eurex Clearing. Note that you are allowed to apply for more than one Clearing License.

If you do not hold a Clearing License (i.e. that you are a Non-Clearing Member – an NCM), you must clear your transactions via a GCM or company affiliated DCM. In such cases, the NCM is not a member of Eurex Clearing directly but rather the GCM or DCM will be the contractual party of Eurex Clearing.

Each Clearing Member is obliged to demand from its customers and NCMs margin amounts which are set at least as high as the levels that result from the Eurex Clearing method of calculation.

At Eurex Exchanges, the give-up trade functionality allows members to hand over a trade during order entry, or subsequent to matching, to a Clearing Member other than the one they have a clearing arrangement with.

The financial guarantees which must be put up by all Clearing Members are placed in the Eurex Clearing guarantee fund, so that a sufficient buffer is available in the Clearing House in case of a member default.