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Xetra and Börse Frankfurt

Xetra and Börse Frankfurt

Admission requirements

To maintain the highest standards, only companies that meet certain stringent criteria are eligible for clearing membership. Our admission standards are the first step in a comprehensive system of safeguards designed to maximize the safety and integrity of the markets we provide central counterparty services for.

 

Capital requirements

We recognize that markets are continually fluctuating. To ensure that our members are sufficiently capitalized to deal with changing market conditions, we set capital requirements for Clearing Licenses. These capital requirements are set in line with estimated risk levels and are reviewed quarterly to reflect developments in the markets.

Irrespective of the minimum amounts of own funds* specified below, the actual amount capital that we require our Clearing Members to demonstrate and maintain is equal to the higher amount of:

  • 20 percent of the 30-day average of the initial margin requirements or
  • 20 percent of the 250-day average of the initial margin requirements

The level of the own funds is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter.

 Capital requirements GCM
(in EUR millions)
Capital requirements DCM
(in EUR millions)
Frankfurt Stock Exchange (FSE) /Xetra® Clearing License153.75


The minimum capital requirement for own funds is calculated for multiple licenses in different asset classes. Licenses in the same asset class are not additive, e.g. General Clearing licenses for both Xetra and Xetra International Market (XIM) require EUR 15 mn.

* The term own funds was introduced pursuant to the European Capital Requirements Directive 2013/36/EU (CRD IV) and the European Capital Requirements Regulation (EU) No. 575/2013 (CRR). It replaces the term “liable equity capital”. For additional information on own funds, please refer to the Clearing Conditions for Eurex Clearing AG.

Clearing Fund

Every well-built house starts with a strong foundation. In the case of our clearing house we have built it on a sound framework of safeguards — which we call our lines of defense — to protect our customers and to enhance the markets integrity.

 
In order to ensure continued market integrity, we operate stress-tested lines of defense of which the Clearing Fund is one. Eurex Clearing maintains a Clearing Fund in order to protect market participants in the event of a Clearing Member default. In addition, the Clearing Fund is reviewed every quarter to ensure the fund is aligned with current market risk.

Based on the Clearing Member’s status Direct Clearing Member (DCM), General Clearing Member (GCM) or OTC Clearing Member (OTC CM)), the minimum Clearing Fund contribution is determined by Eurex Clearing as follows (minimum requirement):

  • EUR 5 million for GCM, OTC CM
  • EUR 1 million for DCM

In addition, the Clearing Fund requirements are dynamic considering the overall risk exposure of the single Clearing Member towards the CCP. The Clearing Fund requirement is determined by the highest single
amount of the following components:

  • Clearing Fund minimum requirement as mentioned above, or
  • 7 percent of the 30 day initial margin requirement average, or
  • 7 percent of the 250 day initial margin requirement average.

The total margin requirement includes all products and asset classes cleared by the Clearing Member.

Initial margin corresponds to the sum of futures spread margin and additional margin.

Clearing & settlement accounts

We offer members flexibility when setting up the pledge securities accounts and settlement accounts that are required for clearing membership. Members can choose to set up accounts at either Clearstream Banking AG, Frankfurt or SIX SIS AG for pledge securities accounts. For settlement purposes, members must setup an account at Clearstream Banking AG, Frankfurt.

 

Cash account

Pledged securities ccount

Settlement account

Eurex FSE Clearing License

TARGET2 account of a Eurozone national central bank (EUR) or Swiss Interbank Clearing AG account (EUR; optional for Swiss Clearing Members)

Clearstream Banking AG, Frankfurt or SIX SIS AG, Zurich

Clearstream Banking AG, Frankfurt

Qualified Clearing Staff

As we strive to maintain high qualification levels of clearing firms for reasons of clearing house integrity, it is required to register at least one "Qualified Clearing Staff" (QCS) in the back-office with Eurex Clearing.
The Clearing Member has the following possibilities to provide proof of the qualification of the staff member that shall be in QCS:

  • The Compliance Officer of the Clearing Member confirms the respective knowledge of the staff member, or
  • The staff member has passed the Clearer Test (Basic Module), or
  • The staff member has passed the exam for the Certified Clearing Specialist, or
  • The staff member has attended the Core Clearing Knowledge seminar.

All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.

If the Clearing Member is outsourcing its clearing, back office or risk management functions to an Insourcer, either the Clearing Member or the Insourcer has to have a QCS.

Emergency contact

Each Clearing Member has to appoint and register at least one employee as emergency contact for Eurex Clearing. This emergency contact needs to be available during business hours and needs to be able to initiate necessary measures in emergency cases.

As of 18 May 2015, the emergency contact will be included in the Member Section, where the Clearing Member can maintain this data. Until then, Clearing Members are requested to send an e-mail with the Clearing Member’s emergency contact.

Eurex Clearing AG
Group Client Services & Administration

 
 
 
 
 
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