Service Navigation

FAQs

FAQs

Overview of content

General information

1. Corporate structure and governance

 

What is Eurex Clearing’s ownership structure?

Please click here to find comprehensive information.

What is Eurex Clearing's governance structure?

Please click here to find comprehensive information.

What is the financial standing and credit ratings of Eurex Clearing?

Set up as an operating company, Eurex Clearing enjoys the support of its parent company Deutsche Börse AG. Deutsche Börse AG is rated AA by Standard & Poor's.

What is the organizational structure of Eurex Clearing?

Four sections build the organizational pillars to cover the main functions of the clearing department:

The field of responsibility of the four sections can be summarized briefly as follows:

­Clearing Business Development with focus to monitor and reflect customer requirements in our business model

  • Clearing access policy

  • Treasury policy

  • Derivatives unit
    • Transaction services for listed and non-listed derivatives
    • Collateral management
    • Cash management

  • Cash unit
    • Transaction services fixed income/GC Pooling
    • Transaction services cash equities
    • Delivery management
    • Corporate action processing

Risk Design with focus on financial safeguards and protection of the clearing house

  • Clearing house financial safeguards and protection
  • Risk methodology
  • Default and liquidation procedures
  • Collateral valuation

­

Clearing & Risk Operations with focus on operational excellence and service towards our customers

  • Provision of clearing and risk know-how internally
  • Support of all major projects
  • Clearing Operations
    • Operation and control of clearing system
    • Management of intraday and end of day processes
  • Clearing Data Control
    • Central maintenance of master data for the electronic trading and clearing systems (Xetra, XIM, Eurex, CCP- system, EEX)
  • Risk Operations
    • Monitoring of Eurex Clearing’s risk
    • Operation and control of risk systems

­

Clearing Initiatives with focus on strategy development and clearing project program management

  • Clearing strategy
  • Clearing cooperation
  • Regulatory
  • Project management

Does Eurex Clearing inter-operate with other clearing houses?

No.

 
 
 

2. Treasury

 

Does Eurex Clearing have access to Central Bank funding if needed to maintain intraday liquidity?

Eurex Clearing has access to the intraday credit facility of the Deutsche Bundesbank.

Is there a liquidity facility in place to deal with a settlement failure? If yes, what is the arrangement?

Yes. Eurex Clearing has adequate credit facilities with a number of investment grade rated banks in place which, together with other liquidity sources, cover Eurex Clearing's intraday and overnight financing needs.

 
 
 

3. Regulation

 

What is Eurex Clearing’s legal status, what licenses does it hold and what are the details of the regulatory oversight?

Eurex Clearing is a company incorporated in Germany and licensed as a credit institution under supervision of the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) pursuant to the Banking Act (Gesetz über das Kreditwesen). BaFin exercises the supervision in co-operation with Deutsche Bundesbank.
Eurex Clearing is recognized and notified as a Securities Settlement System under the EU Settlement Finality Directive and the respective oversight authority is Deutsche Bundesbank.

Eurex Clearing is also an authorized clearing house under the European Market Infrastructure Regulation (EMIR).

Finally, Eurex Clearing has been recognized by both, the Swiss National Bank and the Swiss banking Supervisory authority FINMA as being systemically important to the Swiss market. Both authorities therefore have put Eurex Clearing under their supervision.

As a consequence, the list of the relevant authorities can be found below:

BaFin
Lurgiallee 12
60439 Frankfurt am Main

Deutsche Bundesbank
(Central Administrations Center Frankfurt / Main)
Taunusanlage 5
60313 Frankfurt am Main

Deutsche Bundesbank
(Head Office) Wilhelm-Eppstein-Str. 14
60431 Frankfurt am Main

Swiss National Bank (SNB)
Börsenstr. 15
CH-8022 Zürich

Eidgenössische Finanzmarktaufsicht FINMA
Einsteinstr. 2
CH-3003 Bern

Financial Conduct Authority (FCA)
25 The North Colonade, Canary Wharf
London E14 5HS

Does Eurex Clearing provide any reporting to regulators?

Yes, Eurex Clearing provides reporting to regulators due to different regulatory prescriptions and in different time periods.

Eurex Clearing reports to the following public authorities

  • the Federal Financial Supervisory Authority (BaFin),
  • the German Central Bank (Deutsche Bundesbank),
  • the Swiss Financial Markets Authority (FINMA),
  • the Financial Conduct Authority (FCA)
  • the Swiss National Bank (SNB)

For further information, please contact our regulatory section.

 
 
 

4. Compliance

 

By which external auditor is Eurex Clearing audited?

Eurex Clearing AG is audited by an external auditor. The auditor is KPMG and the audit takes place on a yearly basis.

How often are Clearing Conditions of Eurex Clearing AG updated and how is the process therefore?

Eurex Clearing AG rules are stipulated in the Clearing Conditions which are part of the general terms and conditions. Eurex Clearing AG reserves the right to amend the Clearing Conditions at any time; those amendments and additions shall be announced via electronic circular to the Clearing Members and Non-Clearing Members at least ten business days prior their effective date fixed in the relevant notice. Each Clearing Member or Non-Clearing Member accepts each amendments and addition to the Clearing Conditions, unless it objects by written notice to Eurex Clearing AG before the end of the Business Day prior to the actual effective date of such amendment or addition to the Clearing Conditions.

Unless otherwise provided in the Clearing Conditions, all information to be published according to these Clearing Conditions shall be displayed for at least three business days, available here.

How does Eurex Clearing ensure client confidentiality? Do employees and any other contingent staff sign a data confidentiality agreement with regards to operation of client account and information?

Every employee and external service provider of Deutsche Börse Group is obliged to adhere to the “Guideline for Keeping Professional and Banking Secrecy”. Professional Secrecy is the obligation for any employee to treat information obtained pursuant to professional activities confidential. Banking Secrecy is derived from this by adding specific provisions while limiting its application to employees of regulated entities. All information received within the conduct of professional activities must therefore be treated in the strictest confidence by employees and external service providers and must not be disclosed to any unauthorized party.

The adherence of client confidentiality is ensured by the implementation of diverse control systems like the Internal Control System (ICS), Group Compliance and Internal Auditing.

For further information please see also our annual report.

 
 
 

5. Services, membership and admission

 

What asset classes does Eurex Clearing clear, what markets does it operate in and what services does it offer?

Please click here to find comprehensive information.

What are different types of Clearing memberships?

At Eurex Clearing, membership comes in two categories, General Clearing Membership and Direct Clearing Membership, each of which confers different privileges.

  • ­A General Clearing Member (GCM) may clear its own transactions, those of its customers, as well as those of trading participants that do not hold a clearing license (so-called Non-Clearing Member - NCM).
  • ­A Direct Clearing Member (DCM) is entitled to clear only its own transactions, those of its customers, and those of its corporate affiliated NCMs. Only a Clearing Member - GCM or DCM - may be a counterparty of Eurex Clearing in a transaction.

As a result, legal relationships are essentially concluded between Eurex Clearing and a given Clearing Member, and in turn between that Clearing Member and the respective NCM.

What is required to become a Clearing Member of Eurex Clearing, implicitly which application forms are needed?

Applicants must be authorized and entitled by their respective regulatory authorities to operate in the custody and loan business as well as to accept receipt of margins in the form of cash and/or securities. In addition, Clearing Members must show evidence of a certain minimum level of own funds and must pay a contribution to Eurex Clearing’s Clearing Fund. Both the level of contribution to the Clearing Fund and the level of own funds depend on the status of the Clearing Member (GCM or DCM).


Own fund requirements, in EUR mn

Contribution to Clearing Fund, in EUR mn

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

Additional admission requirements for all our Clearing Members include different accounts that they need to set up. Every member must hold accounts at a central securities depository for the deposit of collateral and execution of settlement related payments. Further, we require evidence of cash accounts for clearing related payments, e.g. premiums.

With our fee model, we encourage our members to conduct business in multiple markets by taking advantage of economies of scale. For a first membership, applicants are charged a one-off admission fee as well as an annual membership fee. However, if a company wishes to become a Clearing Member for additional markets that we clear, no additional admission or membership fees are levied. In line with the markets that we serve, companies may apply for one or more of the following clearing licenses:

  • ­ Eurex Exchanges
  • ­ Eurex Bonds
  • ­ Eurex Repo
  • ­ Frankfurt Stock Exchange
  • ­­ Irish Stock Exchange
  • ­ EurexOTC Clear
  •  Securities Lending

For further information, please also consult our webpage. Click here.

All forms necessary for the registration to the various Eurex Clearing service offerings can be found on our webpage under here.

Is there a Clearing membership fee?

We charge applicants a one-off admission fee of EUR 50,000 to become a Clearing Member, as well as an annual membership fee of EUR 25,000. We designed our fee model to encourage Members to take advantage of all the markets that we serve. For this reason, if you wish to become a Clearing Member for any of the other markets we clear we do not charge any additional admission or membership fees.

How much does it cost to technically connect to the Eurex Clearing system environment (CCP)?

Additional fees with regard to different connection components and transaction volumes can be found on the Eurex Clearing Price List.

Which firms are admitted as Clearing Members at Eurex Clearing?

Please click here to find comprehensive information.

Which cash and settlement accounts needs a Clearing Member and do they have to be in the Clearing Members own name?

Please click here to find comprehensive information.

 
 
 

6. Risk

 

Which risk management model does Eurex Clearing use to calculate margin requirements?

  • ­What model is used to calculate initial margin?

Eurex Clearing uses Risk-based Margining which is a scenario based matrix simulation. Risk calculations are based on a scenario matrix across the risk factors of the product or security in question. The risk factor values are modeled from historical returns and behavior in a proprietary distribution framework appropriate for the particular product.

The margin methodology is based on the evaluation of underlying risk factor moves. As soon as relevant risk factors change, the affected cross products scenarios are recalculated and thus new margin numbers (variation and initial margin) are determined. So margin calculation frequency is product specific, dependent on the update frequency of the risk factors. This could either be intraday on a real time basis or near time basis, as well as multiple times throughout the day, as the respective input risk factors change (e.g. position size, underlying price, volatility). Overall, all margin components are updated continuously throughout the whole business day.

At Eurex Clearing, we are continuously shaping the standards of risk management. By raising the benchmark for an adequate risk calculation for our members, we are improving the safety and integrity of the marketplace. We are setting new standards by replacing our existing margin methodology (Risk-based Margining) with a new portfolio based margin approach — called Eurex Clearing Prisma — which allows for cross margining for listed derivatives business and between listed and OTC derivatives business cleared through Eurex Clearing. The Eurex Clearing Prisma method is based on the view of each member’s entire portfolio and has the advantage to account for hedging and cross-correlation effects through determining the margin requirement on a portfolio level as opposed to a product-by-product view. The single elements in the concept are selected so that risk calculation is made adequately and stable, ensuring that the concept withstands new shocks and changes to the financial markets and flexibly adapts to changes in the risk environment.

  • ­How is variation margin calculated (e.g. member’s curves, house curve)?

The major curves in place used to calculate variation margin are derived from the products which are actively traded on our exchanges. They are constructed from active trading by Derivatives Trading Operations. For example, a Euro (Bund) yield curve is implicitly constructed from trading in our money market and interest rate derivatives.

Other curves, such as the USD yield curve or dividend yields, are obtained through benchmark data vendors and service providers.

  • ­How is the guarantee fund calculated for each member?

A Clearing Member's contribution to the Clearing Fund depends on the risk exposure of that member firm as well as on its overall security capacity. Clearing Members are required to deposit the highest of the following amounts:

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

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

We recalculate Clearing Fund contributions on a quarterly basis at the end of March, June, September and December for the subsequent quarter to ensure that margin levels are accurately reflect market risk.

  • ­Are there any other margin types (e.g. buffer)?

In addition to initial margin (called “additional margin”) and variation margin, Eurex Clearing has premium margin, futures spread margin and current liquidation margin. For details please see the Eurex Quick Reference Guide “Risk-based Margining”, Chapter “Types of Margin.”

  • ­Are there any intra-day calculations and if so is this called for?

The margin requirements are calculated in real-time. Eurex Clearing regularly calls for margin in the morning of day t+1. However, Eurex Clearing continuously monitors the development of the risk exposure of its Clearing Members intraday on an event driven (real-time) basis during the entire business day. If a Clearing Member’s margin shortfall exceeds its given intraday margin call limit (in general 10 percent of the Clearing Member’s overnight margin requirement but at least EUR 1 Mio) Eurex Clearing immediately issues an intraday margin call which generally has to be satisfied by the Clearing Member within one hour.

  • ­Are there any offsets against other products?

From Block Trades, Flexible Contracts to Vola Trades offsets are granted between off-book and listed based on the margin class margin group concept. Using conservative offsets, cross margining is performed within the margin classes and margin groups between margin classes. Additionally, please consult the Eurex Quick Reference Guide “Risk-based Margining.”

 
 
 

7. Collateral

 

What types of margin collateral does Eurex Clearing accept?

Cash collateral:

Please click here to find comprehensive information.

Securities collateral:

Please click here to find comprehensive information.

How can a Clearing Member manage its collateral?

Collateral deposit

The Clearing Member delivers the securities to the relevant account directly within the system of the relevant CSD (Clearstream Banking AG Frankfurt (CBF) or SegaInterSettle Zurich (SIS)). All deposits are credited near-time in the Eurex® system. If a deposit is unacceptable (ineligibility of the security, breach of concentration limit), Eurex instructs a deposit reversal (back to the member's main account) near-time.

Collateral withdrawal

Withdrawals are made using the Collateral Transaction Entry window. Once confirmed by Eurex Market Supervision that margins can be met without the securities requested, the securities are immediately transferred from the respective account into the member's main account. If a withdrawal request leads to an under-collateralization in the member’s account, the transfer of the requested securities is postponed until the next business day, or until the appropriate amount of funds is in the account to fully fund the margin requirements.

Information about collateral

The Clearing Member may manage collateral on several windows on the Eurex Clearing GUI.

  • Collateral Security Information
    General eligibility of the security and information if further deposits are allowed (Concentration limit on clearing house level)
  • Collateral Pool Status
    The Collateral Pool Status window displays an overview of the margin coverage per pool and Clearing Member.

  • Collateral Status Detail
    The Collateral Status Detail window displays the current collateral status for a specific pool of a Clearing Member either in one currency or aggregated to the clearing currency.
  • Security Deposit Overview
    The Security Deposit Overview window displays the balances and movements of the collateral in the security deposit account.
  • Collateral Transaction Entry
    The Collateral Transaction Entry window is used for collateral withdrawals and deposits by a member and by Market Supervision on behalf of a member. Members may withdraw securities or deposit/withdraw cash through this window.

Does Eurex Clearing offer to segregate client’s collateral and how is it managed?

­Please click here to find comprehensive information.

 
 
 

8. Clearing operations

 

How does Eurex Clearing ensure that only authorized and complete instructions are processed on behalf of the Clearing Member?

­Eurex Clearing has a PoA and is able to instruct “on behalf” of the Clearing Member. Basically, the member itself is acting within data processing application on basis of user identification, which is allocated to the member in the case of admission. Should this not be possible due to technical problems, we execute the designated transaction “on behalf” for the respective members. However, for that scenario a written order of the member is required as well. The written order is checked with regard to contents and effected on the supposition of an apparent authority.

Does Eurex Clearing maintain position limits? How are these monitored and enforced?

At Eurex, position limits exist according to § 14.7 of the Exchange Rules of Eurex Deutschland. The size of the respective limits can be learned from the product specifications on the Eurex Exchange website.

Trading Surveillance Eurex Deutschland is monitoring the adherence of the position limits intraday and is informing the Börsenaufsichtsbehörde Hessen as well as the Executive Board of Eurex in case of breach of the Exchange Rules. They then decide on whether to forward the statement of affairs to the sanction committee of Eurex Deutschland. In succession, the sanction committee is able to impose sanctions up to an amount of EUR 250.000 and/or to impose a temporary or definite expulsion from trade.

 
 
 

9. Technology

 

Which technology is used for the Eurex® system environment (CCP)?

Please click here to find comprehensive information.

 
 
 

10. Disaster recovery/ IT-security

 

Does Eurex Clearing have a formal crisis management process?

Yes, Deutsche Börse Group has implemented a formal crisis management process with defined responsibilities. The process applies Group-wide for all activities and organizational or legal entities, including Eurex Clearing AG.

What structure does the crisis management team have and what are its responsibilities?

­The Crisis Management Team is composed of the Incident and Crisis Managers from the different divisions of Deutsche Börse Group. It is their role to ensure a coordinated incident response, including internal and external communication.

Does Eurex Clearing’s program cover all risks and scenarios that may cause disruption to its business? If so, what has Eurex Clearing done to mitigate the risks that could disrupt the supply chain that supports its services to its clients?

Yes, the BCM plans address the unavailability of systems, workspace, staff and suppliers. Supplier unavailability preparedness is regularly reviewed and generally addressed by service level agreements or multiple vendor arrangements.

Does Eurex Clearing have a disaster recovery back up site? If yes, does this site have fully functional operations to support Eurex Clearing’s business and how long does it take for this site to be fully operational?

All Systems but Xetra® and Xetra® International Market are set up with an automatic fail-over process which makes the take over immediate. Xetra® and Xetra® International Market are set up fault tolerant, but disaster recovery requires a restart of the system at the back up site, which typically should be done within an hour. However, the general recovery time objective of Deutsche Börse Group in case of a disaster is 4 hours.

 
 
 

11. Business continuity

 

How/at what point are Clearing Members informed if there is a technical emergency case?

In case of technical issues emergency information is provided via the following media:

  • System Newsboard
  • SMS Service
  • E-mail

Information on technical issues is distributed immediately if impact on members of Eurex has been recognized.

What are Eurex Clearing’s responsibilities in an outage scenario?

The responsibilities of Eurex and Eurex Clearing in an outage scenario are described within Section 12 on “Technical Problems” of the Technical Implementation Regulations of Eurex Deutschland and Eurex Zürich Concerning Technical Equipment.

 
 
 
Overview of contentPrevious chapter
Next chapter