Functional Model

Eurex Credit Clear's functional model is built on accepted CDS market standards and enhances them by adding clearing best practices. Eurex Credit Clear's objective is to leverage existing infrastructure and address OTC CDS market concerns appropriately. Whereas the existing DTCC OTC credit infrastructure delivers trade capture, confirmation and settlement features, Eurex Credit Clear's solution will add CCP services, essential position and risk management, margins and payments.

Structural Setup of Eurex Credit Clear

Eurex Credit Clear offers a flexible book-keeping structure to allow its Credit Clearing Members (CCM) to differentiate between own trades and trades of their customers; the legal relationship remains between the CCM and Eurex Clearing for every trade.

The following account types are offered

• Proprietary Accounts
• Registered Customer Account
• Customer Omnibus Account

Registered Customer Accounts

To use a registered customer account Eurex Clearing will require a Tri-Party Agreement between Eurex Clearing, the CCM and its registered customer. Registered customers can have a direct DTCC account and send the trades directly to Eurex Clearing in agreement with its respective CCM. Positions of registered customers are separately booked, margined and shown in all Eurex Clearing reports.