Membership and Access

Eurex Credit Clear provides substantial benefits to Clearing Members and their customers.

These include:

• Leverage of existing Eurex Clearing infrastructure
• Efficient use of existing Clearing Member collateral deposits
• Buy side access as registered users or clients of Credit Clearing Members (CCM)

To participate in Eurex Credit Clear a clearing license has to be obtained from Eurex Clearing.

The following entry requirements apply to becoming a Credit Clearing Member with Eurex Clearing.

Legal requirements

A Credit Clearing Member (CCM) can become an institution and its branch offices with headquarters located within the European Union, Switzerland or USA as well as any institution domiciled outside these countries upon demonstration by the applicant that it is subject to comprehensive regulatory, supervisory and insolvency rules and regulations in its home jurisdiction comparable to those in the European Union, Switzerland and the United States of America.

Capital Requirements

The initial equity capital requirement for Credit Clearing Members amounts to EUR 1 billion. The ongoing equity capital requirement is dynamic depending on the average margin requirement.

The largest of the following amounts is the equity capital requirement:

• EUR 1 billion (initial equity capital requirement)
• 25 percent of the 30-day average of the margin requirement
• 25 percent of the 250-day average of the margin requirement

Eurex Clearing calculates on a quarterly basis on the last days of March, June, September and December a risk-dependant amount for each Clearing Member. Equity capital can be substituted in part by third party bank guarantee or collateral provided in cash or securities.

Provision of the Contribution to the Credit Clearing Fund and Method of Calculation (Berechnungsmethode)

The provision of a contribution to a separate dedicated clearing fund for CDS business (Credit Clearing Fund) is required. Such contribution is dynamic depending on the risk exposure of the CCM. The largest of the following amounts must be deposited by CCM:

• EUR 50 million (minimum contribution)
• Five percent of the 30-day average of the margin requirement
• Five percent of the 250-day average of the margin requirement

The amount to be paid is fixed for each Clearing Member holding a CD License on a quarterly basis on the last days of March, June, September and December, for the subsequent quarter. Basis for the calculation of the contribution to the Credit Clearing Fund is the margin requirement resulting from all OTC Credit Derivatives Transactions of the respective CCMs and its respective Registered Customers novated and cleared by Eurex Clearing AG.

Operational Requirements

• Evidence of pledge account at Clearstream Banking AG, Frankfurt or SIX SIS AG, Zürich
• Cash account at TARGET 2 or Swiss Interbank Clearing AG (EUR; optional for Swiss Clearing Members)
• Evidence of an account with CLS Bank International
• Power of attorney for Eurex Clearing to act on behalf of flow provider (e.g. DTCC), security settlement and cash-account
• Technical connectivity to Eurex Clearing network
• Qualified back office personnel

For further information please contact