Securities Collateral

Clearing Members can choose to open pledged securities accounts either at Clearstream Banking AG Frankfurt (CBF) or SegaInterSettle Zurich (SIS). These securities accounts are maintained on Clearing Members' behalf with the securities pledged to Eurex Clearing.

Clearing Members must determine in advance which securities should be pledged as collateral. The eligible securities and the according haircuts can be found here. In general it is differentiated between securities which are eligible as collateral (Used as Collateral Flag "Y") and securities which may not be further deposited (Deposits_Allowed Flag "N") to cover Eurex Clearing margining. Securities which have been deposited as collateral are valued in accordance to their risk with a specific haircut discounted.

Equities which may be used to cover corresponding equity derivatives with upside risk (short call option or short single stock future position), so called Specific Equity Collateral (identified with security type code "SECA"), may not be used as general margin collateral; this is reflected with a haircut of 100%, thus an evaluation price of "0". More information about the Specific Equity Collateral Assignment Overview Function (SECAO) can be found here.

In the case of variation margin (i.e. the daily settlement of profits and losses) and margin calls, payment must be made in cash. In addition, the payment of premiums on traditional options and options on futures must always be made in cash.