Lines of Defense

We guarantee the fulfillment of every contract in every market for which we provide our services. In order to ensure that we are able to keep this promise to our clients, we set up a multi-level security system, which we call our „Lines of Defense”. The mainstay of this security system is margin, which Clearing Members deposit as collateral for open positions. However, the Lines of Defense are comprised of much more that margin payments. They consist of multiple layers of safety nets to protect the marketplace in the event of Clearing Member default.

These lines of defense are:

• Position close out
• Collaterals of Clearing Member in default
• Fund contribution of Clearing Member in default
• Eurex Clearing reserves
• Remaining Clearing Fund
• Eurex Clearing equity capital

These layers are built upon each other for maximum stability. In the event of a default, they are implemented in the order that they are listed.

By using our unique Risk-based Margining method, we have always maintained sufficient margins to cover Members' composite risk. As a testament to the robustness of this method, to date we have never had to draw upon the contributions of a Clearing Member to the Clearing Fund. You can rely on the stress-tested safety measures we've put into place.