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Eurex Exchange

Eurex Exchange

Admission requirements

To maintain the highest standards, only companies that meet certain stringent criteria are eligible for clearing membership. Our admission standards are the first step in a comprehensive system of safeguards designed to maximize the safety and integrity of the markets we provide central counterparty services for.

 

Capital requirements

We recognize that markets are continually fluctuating. To ensure that our members are sufficiently capitalized to deal with changing market conditions, we set capital requirements for Clearing Licenses. These capital requirements are set in line with estimated risk levels and are reviewed quarterly to reflect developments in the markets.

Irrespective of the minimum amounts of own funds* specified below, the actual amount of own funds that we require our Clearing Members to demonstrate and maintain is equal to the higher amount of:

  • 20 percent of the 30-day average of the initial margin requirements or
  • 20 percent of the 250-day average of the initial margin requirements

The level of the own funds is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter.

Capital requirements GCM (in EUR millions)

Capital requirements DCM (in EUR millions)

Eurex Derivatives  Clearing License

307.5

* The term own funds was introduced pursuant to the European Capital Requirements Directive 2013/36/EU (CRD IV) and the European Capital Requirements Regulation (EU) No. 575/2013 (CRR). It replaces the term “liable equity capital”. For additional information on own funds, please refer to the Clearing Conditions for Eurex Clearing AG.

Default Fund

Every well-built house starts with a strong foundation. In the case of our clearing house we have built it on a sound framework of safeguards — which we call our lines of defense — to protect our customers and to enhance the markets integrity.

 
In order to ensure continued market integrity, we operate stress-tested lines of defense of which the Default Fund is one. Eurex Clearing maintains a Default Fund in order to protect market participants in the event of a Clearing Member default. In addition, the Default Fund is reviewed every quarter to ensure the fund is aligned with current market risk.

Based on the Clearing Member’s status Direct Clearing Member (DCM), General Clearing Member (GCM) or OTC Clearing Member (OTC CM)), the minimum Default Fund contribution is determined by Eurex Clearing as follows (minimum requirement):

  • EUR 5 million for GCM, OTC CM
  • EUR 1 million for DCM

In addition, the Default Fund requirements are dynamic considering the overall risk exposure of the single Clearing Member towards the CCP. The Default Fund requirement is determined by the highest single
amount of the following components:

  • Default Fund minimum requirement as mentioned above, or
  • 7 percent of the 30 day initial margin requirement average, or
  • 7 percent of the 250 day initial margin requirement average.

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

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

Clearing & settlement accounts

We offer members flexibility when setting up the pledge securities accounts and settlement accounts that are required for clearing membership. Members can choose to set up accounts at Clearstream Banking AG, Frankfurt, SIX SIS AG, Zurich or Euroclear UK & Ireland for settlement purposes, depending on the supported settlement location for a specific security.

For Eurex Derivatives Clearing License holders, we require that members maintain accounts with a Eurozone national central bank (TARGET2), or Schweizerische Nationalbank (SNB) for the provision of funds in  euro and Swiss francs for Delivery vs Payment purpose and accounts with commercial banks for settling funds for clearing related cash payments.

     
Clearing Licenses Currency Settlement account Pledged securities account Cash account
Derivatives Clearing LicenseEUR

CHF
USD
GBP
JPY
TWD
KRW
CBF or SIS

CBF or SIS
CBF1
EUI2
Clearstream Banking AG Frankfurt (CBF) or
SIX SIS AG Zurich

TARGET2 account of a Eurozone central bank (EUR) or
Swiss Interbank Clearing AG account (EUR; optional for Swiss Clearing Members)
Schweizerische Nationalbank (CHF)
Settlement banks for U.S. dollar (USD)3
Settlement banks for British pound (GBP)4
Settlement banks for Japanese yen (JPY)5
Settlement banks for Taiwan dollar (TWD)6
Settlement banks for Korean won (KRW)7
Settlement banks for Danish krone (DKK)8
Settlement banks for Norwegian krone (NOK)9
Settlement banks for Swedish krona (SEK)10
Settlement banks for Polish zloty (PLN)11
Settlement banks for Canadian dollar (CAD)12

 
1Cash clearing for delivery vs. payment (DvP) via CBF account

2The settlement of physical deliveries in British as well as Irish securities will be carried out via Euroclear UK & Ireland (EUI).

3The following settlement banks are admitted for U.S. dollar (USD): Bank of America, Citibank N.A., Deutsche Bank Trust Company Americas (DBTCA), HSBC Bank USA N.A., JP Morgan Chase N.A., The Bank of New York Mellon

4The following payment banks are admitted for British pound (GBP): Barclays plc, Citibank N.A. (London branch), Deutsche Bank AG (London branch), JP Morgan Chase N.A., HSBC Bank plc, Royal Bank of Scotland plc

5The following settlement banks are admitted for Japanese yen (JPY) : MUFG Bank Ltd., Sumitomo Mitsui Banking Corporation, Citi Japan Ltd.

6The following settlmenet banks are admitted for Taiwan dollar (TWD) : Mega International Commercial Bank

7The following settlement banks are admitted for Korean won (KRW) : Shinhan Bank, HSBC Seoul

8The following settlement banks are admitted for Danish krone (DKK): Barclays Bank plc, Citibank N.A. (London branch), Deutsche Bank AG (London branch), The Bank of New York Mellon (New York branch)

9The following settlement banks are admitted for Norwegian krone (NOK): Barclays Bank plc, Citibank N.A. (London branch), Deutsche Bank AG (London branch), The Bank of New York Mellon (New York branch)

10The following settlement banks are admitted for Swedish krone (SEK): Barclays Bank plc, Citibank N.A. (London branch), Deutsche Bank AG (London branch), The Bank of New York Mellon (New York branch)

11The following settlement banks are admitted for Polish zloty (PLN): Barclays Bank plc, Citibank N.A. (London branch), Deutsche Bank AG (London branch), The Bank of New York Mellon (New York branch)

12The following settlement banks are admitted for Canadian dollar (CAD): Barclays Bank plc, Citibank N.A. (London branch), Deutsche Bank AG (London branch)

Qualified Clearing Staff

As we strive to maintain high qualification levels of clearing firms for reasons of clearing house integrity, it is required to register at least one "Qualified Clearing Staff" (QCS) in the back-office with Eurex Clearing.
The Clearing Member has the following possibilities to provide proof of the qualification of the staff member that shall be in QCS:

  • The Compliance Officer of the Clearing Member confirms the respective knowledge of the staff member, or
  • The staff member has passed the Clearer Test (Basic Module), or
  • The staff member has passed the exam for the Certified Clearing Specialist, or
  • The staff member has attended the Core Clearing Knowledge seminar.

All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.

If the Clearing Member is outsourcing its clearing, back office or risk management functions to an Insourcer, either the Clearing Member or the Insourcer has to have a QCS.

Please log into the Eurex Clearings Member Section to receive further information about the application to become a QCS and see the quick links to Eurex Clearing's circulars on the topic.

Further information

 
 

Non-Clearing Member

Each Non-Clearing Member needs to have a Qualified Staff Member in the back-office (QBO). The Non-Clearing Member has the following possibilities to provide proof of the qualification of the staff member that shall be a QBO:

  • The Compliance Officer of the Non-Clearing Member confirms the respective knowledge of the staff member, or
  • The staff member has passed the Back-Office Test (Clearer Test market module Eurex exchanges), or
  • The staff member has passed the exam for the Certified Clearing Specialist, or
  • The staff member has attended the Transaction Management Listed Derivatives seminar.

All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.

A Non-Clearing Member is not required to have a qualified staff member in the back-office if it outsources all its back-office functions to its Clearing Member or to an Insourcer that has a qualified staff member.

Emergency contact

Each Clearing Member has to appoint and register at least one employee as emergency contact for Eurex Clearing. This emergency contact needs to be available during business hours and needs to be able to initiate necessary measures in emergency cases.

The emergency contact is included in the Member Section, where the Clearing Member can maintain this data. 

Eurex Clearing AG
Group Client Services, Trading & Clearing and Cash Market

 
 
 
 
 
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