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Contractual penalty for late deliveries on dividend record dates: Amendment to the existing penalty regime

Release date: 04 May 2018 | Eurex Clearing

No. 042/18 Contractual penalty for late deliveries on dividend record dates: Amendment to the existing penalty regime

This circular outlines the amendment to the existing penalty fee regime for late deliveries on dividend record dates. Effective 14 May 2010, Eurex Clearing AG (Eurex Clearing) introduced a contractual penalty for late deliveries on dividend record dates and record dates of other corporate actions for all deliveries in DAX® stocks (please refer to Eurex Clearing circular 024/10). On 24 June 2011, the penalty fee was extended to all equity instruments, except Exchange Traded Funds (ETFs) (please refer to Eurex Clearing circular 052/11).

The new penalty fee regime for late deliveries on dividend record dates will come into effect on 1 June 2018. The changes include:

  • Reduction of penalty fee rate for Clearing Members from 35.8 percent cent to 35 percent of the net dividend; and
  • Contractual penalty of Eurex Clearing for the benefit of the Clearing Member expecting delivery in an amount of 15 percent of the net dividend. The payment will be released under the condition that the calculation results in an amount of at least €5,000 (or referenced amounts in other currencies) and solely upon request in writing within 30 days following the contractual delivery day.