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Update: Amendments to the Clearing Conditions, the FCM Regulations and the Price List of Eurex Clearing AG

Release date: 22 May 2019 | Eurex Clearing

No. 051/2019 Update: Amendments to the Clearing Conditions, the FCM Regulations and the Price List of Eurex Clearing AG

Eurex Clearing Circular 051/19

Update concerning Circular 51/2019: Please note that the effective date of the amendments was changed from 17 June 2019 to 19 June 2019.

Furthermore, the attachment to Circular 051/19 which referred to Chapter I of the Clearing Conditions has been replaced with a new attachment concerning amendments to Chapter VIII of the Clearing Conditions.

This circular contains information about changes and amendments to the Clearing Conditions, the FCM Regulations and the Price List of Eurex Clearing AG with respect to the following topics

  1. Inclusion of Transactions under the 2017 ISDA/FIA Cleared Derivatives Execution Agreement into Clearing
  2. Inclusion of Backloading functionality for OTC FX transactions

The amended sections of the Clearing Conditions, the FCM Regulations and the Price List, as decided by the Executive Board of Eurex Clearing AG, are attached to this circular.

The amendments to the Clearing Conditions, the FCM Regulations and the Price List regarding items 1 and 2 will become effective on 19 June 2019.

1. Inclusion of Transactions under the 2017 ISDA/FIA Cleared Derivatives Execution Agreement into Clearing

Currently,  Eurex Clearing is supporting the following master agreements as the contractual basis of an Original OTC Transaction, Original OTC XCCY Transaction and Original Swap Transaction:

  • the 1992 ISDA Master Agreement and the 2002 ISDA Master Agreement,
  • the German Master Agreement for Financial Derivatives Transactions (Rahmenvertrag für Finanztermingeschäfte) and
  • the AFB/FBF Master Agreement.

In line with market practice, Eurex Clearing plans to support the 2017 ISDA/FIA Cleared Derivatives Execution Agreement (“2017 ISDA/FIA CDEA”) as a new master agreement for Original OTC Transactions, Original OTC XCCY Transactions and Original Swap Transactions. To allow inclusion of transactions entered into under this agreement into clearing, Eurex Clearing will include the 2017 ISDA/FIA CDEA as a permitted master agreement in the Clearing Conditions and FCM Regulations. Upon novation of any such transaction, Eurex Clearing will then apply Eurex Clearing’s general terms for ISDA transactions to the transaction and, to the extent referenced by them, the 2006 ISDA Definitions.

The 2017 ISDA/FIA CDEA is a template for use by Market Participants in negotiating execution-related agreements with counterparties to swaps that are intended to be cleared. The agreement intends to facilitate the entry of derivatives transactions into and the clearing of such transactions with one or more CCPs located outside of the US and can be used in conjunction with the ISDA/FIA Client Clearing Addendum.

To reflect the changes and amendments, the following provisions of the Clearing Conditions and FCM Regulations shall be amended as outlined in attachment 1 and 2:

  • Chapter VIII Part 2 Number 2.1.5.2 of the Clearing Conditions
  • Chapter VIII Part 4 Number 4.1.5.2 of the Clearing Conditions
  • Chapter II Part 2 Number 2.1.5.2 of the FCM Regulations

The amendments above will become effective on 19 June 2019.

2. Backloading for OTC FX transactions

With the EurexOTC Clear Release 9.2, a backloading functionality is implemented for OTC FX Transactions. For OTC Interest Rate Derivatives Transactions and OTC XCCY Transactions this functionality is already in place today.

To reflect the changes and amendments, the following provisions of the Clearing Conditions and the Price List shall be amended as outlined in attachment 3 and 4:

  • Chapter VIII Part 2 Number 2.1.5.3 of the Clearing Conditions
  • Chapter VIII Part 3 Number 3.1.5.3 of the Clearing Conditions
  • Chapter VIII Part 4 Number 4.1.5.3 of the Clearing Conditions
  • Number 10.2.1.3, 10.3.3, 11.2.3 and 11.3.3 of the Price List

The amendments above will become effective on 19 June 2019.

As of the effective date, the full version of the amended documents will be available for download on the Eurex Clearing website www.eurexclearing.com under the following link:

The changes and amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG within the first ten (10) Business Days after publication. Any ordinary right of Eurex Clearing AG to terminate the respective contract (including a Clearing Agreement, if applicable) shall remain unaffected.

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG.

Attachments:

Updated sections of the Clearing Conditions, FCM Regulations and Price List of Eurex Clearing AG (Attachments 1-4)


Recipients:

All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors, all FCM Clearing Members and other affected counterparties

Target groups:

All departments

Contact:

client.services@eurexclearing.com

Authorized by:Heike Eckert