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Update: Temporary fee waiver for on-behalf services to support Brexit preparations and collateral fee waiver for Supplementary Margin in the context of OTC IRD client business

Release date: 01 Jul 2019 | Eurex Clearing

No. 065/2019 Update: Temporary fee waiver for on-behalf services to support Brexit preparations and collateral fee waiver for Supplementary Margin in the context of OTC IRD client business

Eurex Clearing Circular 065/2019

This circular contains information with respect to Eurex Clearing’s service offering and to the Price List of Eurex Clearing AG (Price List) regarding the following topics:

  1. Fee waiver for on-behalf services to support Brexit preparations
  2. Collateral fee waiver for Supplementary Margin in the context of OTC IRD client business

Update: Temporary fee waiver for on-behalf services to support Brexit preparations

1. Introduction

Brexit will likely affect the business relationship between the EU and the UK. Market participants are actively preparing for scenarios which eliminate passporting or even prevent access in general.

In order to facilitate the readiness process, Eurex Clearing AG introduces a temporary fee waiver for on-behalf mass position transfer and collateral transfer fees according to Numbers 8.4.2 and 8.4.3 of the Price List of Eurex Clearing AG to support Brexit preparations, effective from 1 October 2018 to 31 October 2019 (initially 30 June 2019).

2. Required actions

There are no participation requirements or required actions for the fee waiver.

3. Details of the initiative

The fee waiver will be available for all Clearing Members and their respective Disclosed Direct Client Market Participants (formerly Non-Clearing Members) who use Eurex Clearing’s on-behalf services to transfer positions or collateral from an UK-based entity to an entity outside the UK provided that at least one Clearing Member involved in the transfer has been admitted since 1 September 2018.

Temporary collateral fee waiver for Supplementary Margin in the context of OTC IRD client business

1. Introduction

Eurex Clearing AG will introduce a collateral fee waiver for Supplementary Margin in the context of OTC IRD client business. As a result, cash collateral service fees and securities collateral service fees related to this margin class will not apply until further notice. From 1 July 2019 onwards, the invoiced collateral fees for margin coverage will be reimbursed for the Supplementary Margin ratio at the beginning of the following month.

2. Required actions

There are no participation requirements or required actions for the fee waiver.

3. Details of the initiative

The fee waiver will be available for all Clearing Members facilitating OTC IRD client business affected by the Supplementary Margin. For the calculation, Eurex Clearing AG will consider the ratio of the Initial Margin and the Supplementary Margin in conjunction with the ratio of cash and securities collateral provision. The result out of this calculation will be reimbursed. The affected Clearing Member will be informed via a monthly report.

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

Recipients:All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors 
Target groups:

Front Office/Trading, Middle + Back Office, IT/System Administration, Auditing/Security Coordination

Contact:

Eurex Pricing, eurex.pricing@eurexchange.com

Related circular:Eurex Clearing Circular 073/18
Authorized by:Heike Eckert