EurexOTC Clear Release 17.0: Amendments to the Clearing Conditions of Eurex Clearing AG

1. Introduction

This circular contains information with respect to amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) regarding the following topics:

A.    EurexOTC Clear Release 17.0

B.    Amendments in relation to multilateral compression services 

The amendments to the Clearing Conditions will come into effect as of 17 June 2024.

Learn more about the EurexOTC Clear Release 17.0 on our dedicated initiative page on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Support > Initiatives & Releases > EurexOTC Clear Releases > EurexOTC Clear Release 17.0. Circulars, timeline and much more information are available there for you.

2. Required action

Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients and vendors should take the amendments to the Clearing Conditions into consideration.

3. Details

A.    EurexOTC Clear Release 17.0

Eurex Clearing is extending its product offering by delivering Inflation Linked Asset Swaps using the Standard Coupon Inflation Swap template available in MarkitWire. The product will reference the Euro Harmonized Index of Consumer Prices excluding Tobacco Rate (HICPxT) index with a maximum maturity of 50 years. Market participants will be able to structure an inflation leg with periodic payments against a fixed leg. Coupons can be paid periodically, i.e., monthly, quarterly, semi-annually, or annually. 

All Members which are currently enabled for clearing of Zero-Coupon Inflation Swaps will be automatically enabled for clearing of Standard Coupon Inflation Swaps. This product can be disabled/enabled by contacting the Key Account Manager or Eurex Clearing’s Onboarding team. The Clearing Conditions (Chapter VIII) will be amended to incorporate this product offering.

Furthermore, the Clearing Conditions (Chapter VIII) have been updated to allow for inflation index rebasing if an Index Rebasing event occurs. Eurex Clearing will automatically rebase any transactions impacted by the Inflation Index Rebasing event employing the methodology provided by the relevant Index Administrator. Any transactions (including backloaded transactions) submitted for clearing following the rebasing event must specify the rebased initial index levels. Eurex Clearing will not rebase any submitted transactions following the rebasing event.

B.    Amendments in relation to multilateral compression services 

Further amendments of the Clearing Conditions are applied in relation to multilateral compression services in order to reflect the extension of multilateral compression services from Clearing Member’s own transactions to customer-related transactions (client compression).

To reflect the aforementioned enhancements and changes, the following provisions will be amended as outlined in the Attachment:

• Chapter VIII Part I No 1.2.4 and No 1.8.1 and Part II No. 2.1.3, No 2.1.5.1, No. 2.2.5 and No. 2.5 of the Clearing Conditions

As of the effective date, the full version of the amended Rules and Regulations will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Rules & Regs > Eurex Clearing Rules and Regulations

The 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 prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties. 

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, as applicable.

Attachment: 

• Amended sections of Chapter VIII of the Clearing Conditions of Eurex Clearing AG

Further information