Clearing Model

The cooperation products are cleared by both Clearing Houses, whereby ECC is the designated primary CCP (central counterparty) and Eurex Clearing AG acts as secondary or sub-CCP.

Both Clearing Houses operate on the same technical platform - the Eurex® system - and use nearly identical risk management regimes. Even the core business processes of both companies are alike. Further to this, both Clearing Houses operate under the same regulatory and insolvency regime.

As a result, all existing functions and reports are available for transactions in cooperation products and follow the existing formats and standards of Eurex Clearing AG and ECC AG:

• Trade Management
• Give-up/Take-up
• Position Management
• Cash Management and Settlement
• Risk Management

The clearing model foresees an effective clearing relation between ECC and Eurex Clearing AG that enables members of Eurex Clearing AG and ECC to offer clearing services for cooperation products to their customers and to Non-Clearing Members.

Inter-CCP Risk Management is applied to handle the positions between both Clearing Houses. It ensures that members of Eurex Clearing AG are protected against a potential default of an ECC member and vice versa ECC members are protected against a potential default of a member of Eurex Clearing AG.

Cross margining is applied for all CO2 derivatives: by offsetting of opposing risks within a group of instruments with similar risk characteristics, members benefit from optimized usage of their collateral.