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

Eurex's international trading participants are able to clear and to settle trades over existing clearing relationships without additional technical and functional effort. Clearing Members of Eurex Clearing AG can easily extend Die internationalen Handelsteilnehmer der Eurex können für das Clearing und die Abwicklung von Geschäften ihre jeweils bestehende Clearing-Beziehung heranziehen, ohne dabei zusätzliche technische und funktionale Anforderungen erfüllen zu müssen. Auch die Clearing-Mitglieder der Eurex Clearing AG können ihre Clearing-Lizenzen mühelos um die neuen Kooperationsprodukte erweitern. ECC Clearing-Mitglieder sind automatisch als Clearer in den Kooperationsprodukten zugelassen.

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.