Non-Clearing Membership
The main requirements for Non-Clearing Member (NCM) status are the following:
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Conduct of derivatives trading in a commercial manner
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Evidence that the respective applicant is subject to proper banking or exchange regulation in its
country of origin
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Minimum paid in equity capital of EUR 50,000, unless the applicant is a bank
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Admission and registration of at least one exchange trader (Trader Admission)
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Registration of at least one qualified a
back office staff member
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Participation in the clearing process - either by signing a NCM-Clearing Member Agreement
with a General Clearing Member (GCM)
or with a Direct Clearing Member (DCM) and Eurex Clearing AG. A DCM may act as clearer for a
NCM provided the companies are 100 percent affiliated.
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Compliance with mandatory technical requirements for connection to the Eurex® system
(connection alternatives)
Companies may become exchange participants without having a Clearing License as Non-Clearing Members. NCMs
must conclude a NCM-Clearing Member Agreement with either a GCM or a group-affiliated DCM
and Eurex Clearing AG. Clearing Members (GCMs and DCMs) may clear their own trades as well as those executed
on behalf of their customers and the trades of NCMs. NCMs may execute their own and their customers' orders.
NCMs are responsible for exercises and position management functions online. At all times they are able
to maintain a system-side overview of the payment and delivery obligations that result from their
trading activities.
NCMs may enter into agreements with different Clearing Members on a per-trading-platform basis
(e.g. Eurex Exchanges, Eurex Bonds, Eurex Repo etc.). However, the trades executed on a specific trading
platform may only be cleared and settled by a single Clearing Member. That does not diminish the fact,
though, that trades can be given-up within one specific platform to other participants via the
"give-up/take-up" functionality.
Because NCMs have no direct contractual relationship with Eurex Clearing AG, transactions are
essentially concluded between Eurex Clearing AG and a given Clearing Member, and in turn between that
Clearing Member and the specific NCM. Also, margin deposits and fee payments, for example, are made
to the clearing house via the contractually stipulated Clearing Member.
For further details concerning the admission and connection process please refer to the attached
Guideline for Eurex Exchange Participants.
 | | | |
| Name | Last Change | File Size | File |
| Guideline for Exchange Participants | 10.06.2011 | 88 kB
|  |
For more information about trading membership for other trading platforms click the according link:
