We recognize that markets are continually fluctuating. To ensure that our members are sufficiently capitalized to deal with changing market conditions, we set capital requirements for Clearing Licenses. These capital requirements are set in line with estimated risk levels and are reviewed quarterly to reflect developments in the markets.

Irrespective of the minimum amounts of own funds** specified below, the actual amount of capital that we require our Repo Clearing Members to demonstrate and maintain is equal to the higher amount of:

• 20 percent of the 30-day average of the initial margin requirements or
• 20 percent of the 250-day average of the initial margin requirements

The level of the own funds is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter.
 

The minimum capital requirement for own funds is calculated for multiple licenses in different asset classes.
 

^{* Special regulations for Corporate Customers/Non-financial institutions as GC Pooling Select Invest participants: The above mentioned capital requirements are not applicable for GC Pooling Select Invest Corporate Customers/Non-financial institutions participants, since those participants can only become holders of a "ISA Direct Light License". No limited own funds and no margin payments are required.}

^{** The term own funds was introduced pursuant to the European Capital Requirements Directive 2013/36/EU (CRD IV) and the European Capital Requirements Regulation (EU) No. 575/2013 (CRR). It replaces the term "liable equity capital". For additional information on own funds, please refer to the Clearing Conditions for Eurex Clearing AG.}

In order to ensure continued market integrity, we operate stress-tested lines of defense of which the Default Fund is one. Eurex Clearing maintains a Default Fund in order to protect market participants in the event of a Clearing Member default. In addition, the Default Fund is reviewed every quarter to ensure the fund is aligned with current market risk.

Based on the Clearing Member’s status Direct Clearing Member (DCM), General Clearing Member (GCM), the minimum Default Fund contribution is determined by Eurex Clearing as follows (minimum requirement):

• EUR 5 million for GCM
• EUR 1 million for DCM

In addition, the Default Fund requirements are dynamic considering the overall risk exposure of the single Clearing Member towards the Central Counterparty (CCP).

The total margin requirement includes all products and asset classes cleared by the Clearing Member.
 

^{* Special regulations for Corporate Customers/Non-financial institutions as GC Pooling Select Invest participants: The Default Fund payments described above, are not applicable for GC Pooling Select Invest Corporate Customer/Non-financial institution participants, since those participants can only become holders of a “ISA Direct Light License”. No payments to the Default Fund are required.}

We offer members flexibility when setting up the pledge securities accounts and settlement accounts that are required for clearing membership. Members can choose to set up accounts at either Clearstream Banking AG Frankfurt, Clearstream Banking SA Luxembourg or SIX SIS AG for pledge securities accounts. Furthermore it is possible to use Xemac (Clearstream Banking AG) or CmaX (Clearstream Banking SA) collateral management accounts.

For settlement purposes, members have the choice of Clearstream Banking AG Frankfurt, Clearstream Banking SA Luxembourg and/or Euroclear SA/NV Bank.

GC Pooling transactions can only be settled in Clearstream Banking.

^{* Special regulations for Corporate Customers/Non-financial institutions as GC Pooling Select Invest participants: Those participants can only participate as "ISA Direct Light License Holders". Based on this, no clearing accounts are necessary.}

As we strive to maintain high qualification levels of Clearing Members for reasons of clearing house integrity, it is required to register at least one "Qualified Clearing Staff" (QCS) in the back-office with Eurex Clearing.

The Clearing Member has the following possibilities to provide proof of the qualification of the staff member that shall be in QCS:

• The Compliance Officer of the Clearing Member confirms the respective knowledge of the staff member, or
• The staff member has passed the Clearer Test (Basic Module), or
• The staff member has passed the exam for the Certified Clearing Specialist, or
• The staff member has attended the Core Clearing Knowledge seminar.

All tests, exams and seminars are offered by Deutsche Börse Capital Markets Academy.

If the Clearing Member outsources its clearing, back-office or risk management functions to an Insourcer, either the Clearing Member or the Insourcer has to have a QCS.

Each Clearing Member has to appoint and register Clearing Contacts into the Member Portal of Deutsche Börse (Member Section). The registration of contact persons is part of the admission process. The following areas need to be covered:

• Buy-In
• Cash Management
• Collateral Management
• Corporate Actions
• Default Management Process (DMP) Coordinator
• Default Management Process (DMP) Coordinator Deputy
• General Management
• Income Operations
• Risk Management
• Settlement Operations
• Compliance
• Emergency