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10 Oct 2022

Eurex Clearing

Eurex Clearing Readiness Newsflash | Cross-margining: Simulation focus week from 12 December until 16 December 2022

Eurex Clearing Readiness Newsflash | Cross-margining: Simulation focus week from 12 December until 16 December 2022

Dear Clearing Member,

With this Newsflash, Eurex Clearing announces a focus week in simulation for cross-margin testing. The focus week will run from Monday, 12 December until Friday, 16 December 2022.

Cross-margining can yield a margin reduction of up to 70 percent via risk netting between listed and OTC trades. This reduces Clearing Broker exposures and lowers collateral and liquidity demands. The focus week is for cross-margining under the principal model, cross-margining for the LSOC model is not included.

The first and important milestone toward achieving these goals is to participate in our simulation focus week for cross-margin testing. To support your simulation activities, there will be five consecutive batch days (which will start one hour earlier than usual, depending on the system) in simulation from Monday, 12 December until Friday, 16 December 2022.

We invite all Clearing Members to use this opportunity and make themselves familiar with the cross-margining procedure. 

The specific benefits of cross-margining for our clients and for the clearing house are:

  • higher capital efficiency
  • consistent framework aligned with the Default Management Process
  • stability and robustness
  • flexibility
  • regulatory robustness

A detailed explanation of cross-margining can be found in the “User Guide: Cross Margining”. The document is available in the Member Section under the following path:

Resources > Eurex Clearing > Documentation & Files > Eurex Clearing Prisma > Release Documents > Documents & Circulars > Documents Release 3.0

Updated simulation calendars for each system are available on the Eurex Clearing website under the following link:

Support > Initiatives & Releases > Simulation calendar

If you wish to participate then registration to the simulation focus week for cross-margin testing is mandatory for Members. Please confirm your participation by sending an e-mail with the subject “Registration to the simulation focus week” to the Key Account Manager or client.services@eurex.com until Monday, 28 November 2022.

If you have any further questions or comments, please do not hesitate to contact your Clearing Key Account Manager or send an e-mail to: client.services@eurex.com.

Kind regards,

Your Client Services Team


 

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Recipients:

All Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors

Target groups:

Front Office/Trading, Middle + Back Office, IT/System Administration

Contact:

client.services@eurex.com

Web:

www.eurex.com/ec-en/