EurexOTC Clear Release 14.0: Amendments to the Clearing Conditions and FCM Regulations of Eurex Clearing AG

1.  Introduction   

This circular contains information with respect to amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) and the FCM Regulations of Eurex Clearing AG (FCM Regulations) regarding the following topics:

A.    EurexOTC Clear Release 14.0
B.    Further minor amendments 

The amendments to the Clearing Conditions and FCM Regulations will come into effect as of 21 November 2022. 

Learn now more about the EurexOTC Clear Release 14.0 on our dedicated initiative page under the following link: Support > Initiatives & Releases > EurexOTC Clear Releases > EurexOTC Clear Release 14.0. System documentation, circulars, timeline and much more information is available there for you. 

2. Required action

Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients, FCM Clearing Members, vendors and other affected contractual parties should take the amendments to the Clearing Conditions and FCM Regulations into consideration.

3. Details

A. EurexOTC Clear Release 14.0

The following enhancements of Eurex Clear Release 14.0 related to Nordic currencies and PLN require an update of the Clearing Conditions:

• Introduction of Stub Interpolation for DKK, NOK, PLN and SEK 
• Clearing of IRS and FRAs referring to 3M Index in DKK, NOK and PLN
• Clearing of Basis Swaps (3M vs 6M) for DKK, NOK and PLN
• Maturity extension for PLN OTC trades from 11Y to 16Y (or 5,871 calendar days)

Furthermore, the maximum maturity of EUR Swaps will be extended to 61 years (or 22,335 calendar days). The extension is applied to EUR Interest rate swaps (IRS) (Fix/Float), Overnight index swaps (OIS), and Basis Swaps (Float/Float).

In addition, original new OTC Transactions submitted via non-SEF Approved Trade Source for the purposes of US Reporting shall contain unique transaction identifiers as of 5 December 2022. Members are advised to check the Functional Release Notes of EurexOTC Clear Release 14.0 for further details.

To reflect the enhancements, the following provisions will be amended as outlined in Attachments 1 and 2:

• Chapter VIII Part I No 1.6 and Part II No 2.1.5.1 of the Clearing Conditions
• Chapter II Part II No 2.1.5.1 of the FCM Regulations.

B. Further minor amendments 

Eurex Clearing applies further minor amendments to the Clearing Conditions and FCM Regulations to remove certain LIBOR references.

To implement these changes, the following provisions will be amended as outlined in Attachment 1 and 2:

• Chapter VIII Part I No 1.6, No 1.7 and No 1.8.2 and Part II No 2.1.5.1 and 2.2.5 of the Clearing Conditions
• Chapter II Part I No 1.8.2 and Part II No 2.1.5.1 and 2.2.5 of the FCM Regulations.

Publication of amendments to the Clearing Conditions 

As of the effective date, the full version of the amended Clearing Conditions will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Rules & Regs > Eurex Clearing Rules and Regulations

The amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties.

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.
  
Attachments: 

1.    Amended sections of Chapter VIII of the Clearing Conditions
2.    Amended sections of Chapter II of the FCM Regulations
 

Further information