Introduction of a new OTC IRD BASIC Pack Special Offer 2023

1.  Introduction

With effect from 17 March 2023, Eurex Clearing will introduce:

• an OTC IRD BASIC Pack Special Offer 2023 which includes a fixed-fee based clearing of own OTC Interest Rate Derivatives Transactions (IRS, OIS and FRA and Basis swaps) as well as Zero-Coupon Inflation Swaps (ZCIS) for EUR 125,000 per month.
• Compared to the Basis Pack as outlined in Number 10.4 of the Price List of Eurex Clearing AG (Price List), the included volume thresholds are circa 50 percent higher, and also unlimited clearing of ZCIS is included.

Features of the OTC IRD BASIC Pack Special Offer 2023:

• This offer is available to all Clearing Members (including FCM Clearing Members) and to a group of affiliated Clearing Members (including FCM Clearing Members) and eligible affiliated Disclosed Clients which fulfil the personal prerequisites for a clearing license (a downgrade from GOLD Pack or Discounted GOLD Pack to BASIC Pack Special Offer 2023 is not possible)
• Term: The OTC IRD BASIC Pack Special Offer 2023 will have a term of 12 consecutive calendar months, starting on the first day of the month subsequent to the month of booking.
• The OTC IRD BASIC Pack Special Offer 2023 allows the clearing of IRS, OIS, FRA, Basis swaps and ZCIS transactions without extra booking fees and maintenance fees up to certain volume thresholds (see below)
• Booking Fees: no booking fees up to the following volume thresholds (cumulated cleared notional for a term of 12 months):
  • IRS/OIS/Basis: EUR 300 bn (instead of EUR 200 bn as in the standard BASIC Pack according to the Price List)
  • FRA: EUR 750 bn (instead of EUR 500 bn as in the standard BASIC Pack)
  • ZCIS: unlimited (not included in the standard BASIC Pack)
• Maintenance Fees: no maintenance fees up to the following thresholds (outstanding notional at the end of a month covered by the BASIC Pack Special Offer 2023 subscription):
  • IRS/OIS/Basis: EUR 750bn (instead of EUR 500 bn as in the standard BASIC Pack)
  • FRA: n/a
  • ZCIS: unlimited (not included in the standard BASIC Pack)
• Price: EUR 1,500,000 p.a. payable in equal monthly instalments of EUR 125,000 (compared to the regular BASIC Pack and the ZCIS GOLD Pack this offer is equal to an implied discount of 60 percent)
• Cleared volumes covered by other rebate schemes such as the CCP Switch Rebate Scheme do not count against the volume thresholds of this OTC IRD BASIC Pack Special Offer 2023.

2.  Required action

Registration for the OTC IRD BASIC Pack Special Offer 2023:

Clearing Members (including FCM Clearing Members) may register for the OTC IRD BASIC Pack Special Offer 2023 by way of submitting the corresponding registration form attached to this circular. Please proceed the following steps:

• Registration for the OTC IRD BASIC PACK Special Offer 2023: Complete the attached EurexOTC-Interest-Rate-Derivatives-Registration-Form-for-CM-BASIC-Pack-Special-Offer and select the OTC IRD BASIC PACK Special Offer 2023; if desired, select “Registration of affiliated Clearing Members and Disclosed Clients for OTC IRD BASIC PACK Special Offer 2023” to apply the OTC IRD BASIC PACK Special Offer 2023 to a group of affiliates. 
• Submit the signed form to your Key Account Manager Clearing latest by 14 April 2023 to apply the benefits of the OTC IRD Basic Pack Special Offer 2023 from the first day of the subsequent month of booking.  

3.  Details of the initiative

a) Overview of the OTC IRD BASIC PACK Special Offer 2023

The OTC IRD BASIC Pack Special Offer 2023 allows subscribers the clearing of own transactions (that are booked to the respective house account (i.e. P-account) for all OTC IRD products including IRS, OIS, Basis swaps, FRA and ZCIS across all currencies without extra booking fees and maintenance fees up to the following volume thresholds:

• Booking Fees: no booking fees up to the following volume thresholds (cumulated cleared notional for a term of 12 months)):
  • IRS/OIS/Basis: EUR 300 bn (instead of EUR 200 bn as in the standard BASIC Pack according to the Price List)
  • FRA: EUR 750 bn (instead of EUR 500 bn as in the standard BASIC Pack)
  • ZCIS: unlimited (not included in the standard BASIC Pack)
• Maintenance Fees: no maintenance fees up to the following thresholds (outstanding notional at the end of a month covered by the BASIC Pack Special Offer 2023 subscription):
  • IRS/OIS/Basis: EUR 750 bn (instead of EUR 500 bn as in the standard BASIC Pack)
  • FRA: n/a
  • ZCIS: unlimited (not included in the standard BASIC Pack)

All transactions above these volume thresholds are billed according to the Standard Pricing Model A (as set out in the Price List) and will be charged in addition to the monthly fee for the OTC IRD BASIC Pack Special Offer 2023.

OTC IRD BASIC Pack Special Offer 2023 applies from the subsequent month of booking (with 1 May 2023 being the latest start date possible for the subscription) and lasts 12 consecutive calendar months. For each month a participant (or a group of participants – see below) has subscribed to the OTC IRD BASIC Pack Special Offer 2023, a flat fee of EUR 125,000 per month is payable by such participant or group of participants which is not eligible for further rebates.

To the extent not provided otherwise in the attached registration form, the provision in Number 10.4 on the BASIC Pack applies mutatis mutandis to the OTC IRD BASIC Pack Special Offer 2023.

b) Eligible Participants of the OTC IRD BASIC Pack Special Offer 2023 rebate scheme

The OTC IRD BASIC Pack Special Offer 2023 is available to all Clearing Members, groups of affiliated Clearing Members and eligible affiliated Disclosed Clients which fulfil the personal prerequisites for a clearing license according to Chapter I Part 1 Number 2.1.2 (2) of the Clearing Conditions of Eurex Clearing AG.

If a group registers for the OTC IRD BASIC Pack Special Offer 2023, all benefits of the Discounted OTC IRD BASIC Pack may be shared by all Clearing Members and eligible Disclosed Clients that form part of the same group. The fixed fee will be allocated monthly to the group affiliates according to their individual performance measured as the sum of the monthly undiscounted gross revenues with regards to covered products.

c) Consideration of further rebate schemes and eligibility of Clearing Members

A downgrade from a GOLD Pack or Discounted GOLD Pack to the BASIC Pack Special Offer 2023 is not possible.

The fixed fee of EUR 125,000 per month for the OTC IRD BASIC Pack Special Offer 2023 may not be subject to additional rebates. 

Any other rebates a Clearing Member may qualify for with respect to booking fees and/or maintenance fees for products covered by the OTC IRD BASIC Pack Special Offer 2023 will expire with the registration to the OTC IRD BASIC Pack Special Offer 2023, except for CCP Switch-related rebates. Transactions benefitting from CCP Switch-related rebates will not count towards the volume thresholds under the OTC IRD BASIC Pack Special Offer 2023.

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.

Attachment:

• EurexOTC-Interest-Rate-Derivatives-Registration-Form-for-CM-BASIC-Pack-Special-Offer 

Further information