Introduction of two new OTC IRD Pricing Pack Special Offers for 2024 and prolongation of fixed Booking Fee Discount in Standard Pricing Model B

1.   Introduction

As part of the annual review for OTC Interest Rate Derivative (IRD) Transactions, Eurex Clearing will introduce the following amendments:

A.   Effective 31 October 2023: Introduction of two new OTC IRD Pricing Pack special offers for 2024 with the following features:

1)  Discounted OTC IRD GOLD Pack 2024 which includes unlimited clearing of own OTC Interest Rate Derivatives Transactions (IRS, OIS, FRA and Basis swaps) as well as Zero-Coupon Inflation Swap (ZCIS) transactions across all currencies for a fixed fee of EUR 215,000 per month (equal to a discount of ~17% on the regular fees for the combined GOLD Packs).

2)  Introduction of an OTC IRD BASIC Pack Special Offer 2024 which includes a fixed-fee based clearing of own OTC Interest Rate Derivative 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 50 percent higher and the OTC IRD Basic Pack Special Offer 2024 also includes unlimited clearing of ZCIS transactions.

Current OTC IRD BASIC Pack subscribers may upgrade to the Discounted OTC IRD GOLD Pack 2024 or the regular OTC IRD GOLD Pack. 

B.   Effective 1 January 2024: Prolongation of fixed Booking Fee Discount in Standard Pricing Model B. The current discount of 15 percent on the booking fee for OTC IRD Transactions in the Standard Pricing Model B for Disclosed Clients will be prolonged until 31 December 2024.

Features of the Discounted OTC IRD GOLD Pack 2024:

• 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
• Unlimited clearing of all OTC IRD products including IRS, OIS, Basis, FRA and ZCIS across all currencies – no limits on cleared or outstanding volumes apply
• Subscription deadline for the Discounted OTC IRD GOLD Pack 2024: 31 March 2024
• Term Discounted OTC IRD GOLD Pack 2024: The Discounted OTC IRD GOLD Pack 2024 will be valid until 31 December 2025, starting from the first calendar day of the month subsequent to the month of booking, or in case of an ongoing rebate scheme subscription, on the first calendar day of the month subsequent to the expiry of a previous rebate scheme by Eurex Clearing (current OTC IRD GOLD Pack subscribers have explicitly the possibility to already book the new Discounted OTC IRD GOLD Pack 2024 in order to extend and secure their “all clear”-subscription under the new beneficial terms)
• Price Discounted OTC IRD GOLD Pack 2024: EUR 215,000 per month (compared to the IRS, OIS and FRA GOLD Pack and the ZCIS GOLD Pack this offer is equal to a ~17% discount)
• Current OTC IRD BASIC Pack subscribers may upgrade to the Discounted OTC IRD GOLD Pack 2024 until 31 March 2024; If booked, the benefits and terms and conditions of the Discounted OTC IRD GOLD Pack 2024 will automatically be applied with effect from the first calendar day of the month subsequent to the month of booking and replace the terms & conditions of the previous OTC IRD BASIC Pack rebate scheme subscription

Features of the OTC IRD BASIC Pack Special Offer 2024:

• 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 the GOLD Pack or Discounted GOLD Pack to the BASIC Pack Special Offer 2024 is not possible)
• Term: The OTC IRD BASIC Pack Special Offer 2024 rebate scheme will have a term of 12 calendar months. Once booked, it will automatically be applied once the previous OTC IRD BASIC Pack subscription expires or, in case of new joiners, as of the first calendar day of the subsequent month of booking (current OTC IRD BASIC Pack subscribers have explicitly the possibility to already book the new OTC IRD BASIC Pack Special Offer 2024 rebate scheme in order to extend and secure their subscription under the new beneficial terms)
• The OTC IRD BASIC Pack Special Offer 2024 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, measured for the subscription period from start to end)

o    IRS/OIS/Basis: EUR 300 bn (instead of EUR 200 bn as in the standard BASIC Pack according to the Price List)
o    FRA: EUR 750 bn (instead of EUR 500 bn as in the standard BASIC Pack)
o    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 subscription):

o    IRS/OIS/Basis: EUR 750bn (instead of EUR 500 bn as in the standard BASIC Pack)
o    FRA: n/a
o    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

2.   Required action

Regarding point A: Registration for the Discounted OTC IRD GOLD Pack 2024 or OTC IRD BASIC Pack Special Offer 2024: 

Clearing Members (including FCM Clearing Members) may register for the Discounted OTC IRD GOLD Pack 2024 or the OTC IRD BASIC Pack Special Offer 2024 by way of submitting the corresponding registration form attached to this circular. Please take the following steps:

i.    Registration for the Discounted OTC IRD GOLD Pack 2024: Complete the attached EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-Discounted-GOLD-Pack-2024 (Attachment 1) and select the Discounted GOLD Pack 2024; if desired, select “Registration of affiliated Clearing Members and Disclosed Clients for GOLD Pack Rebate Scheme” to apply the Discounted OTC IRD GOLD Pack 2024 to a group of affiliates.

Registration for the OTC IRD BASIC PACK Special Offer 2024: Complete the attached EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-BASIC-Pack-Special-Offer-2024 (Attachment 2) and select the OTC IRD BASIC PACK Special Offer 2024; if desired, select “Registration of affiliated Clearing Members and Disclosed Clients for OTC IRD BASIC PACK Special Offer 2024” to apply the OTC IRD BASIC PACK Special Offer 2024 to a group of affiliates.

ii.    Submit the signed form to your Key Account Manager Clearing latest by the end of a month to apply the chosen OTC IRD Pricing Pack 2024 from the first calendar day of the month subsequent to the month of booking.

3.   Details of the initiative

A. Overview of the OTC IRD Pricing Pack Special Offers 2024

a) Overview of the Discounted OTC IRD GOLD Pack 2024

The Discounted OTC IRD GOLD Pack 2024 allows subscribing Clearing Members (including FCM Clearing Members) and groups of affiliated Clearing Members (including FCM Clearing Members) unlimited clearing of all OTC IRD products including IRS, OIS, Basis, FRA and ZCIS across all currencies.

The Discounted OTC IRD GOLD Pack 2024 is valid until 31 December 2025, starting from the first calendar day of the month subsequent to the month of booking, or in case of an ongoing rebate scheme subscription, on the first calendar day of the month subsequent to the expiry of a previous rebate scheme by Eurex Clearing. This special offer is offered at a fixed fee of EUR 215,000 per month which is equal to a discount of ~17% compared to the regular fees for the combined GOLD Packs.

The Discounted OTC IRD GOLD Pack 2024 can be booked until 31 March 2024. Current OTC IRD GOLD Pack (and OTC IRD Basic Pack) subscribers may book the Discounted OTC IRD GOLD Pack 2024 to already secure and extend their “all-clear” subscription under the new beneficial terms.

b) Overview of the Discounted OTC IRD BASIC PACK Special Offer 2024

The OTC IRD BASIC Pack Special Offer 2024 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, measured for the subscription period from start to end):

o    IRS/OIS/Basis: EUR 300 bn (instead of EUR 200 bn as in the standard BASIC Pack according to the Price List)
o    FRA: EUR 750 bn (instead of EUR 500 bn as in the standard BASIC Pack)
o    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 subscription):

o    IRS/OIS/Basis: EUR 750 bn (instead of EUR 500 bn as in the standard BASIC Pack)
o    FRA: n/a
o    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 2024.

The OTC IRD BASIC Pack Special Offer 2024 is valid for 12 calendar months, starting from the first calendar day of the month subsequent to the month of booking, or in case of an ongoing rebate scheme subscription, on the first calendar day of the month subsequent to the expiry of a previous rebate scheme by Eurex Clearing. The Price for the OTC IRD Basic Pack Special Offer 2024 is EUR 125,000 per month (compared to the regular BASIC Pack and the ZCIS GOLD Pack, this offer is equal to an implied discount of 60 percent).

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 2024.

c) Eligible Participants of either of the OTC IRD Pricing Pack Special Offers 2024 rebate schemes for Clearing Members

The Discounted OTC IRD GOLD Pack 2024 as well as the OTC IRD Basic Pack Special Offer 2024 are available to all Clearing Members (including FCM Clearing Members), groups of affiliated Clearing Members (including FCM Clearing Members) and affiliated Disclosed Direct 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.

All benefits of the respective pricing pack may be shared by all Clearing Members (including FCM Clearing Members) and eligible Disclosed Direct Clients that form part of the same group for the same fixed fee. The respective subscription fee will be allocated monthly to the group affiliates according to their individual performance measured as the sum of the monthly undiscounted gross revenues.

d) Upgrade from the OTC IRD BASIC Pack rebate scheme to either of the OTC IRD GOLD Pack rebate schemes

All OTC IRD BASIC Pack subscribers and groups of subscribers may upgrade from the OTC IRD BASIC Pack rebate scheme to the Discounted OTC IRD GOLD Pack 2024 or the regular OTC IRD GOLD Pack rebate scheme until 31 March 2024. The chosen GOLD Pack may be applied with effect from the first calendar day of the month of booking, if the respective GOLD Pack is booked via one of the eligible registration forms and the form submitted to the respective Key Account Manager by the end of that month. Subscribers that wish to upgrade to the OTC IRD GOLD Pack after 31 March 2024 need to obtain the Package at the regular fixed fee in accordance with the Price List.

Upgrade and registration for the Discounted OTC IRD GOLD Pack 2024 rebate scheme can be done using the attached registration form. Please submit your completed registration form to your Key Account Manager Clearing.

B. Prolongation of Booking Fee Discount in Standard Pricing Model B

Eurex Clearing introduced the OTC IRD Standard Pricing Model B for Disclosed Direct Clients in March 2019 to provide an alternative fee schedule for participants which prefer clearing fee charges based on initial margin requirements.

The Standard Pricing Model B was initially introduced with a fixed discount of 15 percent on the applicable booking fee for OTC IRD Transactions cleared under this pricing model (Number 10.2.2 of the Price List). As this booking fee discount is due to expire on 31 December 2023, Eurex Clearing hereby extends this discount until 31 December 2024. 

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 – EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-Discounted-GOLD-Pack-2024
• 2 – EurexOTC-Interest-Rate-Derivative-Registration-Form-for-CM-BASIC-Pack-Special-Offer-2024

Further information