Choosing a Clearing Member
Please have a look at the end of the page.
Under further information you can find a complete list of existing clearing members to choose from; It is also possible to have multiple clearing relationships.
Clients can be either undisclosed or disclosed to Eurex Clearing.
There is no onboarding process at Eurex Clearing for undisclosed clients. The relationship remains solely between the CM and the client. Therefore, please approach your potential Clearing Members directly for details of their onboarding process.
Disclosed clients are known to the Clearing Member (CM) and disclosed to Eurex Clearing, but are not required to enter into a tripartite clearing agreement between them. Disclosed Direct Clients are subject to a simplified on-boarding process. A more detailed compliance check during on-boarding is only required for Disclosed Direct Clients requesting post-trade management activities with respect to transactions relating to them.
DC Market Participants
DC Market Participants are Trading Participants who do not hold a clearing licence, but execute their own transactions on the exchange. DC Market Participants must have their own infrastructure to manage positions and back office activities, either directly or by outsourcing this function. A Eurex Direct Market Participant is also required to have a Qualified Back-Office Staff member (QBO).
Direct Market Participants are required to have access to the Common Report Engine as well as trading and clearing systems. Direct Market Participants are eligible for all segregation models.
Disclosed Clients (DCs)
DCs do not have a clearing licence and are not a Eurex Trading Participant. The DC concept was initially introduced with Eurex Clearing’s EurexOTC Clear IRD offering and was later extended to include the Eurex Exchange. For OTC IRD, clients are required to be a member/ user of an Approved Trade Source, such as MarkitWire or Bloomberg, to enter OTC IRD trades. DCs may also be active in listed derivatives but they are not able to execute their own trades. All segregation models are eligible for DCs.
DCs may have access to the Eurex Clearing Common Report Engine (CRE) and, at the discretion of their CM, individually segregated DC's may have access to the Eurex Clearing Graphic User Interfaces (GUIs).
FCM Clients are Basic Disclosed Clients and are always operating within the LSOC environment.
Fund Managers (FMs)
Eurex Clearing has developed a specific approach to facilitate the on-boarding of fund managers. The fund manager set-up allows the asset management company to sign on behalf of an unlimited number of funds (when the funds have no legal personality). The Fund manager becomes a technical DC and sits above an umbrella of funds, each of which is given their own position account. Each fund becomes the legal DC. Fund managers may use any one of our available segregation models.
For the listed and OTC IRD markets we have a new online onboarding tool, so everything must be done via our members section. Your CM will trigger access for you.
The information you enter via the tool will be used to auto-populate the forms and agreements we need from you. If you are a fund manager or a DC using flexible accounts then you will need to complete the flexible account sheet as well.
If you are an DC Market Participant then you must have a qualified staff member in your back office. They can either be signed off by your compliance team or complete one of our courses and/or exams offered by our capital markets academy. If the DC Market Participant is outsourcing their back office functionality then they may also outsource this requirement.
We have a comprehensive suite of segregation models to fit every business need. Please see the section of our website dedicated to client asset protection, for guidance on which model might be a good fit for you.
We have also created a useful guide for clients.
To test connection to the service, workflow, margin processes and reports, a simulation environment has been set up for both Clearing Members and their clients. Your Account Manager will help you with this.
Listed and OTC IRD clients now all onboard via our online onboarding tool.