As part of the Default Management Process, we establish so-called Default Management Committees (DMCs), which are staffed with employees of pre-selected Clearing Members which advise and assist us with regard to all Default Management Process-related matters.
We implement one DMC per Liquidation Group (LG) and each Committee consists of 2-4 DMC members. DMCs are continuously defined, so both Clearing Members and individual DMC members are aware of their assignment prior to any default situation.
Please note that Eurex Clearing might not implement a DMC for a particular LG, if the overall exposure in such LG does not require such measure from a risk perspective.
Scope of a Default Management Committee's mandate
Main task of each DMC is to help Eurex Clearing to define hedging strategies and to support the subsequent liquidation of respective positions. Ideally, DMC members are traders or former traders at the respective Clearing Member institution, who facilitate a successful Default Management Process by leveraging their professional expertise.
Nomination of DMC members
Volunteer for a Default Management Committee
Generally, any Clearing Member active in a particular Liquidation Group can volunteer to participate in the Default Management Committee (DMC) established for such group, by sending an e-mail to DMP_Inbox@eurexclearing.com. If the number of volunteers exceeds the number of DMC members needed, Clearing Members are assigned according to their cleared volumes (proprietary) in the last three months prior to the DMC assignment phase.