Amendments to the legal framework of Eurex Clearing – Termination of OTC Currency Clearing Services reg. OTC FX Spot, OTC FX Swaps, OTC FX Forwards and OTC Cross-Currency Swaps Transactions

1.  Introduction

This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) and introduces amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions), Default Management Auction Rules of Eurex Clearing AG (DM Auction Rules) and Price List of Eurex Clearing AG (Price List) regarding the following topic:

• Termination of OTC Currency Clearing Services

The amendments to the Clearing Conditions and FCM Regulations will come into effect as of 27 June 2022. 

2.  Required action

There is no required action for the participants.

The technical deactivation of the aforementioned OTC Currency Clearing services has been completed and communicated to the Members. 

3.  Details

The physical settled OTC Currency Clearing service has only seen slow market adoption caused by external factors like COVID-19, market focus on the benchmark reform and prolonged regulatory developments around FX Clearing, so that Eurex Clearing decided to put the service on hold. Therefore, the Management Board of Eurex Clearing took the decision to terminate the clearing services for OTC FX Spot, OTC FX Swaps, OTC FX Forwards and OTC Cross-Currency Swap Transactions with effect from 27 June 2022 for the time being.

The NDF Clearing and ETD FX service is not impacted by this decision. 

As part of our global FX strategy and based on market feedback, Eurex will focus with high emphasis on the growing listed FX trading and clearing offering and NDF Clearing in preparation for phase 6 of UMR.

To reflect this decision in the legal framework of Eurex Clearing, the following provisions will be amended as outlined in Attachments 1 to 6:

• Chapter I of the Clearing Conditions
• Chapter VIII of the Clearing Conditions
• Appendix 1 to the Clearing Conditions 
• Appendix 13 to the Clearing Conditions
• DM Auction Rules 
• Price List

Publication of amendments to the Clearing Conditions, DM Auction Rules and Price List

As of the effective date, the full versions of the amended Clearing Conditions, the DM Auction Rules and the Price List 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 changes and amendments to the Clearing Conditions, the DM Auction Rules and the Price List 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 within the first ten (10) Business Days after publication. Any ordinary right of Eurex Clearing AG to terminate the respective contract (including the Clearing Agreement, if applicable) shall remain unaffected.

Please note: The go-live of Eurex Clearing’s OTC Non-Deliverable Forwards (NDF) service has been published via Eurex Clearing Circular 033/22 and remains unaffected.

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 I of the Clearing Conditions
• 2 – Amended sections of Chapter VIII of the Clearing Conditions
• 3 – Amended sections of Appendix 1 to the Clearing Conditions
• 4 – Amended sections of Appendix 13 to the Clearing Conditions
• 5 – Amended sections of the DM Auction Rules
• 6 – Amended sections of the Price List

Further information