Amendments to the Clearing Conditions of Eurex Clearing AG related to Failure to Deliver Securities

1.  Introduction

This circular contains information with respect to amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) regarding the following topics:

A.  Clarifications on Failure to Deliver Securities in respect to cash settlement
B.  Extension of thresholds for contractual penalties in respect to a Failure to Deliver Securities 
C.  Extension of liability for late settled deliveries at settlement location SIX SIS
D.  Clarification on the definition of Settlement Amount in relation to a GC Pooling Repo Transaction

The amendments to the Clearing Conditions will come into effect as of 16 June 2025.

2.  Required action

Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients, vendors and other affected contractual parties should take the amendments to the Clearing Conditions into consideration. 

3.  Details 

A. Clarifications on Failure to Deliver Securities in respect to cash settlement

The amended provisions clarify that for a cash settlement after an unsuccessful buy-in attempt, the cash settlement amount is converted into the settlement currency of the respective sell trade or buy trade in case currencies deviate.

To reflect the amendments in the Clearing Conditions, the following provisions will be amended as outlined in Attachment 1:

• Chapter V Part 2 Number 2.2.1 (3) and (5) of the Clearing Conditions

B. Extension of thresholds for contractual penalties in respect to a Failure to Deliver Securities

Thresholds for Late Delivery Fines on dividend record date are extended by values in currencies South African Rand (ZAR), Hong Kong Dollar (HKD) and Chinese Yuan Renminbi (CNY).

To reflect the amendments in the Clearing Conditions, the following provisions will be amended as outlined in Attachment 1:

• Chapter V Part 2 Number 2.2.1 (6) (b) of the Clearing Conditions

C. Extension of liability for late settled deliveries at settlement location SIX SIS

Eurex Clearing extends the liability of Clearing Members for damages resulting from a late settled delivery in securities at settlement location SIX SIS on a settlement day. If a delivery in securities towards Eurex Clearing AG in context of a physical delivery of an Eurex Transaction occurs at the Settlement Location SIX SIS AG on a settlement day after 15:00 CE(S)T, the Clearing Member delivering the securities shall indemnify Eurex Clearing AG against any liabilities and claims including penalty claims asserted by a Clearing Member being a buyer of respective securities.

To reflect the amendments in the Clearing Conditions, the following provisions will be amended as outlined in Attachments 1 and 2:

• Chapter V Part 2 Number 2.2.1 (6) (b) and (7) of the Clearing Conditions
• Chapter II Part 2 Numbers 2.5.4 and 2.7.4 and Part 3 Numbers 3.5.6 and 3.6.6 of the Clearing Conditions

D. Clarification on the definition of Settlement Amount in relation to a GC Pooling Repo Transaction

Eurex Clearing further clarifies the definition of “Settlement Amount” in relation to a GC Pooling Repo Transaction.

To reflect the amendments in the Clearing Conditions, the following provisions will be amended as outlined in Attachment 3:

• Chapter IV Part 3 Number 3.2.2 (4) of the Clearing Conditions

Publication of amendments to the Clearing Conditions

As of the effective date, the full version of the amended Clearing Conditions 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 > 1. Clearing Conditions

The amendments to the legal framework of Eurex Clearing AG 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 prior to the relevant effective date(s) as stipulated in this circular. In case of an objection by the respective contractual party pursuant the preceding sentence, Eurex Clearing AG is entitled to terminate the respective contract (including a Clearing Agreement, if applicable). Instead of submitting an objection, the respective contractual party may submit in writing to Eurex Clearing AG comments to any amendments of the legal framework of Eurex Clearing AG within the first 10 Business Days after the publication of the amendments. Eurex Clearing AG shall assess whether these comments prevent the published amendments from becoming effective taking into account the interests of Eurex Clearing AG and all contractual parties. 

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 V of the Clearing Conditions of Eurex Clearing AG
• 2 – Amended sections of Chapter II of the Clearing Conditions of Eurex Clearing AG
• 3 – Amended sections of Chapter IV of the Clearing Conditions of Eurex Clearing AG

Further information