Default Management Fire Drill (CIDS 2025): Default simulation starting 3 November 2025

1.   Introduction

CCP Global International Default Simulation (CIDS) 2025:

Eurex Clearing AG (ECAG) conducts annual simulations (“Fire Drills”) of its Default Management Process (DMP) to test both its internal processes and Clearing Member’s (CM’s) readiness, including their compliance with mandatory participation requirements.

This year’s Fire Drill will be complemented by a Client Porting Simulation to test the porting process. Both CMs and Disclosed Direct Clients may voluntarily participate in the Client Porting Simulation.

The Fire Drill and Porting Simulation will start on 3 November 2025 as part of the CIDS 2025.

This circular provides additional information on required actions (Section 2) along with further details on the Fire Drill scope (Section 3) referencing Eurex Clearing Circular 029/25 from 5 May 2025.

2.   Required action

Fire Drill:

• All CMs: Please update your “DMP coordinator” and “DMP-deputy” contact data in the Member Section to facilitate subsequent communication with the correct counterparts within your organization. A guide and more details are available on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Services > Risk management > Default Management Process
  at the bottom under „Further information“.
• CMs with mandatory participation requirements: ECAG will contact each CM about its participation requirements in the first week of September 2025. CMs not contacted may assume they are not required to participate.
• CMs signed up as Hedging Auction participant: The Fire Drill will cover Hedging Auctions for our major asset classes as per Fire Drill scope outlined in Section 3 of this circular.
• Clients/CMs who are not mandated but might wish to voluntarily engage in the portfolio liquidation process and/or overall DMP: Please contact ”dmp_inbox@deutsche-boerse.com” and your CM to have the appropriate participation documentation and user setup ready.

Client Porting Simulation:

The Client Porting Simulation is an opportunity for Disclosed Direct Clients (gross omnibus segregated as well as individually segregated) to test the necessary steps for a transfer of open positions as well as assigned collateral to another CM (the “Replacement CM”) in case their CM defaults. For CMs, it is an opportunity to test the process to become such a “Replacement CM”.

To engage in the Client Porting Simulation, please contact: client.services@eurex.com by end of September 2025.

3.   Details of the initiative

Fire Drill scope:

The preliminary scope covers the following Liquidation Groups (LG):

• Equity Derivatives (PEQ01): Futures/Options with Hedging-/Liquidation-Auction(s)
• FI Derivatives (PFI01): Hedging-/Liquidation-Auction(s) for Listed FI- & OTC FI-Derivatives
• Listed FX Derivatives (PFX01)
• Cash bonds and repo (PBN01)
• Centrally cleared cash market products (FWB)
• Crypto linked Derivatives (PCY01)

For each asset class, ECAG nominates CMs for whom participation is mandatory in accordance with Chapter I, Part 1, Number 7.5.5 of the Clearing Conditions of Eurex Clearing AG.

Details regarding the final scope, indicative auction schedule and participation requirements will be made available in the invitation info provided to the affected CMs.

In addition to mandatory participants, voluntary participation is open to CMs and clients. The simulation allows all participants to understand and comply and familiarize with ECAG’s DMP.

Important: In case of a real Termination Event (default), non-compliance with mandatory bidding obligations can result in a juniorization of Default Fund Contributions and monetary penalties. Non-compliance in a simulation/real event is reported to ECAG’s National Competent Authority.
 

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.

Further information