Changes include Enhancement of Inflation Linked Asset Swaps, Clearing of all Linked Trades submitted via MarkitWire, as well as the new Introduction of MtM Adjustment.
Also, Enhancement of Variation Margin Calculation for trades referencing GBP-SONIA-OIS Compound and EUR-EuroSTR-OIS Compound indices and having intraday coupon settlement, various Report Changes, as well as GUI Changes and various API Changes.
EUREX Clear has described these changes in the Functional Release Notes of EurexOTC Clear Release 18.0 that is accessed via Member SectionResources > Eurex Clearing > Documentation & Files > EurexOTC Clear > System documentation > Overview.
Required Action
The new release will have an impact on the internal processes of all clearing members, on FCM clearing members, and all of their clients who clear EurexOTC Clear products.
May be necessary for them to update their internal processes and technical interfaces.
Users should contact third-party providers as soon as possible to ensure adjustments made, to check if release contacts for EurexOTC Clear are registered and/or updated.
All members should be subscribed to EurexOTC Clear for circulars and newsflashes.
Important Note
To increase the transparency of all software usage on the system, EUREX Clear will implement a new process for registering all the Independent Software Vendors (ISVs).
Additionally, EUREX Clear will introduce a new process for registering all the relevant third-party software offered by ISVs and the in-house software developed by clearing members, all of which is specifically used to connect to FIXML and FpML interfaces.
Finally, the current FIXML and FpML account creation process via the Member Section will be enhanced with the addition of software usage details, to add to transparency.
Clearing members must provide software data on creating account in Member Section.
Effectiveness
Circular announced production launch of EurexOTC Clear Release 18.0, Nov. 18, 2024, with the linked simulation preparation for release 18.0 beginning from Oct. 16, 2024.
Structured clean-up of trades in simulation environment will take place Aug. 30, 2024.
All trades of the captured before Jun. 17, 2024 will no longer be available in simulation environment, participants wishing to keep these trades must confirm by Aug. 9, 2024.
Oct. 2024 Additional Documentation
On Oct. 7, 2024, EUREX Clear announced publication of additional documentation in reference to EurexOTC Clear Release 18.0, which include FpML interface documents.
OTC Error Code List; EurexOTC Clear Simulation Guide; informed that an updated version of EurexOTC Clear Procedures Manual will be published on Nov. 1, 2024.
EurexOTC Clear Release 18.0 will be launched in production on Nov. 18, 2024.
Simulation will start on Oct. 16, 2024, as announced in EUREX Clear circular 047/24.
Oct. 22, 2024 Readiness Statement
On Oct. 22, 2024, EUREX Clear announced that the submission of the readiness statement is required prior to the launch of EurexOTC Clear Release 18.0.
Clearing members are requested to submit the readiness statement by Nov. 8, 2024.
Also reminded that the EurexOTC Clear Release 18.0 production date is Nov. 18, 2024.
The simulation environment has been available for testing since Oct. 16, 2024.
Oct. 23, 2024 Circular 076/24
On Oct. 23, 2024, EUREX Clear issued Circular 076/2024EurexOTC Clear Release 18.0: Amendments to the Clearing Conditions, FCM Regulations of Eurex Clearing AG.
Changes to the Clearing Conditions and the FCM Regs will apply as of Nov. 18, 2024.
Extension of product offering for Standard Coupon Inflation Swaps by supporting the French Inflation Consumer Price Index excluding Tobacco and UK Retail Price Index.
EUREX Clear will also offer the clearing of linked trades submitted via MarkitWire.
Clearing Members and clients can link multiple trades together using MarkitWire's Package Trade function and submit linked trades for clearing on a trade-by-trade basis.
Transfer functions, i.e. trade, account, portfolio will be enhanced by an optional MTM Adjustment; upon request, a MTM Adjustment amount will be attached to the transfer.
It compensates previous day’s trade value, allows the transfer without NPV prefunding.
Minor amendments by removing references to the decommissioned USD LIBOR index.
And updates to the rate used for PAI determination of DKK Interest Rate Derivatives.
Amended Chapter VIII of the Clearing Conditions of Eurex Clearing AG is in Annex 1.
Amended sections of Chapter II of FCM Regs of Eurex Clearing AG are in Annex 2.
Oct. 31, 2024, CFTC 10-Day Review
On Oct. 31, 2024, CFTC issued notice of 10-day review of Eurex Clear rule certification.
Nov. 2024 Production Launch on Nov. 18
On Nov. 5, 2024, EUREX Clear issued circular 080/24 on production launch of EurexOTC Clear Release 18.0 on Nov. 18, 2024, affecting all EurexOTC Clear members.
functions and services introduced with this release may impact on the report and FpML processing of EurexOTC Clear members; explained that after batch processing on Nov. 15, 2024, reports are created based on EurexOTC Clear Release 17.0 format.
And explained Intraday and End-of-Day reports that are created at start of business on Nov. 18, 2024 will be created based on EurexOTC Clear Release 18.0 format.
Detailed information about each release item is published under this link.
Nov. 15, 2024 CFTC Certification
On Nov. 15, 2024, CFTC issued certification of the EurexOTC Clear release and launch.
On Dec. 3, 2024, EUREX Clear published a Readiness Newsflash on the introduction of CSV versions of CB201 and CB202 Reports and update of all respective documentation.
Document dated Dec. 3, 2024, received EUREX Clear, Dec. 9, summarized on Dec. 12.
This followed an announcement on Jul. 9, 2024 when EUREX Clear confirmed it was planning to introduce CSV versions of some EurexOTC Clear XML reports such as the Trade Daily Summary Report (CB201) and Full Inventory Report (CB202) in the future.
EUREX Clear announced introduction of CSV versions of CB201 and CB202, with dates for enabling of reports, in simulation and production environments, indicated in table.
Both reports will be available in simulation from Dec. 9, 2024, and in production with effect from Jan. 13, 2025, with reports initially be available for Clearing Members only.
EUREX Clear has also updated the Report Manual with details of introduced reports.
Updated document is available in Member Section under Resources > Eurex Clearing > Documentation & Files > EurexOTC Clear > System Documentation > Reports area.
