Re-use possibilities for GC Pooling Collateral Receivers which should be extended by offering option to pledge received GC Pooling collateral further to cover margin requirements in non-cleared OTC derivatives market (uncleared margin rules - UMR).
Description of redemption process for Repo Transactions to be added to Clearing Conditions; and penalty payment in case of a settlement failure after a successful buy-in auction shall be always in EUR, independent of actual securities transaction currency.
GC Pooling Collateral Re-Use for UMR
Currently, GC Pooling Collateral Receivers can re-use their received collateral for pledges towards EUREX Clear, Bundesbank or Banque Central du Luxembourg.
To enhance collateral optimization opportunities, clearing members should be enabled to re-use their GC Pooling Collateral to cover margin requirements in non-cleared OTC derivatives market; regarding other GC Pooling Collateral re-use options, collateral will remain siloed in Clearstream’s Triparty Collateral Management system, Cmax.
Redemption Process for Repo Transactions
Currently, in case a bond matures during the lifecycle of a Repo Transaction, EUREX Clear’s C7 SCS system performs an automated redemption; pending delivery instruction will be manually cancelled and two new cash instructions will be instructed.
The process should be reflected accordingly in EUREX Clear's clearing conditions.
Settlement Failure Penalty Payment
In settlement failure after a successful buy-in auction, penalty payment shall be always charged in currency EUR, independent of currency of actual securities transaction.
In this context, Number 10.3.1 of EUREX Clear's Auction Terms will be amended.
Effectiveness
Implementation date of the changes is Oct. 21, 2024; no participant action required.
Sep. 25, 2024 CFTC Certification
On Sep. 25, 2024, EUREX Clear certified amendments to CFTC; date of intended implementation for Amendment No. 1 is Oct. 21, 2024, Amendment No. 2 is Nov. 18.
