Activity

Eurex Clearing is a central counterparty (CCP) that provides a comprehensive suite of clearing services across various asset classes. Their main services include:
1. Clearing of Exchange-Traded Derivatives:
* This covers a wide range of products listed on the Eurex Exchange, including:
* Equity Derivatives: Options and futures on individual stocks.
* Equity Index Derivatives: Options and futures on major European and international indices like the EURO STOXX 50.
* Interest Rate Derivatives: Futures and options on German government bonds (Bund, Bobl, Schatz), Euro-BTP futures, and Euro-OAT futures.
* Volatility Derivatives: Futures and options on volatility indices like VSTOXX.
* Dividend Derivatives: Futures on the dividends of major European companies and indices.
* ETF and ETC Derivatives: Futures and options on Exchange Traded Funds and Exchange Traded Commodities.
* FX Derivatives: Futures and options on major currency pairs.
* Commodity Derivatives: Futures and options on various commodities.
* Cryptocurrency Derivatives: Futures on cryptocurrencies.
2. OTC Clearing (EurexOTC Clear):
* Eurex Clearing offers clearing services for Over-The-Counter (OTC) derivatives, including:
* Interest Rate Swaps (IRS): Clearing of EUR-denominated interest rate swaps.
* Inflation Swaps: Clearing of zero-coupon inflation swaps.
* This service helps to reduce counterparty risk and improve capital efficiency for participants in the OTC market.
3. Clearing of Securities and Repo Transactions:
* Eurex Clearing also provides services for:
* Equities: Clearing of trades executed on the Frankfurt Stock Exchange (Xetra and floor trading).
* Bonds: Clearing of bond transactions.
* Secured Funding and Financing (Eurex Repo): This includes:
* Special and GC Repo: Clearing of specific and general collateral repurchase agreements.
* GC Pooling Repo: Clearing of standardized secured funding with central clearing.
* eTriParty Repo: Electronic tri-party repo services.
* HQLA Repo: Repo transactions focusing on high-quality liquid assets.
4. Transaction Management:
* This encompasses the post-trade processing of cleared transactions, including:
* Cash Management: Handling of payments and cash flows related to clearing activities.
* Delivery Management: Managing the transfer of securities and other deliverable assets.
* Reporting Services: Providing comprehensive reports on clearing activities to members.
5. Risk Management:
* Eurex Clearing employs sophisticated risk management models (Eurex Clearing Prisma) to calculate and manage the risks associated with cleared transactions. This includes:
* Margining: Calculating and collecting margin (collateral) to cover potential losses.
* Real-time Risk Monitoring: Providing participants with real-time risk data.
* Stress Testing: Assessing the resilience of the clearing system under adverse market conditions.
* Default Management: Having robust procedures in place to handle the default of a clearing member.
6. Collateral Management:
* Eurex Clearing accepts a broad range of eligible collateral and offers services for efficient collateral management.
7. Client Asset Protection:
* Eurex Clearing provides different segregation models (omnibus and individual segregation) to ensure the protection of client assets in accordance with regulations like EMIR.
In summary, Eurex Clearing acts as a central counterparty, standing between buyers and sellers in various markets to reduce counterparty risk and provide efficient post-trade services, underpinned by robust risk management and collateral management frameworks. They cover a wide array of listed and OTC derivatives, as well as securities and repo market segments.

Video courtesy of Eurex

Video courtesy of Eurex