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ARTICLES OF ASSOCIATION OF

EURONEXT AMSTERDAM N.V.

(informal translation)

having its seat in Amsterdam, as these read after the execution of the deed of amendment of the 

articles of association executed on 16 December 2015 before a substitute of C. Holdinga, civil-law 

notary in Amsterdam.

The company is registered in the Trade Register under number 34138585.

Definitions

Article 1.

In these articles of association the following expressions shall have the following meanings:

a. the company: the company with limited liability (naamloze vennootschap) Euronext 

Amsterdam N.V., with official seat in Amsterdam;

b. the management board: the management board of the company;

c. supervisory board: the supervisory board of the company;

d. the shareholders' meeting: the body of the company formed by shareholders and other persons 

entitled to vote;

e. the meeting of shareholders: the meeting of shareholders and other persons entitled to attend 

these meetings;

f. depositary receipts: depositary receipts for shares in the company.

Unless stated otherwise, this term includes depositary receipts for shares in the company 

issued without the company's concurrence;

g. holders of depositary receipts: holders of depositary receipts for shares in the company issued 

with the company's concurrence.

Unless stated otherwise this term includes those who as a result of a right of usufruct or pledge 

granted on a share, have the rights granted by law to holders of depositary receipts issued with 

a company's concurrence;

h. subsidiary:

• a legal entity in which the company or one or more of its subsidiaries, whether or not by 

virtue of an agreement with others entitled to vote, can exercise alone or together more 

than half of the voting rights in the meeting of shareholders;

• a legal entity in respect of which the company or one or more of its subsidiaries is a 

member or shareholder, and whether or not by virtue of an agreement with other persons 

entitled to vote, alone or together, can appoint or dismiss more than half of the members 

of the management board including in the event all entitled to vote, do so.
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A company trading under its own name shall be regarded as a subsidiary, where the company 

or one or more subsidiaries is as partner fully liable to creditors for debts.

The provisions of this paragraph shall apply notwithstanding the provisions in section 2:24a 

paragraphs 3 and 4 Dutch Civil Code;

i. group company: a legal entity or company with which the company is affiliated in a group;

j. dependent company:

• a legal entity to which the company or one or more dependent companies alone or jointly 

for own account furnish at least half the issued capital;

• a company for which a business has been filed at the Trade Register and for which the 

company or a dependent company is fully liable as partner for all debts toward third 

parties;

k. those entitled to attend meetings:

• holders of shares with the right to vote;

• holders of shares without the right to vote;

• holders of depositary receipts;

• usufructuaries and pledgees who have been granted the rights conferred by law to holders 

of depositary receipts for shares issued with a company's concurrence;

l. Trade Register: the Trade Register of the Chamber of Commerce in whose register the 

company is filed;

m. works council: the Dutch works council of the company or the enterprise of a dependent 

company.

Name and seat

Article 2.

1. The name of the company is: Euronext Amsterdam N.V.

2. The company has its official seat in Amsterdam.

Objects

Article 3.

The objects of the company are:

• to participate in, to finance, to collaborate with, to conduct the management of and provide 

advice and other services to legal entities and other companies, including in particular legal 

entities and other companies of which the objects are to set up, develop, hold and operate, 

directly or indirectly, one or more exchanges or markets or other facilities with regard to the 

listing of, the trade in, the clearing and settlement of transactions in, and the custody of, 

securities and derivatives;
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• to enter into joint ventures with other legal entities or other companies engaged in one or more 

of the activities referred to above;

• to acquire, use and dispose of industrial and intellectual property rights as well as real 

property;

• to provide security for the debts of group companies;

• to undertake all that is connected to the foregoing or in furtherance thereof, 

all of the foregoing both directly or indirectly, in and outside the Netherlands, and all in the widest 

sense of the word.

Capital and shares

Article 4.

1. The company's authorized capital amounts to two hundred fifty thousand euro (EUR 250,000) 

and is divided into two hundred fifty (250) shares with a par value of one thousand euro 

(EUR 1,000).

2. The shares shall be registered shares and numbered consecutively from 1 upwards.

3. The company shall not issue share certificates.

4. Depositary receipts in bearer form may not be issued.

Shareholders' register

Article 5.

1. The management board shall keep a register in which the names and addresses of all holders 

of shares are recorded, stating the number of shares held, showing the date on which they 

acquired the shares, the date the transfer has either been acknowledged or served upon the 

company, as well as the amount paid up on each share.

2. In the register, the names and addresses of those who have a right of usufruct or a pledge with 

respect to shares shall also be recorded, showing the date on which they acquired the right, the 

date the granting or assignment of the right has either been acknowledged or served upon the 

company as well as, whether they are entitled to exercise the voting rights attached to the 

shares or the rights conferred by law upon holders of depositary receipts issued with a 

company's concurrence.

3. Each shareholder, usufructuary or pledgee shall ensure that the company is informed of his 

address.

4. The register shall be updated regularly; any discharge of an obligation to make outstanding 

capital contributions shall also be recorded therein.

5. Upon request, the management board shall provide a shareholder, usufructuary or pledgee, 

with an extract from the register reflecting his right on a share, free of charge.

If a share is subject to a right of usufruct or a pledge, the extract shall state to whom the rights 

set forth in paragraph 2 of the present article are vested.
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6. The management board shall deposit the register at the offices of the company for inspection 

by the shareholders and by any usufructuaries and pledgees who have the same rights as 

holders of depositary receipts for shares issued with a company's concurrence.

7. All entries in, copies of, or extracts from the register of shareholders shall be signed in 

conformity with the provisions as stipulated in article 15 paragraph 1.

Issue of shares

Article 6.

1. The issue of shares may be effectuated only by virtue of a resolution adopted by the 

shareholders' meeting, which resolution shall also set out the price and other terms and 

conditions of issue.

Furthermore, the issue of shares requires a notarial deed to that effect, executed before a civillaw notary, officiating in the Netherlands.

2. The company may not subscribe for shares in its own capital at the time shares are issued.

3. Each shareholder shall, with respect to any issue of shares, have a pre-emptive right in 

proportion to the aggregate amount of shares held by him.

He shall have no pre-emptive right in respect of:

• shares issued for a non-cash contribution; and

• shares issued to employees of the company or a group company.

A notice of any issue in respect of which there is a pre-emptive right and the period during 

which such right can be exercised, shall be published by the company in the State Gazette and 

in a nationally distributed daily newspaper, unless the notice to the shareholders will be 

dispatched to the addresses stated by them.

The pre-emptive right may be exercised during a period of at least two weeks after the day of 

publication of such notice in the State Gazette or after the dispatch of the notice to the 

shareholders.

4. The pre-emptive right may be restricted or excluded by a resolution of the shareholders'

meeting.

In the proposal in respect thereof, the reasons for the proposal and the selections of the 

intended issue price shall be explained in writing.

5. The provisions of the previous paragraphs of the present article shall apply accordingly to the 

granting of a right to subscribe for shares.

Shareholders shall, nonetheless, have no pre-emptive right with respect to the issue of shares 

to one who exercises a previously acquired subscription right.

Own shares

Article 7.
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1. Any acquisition under extraordinary title by the company of shares in its own capital, which 

are not fully paid-up, shall be null and void.

2. The company may acquire fully paid-up shares in its own capital:

• for naught; or

• in the event that:

a. the shareholders' equity less the acquisition price is not less than the sum of the paid 

in and called up part of its capital and the reserves that is legally required to 

maintain; and

b. the par value of the shares to be acquired, and of the shares in its capital already held 

by the company, and held as pledgee or which are held by its subsidiaries, is not 

more than one-tenth of the issued capital; and

c. the shareholders' meeting has authorized the management board to make such 

acquisition.

Such authorization shall be valid for not more than eighteen months.

The shareholders' meeting must specify in the authorization the number of shares which may 

be acquired, the manner in which they may be acquired and the limits within which the price 

must be set.

Acquisition of shares contrary to what is mentioned in the present paragraph shall be null and 

void.

Each managing director shall be jointly and severally liable to indemnify the company for the 

acquisition price and the statutory interest thereon from such time.

3. For the purpose of aforementioned paragraph 2.a, the amount of the shareholders' equity 

shown on the most recently adopted balance sheet shall be determined less the acquisition 

price of shares in the capital of the company and third-party distributions from profits or 

reserves that have become payable by the company and its subsidiaries since the balance sheet 

date.

If more than six months have elapsed since the end of the financial year, and no annual 

accounts have been adopted, then an acquisition in accordance with paragraph 2 above shall 

not be permitted.

4. Notwithstanding the provisions of article 2:98 paragraph 3 Dutch Civil Code, the provisions of 

the above paragraphs of the present article shall not apply for shares acquired by the company 

under universal title (algemene titel).

5. The term 'shares' as used in this article shall include depositary receipts issued for shares.

6. The company may transfer fully paid-up shares in its own capital only after the shareholders'

meeting has approved such transfer.

Article 8.
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The company may not grant loans, provide collateral, guarantee the price, otherwise guarantee or 

bind itself jointly and severally with or for third parties, for the purpose of the subscription or 

acquisition by third parties of shares in its capital or of depositary receipts issued therefore.

This prohibition shall also extend to any subsidiaries.

This prohibition shall not apply if shares or depositary receipts for shares are acquired by or for the 

account of employees of the company or of a group company.

Reduction of capital

Article 9.

1. The shareholders' meeting may resolve to reduce the issued capital by cancellation of shares or 

by amending the company's articles to provide for a reduction of the par value of the shares.

The shares referred to in any such resolution must be specified therein and provisions for the 

implementation of such resolution must be made therein.

The paid in capital may not fall below the minimum capital required by law at the time of the 

resolution.

2. A resolution to cancel shares may relate only to shares held by the company itself or with 

respect to shares of which it holds the depositary receipts.

3. Any reduction of the par value of shares without redemption and without a release from the 

obligation to pay up, must be made in proportion to all shares.

This requirement may be waived by agreement of all shareholders affected.

4. Partial repayment on shares is permitted only as a result of the implementation of a resolution 

to reduce the par value of such shares.

Such a repayment or release must be made in proportion to all shares.

This requirement may be waived by agreement of all shareholders affected.

5. For a resolution to reduce the capital, a majority of at least two-thirds of the votes cast shall be 

required if less than one-half of the issued capital is represented at the meeting.

6. The notice convening a meeting at which a resolution referred to in this article is to be adopted 

shall state the purpose of the reduction of capital and the manner of its implementation.

The provisions of paragraph 2 of article 27 of the present articles shall apply accordingly.

7. The company is obliged to publish any resolution referred to in the present article in the 

manner prescribed by law.

A decision to reduce the issued capital shall not come into force as long as creditors of the 

company may oppose thereto pursuant to the provisions of the law with respect thereto.

Transfer of shares

Article 10.
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The transfer of a share and the creation or assignment of a limited right on a share, requires a 

notarial deed to that effect, executed before a civil-law notary, officiating in the Netherlands.

Furthermore, the legal provisions to that effect shall apply.

Restrictions on the transfer of shares

Article 11.

1. Shares may be transferred only after the approval for the proposed transfer has been granted 

by the shareholders' meeting.

A restriction on the transfer of shares as mentioned in this article shall not apply if the 

shareholder must transfer his share to a previous holder pursuant to the law.

For the application of this article shares shall be deemed to include the right to subscribe for 

shares.

2. The request shall be deemed to have been approved:

a. if, within a three-months period of the receipt of the request, the applicant is not informed 

of a decision; or

b. if, together with a rejection of the application, the applicant is not notified by the 

shareholders' meeting of a prospective purchaser or purchasers willing and able to 

purchase for cash all of the shares covered by the application.

3. In case the approval is granted or may be deemed to have been granted, the applicant is free to 

transfer his shares for a period of three-months after the approval has been granted or is 

deemed to have been granted or after the three-months period as referred to under paragraph 

2.a has expired.

4. The company itself may be a prospective purchaser only after having obtained the consent of 

the applicant.

5. Upon request of one or more of the parties the price, for which the prospective purchaser(s), 

accepted by the applicant, can purchase the shares, shall be determined by one independent 

expert to be appointed by the sub district court of the Court within whose jurisdiction the 

company has its official seat.

6. The applicant may withdraw his request within one month of having been notified of the price 

as determined by the expert.

Management

Article 12.

1. The company shall have a management board consisting of one or more managing directors.

The number of managing directors shall be determined by the shareholders' meeting.

2. Managing directors shall be appointed by the shareholders' meeting.

3. Managing directors may at any time be suspended or dismissed by the shareholders' meeting.
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Managing directors may also be suspended by the supervisory board.

4. A suspension may last no longer than three months in total, even after having been extended 

one or more times, unless a resolution for dismissal is adopted, in which case this term runs 

until the end of the employment contract.

5. The remuneration and other terms and conditions under which each individual managing 

director is appointed, shall be determined by the shareholders' meeting, with due observance 

of the policy on remunerations to be determined by the shareholders' meeting.

Article 13.

1. Subject to any restrictions under the present articles, the management board is charged with 

the management of the company.

2. The management board shall adopt resolutions by an absolute majority of the total number of 

votes to be cast by all managing directors in office.

3. At meetings of the management board, each managing director shall be entitled to cast one 

vote.

4. A managing director may be represented, in each case for a specific meeting, at management 

board meetings only by another managing director.

5. The management board may also adopt resolutions without convening a meeting, provided 

that all of the managing directors have been consulted and that none has stated an objection to 

adopting resolutions in this manner.

6. The management board may adopt internal rules regulating its decision-making process and 

may determine an internal allocation of duties, with which duty each managing director is 

responsible for in particular.

Such rules and allocation of duties requires the approval of the shareholders' meeting.

7. Without prejudice to its own responsibility, the management board is authorized to appoint 

persons with such authority by granting power of attorney to represent the company and with 

such titles and powers as shall be determined by the management board.

8. The management board is, without prior approval of the shareholders' meeting, authorized to 

engage in the legal acts set forth in section 2:94 paragraph 1 Dutch Civil Code.

The management board is not entitled to resolve to enter into a legal merger whereby the 

company acts as the acquiring legal entity without the prior approval of the shareholders'

meeting, unless this is a legal merger referred to in article 2:333 Dutch Civil Code.

9. Management board resolutions relating to any of the matters as shall be determined and clearly 

defined by the shareholders' meeting and notified in writing to the management board shall be 

subject to the approval of the shareholders' meeting.

Without prejudice to the provisions above, decisions of the management board involving a 

major change in the company's identity or character are subject to the shareholders' meetings 

approval, including at any rate:
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a. the transfer of the enterprise or practically the whole enterprise to third parties;

b. to enter or to terminate longstanding joint ventures of the company or a subsidiary with 

another legal entity or company or as fully liable partner in a limited partnership or a 

general partnership if this joint venture or termination of such a joint venture is of a major 

significance;

c. to acquire or dispose of a participation in the capital of a company worth at least one third 

of the amount of the assets according to the balance sheet with explanatory notes thereto, 

or if the company prepares a consolidated balance sheet according to such consolidated 

balance sheet with explanatory notes according to the last adopted annual accounts of the 

company, by the company or a subsidiary.

10. With due observance of the provisions of these articles, the management board resolutions 

relating to any of the following matters shall be subject to the approval of the supervisory 

board:

a. issue and acquisition of shares of the company and debt instruments issued by the 

company or of debt instruments issued by a limited partnership or general partnership of 

which the company is a fully liable partner;

b. cooperation in the issue of depositary receipts for shares;

c. application for admission of the securities referred to under a. and b. on a regulated 

market or a multilateral trading facility as referred to in Article 1:1 of the Financial 

Supervision Act (Wet op het financieel toezicht) or a system comparable to a regulated 

market or multilateral trading facility from a state that is not a member state or an 

application for withdrawal of such admission;

d. entering into or terminating a permanent cooperation of the company or a dependent 

company with another legal entity or company or as fully liable partner in a limited 

partnership or general partnership, if such cooperation or termination is of major 

significance to the company;

e. participation for a value of at least one fourth of the amount of the issued capital and 

reserves according to the balance sheet with explanatory notes of the company by the 

company or by a dependent company in the capital of another company, as well as to 

significant increase or reduce such a participation;

f. investments involving an amount equal to at least the sum of one quarter of the 

company's issued capital and reserves of the company as shown in its balance sheet and 

explanatory notes;

g. a proposal to amend the articles of association;

h. a proposal to dissolve (wind up) the company;

i. application for bankruptcy and for suspension of payments (surséance van betaling);

j. termination of the employment of a considerable number of employees of the company or 

of a dependent company at the same time or within a short period of time;
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k. far-reaching changes in the employment conditions of a significant number of employees 

of the company or of a dependent company;

l. a proposal to reduce the issued share capital.

m. undertaking any such legal acts as shall be determined and clearly defined by the 

supervisory board and notified to the management board in writing.

For the purpose of the applicability of paragraph 9 and this paragraph, a resolution of the 

management board approving a resolution of any body of a company in which the company 

participates shall be treated as a resolution of the management board to enter into a transaction 

as referred to in these paragraphs provided that the first mentioned resolution is subject to such 

approval.

11. Failure to obtain the approval defined in the paragraphs 9 and 10 shall not affect the 

management board or the managing directors authority to represent the company.

12. The management board shall comply with instructions regarding the general lines of the 

financial, social, economic and employment policies to be given by the shareholders' meeting.

13. A managing director may not participate in the deliberation and the decision-making process 

of the managing board, if it concerns a subject in which the managing director has a direct or 

indirect interest which conflicts with the interest of the company and its business enterprise. In 

such event, the other managing directors shall be authorised to adopt the resolution.

If all managing directors have a conflict of interest, the resolution shall be adopted by the 

supervisory board, unless all supervisory directors also have a conflict of interest as referred to 

above; in which case the resolution shall be adopted by the shareholders' meeting.

Article 14.

In the event that one or more managing directors are absent or prevented from acting, the 

remaining managing directors or the sole remaining managing director shall be entrusted with the 

management of the company.

In the event that all the managing directors or the sole managing director is absent or prevented 

from acting, a person to be appointed for that purpose by the shareholders' meeting shall be 

temporarily entrusted with the management of the company.

Representation

Article 15.

The company shall be represented by the management board except to the extent otherwise 

provided by law.

In addition, the authority to represent the company is vested in two managing directors acting 

jointly.

Supervisory board 

Article 16.

1. The company shall have a supervisory board consisting of three or more natural persons.
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The shareholders' meeting shall determine the number of the members of the board.

If there are less than three, the board shall proceed to supplement the number of its members 

without delay.

2. The duties of the supervisory board shall be the supervision of the conduct of management by 

the company's management board and of the general course of affairs of the company and of 

the affiliated enterprise.

The supervisory board shall assist the management board by rendering advice.

In performing their duties, the members of the supervisory board shall be guided by the 

interests of the company and of an enterprise affiliated therewith.

3. The supervisory board shall at any time have access to all buildings and premises in use by the 

company, and shall be entitled to inspect all of the company's books and records and to 

examine all of the company's assets.

The supervisory board may delegate this authority to one or more of its members, or to an 

expert.

4. The management board shall provide the supervisory board with the information necessary for 

the performance of its duties, in a timely manner.

5. The management board shall inform the supervisory board at least once each year in writing of 

the general lines of the strategy, the general and financial risks and the management control 

system of the company. 

6. The shareholders' meeting may grant the supervisory board or one or more of its members a 

fixed remuneration.

Appointment and resignation

Article 17.

1. The supervisory board members shall, save for the provisions of paragraph 9, be appointed 

from a nomination of the supervisory board by the shareholders' meeting.

The reasons for the nominations shall be stated. 

2. The supervisory board shall determine a profile for its size and composition, taking into 

account the nature of the enterprise, its activities and the desired expertise and background of 

the supervisory board members. 

The supervisory board shall discuss the profile for the first time at the determination and 

subsequently at every amendment in the general meeting of shareholders and with the works 

council. 

3. Members of the supervisory board cannot be:

a. persons employed by the company;

b. persons employed by a dependent company;
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c. members of the management board and persons employed by an employees' organization 

customarily involved in the establishment of the terms of employment of the persons 

referred to in a and b.

4. The shareholders' meeting and the works council may recommend persons to the supervisory 

board to be nominated as supervisory board member.

The supervisory board shall, for such purpose, timely inform them when, for what reason and 

in accordance with which profile a vacancy must be filled in his midst.

If the enhanced right of recommendation referred to in paragraph 6 of the present article 

applies, the supervisory board shall also report so.

5. The supervisory board shall notify the shareholders' meeting and the works council 

simultaneously of the nominations.

The reasons for the nomination shall be stated.

6. For one third of the members of the supervisory board, the supervisory board shall nominate a 

person recommended by the works council, unless the supervisory board objects to the 

recommendation on the ground that the recommended person may be expected to be 

unsuitable for the performance of the duties of a supervisory board member or that, when the 

appointment is made as recommended, the supervisory board will not be duly composed. 

If the number of supervisory board members is not divisible by three, the closest lower 

number that is divisible by three will be used to determine the number of members to which 

this enhanced right of recommendation applies.

7. In case the supervisory board objects, it shall inform the works council of the objection, 

stating the grounds. 

The supervisory board shall enter into consultation with the works council in order to reach 

agreement on the nomination without delay. 

If the supervisory board establishes that no agreement can be reached, a representative of the 

supervisory board designated for this purpose shall make an application to the Enterprise 

Division of the Amsterdam Court of Appeal for having the objection declared legitimate. 

The request shall not be made before four weeks have passed since the commencement of the 

consultation with the works council.

The supervisory board nominates the person recommended in the event the Enterprise 

Division declares the objection without merit. 

In case the Enterprise Division declares the objection legitimate, the works council may make 

a new recommendation in accordance with paragraph 6.

8. The Enterprise Division shall have the works council summoned.

Against the decision of the Enterprise Division no legal remedy is available. 

The Enterprise Division cannot order the payment of costs.
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9. The shareholders' meeting may by absolute majority of the votes cast representing at least one 

third of the issued capital reject the nomination. 

If not at least one third of the issued capital was represented in the meeting, a new meeting 

shall be convened in which the nomination can be rejected with an absolute majority of the 

votes cast. 

In that case the supervisory board shall prepare a new nomination. 

Paragraphs 5 to 8 including apply. 

In case the shareholders' meeting does not appoint the person nominated and does not resolve 

to reject the nomination, the supervisory board shall appoint the person nominated.

10. The shareholders' meeting may delegate its power under paragraph 4 for a period of time 

determined by the meeting with a maximum of two consecutive years each time, to a 

committee of shareholders, for which the members are designated by the shareholders'

meeting;

in that case the supervisory board shall make the notification referred to in paragraph 4 to the 

committee.

The shareholders' meeting may revoke the delegation at any time.

11. If there is more than one works council, the powers under this article are exercised by these 

councils separately;

in the case of a nomination referred to in paragraph 6, the powers of this paragraph shall be 

exercised by these councils together.

If a central works council has been established for the enterprise or enterprises involved, the 

powers of the works council pursuant to this article shall be vested in the central works 

council.

12. A member of the supervisory board shall resign at the end of the annual meeting of 

shareholders, in the year after four years have elapsed since his latest appointment.

Resigning members of the supervisory board shall be immediately eligible for re-election 

without prejudice to paragraph 3.

13. When all members of the supervisory board are absent other than pursuant to article 18, the 

appointment will take place by the shareholders' meeting with due observance of article 2:159 

Dutch Civil Code.

Collective removal

Article 18.

1. The shareholders' meeting may by absolute majority of the votes cast, representing at least one 

third of the issued capital, abandon its confidence in the supervisory board. 

The resolution must be stated with reasons.
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The resolution cannot be adopted with respect to members of the supervisory board that have 

been appointed by the Enterprise Division in accordance with paragraph 3.

2. A resolution referred to in paragraph 1 may only be adopted after the management board has 

informed the works council of the proposal for the resolution and the grounds thereto. 

The notification shall be made at least thirty days before the general meeting of shareholders 

in which the proposal shall be considered. 

If the works council adopts a position with regard to the proposal, the management board shall 

inform the supervisory board and the shareholders' meeting of this position. 

The works council may have its position explained in the general meeting of shareholders.

3. The resolution referred to in paragraph 1 results in the immediate removal of the members of 

the supervisory board. 

In that case, the management board shall make an application to the Enterprise Division for 

temporary appointment of one or more members of the supervisory board without delay.

The Enterprise Division determines the consequences of the appointment.

4. The supervisory board shall promote that within a period of time determined by the Enterprise 

Division a new supervisory board is composed in accordance with article 2:158 Dutch Civil 

Code.

Suspension and dismissal

Article 19.

1. Upon application, the Enterprises Division of the Amsterdam Court of Appeal may remove a 

member of the supervisory board for dereliction of his duties, for other important reasons or 

for any far-reaching change of circumstances as a result of which the legal person may not 

reasonably be required to maintain the supervisory board member. 

Such an application may be made by the company, represented by the supervisory board for 

such purpose, as well as a thereto appointed representative of the shareholders' meeting or the 

works council as mentioned in article 17 paragraph 11. 

Article 2:158 paragraphs 10 and 11 Dutch Civil Code shall apply accordingly.

2. A member of the supervisory board member may be suspended by the supervisory board;

the suspension terminates by operation of law if the company, pursuant to the preceding 

paragraph, has not filed an application with the Enterprises Division within one month after 

the commencement of the suspension.

Procedures, decision-making process

Article 20.

1. The supervisory board shall appoint a chairman from among its members and a deputy 

chairman.
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The supervisory board may also designate a member of the supervisory board as delegated 

member of the supervisory board who shall be particularly responsible for maintaining regular 

contact with the management board on the state of affairs in the company.

2. The supervisory board shall hold meetings as often as one or more of its members shall desire, 

as often as the management board shall request, or as often as necessary in pursuance of the 

provisions of the present articles.

3. The supervisory board shall adopt resolutions by an absolute majority of the total number of 

votes cast.

Blank votes shall be considered as not cast.

4. Each member of the supervisory board shall be entitled to cast one vote.

5. A member of the supervisory board may be represented at a meeting of the supervisory board 

only by another member of the supervisory board.

6. The supervisory board may also adopt valid resolutions without convening a meeting, 

provided that all of its members have been consulted and that none has objected to adopting 

resolutions in this manner.

7. A supervisory director may not participate in the deliberation and the decision-making process 

of the supervisory board, if it concerns a subject in which the supervisory director has a direct 

or indirect interest which conflicts with the interest of the company and its business enterprise. 

In such event, the other supervisory directors shall be authorised to adopt the resolution. If all 

supervisory directors have a conflict of interest, the resolution shall be adopted by the 

shareholders' meeting.

8. The supervisory board may set forth one or more rules regulating those matters the board 

deems fit. 

Financial year, annual accounts, annual report

Article 21.

1. The company's financial year shall be concurrent with the calendar year.

2. The management board shall draw up the annual accounts (consisting of the balance sheet and 

profit and loss account with explanatory notes thereto) within five months of the end of each 

financial year, unless this period is extended by the shareholders' meeting by no more than six 

months due to extraordinary circumstances.

The annual accounts shall be signed by all managing directors and all supervisory directors.

If the signature of one or more of them is missing, this fact and the reason thereof shall be 

indicated.

Unless the provision of section 2:403 Dutch Civil Code applies to the company, the 

management board shall, within the above-mentioned period, draw up an annual report.

3. If and to the extent that the company is subject to the relevant legal provisions to this effect, 
16

the shareholders' meeting shall instruct one or more experts or organization with experts, as 

defined in section 2:393 paragraph 1 Dutch Civil Code, to audit the annual accounts and - if 

drawn up - the annual report by the management board, to report to the management board 

thereon, and to issue an auditor's certificate with respect thereto.

If the shareholders' meeting fails to issue such instruction, then the supervisory board is 

authorized thereto, and if it fails to do so, the management board shall be authorized to issue 

such instruction.

The instructions may be withdrawn at any time by the shareholders' meeting and by the person 

who gave the instructions.

4. The company shall ensure that, as of the day on which a shareholders' meeting at which they 

are to be considered, is called, the annual accounts, the annual report, if prepared, and the 

additional information to be provided pursuant to section 2:392 paragraph 1 Dutch Civil Code 

are available for examination by those entitled to attend meetings.

Those entitled to attend meetings may inspect the documents and obtain a copy thereof free of 

charge.

5. The annual accounts shall be adopted by the shareholders' meeting.

6. The adoption of the annual accounts shall not constitute a discharge for the managing directors 

and the supervisory directors.

7. The management board shall submit the annual accounts to the works council.

8. If and to extent required by law, the company shall be obliged to make its annual accounts 

publicly available at the Trade Register.

Allocation of profits

Article 22.

1. The company may make distributions to the shareholders and other persons entitled to the 

distributable profits only to the extent that the company's shareholders' equity exceeds the sum 

of the paid-in part of the company's capital and the reserves which it is legally required to 

maintain.

2. Any distribution of profits shall be made after the adoption of the annual accounts from which 

it appears that the same is permitted.

The profit appearing from the adopted annual accounts by the shareholders' meeting shall be at 

the disposal of the shareholders' meeting.

3. The company may make interim distributions only to the extent that the requirements set forth 

in paragraph 1 above are satisfied as evidenced by an interim statement of assets and liabilities 

referred to in section 2:105 paragraph 4 Dutch Civil Code, and provided that the prior 

approval of the shareholders' meeting has been obtained.

4. There shall be no distribution of profits in favor of the company with respect to shares, or to 

shares of which it holds depositary receipts issued therefore, which the company has acquired 

in its own capital.
17

In computing the distribution of profits, shares with respect to which, pursuant to the present 

paragraph, no distribution is to be made in favor of the company, shall be disregarded.

5. Any claim to a distribution shall lapse after five years, to be computed from the day on which 

such a distribution becomes payable.

Meetings of shareholders

Article 23.

1. The annual meeting of shareholders shall be held every year within six months of the end of 

the financial year, unless the period set forth in article 21 paragraph 2 of the present articles is 

extended in conformity with the provisions set out therein, which meeting must include the 

following matters to be considered:

• the annual report;

• the adoption of the annual accounts;

• discharge of the managing directors;

• discharge of the supervisory directors.

In the event that the period referred to in article 21 paragraph 2 is extended, the matters 

indicated in the previous sentence will be dealt with in a meeting of shareholders to be held no 

later than one month after the period has expired.

2. Within three months after the management board has considered it plausible that the 

shareholders' equity of the company has decreased to an amount equal to or less than half of 

the paid in and called up part of the capital, a meeting of shareholders shall be held to discuss 

the measures to be taken, if necessary.

Article 24.

1. Meetings of shareholders shall be held in the municipality in which the company has its 

official seat.

2. The convening notice shall be given by the management board or by the supervisory board by 

letter, dispatched to the addresses of those entitled to attend meetings as recorded in the 

shareholders' register.

3. A convening notice shall state the subjects to be considered or it shall state that those entitled 

to attend meetings may inspect the same at the office of the company.

Announcements, which, under the law or the articles, must be addressed to the meeting of 

shareholders, may be included either in the convening notice or in the document deposited for 

inspection at the office of the company, provided this is stated in the convening notice.

4. Without prejudice to the provisions in the second sentence of section 2:111 paragraph 1 Dutch 

Civil Code, the convening notice may be issued no later than the fifteenth day prior to the date 

of the meeting.

5. The meeting of shareholders shall be presided by the chairman of the supervisory board. If he 
18

is not present at the meeting or does not want to fulfill this function, the members of the 

supervisory board attending shall designate one of its members as such.

If there is no supervisory director present the meeting of shareholders shall provide for its own 

chairman.

The chairman shall designate the secretary.

6. Unless a notarial record shall be drawn up of the proceedings at the meeting, minutes shall be 

kept thereof.

The minutes shall be made available no more than three months from the shareholders'

meeting concerned, after which period all persons entitled to attend meetings during three 

months have the right to respond to the minutes. 

7. The adopted resolutions shall be drawn up by the management board.

The notes shall be deposited at the offices of the company for examination by all persons 

entitled to attend meetings.

Those persons shall be given a certified copy or extract of these notes at request, at no more 

than cost.

Article 25.

1. All those entitled to attend meetings shall be entitled to be present at, and to address that 

meeting, either in person or by written proxy.

Managing directors and supervisory directors have the right to attend the meetings and shall 

have an advisory vote.

The chairman of the meeting shall decide on the admission of other persons to the meeting.

2. Each share shall entitle the holder thereof to cast one vote.

3. In order to be able to participate in the voting, those entitled to vote or their representatives 

must sign the attendance book, indicating the number of shares represented by them.

4. No votes may be cast with respect to shares held by the company or any of its subsidiaries;

Nor with respect to shares for which any of them holds depositary receipts.

Usufructuaries and pledgees of shares belonging to the company or to any of its subsidiaries 

shall nevertheless be entitled to vote if the usufruct or the pledge, as the case may be, was 

established before the share was owned by the company or its subsidiary.

The company or its subsidiary may not exercise voting rights with respect to any share on 

which it has a right of usufruct or a pledge.

5. The number of shares with respect to which, according to law, the right to vote may not be 

exercised, shall be disregarded in determining the extent to which the shareholders vote, are 

present or represented, or the extent to which the share capital is provided or represented.
19

6. Resolutions of the shareholders' meeting shall be adopted by an absolute majority of the votes 

cast, except in those cases in which the law or these articles require a greater majority.

Blank votes shall be considered as not cast.

7. If these articles provide that the validity of a resolution shall depend on the part of the capital 

represented at a meeting, and such part is not represented at such meeting, then a new meeting 

may be called to be held no later than two months after the first meeting at which the 

resolution may be validly adopted irrespective of the part of the capital represented at such 

new meeting.

The call notice for the new meeting must indicate, giving the reason therefore, that the 

resolution may be validly adopted irrespective of the part of the capital represented at the 

meeting.

8. Voting on matters of business shall be done orally.

Voting on the nomination of persons shall be done in writing by means of secret ballots, 

unless the meeting unanimously consents to oral voting.

Voting by acclamation shall be permitted, unless one of those present and entitled to vote 

objects thereto. 

9. If, in electing persons, none of the candidates gain an absolute majority in the first round of 

voting, a new round of voting shall be held.

If again no absolute majority is gained, there shall be a vote again between the two persons 

who have obtained the highest number of votes.

If more than two persons obtain the highest and equal number of votes, the decision which two 

of them shall be eligible for a new round of voting shall be made by the drawing of lots.

If there is a tie in voting in the subsequent round of voting, the decision shall be made by the 

drawing of lots.

Lots shall be drawn by the chairman.

10. A meeting of shareholders at which the entire issued capital is represented may, by unanimous 

vote, adopt valid resolutions, even without notice or if notice is not timely, and without 

complying with the provisions of article 24 paragraph 3 of these articles, concerning the 

matters to be considered at a meeting.

A meeting of shareholders held at a place other than these articles require may adopt valid 

resolutions, provided the entire issued capital is represented at such meeting.

Article 26.

After the managing directors and the supervisory directors have been given the opportunity to 

advise on this item, shareholders may also adopt resolutions without convening a meeting of 

shareholders, provided that the shareholders entitled to vote approve the resolution in writing 

(including all forms of transmission of written material) unanimously.
20

The foregoing shall not apply if depository receipts for shares have been issued with the 

cooperation of the company.

Amendments of the articles of association, dissolution, liquidation

Article 27.

1. The shareholders' meeting may resolve to amend the company's articles. 

2. If a proposal to amend the articles is to be submitted to the shareholders' meeting, this must 

always be stated in the convening notice.

Those calling a shareholders' meeting at which a proposal to amend the articles is to be 

considered must simultaneously with the call notice deposit a copy of the proposal, containing 

the verbatim text of the proposed amendment, at the offices of the company for examination 

by all persons entitled to attend meetings, until after the close of the meeting.

Those entitled to attend meetings must be given the opportunity to obtain a copy of the 

proposal described in the previous sentence from the day on which the call notice for that 

meeting is dispatched until the day the meeting of shareholders is held.

Such copies shall be provided free of charge.

Article 28.

1. The provisions of article 27 paragraphs 1 and 2 of the present articles shall apply accordingly 

to a shareholders resolution to dissolve the company.

2. In the event that a resolution to dissolve the company is adopted, the liquidation shall be 

arranged by the management board, unless the shareholders' meeting appoints other 

liquidators.

The remuneration to be paid to the liquidator or liquidators shall be determined by a resolution 

adopted simultaneously with the resolution to dissolve the company.

3. The present articles shall remain effective, to the extent possible, during the liquidation.

4. The surplus of the equity of the dissolved company, after the creditors have been paid, shall be 

distributed to the shareholders and other parties entitled thereto in proportion to their 

respective rights.

5. After the liquidation has been completed, the books and records of the dissolved company 

shall remain in the possession of a person to be appointed by the meeting of shareholders for 

that purpose for the period of time provided by law.

Indemnity

Article 29.

1. Subject to the law and not in any case of willful misconduct or gross negligence (opzet of 

grove nalatigheid), and without prejudice to an indemnity to which he may otherwise be 

entitled, every person who is or was a director or supervisory director of the company shall be 

indemnified out of the assets of the company against all costs, charges, losses and liabilities 

incurred by him in the proper execution of his duties or the proper exercise of his power and 
21

authorities including, without limitation, a liability incurred defending proceedings in which

judgment is given in his favor or in which he is acquitted, or which are otherwise disposed of 

without a finding or admission of material breach of duty on his part.

2. Subject to the law, the company may purchase and maintain insurance for the benefit of a 

person who is or was a (supervisory) director, proposed (supervisory) director of the company 

or of a company which is or was a subsidiary of the company or in which the company has or 

had an interest (whether direct of indirect), indemnifying him against liability for negligence, 

default or breach of duty or other liability, other than cases of willful misconduct or gross 

negligence (opzet of grove nalatigheid).
EURONEXT APPLICATION FORM

August 2017 Page 1 of 15

Euronext Cash Markets

Euronext Derivatives Markets

MEMBERSHIP

APPLICATION FORM

PLEASE NOTE

By executing this admission request, the applicant acknowledges and agrees that the signed and digital

version of the request and its supporting documents (Appendix A) as sent 

to 3TEuronextMembership@euronext.com3T, along with the Euronext confirmation of admission letter issued, 

scanned and sent by Euronext, shall constitute evidence of the conclusion and acceptance of the terms of a 

legally binding membership agreement between the parties.
EURONEXT APPLICATION FORM

August 2017 Page 2 of 15

In this document you will find the following information:

3T

1. INTRODUCTION 3

2. DETAILS OF APPLICANT 3

3. REGULATION 4

4. TRADING ACTIVITY 5

5. APPLICANT'S PROFILE 6

6. BUSINESS PER MARKET 7

7. DISCIPLINARY HISTORY AND RELATED MATTERS 8

8. DECLARATION OF APPLICANT 10

APPENDIX A: SUPPORTING DOCUMENTS 13

APPENDIX B: KEY CONTACTS 14

APPENDIX C: CONTACT FOR INVOICING / SEPA DD 15
EURONEXT APPLICATION FORM

August 2017 Page 3 of 15

1. INTRODUCTION

This standard application form is submitted by the companies who want to become Members of the 

Euronext Derivatives and/or Cash Markets. Non-MiFID compliant Euronext Members who are sole 

Members of either the Derivatives or Cash markets and would like to extend their activity to the relevant 

market should also fill out this form.

Please complete this form and return it together with supporting documentation (as requested in the 

appendices) digitally and duly signed to the Euronext Membership Department at the following e-mail

address:

Euronext Membership Department

email: EuronextMembership@euronext.com

tel. +31 20 721 4264

All applicants should ensure that, where relevant, they have the appropriate regulatory authorisation(s) to 

conduct business on the Euronext Market(s) in question. Please note that there are restrictions on 

jurisdictions from where Members may operate.

Applicants should be aware that the Competent Authority of the Market(s) to which you are applying may 

contact your home state regulator for additional information. Host state regulators may also request 

further information from the applicant directly and may impose fees.

For further information please be invited to visit our website or contact the Membership Department.

2. DETAILS OF APPLICANT

Applicant’s statutory name and legal form

Commercial name (if different)

V.A.T. (tax) registration number

LEI or CICI code

Registered address

Business address (if different)

Switchboard telephone no.

Website address

Generic company email address

Contact name (for processing application)

Job title/position

Telephone no. (including extension)

Email address

Trading Capacity Broker Dealer Market Maker Fund Agent
EURONEXT APPLICATION FORM

August 2017 Page 4 of 15

3. REGULATION

Please provide details of the Applicant’s regulatory status (please tick )

A. LOCATED IN EUROPE - EEA1

Credit Institution Non regulated

Investment Firm Other, please specify 

-------------------------------------- Applicants benefiting from passporting rights should contact their home state regulator to ensure the 

relevant cross border passports are in place. Please provide us with a copy of this confirmation.

Please confirm the name of the applicant’s regulator and where it is subject to more than one regulatory 

body, please indicate which is the lead regulator.

Name of home state regulator(s)

B. LOCATED OUTSIDE OF EUROPE – non-EEA

Regulated Non regulated 

Please confirm the name of the applicant’s regulator and where it is subject to more than one regulatory 

body, please indicate which is the lead regulator.

Name of home state regulator(s)

C. ALL APPLICANTS – EEA and non-EEA

Under MiFID, EEA Credit Institutions and Investment Firms performing the requested trading activities are 

required to upgrade, if necessary, their licence for trading activities granted by their relevant regulatory 

authority. They should also ensure the exercise of their passporting rights has been notified to the hosting 

regulatory authorities.

All non-EEA applicants and non-regulated EEA applicants must:

- Provide evidence that they hold an appropriate licence or authorisation with each of the hosting 

competent authorities; or

- Provide written evidence or explanation of why such authorisation is not required.

Firms should be aware that the Competent Authority of the Market to which you are applying may contact 

your home state regulator to provide confirmation of the following:

(i) jurisdiction over the market activities of the applicant;

(ii) non-opposition to the application; and,

(iii) readiness to share information with Euronext regulators and offer co-operation.

Host state regulators may request additional information from the applicant. 

Host state regulators may impose fees.

_________________________________________________________________________________________________________________________

1

European Economic Area (EU plus Iceland, Norway and Liechtenstein).
EURONEXT APPLICATION FORM

August 2017 Page 5 of 15

4. TRADING ACTIVITY

Please indicate the type of trading activity2you intend to perform on the Euronext Markets:

Derivatives Markets

Proposed activity(ies) Amsterdam Brussels Lisbon Paris

Dealing on own account

Execution of orders on behalf of 

clients

Market making

(specific contract to be signed separately)

Cash Markets

Proposed activity(ies) Amsterdam Brussels Lisbon London Paris

Dealing for own account

Execution of orders on behalf of 

clients

Market making

(specific contract to be signed separately)

Acting as Fund Agent3

Applicant’s BIC Code (11 digits) for 

Transaction Reporting (MiFID)

_________________________________________________________________________________________________________________________

2

The proposed activity(ies) and authorisations of the Applicant will determine the Membership capacity to be designated.

3

Using the NAV Trading Facility, specific documentation to be signed in addition to this Membership Application Form.
EURONEXT APPLICATION FORM

August 2017 Page 6 of 15

5. APPLICANT’S PROFILE

Is the Applicant currently a member of any other futures and/or options, cash, or commodities exchange 

(other than a Euronext Market)? If so, please provide details:

Member since

(date)

Name of entity 

holding membership

Exchange Membership 

capacity held
EURONEXT APPLICATION FORM

August 2017 Page 7 of 15

6. DISCIPLINARY HISTORY AND RELATED MATTERS

This question relates to the activities of not only the applicant (including relevant persons) itself, but also of 

other entities within the group, pertinent to its operation on the Euronext Markets. 

The response should include events which the applicant considers material and which occurred in the last 

5 years. If an applicant is uncertain about the materiality of a specific disciplinary proceeding or event, the 

matter should be disclosed.

Has the applicant or any other relevant parties within the group been: 

(i) found guilty in a criminal court

(ii) the subject of an adverse finding in a civil or administrative court or tribunal

(iii) in contravention of any provision of financial services legislation, rules, regulations or statements of 

principle 

(iv) the subject of disciplinary procedures by any government agency, self-regulating organisation or 

exchange

(v) subject to a refusal or restriction to carry on a trade/business/profession or to disqualification from 

acting as a director 

(vi) under special investigation, or is it currently under special investigation, by any auditor, 

government agency, self-regulating organisation, exchange, taxation or other authority?

Yes No
EURONEXT APPLICATION FORM

August 2017 Page 8 of 15

7. BUSINESS PER MARKET

Please indicate which Euronext Derivatives market(s) are being applied for and for those Markets indicate 

the name of the chosen General Clearing Member. 

*Please note that before any extension is confirmed:

a. Euronext will check the passporting of your licence on the expected market, when necessary; and 

b. When the applicant is not located in Europe (EEA), this list of requested subscriptions must be confirmed 

by Euronext by reference to applicable regulations , which set different 

restrictions depending on the situation. 

Euronext DERIVATIVES Markets

1

Subscriptions desired (please tick ) 

Markets: Amsterdam (AMS) | Paris (PAR) | Brussels (BRU) | Lisbon (LIS) 

General Clearing 

Member

Commodities Commodity Futures (Euro)

AMS PAR

Commodity Options (Euro)

AMS PAR

Financial 

Currency 

Financial (Currency) Futures (Euro and USD)

AMS 

Financial (Currency) Options (Euro and USD) 

AMS

Equity Index Index Futures (Euro)

AMS PAR BRU LIS

Index Options (Euro)

AMS PAR BRU

Equity Options

(incl. Spotlight 

Options)

Individual Equity Options (Euro) 

AMS PAR BRU

Individual Equity Options (USD) 

AMS

SSF & SSDF Single Stock Futures (Euro)

& Single Stock Dividend Futures (Euro) AMS PAR BRU LIS

In addition, on Amsterdam market only:

Single Stock Futures in CHF DKK GBP NOK SEK1

Single Stock Dividend Futures in CHF GBP USD1SEK

AtomX | Flex AtomX is a trading service that allows users to report off-order book, 

on-exchange trades in standard or flex instruments for confirmation, 

administration, and central clearing.

With the clearing 

partner currently in 

charge of your posttrading on those 

markets

Please tick  the box if you want access to AtomX

Scope: products where you are currently authorized to trade, like

single stock options, national and pan-European index futures and 

options (in Euro) 

Products only proposed on AtomX (please tick  the box if you want to trade the flexible):

Flexible Index Options/Cash (Euro)

AMS PAR BRU

Flexible Equity Options/Cash and Physical

(Euro) AMS PAR BRU
EURONEXT APPLICATION FORM

August 2017 Page 9 of 15

Flexible Stock Futures/Cash (Euro)

AMS PAR BRU LIS

1

Please note that the applicant has to contact its clearing partners at all times to ensure the appropriate post-trade set-up. For 

some trading subscriptions additional requirements are demanded by LCH SA.2 Settlement requires an Interbolsa account

(ICM/GCM).

Euronext CASH Markets 1- Market desired (please tick ) General 

Clearing 

Member19

2

Markets cleared by LCH SA

Amsterdam Euro Non Euro and International ETFs3

Brussels Euro Non Euro and International ETFs3

Lisbon Euro Non Euro 4

Paris Euro, cleared Borrowing & Lending Market 

Non Euro and International ETFs3

Belgian Bonds5

(settlement in BNB) 

Market cleared by EuroCCP General 

Clearing 

Member2

London Settlement in Crest (Euro, GBP, USD)

 Euroclear Bank (other currency)

Market Without CCP Clearing Settlement 

Agent 

Paris EFS (Euronext Fund Service) with settlement in Euroclear France

1 Applying to one Euronext Cash market means that you have access by default to all types of products offered on this market: 

Equities and Rights, ETFs, ETVs, ETNs, Structured Products, Investment Funds, Bonds. In addition, application to any such Euronext 

Cash Market automatically provides you get access to the corresponding local Alternext, Free Market and/or EasyNext market(s), in 

each case as applicable and subject to relevant market rules.2Please note that applicants wishing to clear their business on the 

Euronext Markets themselves must be approved as clearing members by the CCP linked to this market, LCH SA or EuroCCP. Non 

clearing applicants should ensure that their chosen General Clearing Members are approved to clear the relevant Markets. 

3 Requirements: a Euroclear Bank account 4 an Interbolsa account 5

BNB is Belgium National Bank.
EURONEXT APPLICATION FORM

August 2017 Page 10 of 15

8. DECLARATION OF APPLICANT

This Declaration and application for Membership is made by the Applicant to one or more Relevant 

Euronext Market Undertakings, as specified in this application form (the Applicant and the Relevant 

Euronext Market Undertaking being, collectively, “the Parties”).

In consideration of (i) the Relevant Euronext Market Undertaking examining and processing this application 

and (ii) the Applicant co-operating with the Relevant Euronext Market Undertaking and furnishing it with all 

the necessary information in support of this application, the Parties hereby agree that this Declaration shall 

be legally binding upon the Parties. 

Interpretation

The terms used in this Declaration shall have the meanings ascribed to them by the Euronext Rule Book.

The masculine gender shall include the feminine and the singular number shall include the plural and vice 

versa.

Admission as a Member

We understand that our Membership of one or more Euronext Markets will not commence until (i) we have 

completed the application form to the satisfaction of the Relevant Euronext Market Undertaking and have 

provided such additional information as is, and entered into such agreements as are, required by the 

Relevant Euronext Market Undertaking(s); (ii) our application has been approved by the Relevant Euronext 

Market Undertaking(s); and (iii) the Relevant Euronext Market Undertaking(s) has notified us of its decision 

in writing.

We understand that Membership or any trading or other privileges arising from such Membership may not 

be transferred, assigned or encumbered by or on behalf of the Member except with the prior written 

approval of Euronext where such transfer, assignment or encumbrance is expressly provided for in the 

Euronext Rule Book.

We agree to pay the fees and charges applicable to our Membership in accordance with the terms 

determined and published by Euronext.

We understand that in order to maintain our Euronext Membership we must organise and control our 

affairs in a responsible manner in accordance with the Euronext Rule Book, and to this end that we must 

have staff who are fit and proper with suitable authorisation/qualifications and experience in order to 

implement and maintain adequate internal procedures and controls.

The clauses of this Declaration shall apply only to the period up to the Applicant’s admission as a Member, 

except for the clauses relating to Admission as a Member and Compliance with the Euronext Rule Book, 

which shall continue beyond that date.

Compliance with the Euronext Rule Book

If we are approved as a Member, we agree to comply with and be bound by the Euronext Rule Book from 

time to time in force, and any obligations imposed by Euronext pursuant to the Euronext Rule Book.

Confidentiality of Data

We understand that any information provided by or on behalf of us during the application for Membership 

shall be kept confidential by Euronext for an indefinite period (whether or not our application for 

Membership is successful) and shall not be disclosed to any third party without our prior written approval 

except where permitted by the Euronext Rule Book or required by applicable law or regulation.

By exception, the following data shall be published on the Euronext website : name of the company, legal 

or business address, company website, keyboard phone number, markets where you are authorised to 

trade, capacity, dedicated member ID, (see the List of the Trading Members www.euronext.com) to 

promote your company.

Please tick  the box if you do not agree to Euronext using these data for the purpose described 

above: 
EURONEXT APPLICATION FORM

August 2017 Page 11 of 15

Data Protection Provisions

Notwithstanding the Confidentiality clause above, Applicants are informed that the personal data gathered 

are intended for Euronext and will be used as follows:

 in the framework of their membership,

 as the operator of regulated markets, the Relevant Euronext Market Undertaking is required to make 

public the names of Members. Applicants acknowledge and agree that the Relevant Euronext Market 

Undertaking shall publish by any appropriate means such information in respect of us.

 The Relevant Euronext Market Undertaking may also use other information contained in the 

membership database in respect of the Member for the Euronext Market Undertakings' marketing 

purposes4.

Please tick  the box if you do not agree to the Relevant Euronext Market Undertaking using the 

information contained in the Membership database for the Euronext Market Undertakings' 

marketing purposes.

These data, if applicable, shall be covered by a declaration made to the appropriate administrative 

authority. Euronext will take care of this formality. These data will be stored and processed in accordance 

with the provisions of the Directive 95/46/EC of the European Parliament and of the Council of 24 October 

1995 on the protection of individuals with regard to the processing of personal data and on the free 

movement of such data, and applicable law.

Applicants have the right to access to, amend or delete data relating to them and may exercise this right by 

sending a letter to Euronext. They have also the right, for legitimate grounds, to be opposed to the 

processing of data relating to them.

Settlement of Disputes 

We agree that any dispute between us as the Applicant (or Member as the case may be) and the Relevant 

Euronext Market Undertaking in respect of membership issues or anything else under this Declaration and 

application for membership which is not resolved by an amicable settlement between the Parties shall be 

dealt with by the Courts applicable to the Relevant Euronext Market Undertaking (as specified in the 

Governing Law and Counterparty provision below). Notwithstanding the foregoing, the Parties may agree 

to refer such dispute to arbitration.

Limitation of Liability

We acknowledge that, without prejudice to any liability arising between the Parties under the Euronext 

Rule Book or any agreement entered into between the Parties pursuant to the Euronext Rule Book, the 

Relevant Euronext Market Undertaking shall be under no liability under this Declaration and application for 

Membership to the Applicant for any loss, damage or injury direct or indirect howsoever arising whether or 

not caused by the negligence of the Relevant Euronext Market Undertaking, its officers, employees, agents 

or representatives, save that the Relevant Euronext Market Undertaking shall accept liability for death, 

personal injury, fraud, and for gross negligence or wilful misconduct where there is a finding of such against 

the Relevant Euronext Market Undertaking by a court of competent jurisdiction. 

Governing Law and Counterparty

Where an application for Membership is being made to a single Relevant Euronext Market Undertaking, the 

governing law and jurisdiction of this Declaration and application for Membership shall be that of the 

Relevant Euronext Market Undertaking, which shall also be the counterparty of this Declaration and 

application for Membership.

Where an application for Membership is being made to more than one Relevant Euronext Market 

Undertaking, the Applicant shall specify below one Relevant Euronext Market Undertaking for the purposes 

of determining the governing law and jurisdiction of this Declaration and application for Membership. The

_________________________________________________________________________________________________________________________

4

The information used by the Relevant Euronext Market Undertaking shall be subject to the privacy policy available on the 

Euronext website, www.euronext.com
EURONEXT APPLICATION FORM

August 2017 Page 12 of 15

Relevant Euronext Market so specified shall also be the counterparty of this Declaration and application for 

Membership.

Governing Law, Jurisdiction & Counterparty (please tick  one only):

Belgium France Netherlands Portugal United Kingdom

If no jurisdiction is specified in the above table by the Applicant seeking membership of more than one 

Relevant Euronext Market Undertaking, this Agreement shall be governed by and construed under the laws 

of France, except if the Applicant is not hereby seeking Membership of Euronext Paris, in which case this 

Agreement shall be governed by and construed under the laws of the Netherlands. Likewise, if no 

jurisdiction is specified in the above table by the Applicant seeking membership of more than one Relevant 

Euronext Market Undertaking, jurisdiction over any matter or dispute arising from the present application 

form and Declaration shall be abiding to the same governing law attribution principles described above so 

that exclusive competence to hear any such disputes or matters shall be given respectively to the courts of 

France or the Netherlands, as relevant.

We certify that the statements in our application for membership and in this Declaration are true and 

complete.

WILFUL FALSIFICATION, MISREPRESENTATION, OR OMISSION OF ANY MATERIAL FACT REQUIRED TO BE 

STATED CONSTITUTES CAUSE FOR DENIAL, SUSPENSION, OR REVOCATION OF MEMBERSHIP

Applicant’s/Member’s Statutory Name

Signature of authorized person

(confirmed by the authorized signatory list)

Print full name

Job title

Date
EURONEXT APPLICATION FORM

August 2017 Page 13 of 15

APPENDIX A: SUPPORTING DOCUMENTS

The following supporting documents should be submitted together with this application form:

To be completed by ALL applicants 

If applicable regulated firms are obliged to provide a copy of their license and settlement of the EU 

passports for the relevant countries. 

Non-regulated firms have to provide a copy of the confirmation to have filed for a MiFID II license from

their home state regulator.

Legal incorporation documentation e.g. Certificate of Incorporation and Memorandum and Articles of 

Association, or equivalent document(s) depending on country of incorporation.

Group structure diagram showing the ownership of the Applicant and where relevant the whole group 

structure, including percentage sizes of holdings and stakeholders’ nationalities. The mandatory threshold 

for inclusion of stakeholders is an interest of 20% or more.

A letter of intention from your preferred clearing member (including preferred CCP)

List of the Applicant’s authorised signatories (persons who are authorized to sign all documents relating 

to the Euronext Membership, on behalf of the company)

FOR NON-MIFID FIRMS, PLEASE ADD:

i Evidence of authorisation indicating the permitted investment activities and 

 financial instruments 

ii Curriculum vitae of the two individuals who effectively direct the business (e.g. 

Chief Executive Officer and Managing Director) and, if available, their certificates stating an 

absence of criminal record

To be completed by applicants to the Euronext Derivatives Markets only

For applicants which are either a “natural person” or a sole proprietorship

Curriculum vitae and where available, a certificate of absence of criminal record, for the controller of the 

business
EURONEXT APPLICATION FORM

August 2017 Page 14 of 15

APPENDIX B: KEY CONTACTS

Please provide details of the key contacts who will be responsible for the business on the Euronext Markets 

on either cash and/or derivatives markets. Please provide us with 2 Appendix B when necessary

The key contacts will be screened according to the current legal and regulatory expectations.

CASH MARKETS and/or DERIVATIVES MARKETS

If necessary

MANAGEMENT/BOARD CONTACT

Full Name:

Telephone No: Date of Birth:

Email:

CHIEF FINANCIAL OFFICER (CFO)

Full Name:

Telephone No: Date of Birth:

Email:

COMPLIANCE OFFICER

Full Name:

Telephone No: Date of Birth:

Email: Generic email:

AML (Anti money laundering) CONTACT

Full Name:

Telephone No: Date of Birth:

Email:

HEAD OF TRADING

Full Name:

Telephone No: Date of Birth:

Email: Generic email:

IT CONTACT

Full Name:

Telephone No: Date of Birth:

Email: Generic email:

This Appendix will be forwarded to our Market Data Department. This contact will be the main entry 

point for any subject relative to Market Data (databuyeuronext@euronext.com).

Full Name:

Telephone No: Date of Birth:

Email: Generic email:
EURONEXT APPLICATION FORM

August 2017 Page 15 of 15

APPENDIX C: CONTACT FOR INVOICING / SEPA DD

Please tick the box according to the markets. This Appendix will be forwarded to the Euronext Finance 

Department, who will contact you for arranging a SEPA Direct Debit after completion of this Appendix.

CASH MARKETS and/or DERIVATIVES MARKETS

Applicant’s statutory name

Mailing address 

Contact person

Job title/position

Telephone no. (including extension)

Email address contact person

VAT (tax) registration no.

If different,

DERIVATIVES MARKETS

Applicant’s statutory name

Mailing address 

Contact person

Job title/position

Telephone no. (including extension)

Email address contact person

VAT (tax) registration no.
AEX-INDEX® AND CAC 40®

WEEKLY INDEX FUTURES 

What are Weekly Index Futures?

Euronext now offers weekly expiries 

on Euronext’s CAC 40 and AEX indices. 

This initiative is the first of its kind in 

Europe, where index futures contracts 

traditionally expire on a monthly or 

quarterly basis.

Why trade Weekly Index Futures? 

Weekly futures on the CAC 40 and 

AEX indices offer market participants 

access to an efficient hedging 

tool, provide additional trading 

opportunities and opportunities 

to realise capital efficiencies.

Who are the Weekly Index Futures for?

Created in response to significant 

demand, weekly futures are for market 

participants looking for shorter 

expiry contracts, tradable on an 

efficient, transparent, liquid, and 

fully-cleared market.

Leveraging on a strong index 

future franchise with monthly 

and quarterly expiries:

 The CAC 40 index future is the 

second most traded equity index 

future in Europe in number of lots

 The CAC 40 and AEX futures 

provide a high level of liquidity 

and attract a wide variety of 

investors around the world

Fee structure matching 

investors’ needs:

 Same fees as the monthly 

expiries for single trades

 Optimised pricing for 

Inter-Commodity Spreads

Exchange for Physicals will also 

be available on weekly expiries 

Key benefits of trading Euronext’s 

Weekly Index Futures 

 Weekly futures on the AEX and CAC 40 indices can act as an efficient hedging 

tool in the dividend season. Weekly futures on the AEX-Index are a perfect 

hedge when trading AEX-Index weekly options. 

 Additional curve trading opportunities with an enlarged scope of 

possibilities: investors can access new trading cycles and can trade weekly 

contracts versus each other, or the weekly contracts versus the monthly 

ones, using Inter-Commodity Spreads (ICS).

 Euronext’s new Exchange for Physicals facility on CAC 40 and AEX futures will 

offer both monthly and weekly expiries, providing investors with a one-of-a-kind 

Delta One offering.

 Weekly index futures are available for trading in a transparent and 

secured trading environment. Clearing is provided by central counterparty 

LCH.Clearnet SA.
CONTRACT SIZE Contract valued at €10 per index point

UNIT OF TRADING 10

PRICING UNIT / QUOTATION Index points

MINIMUM PRICE MOVEMENT 

(TICK SIZE AND VALUE)

0.5 index point (€5 per contract)

EXPIRY WEEKS The weekly futures contracts will expire on the Friday of the relevant week.

When a weekly future expires, the corresponding expiry for the following month will be 

listed on the following Monday. For example, when the weekly future for the first Friday in 

the month expires, the expiry for the first Friday of the following month will then be listed 

on the following Monday

When the expiry for the fourth week of the following month is created an expiry will also 

be created for the fifth week of the following month if required. For calendar months 

where week 5 is not applicable, the contract will be listed with no expiry month and 

marked as non-tradable

No weekly future will be created for the third Friday in the month as the expiry would 

coincide with the expiry of the standard contract

WHOLESALES TRADING Basis and Block Trading

TRADING HOURS Block Trade Facility and Central Order Book: 08:00 – 22:00 CET (08:00 – 16:00 CET 

on the Last Trading Day)

Day session: 08:00 – 18:30 CET: all trades will be cleared on the same day (T)

Evening session: 18:30 – 22:00 CET: all trades will be cleared on the following business 

day (T+1)

LAST TRADING DAY Trading ceases at 16:00 CET on the Friday of the delivery week. In the event that the 

Friday is not a business day, the Last Trading Day shall normally be the last business 

day preceding the Friday

SETTLEMENT Cash Settlement based on the EDSP

SETTLEMENT DAY First business day after the Last Trading Day

EXCHANGE DELIVERY 

SETTLEMENT PRICE (EDSP)

Price determined on the Last Trading Day. Euronext calculates the settlement index as 

the arithmetic mean of all index values calculated and disseminated between 15:40 and 

16:00 CET, rounded to two decimal places. Such settlement index is taken, and rounded 

to one decimal place, to produce the closing settlement price

CLEARING ORGANISATION LCH.Clearnet SA 

CAC 40 INDEX WEEKLY FUTURES

Contract Specifications
CONTRACT SIZE Contract valued at €200 per index point

UNIT OF TRADING 200

PRICING UNIT / QUOTATION Index points

MINIMUM PRICE MOVEMENT 

(TICK SIZE AND VALUE)

0.05 index point (€10 per contract)

EXPIRY WEEKS The weekly futures contracts will expire on the Friday of the relevant week.

When a weekly future expires, the corresponding expiry for the following month will be 

listed on the following Monday. For example, when the weekly future for the first Friday in 

the month expires, the expiry for the first Friday of the following month will then be listed 

on the following Monday

When the expiry for the fourth week of the following month is created an expiry will also 

be created for the fifth week of the following month if required. For calendar months 

where week 5 is not applicable, the contract will be listed with no expiry month and 

marked as non-tradable

No weekly future will be created for the third Friday in the month as the expiry would 

coincide with the expiry of the standard contract

WHOLESALES TRADING Prof Trade facility

TRADING HOURS 08:00 – 22:00 CET 

Day session: 08:00 – 18:30 CET, all trades will be cleared on the same day (T) 

Evening session: 18:30 – 22:00 CET, all trades will be cleared on the following day (T+1)

LAST TRADING DAY Until 16:00 CET on the Friday of the delivery week, provided this is a business day. 

If not, the last day of trading is the last business day preceding the third Friday in the 

delivery week

SETTLEMENT Cash Settlement based on the EDSP

SETTLEMENT DAY First business day after the Last Trading Day

EXCHANGE DELIVERY 

SETTLEMENT PRICE (EDSP)

Average of values of the AEX-Index® calculated at one-minute intervals between 

15:30 to 16:30 CET. The EDSP value is rounded to two decimal places

CLEARING ORGANISATION LCH.Clearnet SA

AEX-INDEX WEEKLY FUTURES
www.euronext.com

© 2015, Euronext N.V. - All rights reserved. 00351f/1507

Find out more

Amsterdam

Marcel Walther

+31 20 721 4261

mwalther@euronext.com 

Brussels

Leen Van Wambeke

+32 2 620 1540

lvanwambeke@euronext.com

Lisbon

Sónia Pedro

+351 21 060 0626

spedro@euronext.com

London

Christopher French

+44 20 7076 0907

cfrench@euronext.com 

Paris

Charlotte Alliot

+33 1 70 48 2843

calliot@euronext.com

derivatives.euronext.com/

weekly-futures

WEEKLY FUTURES SINGLE TRADES

Account Trading Fee

Per lot

Clearing Fee

Per lot

Total (1 leg)

Per lot

AEX-Index Future*

Broker (client account) €0.77 €0.13 €0.90

Member (own account) €0.32 €0.13 €0.45

CAC 40 Index Future

All accounts €0.15 €0.13 €0.28

WEEKLY FUTURES INTER-COMMODITY SPREAD TRADES

Account 1 Leg

Trading

1 Leg

Clearing

Total Inter-Commodity 

Spread fee (2 legs)

Trading + Clearing

AEX-Index Future

Broker (client account) €0.17 €0.13 €0.60

Member (own account) €0.02 €0.13 €0.30

CAC 40 Index Future

All accounts €0.02 €0.13 €0.30

* Trading fee cap applies to Prof Trades on AEX-Index futures: €2,000 for client 

account and €1,000 for own account; Clearing fee cap applies for both COB and 

Prof Trades: €40 for client account and €20 for own account.

Fees

Disclaimer

This publication is for information purposes only and is not a recommendation to engage in investment activities. This publication is provided “as is” without representation or 

warranty of any kind. Whilst all reasonable care has been taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will 

not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication 

shall form the basis of any contract. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by Euronext’s subsidiaries 

shall depend solely on the applicable rules of the market operator. All proprietary rights and interest in or connected with this publication shall vest in Euronext. No part of 

it may be redistributed or reproduced in any form without the prior written permission of Euronext. Euronext refers to Euronext N.V. and its affiliates. Information regarding 

trademarks and intellectual property rights of Euronext is located at https://www.euronext.com/terms-use.
Cheaper access to European

blue chip index derivatives

Standard AEX and CAC 40 index options and futures are large contracts and 

investing in them can require large amounts of capital. This can make them 

too expensive for many retail investors.

New Mini Index Derivatives are exactly the same as the standard derivatives only 

the contract size is 10 times smaller (see reverse for full contract specifications).

By trading these products your clients can follow the same investment strategies 

as with the standard contracts, but with less initial margin or with a smaller 

trading amount. The value this provides is:

 Capitalize on a rising or falling index with a smaller traded amount; 

pay less for options and deposit lower margins for futures. If, for example, 

the theoretical price of a standard AEX-index option is € 9.50, then the total 

price of the option is € 950; in that same example the total price of the 

AEX mini option is € 95.

 Unlock more possibilities to close part of a position and therefore secure part 

of a profit or limit a loss.

 More flexibility to manage a portfolio: build a larger position or close a position 

gradually with smaller amounts.

Fast facts for retail broker members

What are they?

Euronext has launched options on the 

AEX-Index and futures on the AEX and 

CAC 40 with smaller contract sizes.

Who are they for?

Investors who want the opportunity 

to trade derivatives on our European 

blue chip indices with a lower 

trading size.

What do they provide?

Access to the same investment 

strategies as with the standard 

contracts, but now in smaller portions.

Enjoy the full taste 

with just a slice

MINI INDEX DERIVATIVES

ON THE AEX-INDEX® AND CAC 40® INDEX
CONTRACT SPECIFICATIONS – AEX-INDEX MINI OPTIONS

AEX-INDEX MINI OPTIONS

EXCHANGE CONTRACT CODE MOA

CONTRACT SIZE Contract valued at € 10 per index point 

TRADING UNIT 10

PRICING UNIT Euros per index point

CURRENCY Euro

OPTION PRICE Premium x trading unit

MINIMUM PRICE MOVE

(TICK SIZE AND VALUE)

€0.05 / €0.501

TRADING HOURS 09:01 – 17:30 Amsterdam time

OPTION STYLE European

EXPIRY MONTHS Initial lifetime: 1, 2 and 3 months

Cycle: Every month

LAST TRADING DAY Trading ceases at 16:00 Amsterdam time on the third Friday of the expiry month. In the event that 

the third Friday is not a business day, the Last Trading Day shall normally be the last business day 

preceding the third Friday

SETTLEMENT Cash settlement based on the EDSP

EXCHANGE DELIVERY

SETTLEMENT PRICE (EDSP)

Price determined on the Last Trading Day as the average of the AEX-Index values calculated and 

disseminated at one minute intervals between, and including, 15:30 and 16:00 Amsterdam time. 

The EDSP value is rounded to two decimal places

CLEARING ORGANIZATION LCH.Clearnet SA

1

 As from 4 October Premium Based Tick Size (PBTS) will be introduced:

If the premium of an order at order entry is below or equal to the premium threshold of € 1.50, the tick size is € 0.01 (€ 0.10 per contract)

If the premium of an order at order entry is above the premium threshold of € 1.50, the tick size is € 0.05 (€ 0.50 per contract)

1 AEX future =

€200 per index point

1 AEX mini future = 

€20 per index point

AEX

Enjoy the full taste 

with just a slice
CONTRACT SPECIFICATIONS – MINI FUTURES

AEX-INDEX MINI FUTURES CAC 40 INDEX MINI FUTURES

EXCHANGE CONTRACT CODE MFA MFC

CONTRACT SIZE Contract valued at € 20 per index point Contract valued at € 1 per index point

PRICING UNIT Index points Index points

CURRENCY Euro Euro

MINIMUM PRICE MOVE

(TICK SIZE AND VALUE)

0.05 index point / € 1.00 0.5 index point / € 0.50

TRADING HOURS 08:00 – 22:00 Amsterdam time

- Day session: 08:00 – 18:30: all trades 

will be cleared on the same day (T)

- Evening session: 18:30 – 22:00: all trades will be

cleared on the following business day (T+1)

08:00 – 22:00 Paris time

- Day session: 08:00 – 18:30: all trades will be 

cleared on the same day (T)

- Evening session: 18:30 – 22:00: all trades will be 

cleared on the following business day (T+1)

DELIVERY MONTHS Initial lifetime: 1, 2 and 3 months 

Cycle: Every month

Initial lifetime: 1, 2 and 3 months

Cycle: Every month

LAST TRADING DAY Trading ceases at 16:00 Amsterdam time on the 

third Friday of the expiry month. In the event 

that the third Friday is not a business day, the 

Last Trading Day shall normally be the last 

business day preceding the third Friday

Trading ceases at 16:00 Paris time on the 

third Friday of the expiry month. In the event 

that the third Friday is not a business day, the 

Last Trading Day shall normally be the last 

business day preceding the third Friday

SETTLEMENT Cash settlement based on the EDSP Cash settlement based on the EDSP

EXCHANGE DELIVERY

SETTLEMENT PRICE (EDSP)

Price determined on the Last Trading Day as the 

average of the AEX-Index values calculated and 

disseminated at one minute intervals between, 

and including, 15:30 and 16:00 Amsterdam time. 

The EDSP value is rounded to two decimal places

On the Last Trading Day, Euronext Paris 

calculates the settlement index as the arithmetic 

mean of all index values calculated and 

disseminated between 15:40 and 16:00 CET, 

rounded to two decimal places. Such settlement 

index is taken, and rounded to one decimal place, 

to produce the closing settlement price

CLEARING ORGANIZATION LCH.Clearnet SA LCH.Clearnet SA

1 CAC 40 future =

€10 per index point

1 CAC 40 mini future = 

€1 per index point

CAC 40
Find out more

Amsterdam

Marcel Walther

+31 20 721 4261

mwalther@euronext.com 

Brussels

Leen Van Wambeke

+32 2 620 1540

lvanwambeke@euronext.com

Lisbon

Sónia Pedro

+351 21 060 0626

spedro@euronext.com

London

Christopher French

+44 20 7076 0907

cfrench@euronext.com 

Paris 

Charlotte Alliot

+33 1 70 48 2843

calliot@euronext.com

Trading fees mini options and futures

CENTRAL

ORDER BOOK

BROKER

(CLIENT ACCOUNT)

MEMBER

(OWN ACCOUNT)

LIQUIDITY 

PROVIDER

AEX-Index mini options € 0.08 € 0.015 € 0.007

AEX-Index mini futures € 0.15 € 0.04 N/A

CAC 40 mini futures € 0.03 € 0.02 N/A

PROF

TRANSACTIONS

BROKER

(CLIENT ACCOUNT)

MEMBER

(OWN ACCOUNT)

LIQUIDITY 

PROVIDER

AEX-Index mini options

Maximum fee per order

€ 0.08

€ 1,000

€ 0.015

€ 500

€ 0.015

€ 500

AEX-Index mini futures

Maximum fee per order

€ 0.15

€ 1,000

€ 0.04

€ 500

N/A

N/A

www.euronext.com

© 2015, Euronext N.V. - All rights reserved. 00351d/1507

Disclaimer

This publication is for information purposes only and is not a recommendation to engage in investment activities. This publication is provided “as is” without representation or 

warranty of any kind. Whilst all reasonable care has been taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will 

not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication 

shall form the basis of any contract. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by Euronext’s subsidiaries 

shall depend solely on the applicable rules of the market operator. All proprietary rights and interest in or connected with this publication shall vest in Euronext. No part of 

it may be redistributed or reproduced in any form without the prior written permission of Euronext. Euronext refers to Euronext N.V. and its affiliates. Information regarding 

trademarks and intellectual property rights of Euronext is located at https://www.euronext.com/terms-use.
The Euronext Markets comprise the markets operated by Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Euronext Paris and Euronext 

UK Markets, referred to respectively as the Amsterdam, Brussels, Lisbon, Paris and London markets, as relevant. Euronext refers to Euronext N.V. 

and its affiliates.

Euronext N.V., PO Box 19163, 1000 GD Amsterdam, The Netherlands www.euronext.com

AMSTERDAM NOTICE NO. 14/013

Issue Date: 10 September 2014

Effective Date: 17 September 2014

ADJUSTMENT AEX DIVIDEND INDEX FUTURES

Executive Summary

This notice informs Members of changes to the Last Trading Day and trading hours of the AEX®

Dividend Index Futures.

1. Introduction

1.1 Euronext will make changes to the Last Trading Day and trading hours of the AEX® Dividend Index 

Futures (trading symbol: AXF) to align this product with other listed products. The changes will 

come into effect on 17 September 2014. The full contract specifications are shown in the 

attachment.

2. Change of the Last Trading day

2.1 The Last Trading Day will be equal to the expiry day. On this day trading will be possible until 13:00 

CET; the time that the EDSP is published. 

Current situation New situation

LTD is the business day immediately preceding 

the third Friday of the delivery month

(trading until 18:15 CET)

LTD is the third Friday of the delivery month 

(trading until 13:00 CET; the time that the 

EDSP is published)

3. Change of the trading hours

3.1 The trading hours will be changed as follows.

Current situation New situation

COB 08:00 - 18:15 (CET) 09:00 - 18:30 (CET)

Prof Trades 07:00 - 18:15 (CET) 07:00 - 18:30 (CET)

For further information in relation to this Notice, Members should contact:

Sales & Account Management

Amsterdam

+31 (0)20 550 5315 eurmteam@euronext.com
2

Attachment 

The contract specifications for AEX Dividend Index Futures applicable as from 17 September 2014 are as 

follows:

Underlying Index AEX Dividend Index

Exchange contract code AXF

Contract size Contract valued at € 200 per index point (e.g. value € 2,000 at 

10.00)

Trading unit 200

Pricing unit/quotation Index points (e.g. 100.00)

Currency Euro

Minimum price move Central Order Book 0.01 index point (€ 2 per contract)

Prof Transaction Facility 0.001 index point (€ 0.20 per contract)

Trading hours Central Order Book 09:00 - 18:30 CET

Prof Transaction Facility 07:00 - 18:30 CET

Expiry months 12, 24, 36, 48 and 60 months yearly (of the December cycle)

Introduction of new delivery 

months

New delivery months are available for trading on the first 

business day after the expiry of a maturity

Last day of trading Trading ceases at 13:00 CET on the third Friday of the delivery 

month. In the event that the third Friday is not a business day, 

the Last Trading Day shall normally be the last business day 

preceding the third Friday.

Settlement Cash settlement based on the EDSP

Settlement day First business day after the Last Trading Day

Exchange Delivery Settlement 

Price (EDSP)

The settlement value of the AEX Dividend Index as published at 

13:00 (CET) on the third Friday of the delivery month, rounded 

to three decimal places.

EDSP Tick Size 0.001 index point

Wholesale services Prof transaction (threshold 250 contracts)

Clearing organization LCH.Clearnet S.A.
The Euronext Markets comprise the markets operated by Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Euronext Paris and Euronext 

London Markets, referred to respectively as the Amsterdam, Brussels, Lisbon, Paris and London markets, as relevant. Euronext refers to Euronext 

N.V. and its affiliates.

Euronext N.V., PO Box 19163, 1000 GD Amsterdam, The Netherlands www.euronext.com

CONTRACT SPECIFICATIONS FOR CURRENCY DERIVATIVES as from 20 May 2016:

EUR/USD Option GBP/EUR Option GBP/USD Option

Symbol EDX PEX PDX

Contract size EUR 10,000 GBP 10,000 GBP 10,000

Trading unit 100 100 100

Pricing unit USD per EUR 100 EUR per GBP 100 USD per GBP 100

Trading currency USD EUR USD

Minimum price 

move

USD 0.01 (USD 1 per contract) EUR 0.01 (EUR 1 per

contract)

USD 0.01 (USD 1 per contract)

Option price Premium x trading unit

Trading hours

Central Order Book 09:00 - 17:30 CET

Prof Transaction facility 07:00 - 18:30 CET

Option style European style

Expiry months

Initial lifetime: 1, 2 and 3 months

Cycle: Every month

Initial lifetime: 6, 9 and 12 month quarterlies

Cycle: March, June, September, December

Last day of 

trading

Until 14:15 CET on the third Friday of each expiry month, provided this is a business day. If 

not, the last day of trading shall be the last business day preceding the third Friday in the 

expiry month.

Clearing

organization

LCH.Clearnet S.A.

Settlement

Cash settlement, based on 

the EUR/USD rate set by 

BFIX: Bloomberg FX Fixings

at 14:00 CET and rounded to 

four decimal places.

Cash settlement, based on 

the EUR/GBP rate set by 

BFIX: Bloomberg FX Fixings

at 14:00 CET and rounded to 

four decimal places.

Cash settlement, based on 

the GBP/USD rate set by 

BFIX: Bloomberg FX Fixings

at 14:00 CET and rounded to 

four decimal places.

Wholesale 

service

Prof Trade Facility

Minimum volume requirement: 250 lots
2

EUR/USD Future GBP/EUR Future GBP/USD Future

Symbol FED FPE FPD

Contract size EUR 20,000 GBP 10,000 GBP 10,000

Trading unit 200 100 100

Pricing unit USD per EUR 100 EUR per GBP 100 USD per GBP 100

Trading currency USD EUR USD

Minimum price 

move

USD 0.01 (USD 2 per contract) EUR 0.01 (EUR 1 per contract) USD 0.01 (USD 1 per contract)

Trading hours

Central Order Book 09:00 - 17:30 CET

Prof Transaction facility 07:00 - 18:30 CET

Expiry months

Initial lifetime: 1, 2 and 3 months

Cycle: Every month

Initial lifetime: 6, 9 and 12 month quarterlies

Cycle: March, June, September, December

Last day of 

trading

Until 14:15 CET on the third Friday of each expiry month, provided this is a business day. If not, 

the last day of trading shall be the last business day preceding the third Friday in the expiry 

month.

Clearing 

organization

LCH.Clearnet S.A.

Settlement

Cash settlement, based on the 

EUR/USD rate set by BFIX: 

Bloomberg FX Fixings at 14:00

CET and rounded to four 

decimal places.

Cash settlement, based on the 

EUR/GBP rate set by BFIX: 

Bloomberg FX Fixings at 14:00 

CET and rounded to four 

decimal places.

Cash settlement, based on the 

GBP/USD rate set by BFIX: 

Bloomberg FX Fixings at 14:00 

CET and rounded to four 

decimal places.

Wholesale 

service

Prof Trade Facility

Minimum volume requirement: 250 lots
Document title

SWEET WHEY FOOD GRADE POWDER FUTURES CONTRACT

(A) CONTRACT TERMS - Issue Date: 13 April 2015

(B) ADMINISTRATIVE PROCEDURES - Issue Date: 13 April 2015

Number of pages

25

Delivery Months: May 2015 Onwards
- 2 -

CONTENTS

Contract Terms

1. Interpretation

2. Sweet Whey Food Grade Powders Tenderable

3. Contract Specification

4. Price

5. Exchange Delivery Settlement Price

6. Settlement Payments

7. Payment 

8. Invoicing Amount

9. Notification to Deliver 

10. Withdrawal, Substitution or Exchange of Notification Notices 

11. Delivery

12. Presentation of Documents

13. New Legislation

14. Default in Performance

15. Force Majeure

16. Dispute Resolution

17. Rules, Administrative Procedures etc

18. Adopted Rules

19. Law and Jurisdiction

20. Non-Registered Contracts

Administrative Procedures

1. Index

2. Timetable

3. Delivery
- 3 -

Sweet Whey Food Grade Powder Futures Contract

1. INTERPRETATION

1.01 Save as otherwise specified herein, words and phrases defined in the Rules 

shall have the same meanings in these terms and in the Administrative 

Procedures.

1.02 In these terms and in the Administrative Procedures:

“Administrative Procedures” means the procedures from time to time 

implemented by Euronext pursuant to the Rules for the purposes of this 

Exchange Contract.

“Adopted Rules” means the MPC-Conditions for use within the European 

Union as published by Gemzu established in the Hague (the Netherlands) that 

are in force at the time of delivery.

“Business Day” means a day on which the Euronext Derivatives Market is open 

for business.

“Buyer” in respect of a Contract means the person who is obliged under such 

Contract to accept transfer in respect of each Lot of the delivery amount of 

Sweet Whey Food Grade Powder and to pay the Invoicing Amount in respect 

of each such Lot (including, except where the context otherwise requires, the 

Clearing House as buyer under a Registered Contract).

“Clearing House” means LCH.Clearnet SA.

“Clearing House Procedures” means LCH.Clearnet SA’s Clearing Rules as set 

forth in the LCH.Clearnet SA Clearing Rule Book, Instructions and Notices 

thereto, as may be amended from time to time. 

“CMR Note” ( where CMR stands for “Contrat de Transport International De 

Marchandises Par Route”) means a consignment note that confirms that the 

carrier (i.e. the road haulage company) has received the goods and that a 

contract of carriage exists between the customer and the carrier. 
- 4 -

“Competent Court” means, in relation to disputes arising before the time of a 

Tender, where appropriate either the Dutch courts having jurisdiction on the 

matter or the arbitration tribunal in the event where the parties involved have 

agreed to go to arbitration.

“Contract” means a contract made expressly or impliedly in the terms of this 

Exchange Contract for the sale and purchase of one or more Lots for a Delivery 

Month and “Registered Contract” means a Contract registered by the Clearing 

House. 

“Contract Price” means the price agreed between a Buyer and a Seller in 

respect of a Contract.

“Default in Performance” has the meaning attributed to it in terms 14.02 and 

14.03.

“Delivery Area” means a geographic area referred to in term 2, as determined 

by Euronext from time to time.

“Delivery Month” means each month specified as such by Euronext pursuant 

to the Rules.

“Delivery Notice” shall have a meaning as defined in the Clearing House 

Procedures and is the form committing the selling clearing member to deliver 

the specified quantity of Sweet Whey Food Grade Powder and the buying 

clearing member to take delivery at the agreed Delivery Point. 

“Delivery Period” means the period commencing on and including the first 

Business Day of the Delivery Month, up to and including the last Business Day

of the Delivery Month, subject to term 15.02.

“Delivery Point” means the location within a Delivery Area, as nominated by 

the Seller, where delivery will take place and which is either a European Union 

regulations compliant Sweet Whey Food Grade Powder storage facility or is a 

Sweet Whey Food Grade Powder production facility approved by the 

competent authority as per regulation (EC) No 853/2004 of the European 

Parliament and the Council.

“DSP” means the Daily Settlement Price established by Euronext according to 

its Rules and Trading Procedures.

“EDSP” means Exchange Delivery Settlement Price and has the meaning 

attributed to it in term 5.
- 5 -

“€”, “EUR” and “Euro” denotes the single currency of the European Union.

“Gemzu” means the umbrella organisation of Dutch Dairy Trade and other 

affiliated associations established in the Hague, the Netherlands.

“Invoicing Amount” has the meaning attributed to it in term 8.

“Last Trading Day” (also known as “Expiry”) in respect of any Delivery Month 

means the seventh Business Day preceding the first Business Day of the 

Delivery Period for the Delivery Month.

“Lot” shall have the meaning attributed to it in term 3.01.

“Notice of Performance” shall have a meaning as defined in the Clearing House 

Procedures and which is the document submitted to the Clearing House by the 

Buyer and the Seller attesting to proper performance of the Contract and 

terminating the Clearing House’s role as central counterparty. 

“Notification Notice” shall mean the form instigating delivery submitted by the

Seller to the Clearing House.

“Regulations” means any and all applicable laws and regulations and the 

Clearing House Procedures from time to time in force.

“Seller” in respect of a Contract means the person who is obliged under such 

Contract to deliver in respect of each Lot the delivery amount of Sweet Whey 

Food Grade Powder (including, except where the context otherwise requires, 

the Clearing House as seller under a Registered Contract).

“Sweet Whey Food Grade Powder” means sweet whey food grade powder of 

the quality and condition specified in term 2.

“Tender” means the notification to deliver made by the Seller in the form of 

the Notification Notice in accordance with these terms.

“Tonne” means 1000 kilogrammes as defined by the BIPM (Bureau 

International des Poids et Mesures, International Bureau of Weight and 

Measures).
- 6 -

1.03 References to a “term” refer to terms hereof, and references to a “Rule” refer 

to a rule of Euronext. Save where the context otherwise requires references 

herein to the singular include the plural, and vice versa.

2. SWEET WHEY FOOD GRADE POWDERS TENDERABLE

2.01 Each Contract shall be for Sweet Whey Food Grade Powder that, as a minimum, 

meets the quality requirements as specified in terms 2.01 (a) 2.01 (b) and 2.01 (c)

at time of delivery to the carrier nominated by the Buyer in accordance with 

Incoterm FCA and within the Delivery Area named in the Notification Notice, as 

evidenced by a certificate of analysis issued in accordance with these terms.

(a) The Sweet Whey Food Grade Powder must be made by the spray process

directly and exclusively from the removal of water from fresh sweet whey,

derived either from the manufacture of cheese or rennet casein, 

pasteurised and without added preservatives, compliant with EU 

legislation and produced within the European Union. It must be a non-GMO 

product as per EU directive 2001/18, Regulation 1829/2003 and 

1830/2003. It must comply with Council Regulation (Euratom) No. 

3954/87 on maximum levels of radioactive contamination in foodstuffs as 

amended from time to time. It must comply with the maximum levels of 

certain contaminants as per Commission Regulation (EC) No 1881/2006 

and 178/2010.

(b) Physical and Chemical Analyses

Fat 1.5% maximum

Protein 11.0% (non-fat dry matter) minimum

Lactose 67.0% minimum

pH value 6.0 minimum

Ash 9.0% maximum

Moisture 4.5% maximum

Scorched Particles Disc B maximum

Solubility Index 1.5 ml maximum
- 7 -

(c) Microbiological Analyses

Standard Plate Count 30,000/g maximum @ 30 degrees Celsius

Coliforms 10/g maximum

E. Coli Negative in 1 g

Salmonella Negative in 25g

Yeast and mould 100/g maximum

Inhibitors Negative

(d) Quality to be assessed in accordance with COKZ (The Netherlands 

Controlling Authority for Milk and Milk Products) methodology as current 

at the time of delivery. 

2.02 (a) Delivery shall take place at a Delivery Point within the Delivery Areas

included on the list of Delivery Areas from time to time published by 

Euronext by Notice, which shall apply to such Delivery Months specified 

in the Notice as Euronext may determine. Euronext may from time to 

time list or de-list a Delivery Area, which shall have such effect with

regard to existing or new Contracts or both as Euronext may determine 

in its absolute discretion. Any such determination will be notified to 

members of Euronext by means of a Notice or otherwise as Euronext 

may direct.

(b) Delivery of each Lot shall take place from a single Delivery Point. 

(c) Euronext gives no warranty and does not make any representation or 

promise that any Delivery Point has any particular characteristics or 

facilities or is safe or suitable in any way whatsoever, and Euronext shall 

not be liable for any loss, damage, or delay resulting from conditions at 

any such Delivery Point.

2.03 The Sweet Whey Food Grade Powder shall be packed in new, sound, heat sealed, 

minimum 2-ply kraft paper bags, each with a single new polyethylene liner, of a 

weight of 25 kg net each of Sweet Whey Food Grade Powder and each bag and 

liner having a combined minimum tare of 240g. The bags of each Lot shall be 

uniform and suitable for transport. All bags shall be of a colour as customarily 

used by the relevant producer, and for each Lot each bag shall bear the same 

minimum marks written in the English language stating the following:
- 8 -

(a) product description (e.g. Sweet Whey Food Grade Powder);

(b) net weight; 

(c) country of origin;

(d) date of production; 

(e) name of the producer;

(f) batch code; 

(g) a recognised EU oval marking incorporating the “EU plant number”.

Additional marks in local lettering/language are permitted provided that they 

do not contradict the marks referred to above.

The date of production detailed in term 2.03 (d) must be within six months of 

the final date of the Delivery Period and each Lot tendered must be of Sweet 

Whey Food Grade Powder from the same production facility approved by the 

competent authority as per regulation (EC) No 853/2004 of the European 

Parliament and the Council and shall consist of Sweet Whey Food Grade 

Powder made up of no more than three different production batches. 

2.04 Sweet Whey Food Grade Powder delivered shall be free of all liens and claims of 

any kind and shall be freely available for delivery within the European Union. 

3. CONTRACT SPECIFICATION

3.01 Each Contract shall be for one or more Lots for the Delivery Month specified. A 

Lot shall be for an amount of Sweet Whey Food Grade Powder having a nominal 

net weight of 6 Tonnes.

4. PRICE

4.01 The Contract Price shall be in Euros (€) and Euro cents per Tonne delivered to 

the carrier nominated by the Buyer in accordance with Incoterm FCA at a 

Delivery Point within a Delivery Area included in the list published by Euronext 

pursuant to term 2.02.
- 9 -

4.02 The Contract Price shall be exclusive of any value added tax which may be or may 

become payable thereon.

5. EXCHANGE DELIVERY SETTLEMENT PRICE 

5.01 Subject to term 5.02, the EDSP for Contracts for a particular Delivery Month

shall be calculated by Euronext on the Last Trading Day as follows:

(a) if (as far as reasonably ascertainable) one or more Contracts for that 

Delivery Month have been made in the market on the Last Trading Day 

during the period specified for this purpose in the Administrative 

Procedures, then:

(i) if only one Contract has been made, the EDSP shall be the price (as 

far as reasonably ascertainable) at which that Contract was made; 

or

(ii) if more than one Contract has been made, the EDSP shall be the 

average rounded down to the nearest Euro of the prices (as far as 

reasonably ascertainable) at which such Contracts were made, 

weighted by reference to the number of Lots (as far as reasonably 

ascertainable) comprised in each such Contract;

(b) if (as far as reasonably ascertainable) on the Last Trading Day, during the 

period specified for this purpose in the Administrative Procedures, no 

Contract for that Delivery Month has been made in the market but both 

an offer (or offers) and a bid (or bids) have been made in the market in 

respect of a Contract (or Contracts) for that Delivery Month, then the 

EDSP shall be the average of the lowest price (as far as reasonably 

ascertainable) at which such an offer was made and the highest price (as 

far as reasonably ascertainable) at which such a bid was made and such 

average shall be rounded down to the nearest Euro;

(c) if (as far as reasonably ascertainable) on the Last Trading Day, during the 

period specified for this purpose in the Administrative Procedures, no 

Contract for that Delivery Month has been made in the market and 

either no offer or no bid has been made in the market in respect of a 

Contract (or Contracts) for that Delivery Month, then Euronext shall 

determine the EDSP by reference inter alia to the price at which any 

offer or bid, as the case may be, in respect of a Contract for that Delivery 

Month was made in the market during such period on such day; or
- 10 -

(d) if (as far as reasonably ascertainable) on the Last Trading Day, during the 

period specified for this purpose in the Administrative Procedures, no 

Contract for that Delivery Month has been made in the market and 

neither an offer nor a bid have been made in the market in respect of a 

Contract (or Contracts) for that Delivery Month, then Euronext may in 

their absolute discretion fix the EDSP at a price determined by them as 

being consistent with the prices at which any Contracts or any offers or 

bids in respect of a Contract were made in the market on the Last 

Trading Day for the Delivery Month and period referred to in paragraphs 

(a) and (b) of term 5.02 below and, if necessary, rounded down to the 

nearest 50 cents.

5.02 If in the opinion of Euronext, the EDSP which would result from a calculation 

made in accordance with paragraphs (a), (b) or (c) of term 5.01 would not be 

consistent with the prices at which any Contracts or any offers or bids in 

respect of a Contract were made in the market on the Last Trading Day for:

(a) the relevant Delivery Month prior to the applicable period referred to in 

paragraphs (a), (b) or (c) of term 5.01, as the case may be; or

(b) any other Delivery Month during the applicable period referred to in 

paragraphs (a), (b) or (c) of term 5.01, as the case may be,

then Euronext may in their absolute discretion fix the EDSP at a price 

determined by them as being consistent with the prices, offers or bids for the 

Delivery Month and period referred to in paragraphs (a) or (b) of term 5.02 

above, and, if necessary, rounded down to the nearest 10 cents.

5.03 Euronext shall publish the EDSP at the time specified for that purpose in the 

Administrative Procedures. The EDSP shall be final and binding for all 

purposes.

6. SETTLEMENT PAYMENTS

6.01 In addition to any other payment required by these terms, all payments arising 

from successive variation margin calls called by the Clearing House between 

the original Contract Price and the subsequent settlement prices, including the 

successive DSPs and the EDSP, shall have been made by the time specified for 

that purpose in the Clearing House Procedures.
- 11 -

7. PAYMENT

7.01 For each Lot delivered under the terms of this Contract, the Seller shall 

present within five Business Days of the issue of the CMR Note the following 

documents to the Buyer evidencing the proper fulfilment of the terms of the 

Contract and conforming with the information given by the Seller in the 

Notification Notice:

(a) commercial invoice;

(b) copy of CMR Note; 

(c) packing list showing composition of each Lot including batch numbers, 

number of bags per batch, pallets per batch and marks per batch; and

(d) certificate(s) of analysis issued by an independent analyst and which 

guarantees a minimum shelf life for the Sweet Whey Food Grade Powder 

of eighteen months from the date of production.

7.02 Without prejudice to the Buyer’s ability to request that the Seller provides 

additional documents, the Buyer shall not be entitled to require the 

presentation of any documents in return for payment other than those 

specified in term 7.01.

7.03 The documents shall be deemed to have been accepted by the Buyer unless 

the Buyer has prior to 14.00 hours on the day of presentation of documents

notified the Clearing House and the Seller in writing that the documents are 

rejected by the Buyer on the grounds that they do not evidence the proper 

fulfilment of the terms of the Contract, and the documents have been 

returned to the Seller. The Buyer shall in any such notice state with reasonable 

precision the respects in which the documents do not evidence such 

fulfilment. The Buyer shall be precluded from relying on any grounds for the 

rejection of the documents which are not stated in any such notice. For the 

avoidance of doubt, where a Seller presents more than one set of documents 

to the Buyer, the Buyer shall not be entitled to reject any documents which 

are tendered in respect of a Lot or Lots where this is solely on the ground that 

the Buyer has rejected a document or documents which relate to a different 

Lot or Lots.
- 12 -

7.04 Where documents have been rejected by the Buyer, the Seller may re-present 

documents provided always that any such re-presentation must be within five 

Business Days of the issue of the CMR Note.

7.05 Title to goods shall not pass from the Seller and final payment shall not pass 

from the Buyer to the Seller until the Buyer has accepted the documents. Such 

final payment shall be effected within three Business Days of presentation and 

acceptance of documents. 

7.06 Upon the day of final payment a Notice of Performance, duly fulfilled and 

signed by the selling clearing member and the buying clearing member, shall 

be sent to the Clearing House. 

7.07 The Seller and Buyer may mutually agree to take the Sweet Whey Food Grade 

Powder off the market on any Business Day from and including the first 

Business Day following the Last Trading Day to the last day of the Delivery 

Period. In such event, the Seller and Buyer must conform to the “alternative 

delivery procedure” as detailed in the Clearing House Procedures. 

8. INVOICING AMOUNT

8.01 The Invoicing Amount in respect of each Lot referred to in a Notification 

Notice shall be the sum calculated in accordance with the formula:

Contract Weight x EDSP

where:

EDSP = The EDSP for the relevant Delivery Month

8.02 (a) Subject to term 8.02 (b), where the sum calculated in accordance with 

term 8.01 is not a number of whole Euros, such sum shall be rounded to 

the nearest sum which is a number of whole Euros cents and the 

Invoicing Amount shall be such nearest sum.

(b) Where the sum calculated in accordance with term 8.01 is a number of 

Euros and one half of one Euro, such sum shall be rounded up to the 

nearest sum which is a number of whole Euros, and the Invoicing 

Amount shall be such nearest sum.
- 13 -

9. NOTIFICATION TO DELIVER 

9.01 A Tender shall be made by the Seller on the first Business Day following the 

Last Trading Day to the Clearing House in the form of the Notification Notice

prescribed by the Clearing House Procedures. The tender must be submitted 

by the time specified in the Administrative Procedures.

10. WITHDRAWAL, SUBSTITUTION OR EXCHANGE OF NOTIFICATION 

NOTICES 

10.01 A Notification Notice shall not be withdrawn nor substitution allowed except 

with the consent of the Buyer or, in case of dispute, unless so ordered by 

Euronext.

10.02 A Notification Notice which has been submitted to the Clearing House in time 

shall, subject to term 10.01, be accepted by the Buyer as a valid Tender for 

that date.

10.03 With the consent of the Clearing House, Buyers may exchange, in accordance 

with the Clearing House Procedures, Notification Notices with one another by 

the time specified in the Administrative Procedures.

11. DELIVERY 

11.01 Delivery shall be in accordance with the Clearing House Procedures, the 

Adopted Rules and the Administrative Procedures.

11.02 The minimum quantity eligible to delivery is set up at 12 Lots (72 Tonnes). 

11.03 The Buyer shall give notice of five Business Days to the Seller and the Clearing 

House of the date and time of presentation of the Buyer’s transport in 

readiness for loading at the Delivery Point nominated by the Seller.

11.04 To the extent that the Adopted Rules are inconsistent with these terms and 

Administrative Procedures and the Clearing House Procedures, these terms

and Administrative Procedures and the Clearing House Procedures shall 

prevail.
- 14 -

12. PRESENTATION OF DOCUMENTS

12.01 For each Lot delivered under the terms of this Contract, documents as 

prescribed in term 7.01 shall be presented by the Seller to the Buyer within 

five Business Days of the issue of the CMR Note. 

12.03 The Buyer shall (unless the documents have been rejected in accordance with 

the provisions of term 7.04) be bound to take up and pay for such documents 

on the same day by the time specified in the Administrative Procedures 

without prejudice to the reference of any claim or dispute of whatsoever 

nature to the Competent Court.

13. NEW LEGISLATION 

13.01 If after consultation with the Clearing House, Euronext shall in its absolute 

discretion determine that a change of legislative or administrative provisions 

of a state or territory of the European Union, or of an institution or market 

organisation in any country or group of countries, has affected, is affecting or 

is likely to affect the normal course of business, Euronext shall have power to 

vary the terms of Contracts in any way it deems necessary or desirable for 

restoring or preserving the orderly course of business.

13.02 Such variation may be made notwithstanding that it may affect the 

performance or value of existing Contracts (or of such existing Contracts as 

may be specified by Euronext). Without limitation of its powers hereunder 

Euronext will use its best endeavours to keep any variation to the minimum 

considered reasonably necessary to achieve the purpose of this term.

13.03 Any determination made by Euronext pursuant to this term 13 shall be 

published by Notice. A variation of contract terms made hereunder shall take 

effect at such time and for such period as Euronext shall declare but (without 

prejudice to term 13.02 above) shall not take effect earlier than the day on 

which such Notice is issued.

13.04 A Contract affected by a variation under this term 13 shall remain in full force 

and effect subject to such variation and shall not be treated as frustrated or 

repudiated except so far as may be allowed by Euronext.
- 15 -

13.05 A variation made by Euronext under this term may be modified or revoked by 

a subsequent variation made hereunder.

14. DEFAULT IN PERFORMANCE

14.01 The provisions of this term 14 shall be subject to the relevant Clearing House 

Procedures and also subject to the provisions of term 18.03.

14.02 Any “Default in Performance” including an actual failure or an anticipated 

failure by a Seller or a Buyer in performing its obligations under a Contract at 

any time before the time of Tender on the first Business Day following the Last 

Trading Day shall be treated under the Clearing House procedures applicable for 

default management.

14.03 Any “Default in Performance” arising at any time upon or after the time of 

Tender on the first Business Day following the Last Trading Day shall be treated 

under the Clearing House procedures applicable for failure to deliver, subject 

to Force Majeure Events where Term 15 principles shall apply.

14.04 Errors in a notice, which are determined in the Clearing House’s absolute 

discretion to be clerical errors which can be readily rectified and are rectified, 

shall not be treated as constituting a Default in Performance.

14.05 Subject to term 14.10, if it appears to the Clearing House that a Seller or a 

Buyer is in Default in Performance under a Registered Contract, the Clearing 

House shall notify Euronext of the Default in Performance and may take all 

steps as it deems appropriate pursuant to the Clearing House procedures.

14.06 Any cash settlement price fixed under the Clearing House procedures shall be 

binding on the parties. The completion of cash settlement shall be without 

prejudice to the right of either party to refer the dispute or issue between them 

to the Competent Court under term 16.

14.07 Any costs, claims, losses, taxes or expenses of whatsoever nature suffered or 

incurred by the Clearing House in connection with any steps taken by the 

Clearing House in relation to a Contract to which the Default in Performance

relates shall be paid by the Buyer or Seller who is in Default in Performance. 

Any steps taken by the Clearing House in relation to a Default in Performance

shall be without prejudice to any rights (including rights to refer matters to the 

Competent Court under term 16), obligations or claims of the Buyer, the Seller 
- 16 -

or the Clearing House in relation to a Contract to which the Default in 

Performance relates.

14.08 A Buyer or Seller who is in Default in Performance under this term 14, shall 

forthwith pay to the Clearing House any sums payable by him under term 8 and 

any sums payable pursuant to this term 14.

14.9 Notwithstanding that a Buyer or Seller may be in Default in Performance

under this term 14, the Clearing House may in its absolute discretion 

determine not to exercise or to delay in exercising any of its rights under this 

term 14, and no failure by the Clearing House to exercise nor any delay on its 

part in exercising any of such rights shall operate as a waiver of the Clearing 

House’s rights upon that or any subsequent occasion, nor shall any single or 

partial exercise of any such rights prevent any further exercise thereof or of 

any other right.

14.10 A Buyer, a Seller or the Clearing House may refer a dispute or issue arising out 

of a Default in Performance under this term 14 (subject always to the 

application of provisions of terms 14.05and 14.06) to the Competent Court

under term 16.

15 FORCE MAJEURE

15.01 For the purposes of this term 15, “Force Majeure Event” shall mean an event 

which is beyond the reasonable control of either party to a Contract and which 

delays, hinders or prevents the performance in whole or in part by a party of 

its obligations under the Contract (other than an obligation to make a 

payment), including, without limitation, storm, flood, earthquake, fire, 

explosion, malicious damage, accident howsoever caused, strike, lock-out, 

labour dispute, riot, civil commotion, war whether declared or undeclared, 

armed conflict, use of force by authority of United Nations, act of terrorism, 

act of government or other national or local authority or any agency thereof, 

breakdown of machinery, and unavailability, restriction, failure or delay in or 

computer or data processing systems or communication or energy supplies or 

bank transfer systems. The failure for whatever reason of a computer or other 

electronic facility to accept a notification made by a Seller or a Buyer (other 

than the Clearing House) as required by these terms and the Administrative 

Procedures shall not be a Force Majeure Event;
- 17 -

If a Force Majeure Event occurs and delays, hinders or prevents the 

performance in whole or in part by a party of its obligations under the 

Contract (other than an obligation to make a payment):

(a) neither party will be deemed in Default in Performance of its obligations 

under a Contract if such party was unable to perform its obligations as a 

direct result of the occurrence of such Force Majeure Event nor will any 

penalty or damages be payable if and to the extent that performance of 

any obligation is hindered or prevented by a Force Majeure Event;

(b) the party prevented from performing its obligations shall immediately 

notify the Clearing House and Euronext of such fact and the quantity so 

affected. If such party is prevented from advising the Clearing House or 

Euronext through circumstances beyond its control, it shall notify them 

as soon as possible. The notice shall state the date on which the Force 

Majeure Event commenced and the effects of the Force Majeure Event 

on such party’s ability to perform its obligations in accordance with the 

Contract, including an estimate of the period of the Force Majeure 

Event;

(c) upon the request of the Clearing House or Euronext, a party seeking 

relief under this term 15.01 promptly provide such other information as 

required by the Clearing House or Euronext as soon as reasonably 

practicable;

(d) subject to any steps taken at any time by Euronext under emergency 

powers in the Rules and subject to the Clearing House Procedures, if a 

Force Majeure Event occurs, the Delivery Period shall be extended by a 

maximum of thirty days as per MPC conditions;

(e) the Seller shall notify the Clearing House immediately that the Force 

Majeure Event(s) terminates;

(f) if the party is still prevented from performing its obligations at the end 

of the thirty days extended Delivery Period, the contract is terminated 

and a financial payment is calculated by the Clearing House in 

accordance with the Clearing House Procedures, such financial payment 

being calculated upon a fair value set by Euronext based on available 

information (i.e. average price of the goods recorded on the cash market 

or market survey where appropriate, on the last day of the Delivery 

Period as extended);
- 18 -

(g) these provisions shall apply notwithstanding the occurrence of events 

which would otherwise frustrate the Contract;

(h) the party claiming Force Majeure shall within fourteen days from the 

initial notification of the facts relied upon deliver to the Clearing House 

evidence of the existence of those facts. If evidence is not delivered in 

accordance with this provision, the right to invoke force majeure shall be 

forfeited unless a Competent Court in its absolute discretion decides 

otherwise.

16. DISPUTE RESOLUTION

16.01 Any dispute arising out of a Contract shall (subject to terms 14, 15.02(f) and 

18.03 to the extent that they apply) be referred to the Competent Court in 

accordance with Term 19.

16.02 The determination and payment of an invoicing back price shall not limit the 

jurisdiction of the Competent Court to make such ruling as they deem proper 

on the issue before them.

16.03 Terms 16.01 and 16.02 apply only to a dispute arising before the time of Tender

on the first Business Day following the Last Trading Day. A dispute arising on or 

after the time of Tender on the first Business Day following the Last Trading Day 

shall be referred to arbitration in accordance with term 18.03.

17. ADMINISTRATIVE PROCEDURES AND RULES

17.01 Every Contract shall be subject to the Rules and the Regulations insofar as 

applicable notwithstanding that either or both of the parties to it are not 

members of Euronext or of the Clearing House.

17.02 In case of any conflict between the Administrative Procedures and these terms

or the Rules, the provisions of these terms and the Rules shall prevail and in 

the event of any conflict between these terms and the Rules, the Rules shall 

prevail.

17.03 Euronext may at its discretion at any time revoke, alter or add to the 

Administrative Procedures. Any such amendment shall have such effect on 

existing as well as new Contracts as Euronext may direct and will be notified to 

members of Euronext by means of a Notice or otherwise as Euronext may direct.
- 19 -

18. ADOPTED RULES

18.01 From the time of Tender on the first Business Day following the Last Trading Day 

a Contract shall be subject to the Adopted Rules, except where otherwise 

stated in these terms, the Administrative Procedures or the Clearing House 

Procedures.

18.02 To the extent that the Adopted Rules are inconsistent with these terms and 

Administrative Procedures and the Clearing House Procedures, these terms

and Administrative Procedures and the Clearing House Procedures shall 

prevail.

18.03 All disputes arising at or after the time of Tender on the first Business Day 

following the Last Trading Day shall be referred to the Gemzu in the 

Netherlands for settlement in accordance with its MPC Arbitration Regulations 

subject always (where the Clearing House is a party) to the Clearing House 

Procedures.

19. LAW AND JURISDICTION

19.01 Every Contract shall be governed by and construed in accordance with Dutch

law. Subject to term 18.03, any question arising there from shall be subject to 

the jurisdiction of the Competent Courts.

19.02 The provisions of neither the Convention relating to a Uniform Law on the 

International Sale of Goods, of 1964, nor the United Nations Convention on 

Contracts for the International Sale of Goods, 1980, shall apply to Contracts.

20. NON-REGISTERED CONTRACTS

20.01 In respect of a Contract which is not a Registered Contract (“non-Registered 

Contract”) these terms shall be modified so as to require and allow that a 

Contract to be registered with the Clearing House under the Rules and the 

Regulations is capable of being so registered, and to facilitate the performance 

of such Registered Contract (and of any intermediate Contract) in accordance 

with these terms and the Administrative Procedures. Modifications may also 

be made to the terms of a non-Registered Contract if, without such 

modifications, it may not be possible to perform such Contract by the 

applicable times specified in these terms and the Administrative Procedures. 
- 20 -

Without prejudice to the generality of the foregoing, all references in these 

terms to payment or dealing between the Buyer or the Seller and the Clearing 

House shall be modified so as to require a similar payment or dealing directly 

between the Buyer and the Seller party to such non-Registered Contract.

--------------0--------------

Issue Date: 13 April 2015
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Sweet Whey Food Grade Powder Futures Contract

Administrative Procedures

1 INDEX

In these Administrative Procedures:

1. Index

2. Timetable

3. Delivery

2 TIMETABLE (ALL TIMES ARE PARIS TIMES)

Last Trading Day (Expiry)

At 18.30 hours Trading in the Contract Delivery Month shall cease.

After 18.30 hours Euronext will publish the EDSP. The EDSP will be determined in 

accordance with term 5. 

Last Trading Day (Expiry) + 1 Business Day

By 10.30 hours Remaining open positions greater than 12 lots automatically 

become delivery contracts.

Sellers deliver the Notification Notice, naming the Delivery Area(s) 

and Delivery Point(s) where loading shall take place, to the Clearing 

House in accordance with the Clearing House Procedures.

After 14.00 hours Sweet Whey Food Grade Powder allocated to Buyers by the 

Clearing House in accordance with the Clearing House Procedures.

The Clearing House delivers to the Seller a temporary Seller/Buyer 

matching notice, identifying the Buyer.

By 17.00 hours The Clearing House delivers to the Buyer a temporary Buyer/Seller 

matching notice, identifying the Seller.
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Last Trading Day (Expiry) + 2 Business Days

By 15.00 hours Buyers may exchange assigned deliveries, with the consent of the 

Clearing House.

By 17.30 hours The Clearing House delivers to the Seller and the Buyer the final 

Seller/Buyer matching notice. 

Last Trading Day (Expiry) + 3 Business Days 

By 12.00 hours The Seller shall send, in accordance with Clearing House 

Procedures, a completed and signed Delivery Notice to each Buyer 

that has been assigned to him.

Before 15:00 hours The Buyer shall submit a completed and signed Delivery Notice to 

the Clearing House.

After 15:00 hours A Buyer may give notice of delivery from this point onwards.

Delivery Day(s) – 5 Business Days

By 16.00 hours Buyer informs Seller and the Clearing House of the date and time 

at which the Buyer’s transport shall be presented in readiness for 

loading to commence in accordance with the Clearing House 

Procedures with such date and time being within normal business 

hours on a working day in the country of loading, such notification 

to be made in accordance with the Clearing House Procedures. In 

the event of multiple deliveries, the Buyer must present transport 

such as to effect a continuous process of loading. 

Delivery Day Delivery shall take place between the Seller and the Buyer in 

accordance with these terms and Administrative Procedures. 
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Delivery Day(s) + maximum 5 Business Days from issue of CMR Note(s)

By 10.00 hours Seller lodges delivery documents with the Buyer in accordance 

with these terms and the Clearing House Procedures.

By 14.00 hours The Buyer may inform the Clearing House and the Seller in writing 

that he wishes to reject the documents specified in term 7.01, and 

in that event the Buyer shall comply with the process detailed in 

term 7.

After 14.00 hours The documents shall be deemed to have been accepted by the 

Buyer unless a rejection has been made in accordance with term 7. 

Delivery Day(s) + maximum 3 Business Days from presentation of delivery documents

By 14.00 hours The Buyer shall make final payment to the Seller in accordance 

with term 7.

By 16.00 hours A Notice of Performance, duly fulfilled and signed by the selling 

clearing member and the buying clearing member, shall be sent to 

the Clearing House in accordance with term 7 and the Clearing 

House Procedures.

3. DELIVERY

3.01 Subject to Administrative Procedure 3.03:

(a) the Seller shall be responsible for all expenses pertaining to delivery and 

loading of Sweet Whey Food Grade Powder onto the Buyer’s transport

including freight taxes and other taxes of any nature of the country of 

origin or loading; 

(b) the Buyer shall be responsible for all expenses pertaining to entry to and 

exit from the Delivery Point; and

(c) in the event of multiple deliveries, Seller and Buyer shall be responsible 

for negotiating a rate of loading that must at the very least fulfil the 

minimum loading requirements as set out in these Administrative 

Procedures and Contract terms. 
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3.02 (a) Subject to Contract term 2.02, the Seller shall ensure that the Delivery 

Point at which the Sweet Whey Food Grade Powder is to be delivered 

shall: 

(i) have storage close to and/or transport facilities to the Delivery 

Point, to allow for uninterrupted loading at the prescribed 

minimum loading rate;

(ii) have sampling facilities to allow independent supervision 

companies to operate unimpeded in accordance with these terms; 

and

(iii) have access for independent supervision companies to ensure 

compliance with these terms.

(b) The Sweet Whey Food Grade Powder shall be loaded with the following 

provisions:

(i) Sweet Whey Food Grade Powder to be loaded onto Buyer’s 

transport stacked on wooden pallets suitable for food contact use;

(ii) Seller to load each Lot of Sweet Whey Food Grade Powder onto 

Buyer’s transport at a rate of no less than 12 Tonnes per hour 

during the normal business hours of each working day in the 

country of loading with such loading to commence and finish 

within a four hour delivery window commencing on the date and 

time detailed in the notice made by the Buyer five working days 

prior to delivery;

(iii) Seller to load from each Delivery Point at a minimum rate of 

twelve Lots of Sweet Whey Food Grade Powder per day with such 

loading to take place during the normal business hours of each 

working day in the country of loading (to fulfil this requirement 

each Delivery Point must be able to handle loading of a minimum 

of six Lots during the same time period);

(iv) Seller is liable to pay any additional waiting charges or demurrage 

rates incurred by the Buyer in the event that a Lot of Sweet Whey 

Food Grade Powder is loaded at a rate of less than 12 Tonnes per 

hour within the allotted four hour delivery window during the 

normal business hours of each working day in the country of 

loading. Such additional waiting charges or demurrage rates shall 

be equal to those detailed in the Contract between the Buyer and 

the carrier of the Buyer’s goods with the rate of additional charges 

being declared by the Buyer to the Seller no later than 24 hours 

prior to the commencement of loading; 
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(v) In the event that the Buyer’s transport is not present and/or ready 

to load in accordance with the notice made by the Buyer five days 

prior to delivery then, for each hour of delay incurred during the 

normal business hours of each working day in the country of 

loading, the Seller may charge the Buyer a penalty that is 

equivalent to the rate of additional waiting charges or demurrage 

rates as detailed in the Contract between the Buyer and the carrier 

of the Buyer’s goods;

(vi) Seller to ensure that loading, including palletisation, complies with 

local safety regulations; and

(vii) All other terms pertaining to loading shall be in accordance with 

the Contract between the Buyer and the carrier of the Buyer’s 

goods. 

3.03 The Buyer may, at his own expense, either appoint an internationally 

recognised independent or with the written consent of the Buyer, appoint a 

state supervision firm, to supervise and inspect the loading of the Sweet Whey 

Food Grade Powder to be delivered to the Buyer. Such appointment shall be 

made not less than 48 hours prior to the Seller commencing loading of the

Sweet Whey Food Grade Powder. The Buyer shall upon the appointment of a 

Supervisor notify the Seller of such appointment.

3.04 If either party has a claim, or wishes to bring a claim, as to the quality, weight 

or packing of the Sweet Whey Food Grade Powder it may refer such claim to

arbitration in accordance with the Contract terms and these Administrative 

Procedures and in accordance with the Clearing House Procedures.

--------------0--------------

Issue Date: xxxxxxxx
Document title

UNSALTED LACTIC BUTTER FUTURES CONTRACT

(A) CONTRACT TERMS - Issue Date: xxxxxxxx

(B) ADMINISTRATIVE PROCEDURES - Issue Date: xxxxxxxxx

Number of pages

24

Delivery Months: May 2015 Onwards
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CONTENTS

Contract Terms

1. Interpretation

2. Unsalted Lactic Butter Tenderable

3. Contract Specification

4. Price

5. Exchange Delivery Settlement Price

6. Settlement Payments

7. Payment 

8. Invoicing Amount

9. Notification to Deliver 

10. Withdrawal, Substitution or Exchange of Notification Notices 

11. Delivery

12. Presentation of Documents

13. New Legislation

14. Default in Performance

15. Force Majeure

16. Dispute Resolution

17. Rules, Administrative Procedures etc

18. Adopted Rules

19. Law and Jurisdiction

20. Non-Registered Contracts

Administrative Procedures

1. Index

2. Timetable

3. Delivery
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Unsalted Lactic ButterFutures Contract

1. INTERPRETATION

1.01 Save as otherwise specified herein, words and phrases defined in the Rules 

shall have the same meanings in these terms and in the Administrative 

Procedures.

1.02 In these terms and in the Administrative Procedures:

“Administrative Procedures” means the procedures from time to time 

implemented by Euronext pursuant to the Rules for the purposes of this 

Exchange Contract.

“Adopted Rules” means the MPC-Conditions for use within the European 

Union as published by Gemzu established in the Hague (the Netherlands) that 

are in force at the time of delivery.

“Business Day” means a day on which the Euronext Derivatives Market is open 

for business.

“Buyer” in respect of a Contract means the person who is obliged under such 

Contract to accept transfer in respect of each Lot of the delivery amount of 

Unsalted Lactic Butter and to pay the Invoicing Amount in respect of each such 

Lot (including, except where the context otherwise requires, the Clearing 

House as buyer under a Registered Contract).

“Clearing House” means LCH.Clearnet SA.

“Clearing House Procedures” means LCH.Clearnet SA’s Clearing Rules as set 

forth in the LCH.Clearnet SA Clearing Rule Book, Instructions and Notices 

thereto, as may be amended from time to time. 

“CMR Note” ( where CMR stands for “Contrat de Transport International De 

Marchandises Par Route”) means a consignment note that confirms that the 

carrier (i.e. the road haulage company) has received the goods and that a 

contract of carriage exists between the customer and the carrier. 

“Competent Court” means, in relation to disputes arising before the time of a 

Tender, where appropriate either the Dutch courts having jurisdiction on the 

matter or the arbitration tribunal in the event where the parties involved have 

agreed to go to arbitration.
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“Contract” means a contract made expressly or impliedly in the terms of this 

Exchange Contract for the sale and purchase of one or more Lots for a Delivery 

Month and “Registered Contract” means a Contract registered by the Clearing 

House. 

“Contract Price” means the price agreed between a Buyer and a Seller in 

respect of a Contract.

“Default in Performance” has the meaning attributed to it in terms 14.02 and 

14.03.

“Delivery Area” means a geographic area referred to in term 2, as determined 

by Euronext from time to time.

“Delivery Month” means each month specified as such by Euronext pursuant 

to the Rules.

“Delivery Notice” shall have a meaning as defined in the Clearing House 

Procedures and is the form committing the selling clearing member to deliver 

the specified quantity of Unsalted Lactic Butter and the buying clearing 

member to take delivery at the agreed Delivery Point. 

“Delivery Period” means the period commencing on and including the first 

Business Day of the Delivery Month, up to and including the last Business Day

of the Delivery Month, subject to term 15.02.

“Delivery Point” means the location within a Delivery Area, as nominated by 

the Seller, where delivery will take place and which is either an Unsalted Lactic 

Butter storage facility approved by the competent authority as per regulation 

(EC) No 853/2004 of the European Parliament and the Council or is an 

Unsalted Lactic Butter production facility approved by the competent 

authority as per regulation (EC) No 853/2004 of the European Parliament and 

the Council. 

“DSP” means the Daily Settlement Price established by Euronext according to 

its Rules and Trading Procedures.

“EDSP” means Exchange Delivery Settlement Price and has the meaning 

attributed to it in term 5.

“€”, “EUR” and “Euro” denotes the single currency of the European Union.

“Gemzu” means the umbrella organisation of Dutch Dairy Trade and other 

affiliated associations established in the Hague, the Netherlands.
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“Invoicing Amount” has the meaning attributed to it in term 8.

“Last Trading Day” (also known as “Expiry”) in respect of any Delivery Month 

means the seventh Business Day preceding the first Business Day of the 

Delivery Period for the Delivery Month.

“Lot” shall have the meaning attributed to it in term 3.01.

“Notice of Performance” shall have a meaning as defined in the Clearing House 

Procedures and which is the document submitted to the Clearing House by the 

Buyer and the Seller attesting to proper performance of the Contract and 

terminating the Clearing House’s role as central counterparty. 

“Notification Notice” shall mean the form instigating delivery submitted by the

Seller to the Clearing House.

“Regulations” means any and all applicable laws and regulations and the 

Clearing House Procedures from time to time in force.

“Seller” in respect of a Contract means the person who is obliged under such 

Contract to deliver in respect of each Lot the delivery amount of Unsalted 

Lactic Butter (including, except where the context otherwise requires, the 

Clearing House as seller under a Registered Contract).

“Unsalted Lactic Butter” means Unsalted Lactic Butter of the quality and 

condition specified in term 2.

“Tender” means the notification to deliver made by the Seller in the form of 

the Notification Notice in accordance with these terms.

“Tonne” means 1000 kilogrammes as defined by the BIPM (Bureau 

International des Poids et Mesures, International Bureau of Weight and 

Measures).

1.03 References to a “term” refer to terms hereof, and references to a “Rule” refer 

to a rule of Euronext. Save where the context otherwise requires references 

herein to the singular include the plural, and vice versa.
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2. UNSALTED LACTIC BUTTER TENDERABLE

2.01 Each Contract shall be for Unsalted Lactic Butter that, as a minimum, meets the 

quality requirements as specified in terms 2.01 (a) 2.01 (b) and 2.01 (c) at time of 

delivery to the carrier nominated by the Buyer in accordance with Incoterm FCA 

and within the Delivery Area named in the Notification Notice, as evidenced by a 

certificate of analysis issued in accordance with these terms.

(a) The Unsalted Lactic Butter must be non-reconstituted unsalted lactic 

butter produced exclusively from pasteurised cream or milk, compliant 

with EU legislation. It must be a non-GMO product as per EU directive 

2001/18, Regulation 1829/2003 and 1830/2003. It must comply with 

Council Regulation (Euratom) No. 3954/87 on maximum levels of 

radioactive contamination in foodstuffs as amended from time to time. It 

must comply with the maximum levels of certain contaminants as per 

Commission Regulation (EC) No 1881/2006 and 178/2010.

(b) Physical and Chemical Analyses

Fat 82% minimum by weight, 90% maximum, by

weight

Dry non-fat milk material 2% maximum

Moisture 16% maximum

Peroxide 0.3 mEqu/kg maximum

Free fatty acids 0.35% maximum

pH 4.5-5.5

(c) Microbiological Analyses

Standard Plate Count 5,000/g maximum

Coliforms 10/g maximum

E. Coli Negative in 1 g

Salmonella Negative in 25g

Yeast and mould 100/g maximum

Inhibitors Negative
- 7 -

(d) Quality to be assessed in accordance with COKZ (The Netherlands 

Controlling Authority for Milk and Milk Products) methodology as current 

at the time of delivery. 

2.02 (a) Delivery shall take place at a Delivery Point within the Delivery Areas

included on the list of Delivery Areas from time to time published by 

Euronext by Notice, which shall apply to such Delivery Months specified 

in the Notice as Euronext may determine. Euronext may from time to 

time list or de-list a Delivery Area, which shall have such effect with 

regard to existing or new Contracts or both as Euronext may determine 

in its absolute discretion. Any such determination will be notified to 

members of Euronext by means of a Notice or otherwise as Euronext 

may direct.

(b) Delivery of each Lot shall take place from a single Delivery Point. 

(c) Euronext gives no warranty and does not make any representation or 

promise that any Delivery Point has any particular characteristics or 

facilities or is safe or suitable in any way whatsoever, and Euronext shall 

not be liable for any loss, damage, or delay resulting from conditions at 

any such Delivery Point.

2.03 The Unsalted Lactic Butter shall be packed in new, sound, 25 kg net weight each 

corrugated cartons with a single new polyethylene liner and each carton and 

liner having a combined minimum tare of 240g. The cartons of each Lot shall be 

uniform and suitable for transport. All cartons shall be of a colour as customarily 

used by the relevant producer, and for each Lot each bag shall bear the same 

minimum marks written in the English language stating the following:

(a) product description (e.g. Unsalted Lactic Butter);

(b) net weight; 

(c) country of origin;

(d) date of production; 

(e) name of the producer;

(f) batch code; 

(g) a recognised EU oval marking incorporating the “EU plant number” when 

applicable.
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Additional marks in local lettering/language are permitted provided that they 

do not contradict the marks referred to above.

The date of production detailed in term 2.03 (d) must be within six months of 

the final date of the Delivery Period and each Lot tendered must be of 

Unsalted Lactic Butter from the same production facility compliant with

regulation (EC) No 853/2004 of the European Parliament and the Council and 

shall consist of Unsalted Lactic Butter made up of no more than three different 

production batches.

2.04 Unsalted Lactic Butter delivered shall be free of all liens and claims of any kind 

and shall be freely available for delivery within the European Union. 

3. CONTRACT SPECIFICATION

3.01 Each Contract shall be for one or more Lots for the Delivery Month specified. A 

Lot shall be for an amount of Unsalted Lactic Butter having a nominal net weight 

of 6 Tonnes.

4. PRICE

4.01 The Contract Price shall be in Euros (€) and Euro cents per Tonne delivered to 

the carrier nominated by the Buyer in accordance with Incoterm FCA at a 

Delivery Point within a Delivery Area included in the list published by Euronext 

pursuant to term 2.02., all duties and taxes paid.

4.02 The Contract Price shall be exclusive of any value added tax which may be or may 

become payable thereon.

5. EXCHANGE DELIVERY SETTLEMENT PRICE 

5.01 Subject to term 5.02, the EDSP for Contracts for a particular Delivery Month

shall be calculated by Euronext on the Last Trading Day as follows:

(a) if (as far as reasonably ascertainable) one or more Contracts for that 

Delivery Month have been made in the market on the Last Trading Day 

during the period specified for this purpose in the Administrative 

Procedures, then:
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(i) if only one Contract has been made, the EDSP shall be the price (as 

far as reasonably ascertainable) at which that Contract was made; 

or

(ii) if more than one Contract has been made, the EDSP shall be the 

average rounded down to the nearest Euro of the prices (as far as 

reasonably ascertainable) at which such Contracts were made, 

weighted by reference to the number of Lots (as far as reasonably 

ascertainable) comprised in each such Contract;

(b) if (as far as reasonably ascertainable) on the Last Trading Day, during the 

period specified for this purpose in the Administrative Procedures, no 

Contract for that Delivery Month has been made in the market but both 

an offer (or offers) and a bid (or bids) have been made in the market in 

respect of a Contract (or Contracts) for that Delivery Month, then the 

EDSP shall be the average of the lowest price (as far as reasonably 

ascertainable) at which such an offer was made and the highest price (as 

far as reasonably ascertainable) at which such a bid was made and such 

average shall be rounded down to the nearest Euro;

(c) if (as far as reasonably ascertainable) on the Last Trading Day, during the 

period specified for this purpose in the Administrative Procedures, no 

Contract for that Delivery Month has been made in the market and 

either no offer or no bid has been made in the market in respect of a 

Contract (or Contracts) for that Delivery Month, then Euronext shall 

determine the EDSP by reference inter alia to the price at which any 

offer or bid, as the case may be, in respect of a Contract for that Delivery 

Month was made in the market during such period on such day; or

(d) if (as far as reasonably ascertainable) on the Last Trading Day, during the 

period specified for this purpose in the Administrative Procedures, no 

Contract for that Delivery Month has been made in the market and 

neither an offer nor a bid have been made in the market in respect of a 

Contract (or Contracts) for that Delivery Month, then Euronext may in 

their absolute discretion fix the EDSP at a price determined by them as 

being consistent with the prices at which any Contracts or any offers or 

bids in respect of a Contract were made in the market on the Last 

Trading Day for the Delivery Month and period referred to in paragraphs 

(a) and (b) of term 5.02 below and, if necessary, rounded down to the 

nearest 50 cents.
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5.02 If in the opinion of Euronext, the EDSP which would result from a calculation 

made in accordance with paragraphs (a), (b) or (c) of term 5.01 would not be 

consistent with the prices at which any Contracts or any offers or bids in 

respect of a Contract were made in the market on the Last Trading Day for:

(a) the relevant Delivery Month prior to the applicable period referred to in 

paragraphs (a), (b) or (c) of term 5.01, as the case may be; or

(b) any other Delivery Month during the applicable period referred to in 

paragraphs (a), (b) or (c) of term 5.01, as the case may be,

then Euronext may in their absolute discretion fix the EDSP at a price 

determined by them as being consistent with the prices, offers or bids for the 

Delivery Month and period referred to in paragraphs (a) or (b) of term 5.02 

above, and, if necessary, rounded down to the nearest 10 cents.

5.03 Euronext shall publish the EDSP at the time specified for that purpose in the 

Administrative Procedures. The EDSP shall be final and binding for all 

purposes.

6. SETTLEMENT PAYMENTS

6.01 In addition to any other payment required by these terms, all payments arising 

from successive variation margin calls called by the Clearing House between 

the original Contract Price and the subsequent settlement prices, including the 

successive DSPs and the EDSP, shall have been made by the time specified for 

that purpose in the Clearing House Procedures.

7. PAYMENT

7.01 For each Lot delivered under the terms of this Contract, the Seller shall 

present within five Business Days of the issue of the CMR Note the following 

documents to the Buyer evidencing the proper fulfilment of the terms of the 

Contract and conforming with the information given by the Seller in the 

Notification Notice:

(a) commercial invoice;

(b) copy of CMR Note; 
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(c) packing list showing composition of each Lot including batch numbers, 

number of bags per batch, pallets per batch and marks per batch; and

(d) certificate(s) of analysis issued by an independent analyst and which 

guarantees a minimum shelf life for the Unsalted Lactic Butter of 

eighteen months from the date of production.

7.02 Without prejudice to the Buyer’s ability to request that the Seller provides 

additional documents, the Buyer shall not be entitled to require the 

presentation of any documents in return for payment other than those 

specified in term 7.01.

7.03 The documents shall be deemed to have been accepted by the Buyer unless 

the Buyer has prior to 14.00 hours on the day of presentation of documents

notified the Clearing House and the Seller in writing that the documents are 

rejected by the Buyer on the grounds that they do not evidence the proper 

fulfilment of the terms of the Contract, and the documents have been 

returned to the Seller. The Buyer shall in any such notice state with reasonable 

precision the respects in which the documents do not evidence such 

fulfilment. The Buyer shall be precluded from relying on any grounds for the 

rejection of the documents which are not stated in any such notice. For the 

avoidance of doubt, where a Seller presents more than one set of documents 

to the Buyer, the Buyer shall not be entitled to reject any documents which 

are tendered in respect of a Lot or Lots where this is solely on the ground that 

the Buyer has rejected a document or documents which relate to a different 

Lot or Lots.

7.04 Where documents have been rejected by the Buyer, the Seller may re-present 

documents provided always that any such re-presentation must be within five 

Business Days of the issue of the CMR Note.

7.05 Title to goods shall not pass from the Seller and final payment shall not pass 

from the Buyer to the Seller until the Buyer has accepted the documents. Such 

final payment shall be effected within three Business Days of presentation and 

acceptance of documents. 

7.06 Upon the day of final payment a Notice of Performance, duly fulfilled and 

signed by the selling clearing member and the buying clearing member, shall 

be sent to the Clearing House. 
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7.07 The Seller and Buyer may mutually agree to take the Unsalted Lactic Butter off 

the market on any Business Day from and including the first Business Day 

following the Last Trading Day to the last day of the Delivery Period. In such 

event, the Seller and Buyer must conform to the “alternative delivery 

procedure” as detailed in the Clearing House Procedures. 

8. INVOICING AMOUNT

8.01 The Invoicing Amount in respect of each Lot referred to in a Notification 

Notice shall be the sum calculated in accordance with the formula:

Contract Weight x EDSP

where:

EDSP = The EDSP for the relevant Delivery Month

8.02 (a) Subject to term 8.02 (b), where the sum calculated in accordance with 

term 8.01 is not a number of whole Euros, such sum shall be rounded to 

the nearest sum which is a number of whole Euros cents and the 

Invoicing Amount shall be such nearest sum;

(b) Where the sum calculated in accordance with term 8.01 is a number of 

Euros and one half of one Euro, such sum shall be rounded up to the 

nearest sum which is a number of whole Euros, and the Invoicing 

Amount shall be such nearest sum.

9. NOTIFICATION TO DELIVER 

9.01 A Tender shall be made by the Seller on the first Business Day following the 

Last Trading Day to the Clearing House in the form of the Notification Notice

prescribed by the Clearing House Procedures. The tender must be submitted 

by the time specified in the Administrative Procedures.
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10. WITHDRAWAL, SUBSTITUTION OR EXCHANGE OF NOTIFICATION 

NOTICES

10.01 A Notification Notice shall not be withdrawn nor substitution allowed except 

with the consent of the Buyer or, in case of dispute, unless so ordered by 

Euronext.

10.02 A Notification Notice which has been submitted to the Clearing House in time 

shall, subject to term 10.01, be accepted by the Buyer as a valid Tender for 

that date.

10.03 With the consent of the Clearing House, Buyers may exchange, in accordance 

with the Clearing House Procedures, Notification Notices with one another by 

the time specified in the Administrative Procedures.

11. DELIVERY 

11.01 Delivery shall be in accordance with the Clearing House Procedures, the 

Adopted Rules and the Administrative Procedures.

11.02 The minimum quantity eligible to delivery is set up at 11 Lots (66 Tonnes). 

11.03 The Buyer shall give notice of five Business Days to the Seller and the Clearing 

House of the date and time of presentation of the Buyer’s transport in 

readiness for loading at the Delivery Point nominated by the Seller.

11.04 To the extent that the Adopted Rules are inconsistent with these terms and 

Administrative Procedures and the Clearing House Procedures, these terms

and Administrative Procedures and the Clearing House Procedures shall 

prevail.

12. PRESENTATION OF DOCUMENTS

12.01 For each Lot delivered under the terms of this Contract, documents as 

prescribed in term 7.01 shall be presented by the Seller to the Buyer within 

five Business Days of the issue of the CMR Note. 
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12.03 The Buyer shall (unless the documents have been rejected in accordance with 

the provisions of term 7.04) be bound to take up and pay for such documents 

on the same day by the time specified in the Administrative Procedures 

without prejudice to the reference of any claim or dispute of whatsoever 

nature to the Competent Court.

13. NEW LEGISLATION 

13.01 If after consultation with the Clearing House, Euronext shall in its absolute 

discretion determine that a change of legislative or administrative provisions 

of a state or territory of the European Union, or of an institution or market 

organisation in any country or group of countries, has affected, is affecting or 

is likely to affect the normal course of business, Euronext shall have power to 

vary the terms of Contracts in any way it deems necessary or desirable for 

restoring or preserving the orderly course of business.

13.02 Such variation may be made notwithstanding that it may affect the 

performance or value of existing Contracts (or of such existing Contracts as 

may be specified by Euronext). Without limitation of its powers hereunder 

Euronext will use its best endeavours to keep any variation to the minimum 

considered reasonably necessary to achieve the purpose of this term.

13.03 Any determination made by Euronext pursuant to this term 13 shall be 

published by Notice. A variation of contract terms made hereunder shall take 

effect at such time and for such period as Euronext shall declare but (without 

prejudice to term 13.02 above) shall not take effect earlier than the day on 

which such Notice is issued.

13.04 A Contract affected by a variation under this term 13 shall remain in full force 

and effect subject to such variation and shall not be treated as frustrated or 

repudiated except so far as may be allowed by Euronext.

13.05 A variation made by Euronext under this term may be modified or revoked by 

a subsequent variation made hereunder.
- 15 -

14. DEFAULT IN PERFORMANCE

14.01 The provisions of this term 14 shall be subject to the relevant Clearing House 

Procedures and also subject to the provisions of term 18.03.

14.02 Any “Default in Performance” including an actual failure or an anticipated 

failure by a Seller or a Buyer in performing its obligations under a Contract at 

any time before the time of Tender on the first Business Day following the Last 

Trading Day shall be treated under the Clearing House procedures applicable for 

default management.

14.03 Any “Default in Performance” arising at any time upon or after the time of 

Tender on the first Business Day following the Last Trading Day shall be treated 

under the Clearing House procedures applicable for failure to deliver, subject 

to Force Majeure Events where Term 15 principles shall apply.

14.04 Errors in a notice, which are determined in the Clearing House’s absolute 

discretion to be clerical errors which can be readily rectified and are rectified, 

shall not be treated as constituting a Default in Performance.

14.05 Subject to term 14.10, if it appears to the Clearing House that a Seller or a 

Buyer is in Default in Performance under a Registered Contract, the Clearing 

House shall notify Euronext of the Default in Performance and may take all 

steps as it deems appropriate pursuant to the Clearing House procedures.

14.06 Any cash settlement price fixed under the Clearing House procedures shall be 

binding on the parties. The completion of cash settlement shall be without 

prejudice to the right of either party to refer the dispute or issue between them 

to the Competent Court under term 16.

14.07 Any costs, claims, losses, taxes or expenses of whatsoever nature suffered or 

incurred by the Clearing House in connection with any steps taken by the 

Clearing House in relation to a Contract to which the Default in Performance

relates shall be paid by the Buyer or Seller who is in Default in Performance. 

Any steps taken by the Clearing House in relation to a Default in Performance

shall be without prejudice to any rights (including rights to refer matters to the 

Competent Court under term 16), obligations or claims of the Buyer, the Seller 

or the Clearing House in relation to a Contract to which the Default in 

Performance relates.

14.08 A Buyer or Seller who is in Default in Performance under this term 14, shall 

forthwith pay to the Clearing House any sums payable by him under term 8 and 

any sums payable pursuant to this term 14.
- 16 -

14.9 Notwithstanding that a Buyer or Seller may be in Default in Performance

under this term 14, the Clearing House may in its absolute discretion 

determine not to exercise or to delay in exercising any of its rights under this 

term 14, and no failure by the Clearing House to exercise nor any delay on its 

part in exercising any of such rights shall operate as a waiver of the Clearing 

House’s rights upon that or any subsequent occasion, nor shall any single or 

partial exercise of any such rights prevent any further exercise thereof or of 

any other right.

14.10 A Buyer, a Seller or the Clearing House may refer a dispute or issue arising out 

of a Default in Performance under this term 14 (subject always to the 

application of provisions of terms 14.05 and 14.06) to the Competent Court

under term 16.

15 FORCE MAJEURE

15.01 For the purposes of this term 15, “Force Majeure Event” shall mean an event 

which is beyond the reasonable control of either party to a Contract and which 

delays, hinders or prevents the performance in whole or in part by a party of 

its obligations under the Contract (other than an obligation to make a 

payment), including, without limitation, storm, flood, earthquake, fire, 

explosion, malicious damage, accident howsoever caused, strike, lock-out, 

labour dispute, riot, civil commotion, war whether declared or undeclared, 

armed conflict, use of force by authority of United Nations, act of terrorism, 

act of government or other national or local authority or any agency thereof, 

breakdown of machinery, and unavailability, restriction, failure or delay in or 

computer or data processing systems or communication or energy supplies or 

bank transfer systems. The failure for whatever reason of a computer or other 

electronic facility to accept a notification made by a Seller or a Buyer (other 

than the Clearing House) as required by these terms and the Administrative 

Procedures shall not be a Force Majeure Event.

If a Force Majeure Event occurs and delays, hinders or prevents the 

performance in whole or in part by a party of its obligations under the 

Contract (other than an obligation to make a payment):

(a) neither party will be deemed in Default in Performance of its obligations 

under a Contract if such party was unable to perform its obligations as a 

direct result of the occurrence of such Force Majeure Event nor will any 

penalty or damages be payable if and to the extent that performance of 

any obligation is hindered or prevented by a Force Majeure Event;
- 17 -

(b) the party prevented from performing its obligations shall immediately 

notify the Clearing House and Euronext of such fact and the quantity so 

affected. If such party is prevented from advising the Clearing House or 

Euronext through circumstances beyond its control, it shall notify them 

as soon as possible. The notice shall state the date on which the Force 

Majeure Event commenced and the effects of the Force Majeure Event 

on such party’s ability to perform its obligations in accordance with the 

Contract, including an estimate of the period of the Force Majeure 

Event;

(c) upon the request of the Clearing House or Euronext, a party seeking 

relief under this term 15.01 promptly provide such other information as 

required by the Clearing House or Euronext as soon as reasonably 

practicable;

(d) subject to any steps taken at any time by Euronext under emergency 

powers in the Rules and subject to the Clearing House Procedures, if a 

Force Majeure Event occurs, the Delivery Period shall be extended by a 

maximum of thirty days as per MPC conditions;

(e) the Seller shall notify the Clearing House immediately that the Force 

Majeure Event(s) terminates;

(f) if the party is still prevented from performing its obligations at the end 

of the thirty days extended Delivery Period, the contract is terminated 

and a financial payment is calculated by the Clearing House in 

accordance with the Clearing House Procedures, such financial payment 

being calculated upon a fair value set by Euronext based on available 

information (i.e. average price of the goods recorded on the cash market 

or market survey where appropriate, on the last day of the Delivery 

Period as extended);

(g) these provisions shall apply notwithstanding the occurrence of events 

which would otherwise frustrate the Contract;

(h) the party claiming Force Majeure shall within fourteen days from the 

initial notification of the facts relied upon deliver to the Clearing House 

evidence of the existence of those facts. If evidence is not delivered in 

accordance with this provision, the right to invoke force majeure shall be 

forfeited unless a Competent Court in its absolute discretion decides 

otherwise.
- 18 -

16. DISPUTE RESOLUTION

16.01 Any dispute arising out of a Contract shall (subject to terms 14, 15.02(f) and 

18.03 to the extent that they apply) be referred to the Competent Court in 

accordance with Term 19. 

16.02 The determination and payment of an invoicing back price shall not limit the 

jurisdiction of the Competent Court to make such ruling as they deem proper 

on the issue before them.

16.03 Terms 16.01 and 16.02 apply only to a dispute arising before the time of Tender 

on the first Business Day following the Last Trading Day. A dispute arising on or 

after the time of Tender on the first Business Day following the Last Trading Day 

shall be referred to arbitration in accordance with term 18.03.

17. ADMINISTRATIVE PROCEDURES AND RULES

17.01 Every Contract shall be subject to the Rules and the Regulations insofar as 

applicable notwithstanding that either or both of the parties to it are not 

members of Euronext or of the Clearing House.

17.02 In case of any conflict between the Administrative Procedures and these terms 

or the Rules, the provisions of these terms and the Rules shall prevail and in 

the event of any conflict between these terms and the Rules, the Rules shall 

prevail.

17.03 Euronext may at its discretion at any time revoke, alter or add to the 

Administrative Procedures. Any such amendment shall have such effect on 

existing as well as new Contracts as Euronext may direct and will be notified to 

members of Euronext by means of a Notice or otherwise as Euronext may direct.

18. ADOPTED RULES

18.01 From the time of Tender on the first Business Day following the Last Trading Day 

a Contract shall be subject to the Adopted Rules, except where otherwise 

stated in these terms, the Administrative Procedures or the Clearing House 

Procedures.
- 19 -

18.02 To the extent that the Adopted Rules are inconsistent with these terms and 

Administrative Procedures and the Clearing House Procedures, these terms

and Administrative Procedures and the Clearing House Procedures shall 

prevail.

18.03 All disputes arising at or after the time of Tender on the first Business Day 

following the Last Trading Day shall be referred to the Gemzu in the 

Netherlands for settlement in accordance with its MPC Arbitration Regulations 

subject always (where the Clearing House is a party) to the Clearing House 

Procedures.

19. LAW AND JURISDICTION

19.01 Every Contract shall be governed by and construed in accordance with Dutch 

law. Subject to term 18.03, any question arising there from shall be subject to 

the jurisdiction of the Competent Courts.

19.02 The provisions of neither the Convention relating to a Uniform Law on the 

International Sale of Goods, of 1964, nor the United Nations Convention on 

Contracts for the International Sale of Goods, 1980, shall apply to Contracts.

20. NON-REGISTERED CONTRACTS

20.01 In respect of a Contract which is not a Registered Contract (“non-Registered 

Contract”) these terms shall be modified so as to require and allow that a 

Contract to be registered with the Clearing House under the Rules and the 

Regulations is capable of being so registered, and to facilitate the performance 

of such Registered Contract (and of any intermediate Contract) in accordance 

with these terms and the Administrative Procedures. Modifications may also 

be made to the terms of a non-Registered Contract if, without such 

modifications, it may not be possible to perform such Contract by the 

applicable times specified in these terms and the Administrative Procedures. 

Without prejudice to the generality of the foregoing, all references in these 

terms to payment or dealing between the Buyer or the Seller and the Clearing 

House shall be modified so as to require a similar payment or dealing directly 

between the Buyer and the Seller party to such non-Registered Contract.

--------------0--------------

Issue Date: xxxxxxxxxxxx
- 20 -

Unsalted Lactic Butter Futures Contract

Administrative Procedures

1 INDEX

In these Administrative Procedures:

1. Index

2. Timetable

3. Delivery

2 TIMETABLE (ALL TIMES ARE PARIS TIMES)

Last Trading Day (Expiry)

At 18.00 hours Trading in the Contract Delivery Month shall cease.

After 18.00 hours Euronext will publish the EDSP. The EDSP will be determined 

in accordance with term 5.

Last Trading Day (Expiry) + 1 Business Day

By 10.30 hours Remaining open positions greater than 12 lots automatically 

become delivery contracts.

Sellers deliver the Notification Notice, naming the Delivery 

Area(s) and Delivery Point(s) where loading shall take place, 

to the Clearing House in accordance with the Clearing House 

Procedures.

After 14.00 hours Unsalted Lactic Butter allocated to Buyers by the Clearing 

House in accordance with the Clearing House Procedures.

The Clearing House delivers to the Seller a temporary 

Seller/Buyer matching notice, identifying the Buyer.

By 17.00 hours The Clearing House delivers to the Buyer a temporary 

Buyer/Seller matching notice, identifying the Seller.
- 21 -

Last Trading Day (Expiry) + 2 Business Days

By 15.00 hours Buyers may exchange assigned deliveries, with the consent 

of the Clearing House.

By 17.30 hours The Clearing House delivers to the Seller and the Buyer the 

final Seller/Buyer matching notice. 

Last Trading Day (Expiry) + 3 Business Days 

By 12.00 hours The Seller shall send, in accordance with Clearing House 

Procedures, a completed and signed Delivery Notice to each 

Buyer that has been assigned to him.

Before 15:00 hours The Buyer shall submit a completed and signed Delivery 

Notice to the Clearing House.

After 15:00 hours A Buyer may give notice of delivery from this point onwards.

Delivery Day(s) – 5 Business Days

By 16.00 hours Buyer informs Seller and the Clearing House of the date and 

time at which the Buyer’s transport shall be presented in 

readiness for loading to commence in accordance with the 

Clearing House Procedures with such date and time being 

within normal business hours on a working day in the 

country of loading, such notification to be made in 

accordance with the Clearing House Procedures. In the event 

of multiple deliveries, the Buyer must present transport such 

as to effect a continuous process of loading. 

Delivery Day Delivery shall take place between the Seller and the Buyer in 

accordance with these terms and Administrative Procedures. 

Delivery Day(s) + maximum 5 Business Days from issue of CMR Note(s)

By 10.00 hours Seller lodges delivery documents with the Buyer in 

accordance with these terms and the Clearing House 

Procedures.

By 14.00 hours The Buyer may inform the Clearing House and the Seller in 

writing that he wishes to reject the documents specified in 

term 7.01, and in that event the Buyer shall comply with the 

process detailed in term 7.
- 22 -

After 14.00 hours The documents shall be deemed to have been accepted by 

the Buyer unless a rejection has been made in accordance 

with term 7. 

Delivery Day(s) + maximum 3 Business Days from presentation of delivery documents

By 14.00 hours The Buyer shall make final payment to the Seller in 

accordance with term 7.

By 16.00 hours A Notice of Performance, duly fulfilled and signed by the 

selling clearing member and the buying clearing member, 

shall be sent to the Clearing House in accordance with term 7 

and the Clearing House Procedures.

3. DELIVERY

3.01 Subject to Administrative Procedure 3.03:

(a) the Seller shall be responsible for all expenses pertaining to delivery and 

loading of Unsalted Lactic Butter onto the Buyer’s transport including 

freight taxes and other taxes of any nature of the country of origin or 

loading; 

(b) the Buyer shall be responsible for all expenses pertaining to entry to and 

exit from the Delivery Point; and

(c) in the event of multiple deliveries, Seller and Buyer shall be responsible 

for negotiating a rate of loading that must at the very least fulfil the 

minimum loading requirements as set out in these Administrative 

Procedures and Contract terms. 

3.02 (a) Subject to Contract term 2.02, the Seller shall ensure that the Delivery 

Point at which the Unsalted Lactic Butter is to be delivered shall: 

(i) have storage close to and/or transport facilities to the Delivery 

Point, to allow for uninterrupted loading at the prescribed 

minimum loading rate;
- 23 -

(ii) have sampling facilities to allow independent supervision 

companies to operate unimpeded in accordance with these terms; 

and

(iii) have access for independent supervision companies to ensure 

compliance with these terms.

(b) The Unsalted Lactic Butter shall be loaded with the following provisions:

(i) Unsalted Lactic Butter to be loaded onto Buyer’s transport stacked 

on wooden pallets suitable for food contact use;

(ii) Seller to load each Lot of Unsalted Lactic Butter onto Buyer’s 

transport at a rate of no less than 12 Tonnes per hour during the 

normal business hours of each working day in the country of 

loading with such loading to commence and finish within a four 

hour delivery window commencing on the date and time detailed 

in the notice made by the Buyer five working days prior to delivery;

(iii) Seller to load from each Delivery Point at a minimum rate of eleven 

Lots of Unsalted Lactic Butter per day with such loading to take 

place during the normal business hours of each working day in the 

country of loading (to fulfil this requirement each Delivery Point 

must be able to handle loading of a minimum of six Lots during the 

same time period);

(iv) Seller is liable to pay any additional waiting charges or demurrage 

rates incurred by the Buyer in the event that a Lot of Unsalted 

Lactic Butter is loaded at a rate of less than 12 Tonnes per hour 

within the allotted four hour delivery window during the normal 

business hours of each working day in the country of loading. Such 

additional waiting charges or demurrage rates shall be equal to 

those detailed in the Contract between the Buyer and the carrier 

of the Buyer’s goods with the rate of additional charges being 

declared by the Buyer to the Seller no later than 24 hours prior to 

the commencement of loading; 
- 24 -

(v) In the event that the Buyer’s transport is not present and/or ready 

to load in accordance with the notice made by the Buyer five days 

prior to delivery then, for each hour of delay incurred during the 

normal business hours of each working day in the country of 

loading, the Seller may charge the Buyer a penalty that is 

equivalent to the rate of additional waiting charges or demurrage 

rates as detailed in the Contract between the Buyer and the carrier 

of the Buyer’s goods;

(vi) Seller to ensure that loading, including palletisation, complies with 

local safety regulations; and

(vii) All other terms pertaining to loading shall be in accordance with 

the Contract between the Buyer and the carrier of the Buyer’s 

goods. 

3.03 The Buyer may, at his own expense, either appoint an internationally 

recognised independent or with the written consent of the Buyer, appoint a 

state supervision firm, to supervise and inspect the loading of the Unsalted 

Lactic Butter to be delivered to the Buyer. Such appointment shall be made

not less than 48 hours prior to the Seller commencing loading of the Unsalted 

Lactic Butter. The Buyer shall upon the appointment of a Supervisor notify the 

Seller of such appointment.

3.04 If either party has a claim, or wishes to bring a claim, as to the quality, weight 

or packing of the Unsalted Lactic Butter it may refer such claim to arbitration

in accordance with the Contract terms and these Administrative Procedures

and in accordance with the Clearing House Procedures.

--------------0--------------

Issue Date: xxxxxxxx
Document title

SKIMMED MILK POWDER FUTURES CONTRACT

(A) CONTRACT TERMS - Issue Date: 13 April 2015

(B) ADMINISTRATIVE PROCEDURES - Issue Date: 13 April 2015

Number of pages

21

Delivery Months: May 2015 Onwards
- 2 -

CONTENTS

Contract Terms

1. Interpretation

2. Skimmed Milk Powders Tenderable

3. Contract Specification

4. Price

5. Exchange Delivery Settlement Price

6. Settlement Payments

7. Payment 

8. Invoicing Amount

9. Notification to Deliver 

10. Withdrawal, Substitution or Exchange of Notification Notices 

11. Delivery

12. Presentation of Documents

13. New Legislation

14. Default in Performance

15. Force Majeure

16. Dispute Resolution

17. Rules, Administrative Procedures etc

18. Adopted Rules

19. Law and Jurisdiction

20. Non-Registered Contracts

Administrative Procedures

1. Index

2. Timetable

3. Delivery
- 3 -

Skimmed Milk Powder Futures Contract

1. INTERPRETATION

1.01 Save as otherwise specified herein, words and phrases defined in the Rules shall have 

the same meanings in these terms and in the Administrative Procedures.

1.02 In these terms and in the Administrative Procedures:

“Administrative Procedures” means the procedures from time to time implemented 

by Euronext pursuant to the Rules for the purposes of this Exchange Contract.

“Adopted Rules” means the MPC-Conditions for use within the European Union as 

published by Gemzu established in the Hague (the Netherlands) that are in force at 

the time of delivery.

“Business Day” means a day on which the Euronext Derivatives Market is open for 

business.

“Buyer” in respect of a Contract means the person who is obliged under such Contract 

to accept transfer in respect of each Lot of the delivery amount of Skimmed Milk 

Powder and to pay the Invoicing Amount in respect of each such Lot (including, 

except where the context otherwise requires, the Clearing House as buyer under a 

Registered Contract).

“Clearing House” means LCH.Clearnet SA.

“Clearing House Procedures” means LCH.Clearnet SA’s Clearing Rules as set forth in 

the LCH.Clearnet SA Clearing Rule Book, Instructions and Notices thereto, as may be 

amended from time to time. 

“CMR Note” ( where CMR stands for “Contrat de Transport International De 

Marchandises Par Route”) means a consignment note that confirms that the carrier 

(i.e. the road haulage company) has received the goods and that a contract of 

carriage exists between the customer and the carrier. 

“Competent Court” means, in relation to disputes arising before the time of a Tender, 

where appropriate either the Dutch courts having jurisdiction on the matter or the 

arbitration tribunal in the event where the parties involved have agreed to go to 

arbitration.

“Contract” means a contract made expressly or impliedly in the terms of this 

Exchange Contract for the sale and purchase of one or more Lots for a Delivery Month 

and “Registered Contract” means a Contract registered by the Clearing House. 
- 4 -

“Contract Price” means the price agreed between a Buyer and a Seller in respect of a 

Contract.

“Default in Performance” has the meaning attributed to it in terms 14.02 and 14.03.

“Delivery Area” means a geographic area referred to in term 2, as determined by 

Euronext from time to time.

“Delivery Month” means each month specified as such by Euronext pursuant to the 

Rules.

“Delivery Notice” shall have a meaning as defined in the Clearing House Procedures 

and is the form committing the selling clearing member to deliver the specified 

quantity of Skimmed Milk Powder and the buying clearing member to take delivery at 

the agreed Delivery Point. 

“Delivery Period” means the period commencing on and including the first Business 

Day of the Delivery Month, up to and including the last Business Day of the Delivery 

Month, subject to term 15.02.

“Delivery Point” means the location within a Delivery Area, as nominated by the 

Seller, where delivery will take place and which is either a European Union regulations 

compliant skimmed milk powder storage facility or is a Skimmed Milk Powder 

production facility approved by the competent authority as per regulation (EC) No 

853/2004 of the European Parliament and the Council. 

“DSP” means the Daily Settlement Price established by Euronext according to its Rules 

and Trading Procedures.

“EDSP” means Exchange Delivery Settlement Price and has the meaning attributed to 

it in term 5.

“€”, “EUR” and “Euro” denotes the single currency of the European Union.

“Gemzu” means the umbrella organisation of Dutch Dairy Trade and other affiliated 

associations established in the Hague, the Netherlands.

“Invoicing Amount” has the meaning attributed to it in term 8.

“Last Trading Day” (also known as “Expiry”) in respect of any Delivery Month means 

the seventh Business Day preceding the first Business Day of the Delivery Period for 

the Delivery Month.

“Lot” shall have the meaning attributed to it in term 3.01.

“Notice of Performance” shall have a meaning as defined in the Clearing House 

Procedures and which is the document submitted to the Clearing House by the Buyer 
- 5 -

and the Seller attesting to proper performance of the Contract and terminating the 

Clearing House’s role as central counterparty. 

“Notification Notice” shall mean the form instigating delivery submitted by the Seller 

to the Clearing House.

“Regulations” means any and all applicable laws and regulations and the Clearing 

House Procedures from time to time in force.

“Seller” in respect of a Contract means the person who is obliged under such Contract 

to deliver in respect of each Lot the delivery amount of Skimmed Milk Powder 

(including, except where the context otherwise requires, the Clearing House as seller 

under a Registered Contract).

“Skimmed Milk Powder” means skimmed milk powder of the quality and condition 

specified in term 2.

“Tender” means the notification to deliver made by the Seller in the form of the 

Notification Notice in accordance with these terms.

“Tonne” means 1000 kilogrammes as defined by the BIPM (Bureau International des 

Poids et Mesures, International Bureau of Weight and Measures).

1.03 References to a “term” refer to terms hereof, and references to a “Rule” refer to a 

rule of Euronext. Save where the context otherwise requires references herein to the 

singular include the plural, and vice versa.

2. SKIMMED MILK POWDERS TENDERABLE

2.01 Each Contract shall be for Skimmed Milk Powder that, as a minimum, meets the quality 

requirements as specified in terms 2.01 (a) 2.01 (b) and 2.01 (c) at time of delivery to the 

carrier nominated by the Buyer in accordance with Incoterm FCA and within the Delivery 

Area named in the Notification Notice, as evidenced by a certificate of analysis issued in 

accordance with these terms.

(a) The Skimmed Milk Powder must be made by the spray process directly and 

exclusively from skimmed milk, compliant with EU legislation and produced within 

the European Union. It must be a non-GMO product as per EU directive 2001/18, 

Regulation 1829/2003 and 1830/2003. It must comply with Council Regulation 

(Euratom) No. 3954/87 on maximum levels of radioactive contamination in 

foodstuffs as amended from time to time. It must comply with the maximum 

levels of certain contaminants as per Commission Regulation (EC) No 1881/2006 

and 178/2010.
- 6 -

(b) Physical and Chemical Analyses

Fat 1.25% maximum

Protein 34.0% (non-fat dry matter) minimum

Ash 8.2% maximum

Moisture 4.0% maximum

Scorched Particles Disc B maximum

Titratable Acidity 0.15% maximum

Solubility Index 1.0 ml maximum

WPN index 1.51-5.99 mg/g – medium heat

(c) Microbiological Analyses

Standard Plate Count 10,000/g maximum

Coliforms 10/g maximum

E. Coli Negative in 1 g

Salmonella Negative in 25g

Yeast and mould 100/g maximum

Inhibitors Negative

(d) Quality to be assessed in accordance with COKZ (The Netherlands Controlling 

Authority for Milk and Milk Products) methodology as current at the time of 

delivery. 

2.02 (a) Delivery shall take place at a Delivery Point within the Delivery Areas included on 

the list of Delivery Areas from time to time published by Euronext by Notice, 

which shall apply to such Delivery Months specified in the Notice as Euronext 

may determine. Euronext may from time to time list or de-list a Delivery Area, 

which shall have such effect with regard to existing or new Contracts or both as 

Euronext may determine in its absolute discretion. Any such determination will 

be notified to members of Euronext by means of a Notice or otherwise as 

Euronext may direct.

(b) Delivery of each Lot shall take place from a single Delivery Point. 

(c) Euronext gives no warranty and does not make any representation or promise 

that any Delivery Point has any particular characteristics or facilities or is safe or 

suitable in any way whatsoever, and Euronext shall not be liable for any loss, 

damage, or delay resulting from conditions at any such Delivery Point.
- 7 -

2.03 The Skimmed Milk Powder shall be packed in new, sound, heat sealed, minimum 2-ply 

kraft paper bags, each with a single new polyethylene liner, of a weight of 25 kg net 

each of Skimmed Milk Powder and each bag and liner having a combined minimum tare 

of 240g. The bags of each Lot shall be uniform and suitable for transport. All bags shall 

be of a colour as customarily used by the relevant producer, and for each Lot each bag 

shall bear the same minimum marks written in the English language stating the 

following:

(a) product description (e.g. Skimmed Milk Powder);

(b) net weight; 

(c) country of origin;

(d) date of production; 

(e) name of the producer;

(f) batch code; 

(g) a recognised EU oval marking incorporating the “EU plant number” 

Additional marks in local lettering/language are permitted provided that they do not 

contradict the marks referred to above.

The date of production detailed in term 2.03 (d) must be within six months of the final 

date of the Delivery Period and each Lot tendered must be of Skimmed Milk Powder 

from the same production facility approved by the competent authority as per 

regulation (EC) No 853/2004 of the European Parliament and the Council and shall 

consist of Skimmed Milk Powder made up of no more than three different production 

batches.

2.04 Skimmed Milk Powder delivered shall be free of all liens and claims of any kind and shall 

be freely available for delivery within the European Union. 

3. CONTRACT SPECIFICATION

3.01 Each Contract shall be for one or more Lots for the Delivery Month specified. A Lot shall 

be for an amount of Skimmed Milk Powder having a nominal net weight of 6 Tonnes.
- 8 -

4. PRICE

4.01 The Contract Price shall be in Euros (€) and Euro cents per Tonne delivered to the 

carrier nominated by the Buyer in accordance with Incoterm FCA at a Delivery Point 

within a Delivery Area included in the list published by Euronext pursuant to term 

2.02.

4.02 The Contract Price shall be exclusive of any value added tax which may be or may 

become payable thereon.

5. EXCHANGE DELIVERY SETTLEMENT PRICE 

5.01 Subject to term 5.02, the EDSP for Contracts for a particular Delivery Month shall be 

calculated by Euronext on the Last Trading Day as follows:

(a) if (as far as reasonably ascertainable) one or more Contracts for that Delivery 

Month have been made in the market on the Last Trading Day during the 

period specified for this purpose in the Administrative Procedures, then:

(i) if only one Contract has been made, the EDSP shall be the price (as far as 

reasonably ascertainable) at which that Contract was made; or

(ii) if more than one Contract has been made, the EDSP shall be the average 

rounded down to the nearest Euro of the prices (as far as reasonably 

ascertainable) at which such Contracts were made, weighted by 

reference to the number of Lots (as far as reasonably ascertainable) 

comprised in each such Contract;

(b) if (as far as reasonably ascertainable) on the Last Trading Day, during the period 

specified for this purpose in the Administrative Procedures, no Contract for 

that Delivery Month has been made in the market but both an offer (or offers) 

and a bid (or bids) have been made in the market in respect of a Contract (or 

Contracts) for that Delivery Month, then the EDSP shall be the average of the 

lowest price (as far as reasonably ascertainable) at which such an offer was 

made and the highest price (as far as reasonably ascertainable) at which such a

bid was made and such average shall be rounded down to the nearest Euro;

(c) if (as far as reasonably ascertainable) on the Last Trading Day, during the period 

specified for this purpose in the Administrative Procedures, no Contract for 

that Delivery Month has been made in the market and either no offer or no bid 

has been made in the market in respect of a Contract (or Contracts) for that 

Delivery Month, then Euronext shall determine the EDSP by reference inter alia 

to the price at which any offer or bid, as the case may be, in respect of a 
- 9 -

Contract for that Delivery Month was made in the market during such period 

on such day; or

(d) if (as far as reasonably ascertainable) on the Last Trading Day, during the period 

specified for this purpose in the Administrative Procedures, no Contract for 

that Delivery Month has been made in the market and neither an offer nor a 

bid have been made in the market in respect of a Contract (or Contracts) for 

that Delivery Month, then Euronext may in their absolute discretion fix the 

EDSP at a price determined by them as being consistent with the prices at 

which any Contracts or any offers or bids in respect of a Contract were made in 

the market on the Last Trading Day for the Delivery Month and period referred 

to in paragraphs (a) and (b) of term 5.02 below and, if necessary, rounded 

down to the nearest 50 cents.

5.02 If in the opinion of Euronext, the EDSP which would result from a calculation made in 

accordance with paragraphs (a), (b) or (c) of term 5.01 would not be consistent with 

the prices at which any Contracts or any offers or bids in respect of a Contract were 

made in the market on the Last Trading Day for:

(a) the relevant Delivery Month prior to the applicable period referred to in 

paragraphs (a), (b) or (c) of term 5.01, as the case may be; or

(b) any other Delivery Month during the applicable period referred to in 

paragraphs (a), (b) or (c) of term 5.01, as the case may be,

then Euronext may in their absolute discretion fix the EDSP at a price determined by 

them as being consistent with the prices, offers or bids for the Delivery Month and 

period referred to in paragraphs (a) or (b) of term 5.02 above, and, if necessary, 

rounded down to the nearest 10 cents.

5.03 Euronext shall publish the EDSP at the time specified for that purpose in the 

Administrative Procedures. The EDSP shall be final and binding for all purposes.

6. SETTLEMENT PAYMENTS

6.01 In addition to any other payment required by these terms, all payments arising from 

successive variation margin calls called by the Clearing House between the original 

Contract Price and the subsequent settlement prices, including the successive DSPs 

and the EDSP, shall have been made by the time specified for that purpose in the 

Clearing House Procedures.
- 10 -

7. PAYMENT

7.01 For each Lot delivered under the terms of this Contract, the Seller shall present within 

five Business Days of the issue of the CMR Note the following documents to the Buyer 

evidencing the proper fulfilment of the terms of the Contract and conforming with 

the information given by the Seller in the Notification Notice:

(a) commercial invoice;

(b) copy of CMR Note; 

(c) packing list showing composition of each Lot including batch numbers, number 

of bags per batch, pallets per batch and marks per batch; and

(d) certificate(s) of analysis issued by an independent analyst and which 

guarantees a minimum shelf life for the Skimmed Milk Powder of eighteen 

months from the date of production.

7.02 Without prejudice to the Buyer’s ability to request that the Seller provides additional 

documents, the Buyer shall not be entitled to require the presentation of any 

documents in return for payment other than those specified in term 7.01.

7.03 The documents shall be deemed to have been accepted by the Buyer unless the Buyer 

has prior to 14.00 hours on the day of presentation of documents notified the 

Clearing House and the Seller in writing that the documents are rejected by the Buyer 

on the grounds that they do not evidence the proper fulfilment of the terms of the 

Contract, and the documents have been returned to the Seller. The Buyer shall in any 

such notice state with reasonable precision the respects in which the documents do 

not evidence such fulfilment. The Buyer shall be precluded from relying on any 

grounds for the rejection of the documents which are not stated in any such notice. 

For the avoidance of doubt, where a Seller presents more than one set of documents 

to the Buyer, the Buyer shall not be entitled to reject any documents which are 

tendered in respect of a Lot or Lots where this is solely on the ground that the Buyer 

has rejected a document or documents which relate to a different Lot or Lots.

7.04 Where documents have been rejected by the Buyer, the Seller may re-present 

documents provided always that any such re-presentation must be within five 

Business Days of the issue of the CMR Note.

7.05 Title to goods shall not pass from the Seller and final payment shall not pass from the 

Buyer to the Seller until the Buyer has accepted the documents. Such final payment 

shall be effected within three Business Days of presentation and acceptance of 

documents. 

7.06 Upon the day of final payment a Notice of Performance, duly fulfilled and signed by 

the selling clearing member and the buying clearing member, shall be sent to the 

Clearing House. 
- 11 -

7.07 The Seller and Buyer may mutually agree to take the Skimmed Milk Powder off the 

market on any Business Day from and including the first Business Day following the 

Last Trading Day to the last day of the Delivery Period. In such event, the Seller and 

Buyer must conform to the “alternative delivery procedure” as detailed in the 

Clearing House Procedures. 

8. INVOICING AMOUNT

8.01 The Invoicing Amount in respect of each Lot referred to in a Notification Notice shall 

be the sum calculated in accordance with the formula:

Contract Weight x EDSP

where:

EDSP = The EDSP for the relevant Delivery Month

8.02 (a) Subject to term 8.02 (b), where the sum calculated in accordance with term 

8.01 is not a number of whole Euros, such sum shall be rounded to the nearest 

sum which is a number of whole Euros cents and the Invoicing Amount shall be 

such nearest sum.

(b) Where the sum calculated in accordance with term 8.01 is a number of Euros 

and one half of one Euro, such sum shall be rounded up to the nearest sum 

which is a number of whole Euros, and the Invoicing Amount shall be such 

nearest sum.

9. NOTIFICATION TO DELIVER 

9.01 A Tender shall be made by the Seller on the first Business Day following the Last 

Trading Day to the Clearing House in the form of the Notification Notice prescribed by 

the Clearing House Procedures. The tender must be submitted by the time specified 

in the Administrative Procedures.

10. WITHDRAWAL, SUBSTITUTION OR EXCHANGE OF NOTIFICATION 

NOTICES 

10.01 A Notification Notice shall not be withdrawn nor substitution allowed except with the 

consent of the Buyer or, in case of dispute, unless so ordered by Euronext.
- 12 -

10.02 A Notification Notice which has been submitted to the Clearing House in time shall, 

subject to term 10.01, be accepted by the Buyer as a valid Tender for that date.

10.03 With the consent of the Clearing House, Buyers may exchange, in accordance with the 

Clearing House Procedures, Notification Notices with one another by the time 

specified in the Administrative Procedures.

11. DELIVERY 

11.01 Delivery shall be in accordance with the Clearing House Procedures, the Adopted 

Rules and the Administrative Procedures.

11.02 The minimum quantity eligible to delivery is set up at 12 Lots (72 Tonnes). 

11.03 The Buyer shall give notice of five Business Days to the Seller and the Clearing House 

of the date and time of presentation of the Buyer’s transport in readiness for loading 

at the Delivery Point nominated by the Seller.

11.04 To the extent that the Adopted Rules are inconsistent with these terms and 

Administrative Procedures and the Clearing House Procedures, these terms and 

Administrative Procedures and the Clearing House Procedures shall prevail.

12. PRESENTATION OF DOCUMENTS

12.01 For each Lot delivered under the terms of this Contract, documents as prescribed in 

term 7.01 shall be presented by the Seller to the Buyer within five Business Days of 

the issue of the CMR Note. 

12.03 The Buyer shall (unless the documents have been rejected in accordance with the

provisions of term 7.04) be bound to take up and pay for such documents on the 

same day by the time specified in the Administrative Procedures without prejudice to 

the reference of any claim or dispute of whatsoever nature to the Competent Court.

13. NEW LEGISLATION 

13.01 If after consultation with the Clearing House, Euronext shall in its absolute discretion 

determine that a change of legislative or administrative provisions of a state or 

territory of the European Union, or of an institution or market organisation in any 

country or group of countries, has affected, is affecting or is likely to affect the normal 

course of business, Euronext shall have power to vary the terms of Contracts in any 

way it deems necessary or desirable for restoring or preserving the orderly course of 

business.
- 13 -

13.02 Such variation may be made notwithstanding that it may affect the performance or 

value of existing Contracts (or of such existing Contracts as may be specified by 

Euronext). Without limitation of its powers hereunder Euronext will use its best 

endeavours to keep any variation to the minimum considered reasonably necessary 

to achieve the purpose of this term.

13.03 Any determination made by Euronext pursuant to this term 13 shall be published by 

Notice. A variation of contract terms made hereunder shall take effect at such time 

and for such period as Euronext shall declare but (without prejudice to term 13.02 

above) shall not take effect earlier than the day on which such Notice is issued.

13.04 A Contract affected by a variation under this term 13 shall remain in full force and 

effect subject to such variation and shall not be treated as frustrated or repudiated 

except so far as may be allowed by Euronext.

13.05 A variation made by Euronext under this term may be modified or revoked by a 

subsequent variation made hereunder.

14. DEFAULT IN PERFORMANCE

14.01 The provisions of this term 14 shall be subject to the relevant Clearing House 

Procedures and also subject to the provisions of term 18.03.

14.02 Any “Default in Performance” including an actual failure or an anticipated failure by a 

Seller or a Buyer in performing its obligations under a Contract at any time before the 

time of Tender on the first Business Day following the Last Trading Day shall be treated 

under the Clearing House procedures applicable for default management.

14.03 Any “Default in Performance” arising at any time upon or after the time of Tender on 

the first Business Day following the Last Trading Day shall be treated under the Clearing 

House procedures applicable for failure to deliver, subject to Force Majeure Events 

where Term 15 principles shall apply.

14.04 Errors in a notice, which are determined in the Clearing House’s absolute discretion to be 

clerical errors which can be readily rectified and are rectified, shall not be treated as 

constituting a Default in Performance.

14.05 Subject to term 14.10, if it appears to the Clearing House that a Seller or a Buyer is in 

Default in Performance under a Registered Contract, the Clearing House shall notify 

Euronext of the Default in Performance and may take all steps as it deems 

appropriate pursuant to the Clearing House procedures.
- 14 -

14.06 Any cash settlement price fixed under the Clearing House procedures shall be binding on 

the parties. The completion of cash settlement shall be without prejudice to the right of 

either party to refer the dispute or issue between them to the Competent Court under 

term 16.

14.07 Any costs, claims, losses, taxes or expenses of whatsoever nature suffered or incurred 

by the Clearing House in connection with any steps taken by the Clearing House in 

relation to a Contract to which the Default in Performance relates shall be paid by the 

Buyer or Seller who is in Default in Performance. Any steps taken by the Clearing 

House in relation to a Default in Performance shall be without prejudice to any rights 

(including rights to refer matters to the Competent Court under term 16), obligations 

or claims of the Buyer, the Seller or the Clearing House in relation to a Contract to 

which the Default in Performance relates.

14.08 A Buyer or Seller who is in Default in Performance under this term 14, shall forthwith pay 

to the Clearing House any sums payable by him under term 8 and any sums payable 

pursuant to this term 14.

14.9 Notwithstanding that a Buyer or Seller may be in Default in Performance under this 

term 14, the Clearing House may in its absolute discretion determine not to exercise 

or to delay in exercising any of its rights under this term 14, and no failure by the 

Clearing House to exercise nor any delay on its part in exercising any of such rights 

shall operate as a waiver of the Clearing House’s rights upon that or any subsequent 

occasion, nor shall any single or partial exercise of any such rights prevent any further 

exercise thereof or of any other right.

14.10 A Buyer, a Seller or the Clearing House may refer a dispute or issue arising out of a 

Default in Performance under this term 14 (subject always to the application of 

provisions of terms 14.05and 14.06) to the Competent Court under term 16.

15 FORCE MAJEURE 

15.01 For the purposes of this term 15, “Force Majeure Event” shall mean an event which is 

beyond the reasonable control of either party to a Contract and which delays, hinders 

or prevents the performance in whole or in part by a party of its obligations under the 

Contract (other than an obligation to make a payment), including, without limitation, 

storm, flood, earthquake, fire, explosion, malicious damage, accident howsoever 

caused, strike, lock-out, labour dispute, riot, civil commotion, war whether declared 

or undeclared, armed conflict, use of force by authority of United Nations, act of 

terrorism, act of government or other national or local authority or any agency 

thereof, breakdown of machinery, and unavailability, restriction, failure or delay in or 

computer or data processing systems or communication or energy supplies or bank 
- 15 -

transfer systems. The failure for whatever reason of a computer or other electronic 

facility to accept a notification made by a Seller or a Buyer (other than the Clearing 

House) as required by these terms and the Administrative Procedures shall not be a 

Force Majeure Event;

If a Force Majeure Event occurs and delays, hinders or prevents the performance in 

whole or in part by a party of its obligations under the Contract (other than an 

obligation to make a payment):

(a) neither party will be deemed in Default in Performance of its obligations under 

a Contract if such party was unable to perform its obligations as a direct result 

of the occurrence of such Force Majeure Event nor will any penalty or damages 

be payable if and to the extent that performance of any obligation is hindered 

or prevented by a Force Majeure Event;

(b) the party prevented from performing its obligations shall immediately notify 

the Clearing House and Euronext of such fact and the quantity so affected. If 

such party is prevented from advising the Clearing House or Euronext through 

circumstances beyond its control, it shall notify them as soon as possible. The 

notice shall state the date on which the Force Majeure Event commenced and 

the effects of the Force Majeure Event on such party’s ability to perform its 

obligations in accordance with the Contract, including an estimate of the period 

of the Force Majeure Event;

(c) upon the request of the Clearing House or Euronext, a party seeking relief 

under this term 15.01 promptly provide such other information as required by 

the Clearing House or Euronext as soon as reasonably practicable;

(d) subject to any steps taken at any time by Euronext under emergency powers in 

the Rules and subject to the Clearing House Procedures, if a Force Majeure 

Event occurs, the Delivery Period shall be extended by a maximum of thirty 

days as per MPC conditions;

(e) the Seller shall notify the Clearing House immediately that the Force Majeure 

Event(s) terminates;

(f) if the party is still prevented from performing its obligations at the end of the 

thirty days extended Delivery Period, the contract is terminated and a financial 

payment is calculated by the Clearing House in accordance with the Clearing 

House Procedures, such financial payment being calculated upon a fair value 

set by Euronext based on available information (i.e. average price of the goods 

recorded on the cash market or market survey where appropriate, on the last 

day of the Delivery Period as extended);

(g) these provisions shall apply notwithstanding the occurrence of events which 

would otherwise frustrate the Contract;
- 16 -

(h) the party claiming Force Majeure shall within fourteen days from the initial 

notification of the facts relied upon deliver to the Clearing House evidence of 

the existence of those facts. If evidence is not delivered in accordance with this 

provision, the right to invoke force majeure shall be forfeited unless a 

Competent Court in its absolute discretion decides otherwise.

16. DISPUTE RESOLUTION

16.01 Any dispute arising out of a Contract shall (subject to terms 14, 15.02(f) and 18.03 to 

the extent that they apply) be referred to the Competent Court in accordance with 

Term 19. 

16.02 The determination and payment of an invoicing back price shall not limit the 

jurisdiction of the Competent Court to make such ruling as they deem proper on the 

issue before them.

16.03 Terms 16.01 and 16.02 apply only to a dispute arising before the time of Tender on the 

first Business Day following the Last Trading Day. A dispute arising on or after the time 

of Tender on the first Business Day following the Last Trading Day shall be referred to 

arbitration in accordance with term 18.03.

17. ADMINISTRATIVE PROCEDURES AND RULES

17.01 Every Contract shall be subject to the Rules and the Regulations insofar as applicable 

notwithstanding that either or both of the parties to it are not members of Euronext 

or of the Clearing House.

17.02 In case of any conflict between the Administrative Procedures and these terms or the 

Rules, the provisions of these terms and the Rules shall prevail and in the event of any 

conflict between these terms and the Rules, the Rules shall prevail.

17.03 Euronext may at its discretion at any time revoke, alter or add to the Administrative 

Procedures. Any such amendment shall have such effect on existing as well as new 

Contracts as Euronext may direct and will be notified to members of Euronext by means 

of a Notice or otherwise as Euronext may direct.

18. ADOPTED RULES

18.01 From the time of Tender on the first Business Day following the Last Trading Day a 

Contract shall be subject to the Adopted Rules, except where otherwise stated in 

these terms, the Administrative Procedures or the Clearing House Procedures.
- 17 -

18.02 To the extent that the Adopted Rules are inconsistent with these terms and 

Administrative Procedures and the Clearing House Procedures, these terms and 

Administrative Procedures and the Clearing House Procedures shall prevail.

18.03 All disputes arising at or after the time of Tender on the first Business Day following the 

Last Trading Day shall be referred to the Gemzu in the Netherlands for settlement in 

accordance with its MPC Arbitration Regulations subject always (where the Clearing 

House is a party) to the Clearing House Procedures.

19. LAW AND JURISDICTION

19.01 Every Contract shall be governed by and construed in accordance with Dutch law. 

Subject to term 18.03, any question arising there from shall be subject to the 

jurisdiction of the Competent Courts.

19.02 The provisions of neither the Convention relating to a Uniform Law on the 

International Sale of Goods, of 1964, nor the United Nations Convention on Contracts 

for the International Sale of Goods, 1980, shall apply to Contracts.

20. NON-REGISTERED CONTRACTS

20.01 In respect of a Contract which is not a Registered Contract (“non-Registered 

Contract”) these terms shall be modified so as to require and allow that a Contract to 

be registered with the Clearing House under the Rules and the Regulations is capable 

of being so registered, and to facilitate the performance of such Registered Contract 

(and of any intermediate Contract) in accordance with these terms and the 

Administrative Procedures. Modifications may also be made to the terms of a nonRegistered Contract if, without such modifications, it may not be possible to perform 

such Contract by the applicable times specified in these terms and the Administrative 

Procedures. Without prejudice to the generality of the foregoing, all references in 

these terms to payment or dealing between the Buyer or the Seller and the Clearing 

House shall be modified so as to require a similar payment or dealing directly 

between the Buyer and the Seller party to such non-Registered Contract.

---------------------------

Issue Date: 13 April 2015
- 18 -

Skimmed Milk Powder Futures Contract

Administrative Procedures

1 INDEX

In these Administrative Procedures:

1. Index

2. Timetable

3. Delivery

2 TIMETABLE (ALL TIMES ARE PARIS TIMES)

Last Trading Day (Expiry)

At 18.30 hours Trading in the Contract Delivery Month shall cease.

After 18.30 hours Euronext will publish the EDSP. The EDSP will be determined in 

accordance with term 5. 

Last Trading Day (Expiry) + 1 Business Day

By 10.30 hours Remaining open positions greater than 12 lots automatically 

become delivery contracts.

Sellers deliver the Notification Notice, naming the Delivery Area(s) 

and Delivery Point(s) where loading shall take place, to the 

Clearing House in accordance with the Clearing House Procedures.

After 14.00 hours Skimmed Milk Powder allocated to Buyers by the Clearing House 

in accordance with the Clearing House Procedures.

The Clearing House delivers to the Seller a temporary Seller/Buyer

matching notice, identifying the Buyer.

By 17.00 hours The Clearing House delivers to the Buyer a temporary Buyer/Seller 

matching notice, identifying the Seller.
- 19 -

Last Trading Day (Expiry) + 2 Business Days

By 15.00 hours Buyers may exchange assigned deliveries, with the consent of the 

Clearing House.

By 17.30 hours The Clearing House delivers to the Seller and the Buyer the final 

Seller/Buyer matching notice. 

Last Trading Day (Expiry) + 3 Business Days

By 12.00 hours The Seller shall send, in accordance with Clearing House 

Procedures, a completed and signed Delivery Notice to each Buyer 

that has been assigned to him.

Before 15:00 hours The Buyer shall submit a completed and signed Delivery Notice to 

the Clearing House.

After 15:00 hours A Buyer may give notice of delivery from this point onwards.

Delivery Day(s) – 5 Business Days

By 16.00 hours Buyer informs Seller and the Clearing House of the date and time 

at which the Buyer’s transport shall be presented in readiness for 

loading to commence in accordance with the Clearing House 

Procedures with such date and time being within normal business 

hours on a working day in the country of loading, such notification 

to be made in accordance with the Clearing House Procedures. In 

the event of multiple deliveries, the Buyer must present transport 

such as to effect a continuous process of loading. 

Delivery Day Delivery shall take place between the Seller and the Buyer in 

accordance with these terms and Administrative Procedures. 

Delivery Day(s) + maximum 5 Business Days from issue of CMR Note(s)

By 10.00 hours Seller lodges delivery documents with the Buyer in accordance 

with these terms and the Clearing House Procedures.

By 14.00 hours The Buyer may inform the Clearing House and the Seller in writing 

that he wishes to reject the documents specified in term 7.01, and 

in that event the Buyer shall comply with the process detailed in 

term 7.

After 14.00 hours The documents shall be deemed to have been accepted by the 

Buyer unless a rejection has been made in accordance with 

term 7. 
- 20 -

Delivery Day(s) + maximum 3 Business Days from presentation of delivery documents

By 14.00 hours The Buyer shall make final payment to the Seller in accordance 

with term 7.

By 16.00 hours A Notice of Performance, duly fulfilled and signed by the selling 

clearing member and the buying clearing member, shall be sent to 

the Clearing House in accordance with term 7 and the Clearing 

House Procedures. 

3. DELIVERY

3.01 Subject to Administrative Procedure 3.03:

(a) the Seller shall be responsible for all expenses pertaining to delivery and 

loading of Skimmed Milk Powder onto the Buyer’s transport including freight 

taxes and other taxes of any nature of the country of origin or loading; 

(b) the Buyer shall be responsible for all expenses pertaining to entry to and exit 

from the Delivery Point; and

(c) in the event of multiple deliveries, Seller and Buyer shall be responsible for 

negotiating a rate of loading that must at the very least fulfil the minimum 

loading requirements as set out in these Administrative Procedures and 

Contract terms. 

3.02 (a) Subject to Contract term 2.02, the Seller shall ensure that the Delivery Point at 

which the Skimmed Milk Powder is to be delivered shall: 

(i) have storage close to and/or transport facilities to the Delivery Point, to 

allow for uninterrupted loading at the prescribed minimum loading rate;

(ii) have sampling facilities to allow independent supervision companies to 

operate unimpeded in accordance with these terms; and

(iii) have access for independent supervision companies to ensure 

compliance with these terms.

(b) The Skimmed Milk Powder shall be loaded with the following provisions:

(i) Skimmed Milk Powder to be loaded onto Buyer’s transport stacked on 

wooden pallets suitable for food contact use. 

(ii) Seller to load each Lot of Skimmed Milk Powder onto Buyer’s transport at 

a rate of no less than 12 Tonnes per hour during the normal business 

hours of each working day in the country of loading with such loading to 
- 21 -

commence and finish within a four hour delivery window commencing 

on the date and time detailed in the notice made by the Buyer five 

working days prior to delivery;

(iii) Seller to load from each Delivery Point at a minimum rate of twelve Lots of 

Skimmed Milk Powder per day with such loading to take place during the 

normal business hours of each working day in the country of loading (to 

fulfil this requirement each Delivery Point must be able to handle loading 

of a minimum of six Lots during the same time period);

(iv) Seller is liable to pay any additional waiting charges or demurrage rates 

incurred by the Buyer in the event that a Lot of Skimmed Milk Powder is 

loaded at a rate of less than 12 Tonnes per hour within the allotted four 

hour delivery window during the normal business hours of each working 

day in the country of loading. Such additional waiting charges or 

demurrage rates shall be equal to those detailed in the Contract between 

the Buyer and the carrier of the Buyer’s goods with the rate of additional 

charges being declared by the Buyer to the Seller no later than 24 hours 

prior to the commencement of loading; 

(v) In the event that the Buyer’s transport is not present and/or ready to 

load in accordance with the notice made by the Buyer five days prior to 

delivery then, for each hour of delay incurred during the normal business 

hours of each working day in the country of loading, the Seller may 

charge the Buyer a penalty that is equivalent to the rate of additional 

waiting charges or demurrage rates as detailed in the Contract between 

the Buyer and the carrier of the Buyer’s goods;

(vi) Seller to ensure that loading, including palletisation, complies with local 

safety regulations; and

(vii) All other terms pertaining to loading shall be in accordance with the 

Contract between the Buyer and the carrier of the Buyer’s goods. 

3.03 The Buyer may, at his own expense, either appoint an internationally recognised 

independent or with the written consent of the Buyer, appoint a state supervision 

firm, to supervise and inspect the loading of the Skimmed Milk Powder to be 

delivered to the Buyer. Such appointment shall be made not less than 48 hours prior 

to the Seller commencing loading of the Skimmed Milk Powder. The Buyer shall upon 

the appointment of a Supervisor notify the Seller of such appointment.

3.04 If either party has a claim, or wishes to bring a claim, as to the quality, weight or 

packing of the Skimmed Milk Powder it may refer such claim to arbitration in 

accordance with the Contract terms and these Administrative Procedures and in 

accordance with the Clearing House Procedures.

---------------

Issue Date: 13 April 2015
EURONEXT DERIVATIVES

FUTURES ON THE MORNINGSTAR®

EUROZONE 50 INDEXSM

What is the Morningstar® 

Eurozone 50 IndexSM?

This new index has been designed by 

Morningstar together with Euronext 

to provide exposure to the largest and 

most liquid companies in the Eurozone 

region.

Why trade European index futures?

Futures on the new index allow investors 

to benefit from margin efficiencies 

while trading through the centralised 

order book, offering the advantages of 

transparency and central clearing.

Who are the new futures for?

Market participants who want to trade 

exposure in the Eurozone through a 

single futures contract for hedging or 

arbitrage purposes.

Key benefits of trading futures on the 

Morningstar® Eurozone 50 IndexSM

Gain exposure to the price movements of an entire index of European stocks 

through a single futures contract. This innovative futures contract can be used with 

a variety of trading strategies and business objectives. 

 Hedge your European portfolio simply and efficiently;

 Leverage on a strong collaboration between Euronext and Morningstar, based on 

Morningstar’s open index licensing model;

 Trade a basket of stocks through one single contract;

 Add flexibility to your investment portfolio;

 Benefit from lower transaction costs than for trading stocks;

 Trade in a transparent and secured trading environment, with clearing provided by 

central counterparty LCH S.A.

ABOUT THE INDICES

The new derived blue-chip 

Morningstar® Eurozone 50 IndexSM 

was developed through a strategic 

collaboration between Euronext 

and Morningstar, and was designed 

to provide exposure to the largest 

and most liquid companies in the 

Eurozone. 

It is positioned, alongside the 

Morningstar® Developed Markets 

Europe 100 IndexSM, as a competitive 

alternative to existing products, and 

forms part of the Morningstar Global 

Index Family. 

These indices, developed by Euronext 

and Morningstar, aim to provide 

different investor profiles (asset 

managers, brokers, ETF issuers, 

banks and trading desks) with equity 

beta indices which can be used 

as benchmarks and for investable 

product creation.

To find out more go to: 

www.euronext.com/morningstareuropean-indices
03|2018

Disclaimer

1) The referential use of the name of the index is necessary to indicate the underlying value and performance of the Financial Product. This index may 

be registered as trademark by third parties. The Euronext Financial Products are not sponsored, endorsed, sold or promoted by those third parties.

2) The referential use of the name of S&P Dow Jones is necessary to indicate the calculating party of the index which forms the underlying value and performance of the Financial 

Product. This name may be registered as trademark by third parties. The Euronext Financial Products are not sponsored, endorsed, sold or promoted by those third parties.

3) The calculation of the index is not carried out by Euronext and is provided “as is”, based on information provided to Euronext without representation 

or warranty of any kind. Euronext will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information 

provided. No information set out or referred to in this notice shall form the basis of any contract. The creation of rights and obligations in respect of 

financial products that are traded on the exchanges operated by Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator.

© 2018, Euronext N.V. - All rights reserved.

Find out more

Contact your relationship manager via our Client Coverage Centre

Email or call: 

CCC Belgium CCC France CCC Netherlands

+32 2 62 00 586 +33 1 85 148 586 +31 2 07 219 586 

CCC Portugal CCC UK

+351 2 10 608 586 +44 20 76 608 586

derivatives.euronext.com

Contract specifications

FUTURES ON THE MORNINGSTAR® EUROZONE 50 INDEXSM

MORNINGSTAR® EUROZONE 50 FUTURE

EXCHANGE CONTRACT CODE FME

UNDERLYING Morningstar® Eurozone 50 IndexSM

UNIT OF TRADING 100

CONTRACT VALUE 100 * Index level (e.g. 100 * 1,179.23 = €117,923.00)

MINIMUM PRICE MOVEMENT (TICK 

SIZE AND VALUE)

COB: 0.01 Index points (€1.00 per contract)

Large-in-Scale Facility: 0.01 Index points (€1.00 per contract)

EXPIRY MONTHS 3, 6, 9, 12 months quarterly 

(of the March, June, September, December cycle)

INTRODUCTION OF NEW EXPIRY 

MONTHS

New expiry months are available for trading on the first business day after the expiry of a 

maturity

WHOLESALE SERVICES Large-in-Scale Facility, AtomX

MARKET Amsterdam

LAST TRADING DAY

Trading ceases at 18:00 CET on the third Friday of the expiry month. In the event that the third 

Friday is not a business day, the Last Trading Day shall normally be the last business day 

preceding the third Friday

SETTLEMENT Cash Settlement based on the EDSP

SETTLEMENT DAY First business day after the Last Trading Day

EXCHANGE DELIVERY SETTLEMENT 

PRICE (EDSP)

Price determined on the Last Trading Day as the closing price of the Morningstar® Eurozone 

50 IndexSM as calculated by S&P Dow Jones

CLEARING LCH S.A.

TRADING HOURS Central Order Book 08:00 – 18:00 CET

Large-in-Scale Facility 07:00 – 18:30 CET

TRADING PLATFORM UTP-D

ALGORITHM Central order book applies a price-time trading algorithm with priority given to the first order 

at the best price
Department: Group Regulation

Euronext Group, Beursplein 5, PO Box 19163, 1000 GD Amsterdam, The Netherlands

www.euronext.com

Euronext 

Rule Book

Book I:

Harmonised Rules

ISSUE DATE: 21 December 2017

EFFECTIVE DATE: See Notice 1-01- Entry into effect of the Euronext Rule Book
EURONEXT RULE BOOK – BOOK I: HARMONISED RULES 

Issue date: 21 December 2017 Page 2 of 79

TABLE OF CONTENTS:

CHAPTER 1: GENERAL PROVISIONS ................................................................................................................. 5

1.1. DEFINITIONS .......................................................................................................................................... 5

1.2. CONSTRUCTION................................................................................................................................... 16

1.3. LANGUAGE.......................................................................................................................................... 17

1.4. IMPLEMENTATION AND MODIFICATION OF RULES ..................................................................................... 17

1.5. PUBLICATION AND COMMUNICATIONS..................................................................................................... 18

1.6. EXCLUSION OF LIABILITY ....................................................................................................................... 19

1.6A. CONFIDENTIALITY OF INFORMATION........................................................................................................ 20

1.7. GOVERNING LAW ................................................................................................................................. 20

1.8. ENTRY INTO EFFECT ............................................................................................................................ 21

CHAPTER 2: EURONEXT MEMBERSHIP........................................................................................................... 22

2.1. EURONEXT MEMBERSHIP AND MEMBERSHIP CAPACITIES ......................................................................... 22

2101 Euronext Membership ................................................................................................................. 22

2102 Membership Capacities............................................................................................................... 22

2.2. REQUIREMENTS FOR EURONEXT MEMBERSHIP ....................................................................................... 22

2201 Eligibility for Membership ............................................................................................................ 22

2202 Responsible Persons and Traders .............................................................................................. 23

2.3. APPLICATION PROCEDURE.................................................................................................................... 24

2301 Submission of the Application ..................................................................................................... 24

2302 Application File............................................................................................................................ 24

2303 Determination of Application ....................................................................................................... 24

2.4. MEMBERS' CONTINUING OBLIGATIONS ................................................................................................... 25

2.5. CLEARING ARRANGEMENTS .................................................................................................................. 26

2501 General Clearing Arrangements.................................................................................................. 26

2502 Clearing Agreements................................................................................................................... 27

2.6. EXTENSION OF MEMBERSHIP ................................................................................................................ 27

2601 27

2.7. REGISTER OF MEMBERS....................................................................................................................... 27

2.8. RESIGNATION, SUSPENSION AND TERMINATION....................................................................................... 28

2801 Resignation ................................................................................................................................. 28

2802 Suspension and Termination....................................................................................................... 28

2803 Notification of resignation, suspension and termination of Membership...................................... 30

CHAPTER 3: MARKET ACCESS ARRANGEMENTS ......................................................................................... 31

3.1. CROSS MEMBERSHIP ........................................................................................................................... 31

3.2. ELECTRONIC ACCESS FACILITIES FOR CLIENTS....................................................................................... 31

3.3 SPONSORED ACCESS........................................................................................................................... 32

3.4. ELECTRONIC ACCESS FACILITIES FOR AFFILIATES ................................................................................... 34

3.5 REMOTE ACCESS................................................................................................................................. 34

CHAPTER 4: TRADING RULES FOR SECURITIES............................................................................................ 36

4.1. GENERAL............................................................................................................................................ 36

4101 Scope of Chapter 4 ..................................................................................................................... 36

4102 Trading Days............................................................................................................................... 36

4103 Currency of Trading .................................................................................................................... 36

4104 Trading Symbols ......................................................................................................................... 36

4105 System Rules and Requirements................................................................................................ 36

4106 Member Responsibility................................................................................................................ 36

4107 Market Makers / Liquidity Providers ............................................................................................ 36

4.2. ORDERS ............................................................................................................................................. 37

4201 Scope of Rule 4.2........................................................................................................................ 37
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4202 General Terms and Conditions ................................................................................................... 37

4203 Order Types ................................................................................................................................ 38

4204 Order Parameters ....................................................................................................................... 39

4205 Retail Trading Facility.................................................................................................................. 40

4.3. TRADING CYCLES IN THE CENTRAL ORDER BOOK ................................................................................... 40

4301 Overview ..................................................................................................................................... 40

4302 Continuous Trading..................................................................................................................... 40

4303 Auctions ...................................................................................................................................... 41

4304 Post-Trading Order Book Management....................................................................................... 41

4305 Out-of-Hours Trading .................................................................................................................. 41

4.4. MARKET MECHANISMS ......................................................................................................................... 41

4401 Order Matching and Execution in the Central Order Book .......................................................... 41

4402 Guaranteed Cross Trades and guaranteed Principal Trades ...................................................... 43

4403 Trading Safeguards..................................................................................................................... 43

4404 Off-Order Book Trading............................................................................................................... 45

4.5. CONFIRMATION, REPORTING AND PUBLICATION ...................................................................................... 46

4501 Confirmation................................................................................................................................ 46

4502 Reporting of Transactions ........................................................................................................... 46

4503 Publication................................................................................................................................... 47

4.6. CLEARING AND SETTLEMENT................................................................................................................. 49

CHAPTER 5: TRADING RULES FOR DERIVATIVES ......................................................................................... 50

5.1 GENERAL............................................................................................................................................ 50

5101 Scope of Chapter 5 ..................................................................................................................... 50

5102 Trading Days and trading hours ................................................................................................. 50

5103 Admission to Trading and Contract Specifications ...................................................................... 50

5104 Delivery months, expiry months and expiry dates ....................................................................... 50

5105 Market Makers / Liquidity Providers ............................................................................................ 50

5106 Trading Procedures..................................................................................................................... 51

5107 Member Responsibility................................................................................................................ 51

5.2. ACCESS TO EURONEXT TRADING PLATFORM .......................................................................................... 51

5.3. TRADING ON THE EURONEXT TRADING PLATFORM................................................................................... 52

5301 Trading and Order matching ....................................................................................................... 52

5302 Order types ................................................................................................................................ 52

5303 Order execution........................................................................................................................... 53

5304 Contractual relationships............................................................................................................. 53

5.4. TERMINATION, SUSPENSION AND TRADE INVALIDATION/CANCELLATION ...................................................... 53

5401 Termination of a trading session ................................................................................................. 53

5402 Suspension or limitation of trading .............................................................................................. 53

5403 Invalidation and cancellation of Transactions.............................................................................. 54

5404 DELISTING OF DERIVATIVES .................................................................................................................. 54

5.5. PRE-NEGOTIATION AND PRE-ARRANGEMENT ........................................................................................... 54

5.6 CROSS TRANSACTIONS AND OFF ORDER BOOK TRANSACTIONS................................................................ 55

5601 Cross Transactions ..................................................................................................................... 55

5602 Off Order Book Transactions....................................................................................................... 55

5.7. REPORTING AND PUBLICATION .............................................................................................................. 55

5701 Reporting..................................................................................................................................... 55

5702 Publication................................................................................................................................... 56

5703 Use of market data by Euronext Derivatives Members ............................................................... 56

CHAPTER 6: ADMISSION TO LISTING AND CONTINUING OBLIGATIONS OF ISSUERS............................. 57

6.1. SCOPE OF CHAPTER 6 .......................................................................................................................... 57

6.2. APPLICATION PROCEDURE ..................................................................................................................... 57

6.3. DECISION BY THE RELEVANT EURONEXT MARKET UNDERTAKING .............................................................. 58

6.4. GROUNDS FOR REFUSAL ....................................................................................................................... 59

6.5. GENERAL DOCUMENTATION TO BE FURNISHED AT THE TIME OF THE APPLICATION ......................................... 59

6.6. GENERAL LISTING REQUIREMENTS FOR SECURITIES ................................................................................. 60

6.7. ADDITIONAL LISTING REQUIREMENTS PER CATEGORY OF SECURITIES ......................................................... 61
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6702 Shares, Depositary Receipts for Shares and Equity Securities.................................................... 61

6703 Bonds........................................................................................................................................... 62

6704 Closed-Ended Investment Funds and Investment Companies..................................................... 63

6705 ETFs, ETNs, ETVs and Open-ended Investment funds other than ETFs .................................... 63

6706 structured products ...................................................................................................................... 63

6707 other transferable Securities ........................................................................................................ 64

6.8. ADDITIONAL REQUIREMENTS FOR THE ADMISSION TO TRADING OF SECURITIES ON A “IF AND WHEN 

ISSUED/DELIVERED” BASIS................................................................................................................................ 64

6.9. LISTING MEASURES ............................................................................................................................... 65

6901 General ........................................................................................................................................ 65

6902 Market Capitalisation compartments ............................................................................................ 65

6903 Specific compartments - Recovery Box and Penalty Bench......................................................... 65

6904 Additional listing measures for Securities admitted on a “If and When Issued/Delivered” basis... 66

6905 Delisting ....................................................................................................................................... 66

6.10. CONTINUING OBLIGATIONS..................................................................................................................... 67

61001 General ........................................................................................................................................ 67

61002 Listing of Newly-Issued Securities of the Same Class ................................................................. 68

61003 Investor Relations ........................................................................................................................ 68

61004 Administration of corporate and securities events........................................................................ 68

61005 Cooperation with a Euronext Market Undertaking........................................................................ 70

CHAPTER 7: [RESERVED]................................................................................................................................. 71

CHAPTER 8: RULES OF CONDUCT ................................................................................................................... 72

8.1. GENERAL............................................................................................................................................ 72

8101 Scope of Chapter 8 ..................................................................................................................... 72

8102 General Duties of Integrity, Fair Dealing and Care...................................................................... 72

8103 Cooperation with a Euronext Market Undertaking....................................................................... 72

8104 No Abusive or Misleading Conduct ............................................................................................. 72

8105 Use of Euronext Trading Platforms ............................................................................................. 73

8106 Internal controls.......................................................................................................................... 73

8.2. RESERVED .......................................................................................................................................... 74

8.3. AUDIT TRAIL........................................................................................................................................ 74

8301 Recording of Order Details.......................................................................................................... 74

8302 Retention of Information.............................................................................................................. 75

8303 Voice recording ........................................................................................................................... 75

CHAPTER 9: MEASURES IN CASE OF VIOLATION OF THE RULES............................................................... 76

9.1. SCOPE OF CHAPTER 9 ......................................................................................................................... 76

9.2. PROCEDURE ....................................................................................................................................... 76

9201 Examination ................................................................................................................................ 76

9202 Confidentiality.............................................................................................................................. 76

9203 Report ......................................................................................................................................... 77

9204 Exploratory Meeting .................................................................................................................... 77

9.3. RECTIFICATION, SUSPENSION AND TERMINATION ..................................................................................... 77

9.4. REPORTING AND PUBLICATION............................................................................................................... 78

9401 Reporting..................................................................................................................................... 78

9402 Infringement of National Regulations .......................................................................................... 79

9.5. LIABILITY AFTER MEMBERSHIP TERMINATION OR RESIGNATION .................................................................. 79
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CHAPTER 1:

GENERAL PROVISIONS

1.1. DEFINITIONS

For purposes of this Rule Book, the following capitalised terms shall, unless specifically provided 

otherwise, have the following meanings:

“Admission Agreement”: a written agreement entered into between the 

Relevant Euronext Market Undertaking and a Member 

or prospective Member in which the Member or 

prospective Member, as the case may be, applies for 

membership and agrees inter alia to abide by the 

Rules from time to time in force;

“Admitted Financial Instrument”: any Financial Instrument admitted to listing or trading 

on a Euronext Market;

“Affiliate”: any Person designated as such by the Relevant 

Euronext Market Undertaking pursuant to Rule 3.4;

"Algorithmic Trading" means trading as defined in article 4(1)(39) of MIFID: 

‘algorithmic trading’ means trading in financial 

instruments where a computer algorithm automatically 

determines individual parameters of orders such as 

whether to initiate the order, the timing, price or 

quantity of the order or how to manage the order after 

its submission, with limited or no human intervention,

and does not include any system that is only used for 

the purpose of routing orders to one or more trading 

venues or for the processing of orders involving no 

determination of any trading parameters or for the 

confirmation of orders or the post-trade processing of 

executed. Transactions;

“Applicant”: an Issuer that is proposing, or is applying, for an 

admission to listing and/or trading of any of its 

Securities;

“Application Form”: a form filed by an Applicant with the Relevant 

Euronext Market Undertaking requesting admission to 

listing and/or trading of Securities, notably setting forth 

the commitments and undertakings from the Applicant

vis-à-vis the Relevant Euronext Market Undertaking in 

connection with an application for admission to listing 

and/or trading of Securities and, to the extent the 

latter is approved by the Relevant Euronext Market 

Undertaking, serving as evidence of the contractual 

relationship between the Relevant Euronext Market 

Undertaking and the Issuer;

“Automated Order Routing System”: any system of computers, software or other devices 

that allows orders to be sent by a Client to a Member 

and submitted to the Euronext Trading Platform 

without substantial human intervention;
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“Banking Directive”: the EU Directive of the European Parliament and of 

the Council on access to the activity of credit 

institutions and the prudential supervision of credit 

institutions and investment firms (2013/36/EC);

“Basket Trade”: guaranteed cross trades in two or more Securities 

involving the same counterparties;

“Central Order Book”: the Euronext Trading Platform’s order book, in which 

all submitted orders and any modifications thereto are 

held until matched, expired or withdrawn;

“Certificate”: a document embodying one or more Securities;

“Class”: all options of the same type (call or put), of the same 

style (e.g. American or European) relating to the same 

underlying Financial Instrument as determined by the 

Relevant Euronext Market Undertaking;

“Clearing Agreement”: the written agreement defining, amongst other things, 

the mutual rights and obligations of a Member and a 

Clearing Member in relation to the clearing of 

Transactions entered into pursuant to Rule 2502;

“Clearing Organisation”: the entity authorised and regulated as a Central 

Counterparty pursuant to EMIR and appointed by the 

Euronext Market Undertaking to clear Transactions 

being, for the time being, EuroCCP and LCH SA;

“Clearing Mandate”: a statement, in such form as may be prescribed by the 

Relevant Euronext Market Undertaking, made by a 

Member and a Clearing Member, that the Member 

has appointed the Clearing Member to act on the 

Member’s behalf to clear and settle Transactions 

executed on a Euronext Market by the Member; 

“Clearing Member”: any Person authorised by the Clearing Organisation to 

clear Transactions in accordance with the relevant 

provisions of the Clearing Rule Book;

“Clearing Rule Book”: the collection of rules governing the operation of the 

Clearing Organisation, adopted by the Clearing 

Organisation and approved, where appropriate, by the 

Competent Authorities, as interpreted and 

implemented by instructions, notices and procedures 

issued by the Clearing Organisation;

“Client”: any Person who employs the services of a Member in 

relation to one or more orders for the purchase or sale 

of one or more Admitted Financial Instruments;

“Closed-ended Investment Fund”: a collective investment scheme that does not offer 

creation and redemption of shares/units;

"Commodity Derivatives" means commodity derivatives as defined in Article 

2(1)(30) of MIFIR : ‘commodity derivatives’ means 

those financial instruments defined in point (44)(c) of 
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Article 4(1) of Directive 2014/65/EU; which relate to a 

commodity or an underlying referred to in Section 

C(10) of Annex I to Directive 2014/65/EU; or in points 

(5), (6), (7) and (10) of Section C of Annex I thereto;

“Competent Authority”: the public authority or self-regulatory body of Belgium, 

France, the Netherlands, Portugal or the United 

Kingdom as the case may be, having jurisdiction over 

the relevant matter;

“Contract Specifications”: the terms and arrangements specified by the Relevant 

Euronext Market Undertaking pursuant to Rule 5103 

in respect of each Derivative which is an Admitted 

Financial Instrument, issued as a Notice;

“Credit Institution”: any credit institution as defined in Article 3.1(1) of the 

Banking Directive, excluding any of the institutions referred to in Article 2(5) thereof;

“Cross Transaction”: a Transaction executed pursuant to requirements 

(including those as to price) set out in the Rules 

whereby both the purchase and the sale are executed 

by one Member, albeit that the relevant orders must 

have originated from separate Clients or from 

separate accounts with different beneficial owners, as 

the case may be; 

“Depository Receipt”: a Security embodying an entitlement to specific rights 

attaching to an Underlying Security, issued by an 

entity other than the Issuer of the Underlying Security; 

“Euronext Derivative”: any non-securitised instrument of one of the following 

categories:

(i) options and futures contracts in respect of 

Securities or commodities, including 

equivalent cash-settled instruments;

(ii) any other instruments (other than warrants 

and other types of Securities) the value of 

which is determined by reference to prices of 

Securities or commodities, interest rates or 

yields, foreign exchange rates or other indices 

or measures which, subject to relevant 

National Regulations, Euronext may determine to be eligible for trading on a 

Euronext Market for Derivatives;

“Direct Electronic Access” shall have the meaning ascribed to it by Article 

4(1)(41) of MIFID;

“EEA Right”: the entitlement of a Person to establish a branch or 

provide services in an EEA State other than that in 

which it has its head office, subject to the conditions of 

the relevant single market directive;
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“Eligible Financial Instrument”: an Admitted Financial Instrument specified in the 

Appendix to the Trading Manual as eligible to be 

included in the Internal Matching Facility;

“EMIR”: the Regulation of the European Parliament and of the 

Council on OTC derivatives, central counterparties 

and trade repositories (EP & Council Regulation 

No.648/2012/EU);

“Equity Securities”: Shares and other transferable securities equivalent to 

Shares, as well as any other type of transferable 

securities giving the right to acquire Equities 

Securities as a consequence of their being converted 

or the rights conferred by them being exercised, 

provided that Securities of the latter type are issued 

by the issuer of the Underlying Securities or by an 

entity belonging to the group of the said issuer;

“ETF”: an “exchange-traded fund”, i.e. an Open-ended

Investment Fund providing exposure to the 

performance of a daily transparent and intra-day 

priced index or portfolio of assets and offering daily 

creation/redemption of shares/units;

“ETN”: an “exchange-traded note”, i.e. a zero-coupon debt 

security issued by a credit institution or an investment 

firm, providing exposure to the performance of an 

intra-day priced underlying reference and offering 

regular redemption of securities;

“ETV”: an “exchange-traded vehicle”, i.e. a zero-coupon debt 

security issued by a special purpose vehicle, providing 

exposure to the performance of an intra-day priced 

underlying reference and offering regular redemption 

of securities;

“EuroCCP”: European Central Counterparty N.V., a company with 

limited liability (naamloze vennootschap) organised 

under the laws of the Netherlands and authorised and 

regulated as a Central Counterparty pursuant to EMIR;

“Euronext”: the corporate group consisting of Euronext N.V., a 

corporation (“naamloze vennootschap”) organised 

under the laws of the Netherlands, the Euronext 

Market Undertakings and any other subsidiary of 

Euronext N.V., as the context may require;

“Euronext Amsterdam”: Euronext Amsterdam N.V., a corporation (“naamloze 

vennootschap”) organized under the laws of the 

Netherlands, operator of a securities exchange 

(“houder van een effectenbeurs”) authorised pursuant 

to Article 5:26 of the Dutch Financial Supervision Act 

(“Wet op het financieel toezicht”);

“Euronext Brussels”: Euronext Brussels S.A./N.V., a corporation (“société 

anonyme”, “naamloze vennootschap”) organised 

under the laws of Belgium and recognised as a 

market undertaking in accordance with Article 16 of 

the Belgian Law of August 2, 2002 governing the 

supervision of the financial sector and financial 

services (“Loi relative à la surveillance du secteur 
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financier et aux services financiers / Wet betreffende 

het toezicht op de financïele sector en de financïele 

diensten”);

“Euronext Derivatives Market”: any market, including any Regulated Market, for 

Derivatives operated by any Euronext Market 

Undertaking;

“Euronext Derivatives Membership”: membership of one or more of the Euronext 

Derivatives Markets as defined in Rule 2.1;

“Euronext Lisbon”: Euronext Lisbon – Sociedade Gestora de Mercados 

Regulamentados, S.A., a corporation (“sociedade 

anónima”) organised under the laws of Portugal, a 

regulated market managing company authorised 

pursuant to the Portuguese Decree-Law n.° 357-

C/2007, of October 31st (“Regime jurídico das 

sociedades gestoras de mercado regulamentado, das 

sociedades gestoras de sistemas de negociação 

multilateral, das sociedades gestoras de câmara de 

compensação ou que actuem como contraparte 

central, das sociedades gestoras de sistema de 

liquidação e das sociedades gestoras de sistema 

centralizado de valores mobiliários”);

“Euronext London” Euronext London Limited, a company incorporated in 

England and Wales (registration no. 8631662) whose 

registered office is at Juxon House, 100 St Paul’s 

Churchyard, London, EC4M 8BU, England and which

has been recognised as an investment exchange 

pursuant to section 290 of the Financial Services and 

Markets Act 2000;

“Euronext Market”: any Euronext Derivatives Market or Euronext 

Securities Market;

“Euronext Market Undertakings”: Euronext Amsterdam, Euronext Brussels, Euronext 

Lisbon, Euronext London and Euronext Paris;

“Euronext Paris”: Euronext Paris S.A., a corporation (“société 

anonyme”) organised under the laws of France and a 

market undertaking (“entreprise de marché”) within 

the meaning of Article L. 421-2 of the French 

Monetary and Financial Code;

“Euronext Securities Market”: any Regulated Market for Securities operated by any 

Euronext Market Undertaking;

“Euronext Securities Membership”: membership of the Euronext Securities Markets as 

defined in Rule 2.1;

“Euronext Trading Platform”: the technical platform operated by Euronext and interlinking Euronext Markets for Securities or for 

Derivatives, as the case may be;

“EU Sanction List”: List containing the names and identification details of 

all persons, groups and entities targeted by financial 

restrictions, sanctions or other measures that the 

European Union has applied in pursuit of the specific 
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objectives of the Common Foreign and Security Policy 

(CFSP) as set out in Article 11 of the Treaty on 

European Union, to help prevent the financing of 

terrorism;

“Exercise Price”: the price at which the underlying asset is purchased 

or sold pursuant to the exercise of an Option Contract; 

“Financial Institution”: any financial institution as defined in Article 3.1(22) of 

the Banking Directive, which fulfils the conditions set 

forth in Article 34 thereof;

“Financial Instrument”: any Security or Derivative;

“Flex Contract”: an Admitted Financial Instrument which permits a 

Member to vary certain parameters of the Contract 

Specifications within the limits specified by the 

Relevant Euronext Market Undertaking;

“Guaranteed Cross Trade”: a Cross Transaction executed pursuant to the Rules

which does not interact with orders in the Central 

Order Book but whose price is constrained by the 

prices of such orders;

“Home State”: the country in which a Person has its registered office 

or, absent a registered office, its head office or, in the 

case of an individual, the country in which such 

individual has its principal place of business;

“Individual Trading Mnemonic” or “ITM”: any trading access identifier assigned to a 

Responsible Person for the execution of business on 

the Euronext Trading Platform for Derivatives for 

which he is responsible;

“Insider Dealing” the activities specified in Article 8 (Insider Dealing) of 

the Market Abuse Regulation (Regulation 

596/2014/EU);

“Internal Matching Facility”: a service for a member which implies that an order in 

respect of an Eligible Financial Instrument entering 

the order book already containing an order by that 

member at the best limit will be executed against this 

latter order without regard to its entry time;

“Investment Company”: an investment company whether or not constituted as 

a UCITS;

“Investment Firm”: shall have the meaning ascribed to it by Article 4(1)(1) 

of MIFID;

“Investment Service”: any of the services listed in Section A of Annex 1 to 

MIFID, relating to any Financial Instrument, that are 

provided to a third party;

“Issuer”: any legal entity whose Securities (or any class) have

been admitted or are the subject of an application for 
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admission to listing and/or trading on a Euronext 

Market;

“Large-in-Scale Trade” in respect of the Euronext Securities Markets, any 

Transaction of the kind defined in Rule 4404/2; in 

respect of the Euronext Derivatives Markets shall 

have the meaning ascribed to it by Rule 5602/1(b);

“LCH SA”: Banque Centrale de Compensation S.A., a 

corporation (“société anonyme”) organised under the 

laws of France and authorised and regulated as a 

Central Counterparty pursuant to EMIR;

“LEI”: legal entity identifier, as defined in ISO 17442;

“Liquidity Provider”: unless otherwise specified in Book II, any Member or, 

in respect of Euronext Derivatives Markets, any 

Member or Client of a Member who has undertaken, 

and been appointed by the Relevant Euronext Market 

Undertaking, to enhance the market liquidity of a 

particular Admitted Financial Instrument, in 

accordance with Rule 4107 or Rule 5105, as the case 

may be and not pursuing any Market Making activity 

as defined in Article 17(4) and Article 48(2) of MiFID;;

“Liquidity Provision Programme”: a written agreement entered into between the Relevant Euronext 

Market Undertaking and a Liquidity Provider pursuant 

to Rule 4107 or Rule 5105, as the case may be;

“Listing Agent”: a legal entity appointed by the Issuer to assist and 

guide the relevant Issuer in respect of an admission to 

listing and/or trading of its Securities on a Euronext 

Securities Market;

“Listing Agreement”: an agreement to be concluded prior to the admission 

to listing between the Issuer and the Relevant 

Euronext Market Undertaking under which the Issuer 

agree to be bound by the Rules;

“Long Code” at the latest by the end of the day, members are 

required to supply information mapping each short 

code to an LEI, National ID or Algorithm ID (so-called 

Long Code) to allow Euronext to complete its order 

records in the format required by MiFIR,

“Market Capitalisation”: with regards to a particular Security on a particular 

day:

(i) the price multiplied by the number of 

Securities of that particular type at a certain 

period of time, subject to a maximum of the 

total number of Securities of that type

admitted to listing on a Euronext Securities 

Market, or

(ii) in the case of Bonds, the amount obtained by 

multiplying the percentage stated as the 

issue price of the Bond by the issued nominal 

amount of the relevant issue at the end of 

that day;
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"Market Maker" means a Market Maker as defined in Articles

4(1)(7), 17(4) and 48(2) of MIFID

"Market Making Agreement" means a written agreement entered into between 

the Relevant Euronext Market Undertaking and a 

Member according to Article 1 of the Commission 

Delegated Regulation (EU) 2017/578. The content 

of the agreement, made public by Euronext,

include at least the provisions listed in Article 2 of 

Commission Delegated Regulation (EU) 2017/578 

with regard to regulatory technical standards 

specifying the requirements on market making 

agreements and schemes,

“Market Making Scheme” means a written agreement entered into between 

the Relevant Euronext Market Undertaking and a 

Member according to Article 48 (2) (b) of MIFID 

and Article 5 of the Commission Delegated 

Regulation (EU) 2017/578. The content of the 

agreement, made public by Euronext include at 

least the provisions listed in Article 5 of 

Commission Delegated Regulation (EU) 2017/578 

with regard to regulatory technical standards 

specifying the requirements on market making 

agreements and schemes,

“Market Manipulation” the activities specified in Article 12 (Market 

Manipulation) of the Market Abuse Regulation 

(Regulation 596/2014/EU);

“Market of Reference”: where an Admitted Financial Instrument is admitted to 

trading on more than one Euronext Securities Market 

(other than that operated by Euronext Lisbon), the 

Market of Reference shall be the Euronext Securities 

Market specified by Euronext on which all 

Transactions in the Central Order Book shall be 

executed;

“Member”: any Person who has been admitted to Euronext 

Securities Membership or Euronext Derivatives 

Membership and whose membership has not been 

terminated;

“Member State”: any of the Member States of the European Economic 

Area;

“MIFID”: the Directive of the European Parliament and of the 

Council on markets in financial instruments (EP & 

Council Directive 2014/65/EU);

“MIFID Passport”: the freedom of an Investment Firm or a Credit 

Institution to carry on investment business throughout 

the European Economic Area on the basis of 
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authorisation by the competent authorities of its home 

Member State pursuant to MIFID or the Banking 

Directive, as the case may be;

“MIFIR”: the Regulation of the European Parliament and of the 

Council on markets in financial instruments (EP & 

Council Regulation (600/2014/EU);

“National Regulations”: any and all laws and regulations applicable in the 

jurisdiction of the Relevant Euronext Market 

Undertaking;

“NAV Trading”: A facility specially designed for and limited to the 

trading of Open-Ended Investment Funds. This 

service is offered to fund agents and to other 

Members of the relevant Euronext Securities Market;

“Non-MIFID Firm”: a Person without the right to a MIFID Passport, 

including a Person established within a Member State 

of the European Economic Area but excluded from the 

scope of MIFID and a Person from a third country, 

whether authorised or not;

“Notice”: any written communication, labelled “Notice”, issued 

by the Euronext Market Undertakings to Members or 

Issuers generally or to any class of Members or 

Issuers for the purpose of interpreting or implementing 

the Rules or any other purpose contemplated in this 

Rule Book;

“Off Order Book Transaction” shall have the meaning ascribed to it by Rule 5602/1;

“Open-ended Investment Fund” A collective investment scheme offering regular 

creation/redemption of shares/units;

“Participation Certificate”: a Certificate of participation in an Investment Fund;

“Partner Market”: a market which is the subject of an agreement with a 

Euronext Market Undertaking pursuant to Rule 

3101/1;

“Penalty Bench”: a special compartment maintained by the Relevant 

Euronext Market Undertaking grouping together 

Issuers that do not comply with the Rules;

“Person”: any individual, corporation, partnership, association, 

trust or entity as the context admits or requires;

“Primary Market Maker” or 

“Primary Liquidity Provider”: a (designated) Liquidity Provider having certain 

quoting obligations greater than those of a 

Competitive Market Maker (where such Competitive 

Market Maker exists) as determined and published by 

the Relevant Euronext Market Undertaking from time 

to time; 

“Public-Law Issuer”: an Issuer that is a state, a territorial body under public 

law or an international institution under public law;
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“Recovery Box”: a special compartment maintained by the Relevant 

Euronext Market Undertaking grouping together 

Issuers that are subject to insolvency procedures;

“Regulated Market”: any organised market for Financial Instruments within 

the scope of Article 4(1)(21) of MIFID;

“Regulatory Technical Standard” shall mean a regulatory technical standard adopted by 

the European Commission in accordance with Articles 

10 to 14 of EP & Council Regulation No. 

1095/2010/EU;

“Relevant Euronext Market Undertaking”: the Euronext Market Undertaking which has 

approved, or is in the process of reviewing, the 

application for Euronext Membership of the relevant 

Member or prospective Member, or the Euronext 

Market Undertaking which has admitted the relevant 

Financial Instrument to listing or trading on a Euronext 

Market or with which the relevant application for admission to listing or trading is pending, as the context 

requires; for the purposes of certain agreements 

contemplated by the Rules, when this term is intended 

to refer solely to a Euronext Market Undertaking in the 

first sense, it is marked with an asterisk (*); for the 

purposes of the situations where a given Security is 

admitted on more than one Euronext Securities 

Market, any mention in this rulebook of the “Relevant 

Euronext Market Undertaking” should be construed as 

referring to the one operating the Market of Reference 

where the context deals with Central Order Book 

trading only and related matters thereto; 

“Responsible Person”: an individual designated as such by a Member and 

registered with the Relevant Euronext Market 

Undertaking pursuant to Rule 2202;

“Retail Trading Facility”: arrangements designed to provide appropriate 

matching rules for Retail Orders, in consideration of 

their specific nature. In these Rules, such 

arrangements include the dedicated specific 

provisions of Rules 4202/1, 4205, 4401/1, 4503/2 and 

4503/3A;

“Retail Liquidity Provider”: any Member who has been appointed by the Relevant 

Euronext Market Undertaking to provide Retail 

Liquidity Quotes in the Central Order Book;

“Retail Liquidity Firm Quote”: any limit order posted in the Central Order Book by a 

Retail Liquidity Provider acting in such capacity and 

available to be matched only with Retail Orders 

submitted by Retail Member Organisations;

“Retail Member Organisation”: any Member who has been accepted by the Relevant 

Euronext Market Undertaking to submit Retail Orders 

in the Central Order book in accordance with 
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conditions specified and published by the Relevant 

Euronext Market Undertaking;

“Retail Order”: any order for which the Retail Member Organisation 

has sufficient reason to believe that it originates from 

a retail client (i.e. from a client who has not been 

classified as a “professional client” within the meaning 

of MIFID definition or equivalent definition in respect 

of a broker established in a country outside the 

European Economic Area);

“Rules”: the rules set forth in this Rule Book, as interpreted or 

implemented by Notices;

“Security”: any transferable security of one of the following 

categories:

(i) Equity Securities;

(ii) Certificates; 

(ii) Depositary Receipts in respect of Shares;

(iv) bonds or other debt securities;

(v) warrants or similar securities entitling the 

holder to acquire any of the aforesaid 

securities or any basket of such securities or 

to receive a cash amount determined by 

reference to a future price or value of any 

such security or basket;

(vi) units in collective investment undertakings or 

participation units in other investment 

vehicles;

(vii) any other securities which, subject to relevant 

National Regulations, Euronext may decide 

to be eligible for trading on a Euronext 

Market for Securities;

“Shares”: any shares of capital stock or other equity securities 

issued by a corporation or other incorporated 

business enterprise;

“Short Code”: code to be submitted by Members, used on each 

order entry, in order to minimize the information which 

has to circulate with the order and to ensure 

appropriate security standards of confidential 

information;

“Sponsored Access” : an arrangement whereby a Member (the Sponsoring 

Member) permits a Client (the Sponsored Participant) 

to use its trading code to transmit orders to a Euronext 

Market other than by way of the Member’s trading 

infrastructure, subject to conditions set forth in Rule 

3.3;
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“Sponsoring Member”: a Member sponsoring a Sponsored Participant 

pursuant to Rule 3.3.;

“Sponsored Participant”: a Client that benefits from Sponsored Access

solutions pursuant to Rule 3.3.;

“Technical Trade” shall have the meaning ascribed to it by Rule 

5602/1(a);

“Trading Day”: any day on which the Euronext Markets are open for 

trading;

“Trading Host”: the central processing system of the Euronext Trading 

Platform for Securities or Derivatives, as the case may 

be;

“Trading Hours”: the trading hours on any Trading Day, as announced 

by a Notice;

“Trading Manual”: those procedures concerning the Euronext Securities 

Markets issued pursuant to Rule 4105, issued as a 

Notice;

“Trading Procedures”: those procedures concerning the Euronext Derivatives 

Markets issued pursuant to Rule 5106, issued as a 

Notice;

“Transaction”: any purchase or sale of an Admitted Financial Instrument on a Euronext Market;

“UCITS”: An Undertaking for Collective Investment in 

Transferable Securities;

“Underlying Security”: any Security of the kind defined in Rule 6606. 

“Union Law”: any and all laws and regulations operating within the 

member states of European Union.

1.2. CONSTRUCTION

1201 References to any law, regulation, directive or rule shall be construed as those in force 

at the relevant time, as the same may have been amended.

1202 The Rule Book is composed of a harmonised part (“Book I”) and a part which is 

market-specific (“Book II”). Unless specifically provided otherwise, cross-references to 

Rules, chapters or sections in this Rule Book shall be construed to refer to Rules, 

chapters or sections of the same book.

1203 [Reserved]

1204 Chapter or section headings in this Rule Book or in the Notices are for ease of 

reference only; they are not part of the content of the relevant chapter or section and 

do not in any way affect the interpretation thereof.

1205 Capitalised terms used in this Rule Book shall be construed to be of such gender or 

number as the context admits or requires.

1206 Capitalised terms defined in Rule 1.1 and used but not otherwise defined in Notices or 
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other communications of the Euronext Market Undertakings shall have the same 

meaning therein as set forth in Rule 1.1.

1207 Unless specified otherwise, references to decisions or determinations made or to be 

made, or other acts performed or to be performed, by Euronext shall be construed to 

refer to decisions, determinations or other acts made or performed, or to be made or 

performed, jointly by the Euronext Market Undertakings.

1208 Unless specifically provided otherwise, time specifications in this Rule Book or in 

Notices or other communications of the Euronext Market Undertakings shall be 

construed to refer to Central European Time.

1209 Unless specifically provided otherwise, any time periods stated in this Rule Book or in 

Notices or other communications of the Euronext Market Undertakings shall be 

counted from midnight to midnight. The time periods shall be deemed to begin on the 

day following the day on which the event that causes such period to begin takes place. 

If the date on which any such period terminates is not a Trading Day, the relevant time 

period shall expire on the next Trading Day. Time periods stated in months or years 

shall be counted from the starting day through the day proceeding the corresponding 

day in the relevant subsequent month or year.

1.3. LANGUAGE

1301 Book I of this Rule Book is drawn up, and Notices shall be issued, in the language(s) 

of the jurisdiction of each Euronext Market Undertaking. These language versions are 

equally authentic. 

1302 For each Euronext Market Undertaking, Book II of this Rule Book is drawn up, and 

Notices shall be issued, in English and in the language(s) of the jurisdiction of that 

Euronext Market Undertaking. Subject to National Regulations, these language 

versions are equally authentic.

1303 Any applications, filings and correspondence with, and submissions to, a Euronext 

Market Undertaking by Members, Issuers and prospective Members or Issuers shall 

be in English or in the language or one of the languages of such Euronext Market 

Undertaking, as each Member, Issuer or prospective Member or Issuer may elect.

1.4. IMPLEMENTATION AND MODIFICATION OF RULES

1401 This Rule Book shall be implemented and interpreted by:

(i) Notices applicable to all Euronext Derivatives Markets, issued jointly by the 

Euronext Market Undertakings;

(ii) Notices applicable to all Euronext Securities Markets, issued jointly by the Euronext Market Undertakings;

(iii) Notices applicable only to markets operated by one Euronext Market 

Undertaking, issued separately by that Euronext Market Undertaking; and

(iv) individual decisions adopted by one Euronext Market Undertaking pursuant to 

the Rules.

Notices shall become effective and binding upon publication by the Euronext Market 

Undertakings in the manner set forth in Rule 1501 or at such subsequent date as is 

specified in such publication.

1402 With a view to the adequate and proper operation of the Euronext Markets and the 

protection of the interests of participants on those markets, the Euronext Market 

Undertakings may modify the Rules, including by adopting additional Rules, whenever 

it deems such modifications necessary or appropriate.
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The Rules are modified by decision adopted jointly by the Euronext Market 

Undertakings in the case of Rules set forth in Book I, or by decision of the Relevant 

Euronext Market Undertaking in the case of Rules set forth in Book II, in each case 

subject to approval by the Competent Authorities. Such modifications shall become 

effective and binding on all Members and Issuers upon publication by the Euronext 

Market Undertakings in the manner set forth in Rule 1501 or at such subsequent date 

as is specified in such publication.

If any modification of the Rules, other than a modification required by European 

Community law or National Regulations, materially adversely affects the rights or 

obligations of Members generally or of any class of Members, then any Member so 

affected may terminate its Euronext Membership by notice in writing given to the 

Relevant Euronext Market Undertaking within five Trading Days from the date of 

publication of the relevant modification.

1.5. PUBLICATION AND COMMUNICATIONS

1501 The Euronext Market Undertakings shall ensure publication of this Rule Book, 

subsequent amendments to the Rules, and Notices through dissemination to its 

Members and/or Issuers or to the relevant class of Members or Issuers via its trading 

system, publication in its periodical publications or individual notification as appropriate.

1502 Unless specifically provided otherwise, any notification or other communication 

specific to a Member or an Issuer which is required to be made in writing by any Rule 

may be made by any means of communication producing or permitting reproduction of 

a written or printed text of the notice.

Any such notification or communication shall be deemed to have been received when 

effectively delivered to the recipient’s address or transmitted to its fax number or 

electronic mail address, as the case may be, except that any notification or 

communication made by ordinary mail shall be deemed to have been received on the 

second, fourth or seventh Trading Day following the postal stamp date, depending on 

whether the notice is sent within the same country, to another Member State or to a 

country outside the European Economic Area, respectively.

Any such notification or communication to a Member or to an Issuer shall be made to 

the address, fax number or electronic mail address specified in writing by such 

Member or Issuer. For Members, such a registration has to be done pursuant to Rule 

2.7 or Rule 3.7, as the case may be.

1503 A Relevant Euronext Market Undertaking may record conversations conducted on 

telecommunications equipment of any kind located on its premises, including for the 

avoidance of doubt conversations conducted from such premises using portable 

telecommunications equipment. Any such recordings shall be retained by that 

Euronext Market Undertaking on such terms and conditions as may be prescribed 

from time to time.

1.5A. OBLIGATIONS OF REGULATED MARKETS

1501A Euronext Market Undertakings are required, pursuant to National Regulations, to:

(i) have clear and transparent Rules which (a) provide for fair and orderly trading 

and establish objective criteria for the efficient execution of orders; and (b) 

ensure that any Financial Instruments admitted to trading are capable of being 

traded in a fair, orderly and efficient manner;
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(ii) establish and maintain effective arrangements and procedures for the regular 

monitoring of the compliance with the Rules by Members and Issuers; and 

(iii) monitor the activity undertaken by Members in order to identify breaches of 

the Rules, disorderly trading conditions or conduct that may involve market 

abuse.

1502A The Relevant Euronext Market Undertaking may, if in its opinion any circumstances 

calling for emergency action have developed or are developing and, whenever 

possible, after consultation with the relevant Competent Authority (and, in any case, 

after notifying such Competent Authority), take any steps on a temporary basis to 

provide for, correct or check the further developments of those circumstances in order 

to preserve or restore conditions enabling the maintenance of fair and orderly trading 

and efficient execution of orders. Steps taken pursuant to this Rule 1502A shall be 

published by Notice or by such means as are considered appropriate and 

subsequently confirmed by Notice.

1503A For the purposes of Rule 1502A, “circumstances calling for emergency action” should 

be construed as being any unexpected circumstances which threaten, or potentially 

threaten, the ability of the Relevant Euronext Market Undertaking to meet its 

responsibilities as an operator of regulated markets to maintain the fair, orderly and 

efficient conduct of business on the markets and the due performance of contracts. 

Such circumstances include, but are not limited to, extreme asset price volatility, 

failure or compromise of critical IT systems and material systemic problems within 

financial markets. The steps taken pursuant to Rule 1502A may include, but would 

not be limited to, those actions mentioned in Rule 1601.

1504A Rule 1502A is without prejudice to the powers of a Competent Authority to require a 

Euronext Market Undertaking to take, or cease taking, steps.

1.6. EXCLUSION OF LIABILITY

1601 Euronext wishes to draw the following statement to the attention of Members and 

Issuers. In pursuit of Euronext’s responsibilities as an operator of regulated markets 

including those referred to under Rule 1501A, there are a number of actions which 

may or may not be undertaken by Euronext, whether as a result of Euronext’s own 

determination or at the request of a Member, Issuer or the relevant Competent 

Authority. Some of these actions are listed below, without limitation: 

(i) the suspension or restriction in some way of business on any of the Euronext 

Markets pursuant to Rule 4403 and/or Rule 5402; 

(ii) the closure for any period of any of the Euronext Markets pursuant to Rule 

4403 and/or Rule 5401; 

(iii) the cancellation of trade(s) on any of the Euronext Markets pursuant to Rule 

4403 and/or Rule 5403;

(iv) the cancellation of trade(s) on the Euronext Derivatives Market which are not 

accepted by the Clearing Organisation;

(v) any investigation, audit or check in respect of a Member or an Issuer to

ensure compliance with the Rules pursuant to Rules 9.2, 6107 and/or 6901; 

and

(vi) the suspension of membership rights and/or termination of membership 

pursuant to Rule 2.8 and/or Rule 9.3. 

This may result in the inability of one or more Members and, through such Members, 

one or more Clients, to enter into Transactions. 

1602 Unless otherwise expressly provided in the Rules or in any other agreement between 
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Euronext and a Member or an Issuer, Euronext shall only be liable for fraud, gross 

negligence and wilful misconduct where there is a finding of such by a court of 

competent jurisdiction and shall not otherwise be liable.

1603 Members are required to draw the statements in Rules 1601 and 1602 to the attention 

of their Clients.

1604 For the purposes of this Rule 1.6, references to “Euronext” shall include any officers, 

employees, agents and representatives of Euronext.

1.6A. CONFIDENTIALITY OF INFORMATION

1601A All information concerning the affairs of an Issuer, a Member or an applicant for 

Membership obtained or received by a Euronext Market Undertaking shall be treated 

as confidential and, subject to Rule 1602A, shall not be passed on to a third party 

without the explicit written approval of the Person in question.

1602A The Euronext Market Undertaking shall be able to pass on confidential information in 

respect of such Person (without seeking that Person’s approval) to:

(i) another Euronext Market Undertaking;

(ii) the Clearing Organisation and/or a settlement agent;

(iii) in the case of an Issuer, the Paying Agent and/or the Sponsor duly appointed 

by such Issuer; (iv) a Competent Authority; or

(v) any Person or body which in the opinion of Euronext exercises a legal or 

regulatory function under any law or regulation or a function comprising or 

associated with the enforcement of such a function,

provided that any Person receiving confidential information pursuant to this Rule 

1602A is subject to professional secrecy obligations and shall be required to respect 

the confidentiality of such information.

1603A The Euronext Market Undertaking may provide to an Issuer confidential information 

relating to the trading of its Securities on a Euronext Market provided that the Issuer 

treats such information as confidential and does not pass it on to a third party.

1.7. GOVERNING LAW

1701 All provisions in this Rule Book in respect of orders and/or Transactions executed, 

deemed to be executed or entered into on the respective Euronext Market and all 

matters related thereto and, subject to Rule 1702, all other provisions of the Rule Book 

shall be governed by and construed: 

(i) in respect of Euronext Amsterdam, in accordance with the laws of the 

Netherlands and, without prejudice to any agreement to go to arbitration, shall 

be subject to the exclusive jurisdiction of the Dutch courts;

(ii) in respect of Euronext Brussels, in accordance with the laws of Belgium and, 

without prejudice to any agreement to go to arbitration, shall be subject to the 

exclusive jurisdiction of the Belgian courts;

(iii) in respect of Euronext Lisbon, in accordance with the laws of Portugal and, 

without prejudice to any agreement to go to arbitration, shall be subject to the 

exclusive jurisdiction of the Portuguese courts;
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(iv) in respect of Euronext Paris, in accordance with the laws of France and, 

without prejudice to any agreement to go to arbitration, shall be subject to the 

exclusive jurisdiction of the French courts;

(v) in respect of the Euronext Securities Market established in the United 

Kingdom, in accordance with the laws of England and Wales and, without 

prejudice to any agreement to go to arbitration, shall be subject to the 

exclusive jurisdiction of the English courts.

For the avoidance of doubt, all Transactions in the Central Order Book shall be 

executed on the Market of Reference and subject to the applicable laws and the 

exclusive jurisdiction of the courts relevant to that market as specified in this Rule 1.7. 

1702 Other than for those provisions of the Rule Book in respect of orders and/or 

Transactions executed or entered into on the respective Euronext Market and all 

matters related thereto, The Relevant Euronext Market Undertaking and the Member 

may agree in a written agreement a choice of governing law and jurisdiction different 

from that specified in Rule 1701.

1703 Nothing contained in these Rules overrides any provision of applicable National 

Regulations and, in the case of any conflict between any provision of these Rules and 

National Regulations, National Regulations will prevail.

1704 All personal data processed by Euronext shall be processed in accordance with 

applicable law and regulation. Information about such processing shall be provided by 

the privacy policy made available on the Euronext website or in specific agreements to 

which Euronext is a party.

1.8. ENTRY INTO EFFECT

1801 This Rule Book shall enter into effect as of a date to be announced by Euronext by 

Notice.
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CHAPTER 2:

EURONEXT MEMBERSHIP

2.1. EURONEXT MEMBERSHIP AND MEMBERSHIP CAPACITIES 

2101 EURONEXT MEMBERSHIP

2101/1 Any person wishing to become a Member of a Euronext Derivatives Market or a 

Euronext Securities Market must apply for membership in accordance with the 

provisions of this Chapter 2. The admission of a Person to Euronext Derivatives 

Membership or Euronext Securities Membership (as the case may be) is subject to the 

prior written approval of the Relevant Euronext Market Undertaking. Upon admission 

by a Relevant Euronext Market Undertaking pursuant to this Chapter 2, a Person shall 

be denoted as a Euronext Derivatives Member and/or a Euronext Securities Member 

(as the case may be). 

2101/2 The trading privileges and obligations of a Member shall be set forth in this Rule Book, 

the Admission Agreement and in other specific agreements contemplated by this Rule

Book.

2101/3 Membership or any trading privileges arising from such Membership may not in any 

way be transferred (other than by way of corporate restructuring with no change of 

beneficial ownership, subject to the prior written approval of Euronext) or encumbered 

by or on behalf of the Member. 

2101/4 The eligibility criteria specified in, or pursuant to, Rule 2201/1 shall apply not only at 

the time of application for Membership but continuously, for as long as the Person in 

question is a Member.

2102 MEMBERSHIP CAPACITIES

2102/1 Membership capacities are determined by the scope of the Member’s authorisation, 

licence or permission from the relevant competent authority, where such authorisation, 

licence or permission is required, though a Member may, if he so wishes, restrict such 

scope in respect of his activities on one or more of the Euronext Markets.

2.2. REQUIREMENTS FOR EURONEXT MEMBERSHIP

2201 ELIGIBILITY FOR MEMBERSHIP 

2201/1 The Relevant Euronext Market Undertaking shall determine whether an Applicant 

which does not already hold Euronext Derivatives Membership or Euronext Securities 

Membership (as the case may be) satisfies the following criteria:

(i) in respect of an Investment Firm or a Credit Institution, that: 

(a) it is authorised by the competent authorities of its home Member 

State to conduct business on the market; and

(b) where relevant, it has given appropriate notification to the competent 

authority concerned that it wishes to take up its EEA Right in the 

jurisdiction in which the Relevant Euronext Market Undertaking is 

situated;
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(ii) in respect of a Non-MIFID Firm:

(a) that it is authorised, or otherwise licensed or permitted by the 

Competent Authorities or other relevant regulatory authority to 

conduct business on the market, or can demonstrate that such

authorisation, licensing or permission is not required,; and

(b) that it is of sufficient good repute ; 

(c) that it has a sufficient level of trading activity, competence and 

experience; and

(d) that it has adequate organisational arrangements

(iii) that its staff are suitably qualified and experienced in order to implement and 

maintain adequate internal procedures and controls in relation to its intended 

business on the market;

(iv) that, where relevant, it has entered into any agreement contemplated by this 

Rule Book and has met any technical requirements specified by the Relevant 

Euronext Market Undertaking; 

(v) that it can demonstrate fluency of its relevant personnel in English or in one of 

the languages of the Relevant Euronext Market Undertaking; 

(vi) that it can demonstrate that it has sufficient resources for the role(s) it intends 

to perform on the market; and

(vii) any other criteria which the Relevant Euronext Market Undertaking may 

prescribe with regard to Membership and publish by Notice.

2201/2 Natural persons and sole proprietorships are not eligible to become Euronext 

Securities Members.

2201/3 Admission to Membership of any Euronext Market Undertaking shall not confer any 

right to attend or vote at meetings, or right to share in or any liability in respect of 

debts, of any Euronext Market Undertaking.

2201/4 The Relevant Euronext Market Undertaking will only consider applications for 

membership in respect of Persons located in jurisdictions with satisfactory regulatory 

arrangements including those in respect of:

(i) supervision of investment services and activity; and

(ii) information sharing and co-operation between the supervisory authority of the 

jurisdiction concerned and the Competent Authorities or, where permitted by 

National Regulations, the Relevant Euronext Market Undertaking.

2201/5 For the avoidance of doubt, a jurisdiction whose legal and supervisory framework has 

been recognised to be equivalent by the European Commission pursuant to Article 

47(1) of MIFIR shall be deemed to comply with the requirements of Rule 2201/4. 

2202 RESPONSIBLE PERSONS AND TRADERS 

2202/1 A Member must ensure that it has a sufficient number of Responsible Persons for the 

nature and scale of business being conducted. A Responsible Person shall be 

responsible for trading activity conducted on: 

(i) the Euronext Derivatives Markets under his ITM(s); and/or
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(ii) the Euronext Securities Markets under his general authority, 

and may be a trader himself and/or a trading supervisor.

2202/2 In order to comply with this Rule 2202, a Responsible Person must, pursuant to the 

requirements of the Relevant Euronext Market Undertaking, be adequately trained and 

fully conversant with the Rules and Trading Procedures. A Relevant Euronext Market 

Undertaking may impose requirements (and publish such requirements by Notice) in 

respect of training and competence of Responsible Persons.

2202/3 Subject to any restrictions imposed by the Relevant Euronext Market Undertaking 

trading may be conducted by Responsible Persons or by other individuals within the 

Member, at the discretion of the Member, provided all such individuals are suitable 

and adequately trained in accordance with the Rules. Traders who are not 

Responsible Persons may only submit orders for Derivatives under the ITM(s) of a 

Responsible Person registered to the Member or for Securities under the general 

authority of such Responsible Person.

2.3. APPLICATION PROCEDURE

2301 SUBMISSION OF THE APPLICATION 

2301/1 Applicants shall submit a written application to the Relevant Euronext Market 

Undertaking and such additional information and documents as the Relevant Euronext 

Market Undertaking may, in its sole judgment, consider relevant in order to review the 

application. 

2301/2 An existing Member wishing to act in a capacity other than that to which it is already 

admitted or wishing to extend its activities on another Euronext Market shall submit a 

written application to the Relevant Euronext Market Undertaking.

2302 APPLICATION FILE

2302/1 Applicants shall submit a written application for Membership to the Relevant Euronext 

Market Undertaking, using the standard form prescribed by Euronext, in English or in 

one of the languages of the Relevant Euronext Market Undertaking. 

2302/2 The Relevant Euronext Market Undertaking may require from the applicant additional 

information and documents and may institute such investigation to verify information 

submitted by the applicant as it deems necessary. The Relevant Euronext Market 

Undertaking may require the applicant, or one or more representatives of the 

applicant, to attend for interview by the Relevant Euronext Market Undertaking.

2302/3 Each applicant and each Member shall authorise Euronext or its duly appointed

agents to carry out such on-site inspections, during normal business hours, in respect 

of its activities on the Euronext Markets as Euronext may deem appropriate in its sole 

discretion. Furthermore, each applicant and each Member shall make a commitment 

to provide all information or make any modifications to its information systems that 

may be required by Euronext, acting in good faith, as a result of such an inspection.

2303 DETERMINATION OF APPLICATION

2303/1 A Euronext Market Undertaking shall, after receipt of an application for Membership 

and any additional information requested by it, in its sole discretion approve or reject 

such application or approve such application subject to such conditions and/or 

restrictions as it considers appropriate. The Relevant Euronext Market Undertaking 

shall notify the applicant of its decision in writing. 
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2303/2 Without prejudice to Rule 2303/3 and subject to Rule 1.6A, the Relevant Euronext 

Market Undertaking shall keep confidential all information submitted to it by a Member 

or a prospective Member in connection with an application for Membership or obtained 

by it in the course of reviewing such application.

2303/3 The Relevant Euronext Market Undertaking shall inform Competent Authorities, the 

other Euronext Market Undertakings and, as applicable, the Clearing Organisation(s) 

of the admission of new Members and the date on which such new Members are 

approved and/or start trading. 

2303/4 If a Relevant Euronext Market Undertaking decides to refuse an application it shall 

promptly notify the applicant in writing. Such applicant may, by notice in writing within 

seven days of receiving notice of such decision, require the Euronext Market 

Undertaking to give additional explanations for its decision within seven days of 

receiving such notice from the Applicant.

2.4. MEMBERS' CONTINUING OBLIGATIONS

2401 A Member shall on a continuing basis:

(i) abide by the Rules, as from time to time in force, and take all appropriate 

actions prescribed by the Rules;

(ii) fulfil his obligations under the Admission Agreement and, where relevant, any 

other agreement(s) to which the Relevant Euronext Market Undertaking and 

the Member are party;

(iii) pay the fees and charges prescribed by Euronext according to the conditions

established by Euronext and communicated to Members;

(iv) authorise Euronext or its duly appointed agents to carry out on-site 

investigations, during normal business hours, in any place of business of the 

Member or its Affiliate, and submit as soon as possible any information or 

document which Euronext or such agents consider appropriate for purposes of 

such investigations;

(v) comply with the technical requirements of the relevant Euronext Trading 

Platform(s) and of any other information technology system or network 

operated by Euronext, as set out in the relevant agreement(s);

(vi) notify the Relevant Euronext Market Undertaking as soon as possible and in 

writing of any material changes to the information submitted during the course 

of the Membership application, including in particular (without limitation) those 

in respect of the Member's authorisation, license or permission to conduct 

Investment Services; 

(vii) give prior written notice to the Relevant Euronext Market Undertaking of any 

facts or circumstances which may affect the legal form or organisation of the 

Member or its trading activities on the Euronext Markets, including (without 

limitation) any consolidation, reorganisation, merger, change of name, change 

of control or similar event to which the Member is or will become a party and 

provide such additional information as the Relevant Euronext Market 

Undertaking may reasonably require;

(viii) notify immediately the Relevant Euronext Market Undertaking of the 

commencement or anticipation of any bankruptcy, insolvency, winding up, 

administration or equivalent event (including amicable settlement) in any 
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relevant jurisdiction the Member is subject to or to which the Member is a 

party; 

(ix) provide the Relevant Euronext Market Undertaking with such contact details of 

representatives of the Member as may be determined by the Relevant 

Euronext Market Undertaking and notify the Relevant Euronext Market 

Undertaking of any changes to such details (including changes to the address 

of the Member) in a timely manner; 

(x) ensure that any description of his Membership or the services that he is able 

to provide, in the form and context in which it appears or is used, does not 

misrepresent the scope of the capacity which he enjoys under the Rules in 

relation to the Relevant Euronext Market Undertaking; 

(xi) notify immediately the Relevant Euronext Market Undertaking of the 

suspension or termination of a Clearing Agreement to which it is a party; 

(xii) notify immediately the Relevant Euronext Market Undertaking of its failure to 

comply with Rule 2501/2; 

(xiii) implement and maintain adequate internal procedures and controls in relation 

to its business on the market; 

(xiv) Provide Euronext with all data required pursuant to Union Law including, without 

limitation, requirements imposed by:

 - delegated regulation (EU) 2017/580;

 - delegated regulation (EU) 2017/590;

 - National Regulations implementing Article 57 of MIFID II.

and comply with all associated technical requirements, such data and technical 

requirements being specified by Notice.

(xv) certify that the algorithms they deploy and use as algorithmic trading on 

Euronext Trading Platforms have been tested to avoid contributing to or 

creating disorderly market conditions.

2402 Non-MIFID Members

In relation to reporting of transactions to Competent Authorities, each non-MIFID 

Member must ensure at all times that it has provides Euronext with all the data 

required according to the Commission Delegated Regulation (590/2017/EU) under 

conditions and manner specified by Euronext in one or more Notices.

2.5. CLEARING ARRANGEMENTS

2501 GENERAL CLEARING ARRANGEMENTS

2501A/1 Each Euronext Market Undertaking shall appoint one or more Clearing 

Organization(s). 

2501A/2 [Reserved]

2501A/3 Pursuant to Rule 2501A/1, Transactions shall be cleared by LCH SA, except where 

either (i) the Euronext Market Undertaking has appointed a different Clearing 

Organisation to clear a particular category of Admitted Financial Instruments or (ii) the 
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Euronext Market Undertaking has provided arrangements whereby Members can 

indicate their preferred Clearing Organisation. The Clearing Organisation(s) applicable 

to each category of Admitted Financial Instrument shall be specified by the Euronext 

Market Undertaking and published in a Notice.

2501B/1 Any Member wishing to trade on the Euronext Markets other than as a customer of 

another Member must be party to a Clearing Agreement in respect of those Financial 

Instruments which it is authorised to trade but which it is not authorised to clear. For 

the avoidance of doubt, such Clearing Agreement must, inter alia, provide for clearing 

by LCH SA, in those circumstances where Rule 2501A/3(i) does not apply.

2501B/2

Where a Member enters into a Transaction on the Euronext Derivatives Market for its 

own account, or where any Member enters into a Transaction on the Euronext 

Derivatives Market on behalf of a client, the Member must ensure that it (where it is 

not a Clearing Member) or its client, as the case may be, has appropriate, legally 

effective contractual arrangements in place pursuant to which it or the client, as the 

case may be, becomes the counterparty to a cleared derivative transaction relating to 

such Transaction on the Euronext Derivatives Market pursuant to direct or indirect 

clearing arrangements with a Clearing Member.

2501/2 Each non-clearing Member must ensure at all times that it has lodged with its Clearing 

Member adequate collateral in relation to its margin liabilities.

2501/3 A Clearing Member must notify Euronext immediately if any Member for whom it 

clears fails to comply with Rule 2501/2.

2502 CLEARING AGREEMENTS

2502/1 Any Member wishing to trade other than as a customer of another Member shall enter 

into a Clearing Agreement which complies with any requirements imposed by or 

pursuant to the relevant Clearing Rule Book from time to time in force in respect of 

those Financial Instruments which it is not authorised to clear.

2502/2 In order to trade on a Euronext Market, each Member which is not a Clearing Member 

in respect of the Financial Instrument he is authorised to trade must have filed with the 

Relevant Euronext Market Undertaking (or have filed on his behalf) an unrevoked and 

valid Clearing Mandate, which may either be a copy of the Clearing Agreement 

entered into by such Member or written confirmation of the existence of such Clearing 

Agreement.

2.6. EXTENSION OF MEMBERSHIP

2601 A Firm which is an Euronext Member and who wishes to extend its Membership to 

other Euronext Markets should submit a written application to the Relevant Euronext 

Market Undertaking to that effect. The Relevant Euronext Market Undertaking to 

which the Euronext Member is applying may perform checks to ensure that the 

Member satisfies its additional Membership requirements (if any).

2.7. REGISTER OF MEMBERS

2701 The Euronext Market Undertakings shall maintain a register of Members, including at 

least the contact details and capacities of Members.
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2702 A Member shall be deemed to have elected domicile at the address stated by him in 

the Admission Agreement or at the last address subsequently specifically notified by 

him in writing to the Relevant Euronext Market Undertaking, as the case may be.

2.8. RESIGNATION, SUSPENSION AND TERMINATION

2801 RESIGNATION

2801/1 A Member may cease to be a member of one or more Euronext Markets by giving the 

Relevant Euronext Market Undertaking written notice of his wish to resign from 

Membership (a “resignation notice”). 

2801/2 Subject to National Regulations, a Relevant Euronext Market Undertaking may, in its 

absolute discretion, postpone the effective date if it considers it necessary for the 

protection of clients, or otherwise in the interests of the market. If the Relevant 

Euronext Market Undertaking does so, it may waive the Member’s liability for some or 

all the fees and charges arising in respect of the period following the date on which his 

resignation notice would otherwise have taken effect. 

2801/3 Upon a Member's notification of its resignation pursuant to Rule 2801/1, all amounts 

owed by such Member to the Relevant Euronext Market Undertaking shall become 

immediately due and payable. The Member shall forthwith return to the Relevant 

Euronext Market Undertaking on request, any software, equipment and documentation 

which may have been made available by Euronext.

2801/4 A Member's resignation shall become effective only as of the date confirmed in writing 

by the Relevant Euronext Market Undertaking to the Member.

2802 SUSPENSION AND TERMINATION

2802/1 Notwithstanding the rules of Chapter 9, as applicable, a Relevant Euronext Market 

Undertaking shall suspend (in whole or in part, for a fixed term) a Member's trading 

privileges on, and may terminate his Membership of, that Euronext Market in the event 

of:

(i) a Member failing to perform, or delaying performing, any of such Member’s 

obligations under the Admission Agreement, any other agreement to which 

both the Relevant Euronext Market Undertaking and the Member are party for 

which such failure would constitute a violation of the Member’s obligations 

under the Rules; or

(ii) in the case of a Euronext Derivatives Market, the death of the Member, if a 

natural person. However, personal representatives of the deceased may 

retain the Membership for a period of up to six months following the date of 

death in order to complete arrangements for the orderly closing out of open 

positions of the Member; or

(iii) the dissolution of the Member, if a legal entity or partnership; or

(iv) a Member suspending payment or calling a meeting of his creditors; or

(v) a Member which is either a natural person or a partnership, having a receiving 

order or a bankruptcy order made against him or all of the partners; or

(vi) a Member which is a legal person having a receiver, an administrative 

receiver or an administrator appointed or a petition for winding up presented 

or a resolution passed for winding-up (except a voluntary winding-up for the 

purposes of an amalgamation or reconstruction which has received prior 
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approval of the Relevant Euronext Market Undertaking) or proceedings have 

otherwise commenced for its dissolution; or

(vii) insolvency or other similar event occurring in respect of a Member; or

(viii) the Member's application for Membership containing material errors or 

omissions or being misleading in a material respect; or

(ix) the revocation or expiration without renewal of the Member's Home State 

authorisation, licence or permission to engage in the relevant Investment 

Services resulting in the Member failing to satisfy the Membership 

requirements under Rule 2201; or

(x) a Member failing to comply with Rule 2501/2; or

(xi) the suspension or termination of a Member’s capacity as a Clearing Member 

or termination of its Clearing Agreement, as the case may be.

2802/2 Any termination pursuant to Rule 2802/1 shall be decided by the Relevant Euronext 

Market Undertaking, taking into account the degree of seriousness or permanence of 

the event in question. The decision of suspension or termination shall be notified in 

writing to the Member. 

2802/3 Notwithstanding the rules of Chapter 9, as applicable, a Relevant Euronext Market 

Undertaking reserves the right to terminate the Membership of any Member in the 

event of the Member:

(i) not having commenced trading within three months following admission as a 

Member; or

(ii) having ceased to carry out regularly brokerage and/or dealing in Financial 

Instruments for a period of six consecutive months.

2802/4 A Member whose trading privileges are suspended or whose Membership is 

terminated may apply to the Relevant Euronext Market Undertaking at any time to 

have the suspension or termination revoked. On making such an application the 

Member shall provide the Relevant Euronext Market Undertaking with any information 

the Relevant Euronext Market Undertaking may require. The Relevant Euronext 

Market Undertaking may reject such application or may reinstate the Member or 

restore his trading privileges either unconditionally or subject to any conditions the 

Relevant Euronext Market Undertaking may think appropriate. Such Member may, by 

notice in writing within seven days of receiving notice of such decision, require the 

Relevant Euronext Market Undertaking to give additional explanations for its decision 

within seven days of receiving such notice from the Member.

2802/5 A Member whose trading privileges are in whole or in part suspended for any period:

(i) shall be prohibited from trading as a Member during the period of suspension 

(save as may be allowed by the Rules for purposes of closing out his and his 

Clients’ open positions); but 

(ii) shall remain liable in respect of all his obligations of Membership including the 

payment of any fees and charges payable under the Rules.

2802/6 Without prejudice to the above, a Person whose Membership has been terminated 

shall remain subject to the Rules and to the jurisdiction of the Relevant Euronext 

Market Undertaking in respect of acts and omissions while he was a Member for a 

period of twelve months from the date at which the termination of Membership 

became effective. Furthermore, a Person whose Membership is terminated shall 
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forfeit all rights to use any trading privileges granted to him, without being entitled to 

any refund of fees paid in respect of the same.

2802/7 Upon a Member's notification of its suspension or termination pursuant to Rule 

2802/2, all amounts owed by such Member to the Relevant Euronext Market 

Undertaking shall become immediately due and payable. All of such Member's 

obligations resulting from that Membership shall be discharged to the full satisfaction 

of the Relevant Euronext Market Undertaking. The Member shall forthwith return to 

the Relevant Euronext Market Undertaking on request, any software, equipment and 

documentation which may have been made available by Euronext.

2803 NOTIFICATION OF RESIGNATION, SUSPENSION AND TERMINATION OF MEMBERSHIP

Euronext shall promptly inform the Competent Authorities, and as applicable, the 

Clearing Organisation(s) of the resignation, termination or suspension, as well as of 

the termination of such suspension, of the Membership of any Person.
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CHAPTER 3:

MARKET ACCESS ARRANGEMENTS

3.1. CROSS MEMBERSHIP

3101/1 Individually or jointly, the Euronext Market Undertakings may enter into an agreement 

with another exchange operating a Regulated Market or an organised market 

recognised by the Competent Authorities in order to define, on a reciprocal basis, 

specific conditions for the admission of members of the said markets. For the 

purposes of this Rule 3.1, such Regulated Market or organised market shall be 

described as a “Partner Market”.

3101/2 A Person accessing a Euronext Market through a cross-membership agreement of the 

sort contemplated by Rule 3101/1 is referred to as a “Cross-Member”. Except as 

otherwise provided in the relevant agreement, a Cross-Member cannot benefit from 

other cross-membership agreements executed by Euronext. 

3101/3 A Cross-Member is bound by the Rules of the Relevant Euronext Market Undertaking 

as amended by the provisions of the cross-membership agreement. Conversely, a 

Member shall comply with the rules of the Partner Markets where it trades.

3101/4 The Relevant Euronext Market Undertaking shall inform the relevant exchange with 

which that Euronext Market has concluded a cross-membership agreement of the 

admission of a new Cross-Member and of the resignation, termination or suspension 

of Membership of a Cross-Member.

3101/5 Following the termination of a cross-membership agreement, the Cross-Member may 

elect to remain a Member, in which case it will remain subject to the provisions 

contained in the Rules, but the specific provisions previously set forth in the 

terminated agreement will no longer apply. 

3.2. ELECTRONIC ACCESS FACILITIES FOR CLIENTS

3201/1 Any access granted by a Member which is an Investment Firm or Credit Institution to 

his Clients by way of an Automated Order Routing System or through Direct Electronic 

Access (including Sponsored Access) must be adequately controlled in accordance 

with the provisions of Chapter 8. . In respect of access to the Euronext Markets, the 

Member must have in place effective systems and controls which ensure:

(a) that his Clients cannot exceed pre-set trading and credit thresholds set by the 

Sponsoring Member; 

(b) that trading by those Clients is properly monitored; and

(c) that appropriate risk controls are in place to prevent trading that could 

adversely affect the Member’s compliance with the Euronext Rule Book, 

create or contribute to disorderly conditions on a Euronext Market or facilitate 

conduct that may involve market abuse or attempts at market abuse;

(d) that a policy of the use of kill functionality is defined.

3201/2 All business undertaken by a Client via an Automated Order Routing System or via 

Direct Electronic Access (including Sponsored Access) on an Euronext Market will be 

done in the name of the Member and the Member retains full responsibility for the 

conduct of all such business. 
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3201/3 A Member providing Direct Electronic Access to its Clients must comply with Chapter 

III of the Delegated Regulation (EU) 2017/589 specifying the organisational 

requirements of investment firms engaged in algorithmic trading. 

3201/4 A Member must notify the Relevant Euronext Market Undertaking as soon as 

possible and in writing of any material changes to its arrangements relating to the 

provision of Direct Electronic Access to its Clients.

3.3 SPONSORED ACCESS

3301/1 Subject to Rule 3.5, the Relevant Euronext Market Undertaking may consider an 

application from a Member who wishes to provide Sponsored Access to an Euronext 

Market for one or more of his Clients. The Relevant Euronext Market Undertaking 

may refuse such application or may impose conditions on any approval granted in 

respect of such application. The Relevant Euronext Market Undertaking shall also 

have the power to rescind or modify any such approvals after they have been granted. 

All successful applicants will be notified in writing by the Relevant Euronext Market 

Undertaking.

For the avoidance of doubt, a member shall not provide Sponsored Access to any 

particular Client without first having received approval in writing from the Relevant 

Euronext Market Undertaking in respect of such Client.

3301/2 Prior to providing Sponsored Access to a Client, the Member shall carry out at least 

due diligence on such Client pursuant to the requirements of Article 22 of the 

Commission Delegated Regulation (EU) 2017/589 specifying the organisational 

requirements of investment firms engaged in algorithmic trading in order to ascertain 

that such Client possesses:

(a) appropriate resources in terms of systems and controls;

(b) sufficient knowledge of Euronext’s Rule Book and trading system; and

(c) sufficient knowledge of the use of the order submission system used; 

and that the Client is:

(d) located in a jurisdiction with satisfactory regulatory arrangements in 

accordance with Rule 3.5; and

(e) authorised or otherwise licensed or permitted to conduct business on the 

market or, in the absence of a requirement for authorisation, licensing or 

permission, can otherwise demonstrate that it is fit and proper;

3301/3 The Relevant Euronext Market Undertaking shall require that each Sponsoring 

Member enters into a legally-binding written agreement with each Sponsored 

Participant sponsored by such Member which requires, inter alia, that such 

Sponsored Participant:

(a) complies with the Rules applicable to trading on the Euronext Markets and 

with any procedural or technical conditions that may be prescribed by 

Euronext from time to time in relation to Sponsored Access and published by 

Notice as if the Sponsored Participant were a Member; 
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(b) acknowledges that the Sponsoring Member may take the relevant measures 

in order to ensure that the provision of Sponsored Access does not adversely 

affect compliance with Euronext Rules, lead to disorderly trading or facilitate 

conduct that may involve market abuse or attempts of market abuse;

(c) permits the Sponsoring Member to carry out, whenever necessary, a review 

of the Sponsored Participant’s internal risk control systems;

(d) permits Euronext or its duly appointed agents to carry out on-site 

investigations and submit as soon as possible any information or document 

which Euronext or such agents consider appropriate for purposes of such 

investigations; 

(e) provides Euronext on request with information on their organisational 

requirements and trading controls; and

(f) supplies contact details for such management or operational contacts as may 

be required by Euronext.

3301/4 The Sponsoring Member shall have appropriate arrangements in place with the 

Sponsored Participant to enable the Sponsoring Member, inter alia, to have control 

over the risk control systems it employs (to which the Sponsored Participant should 

have no physical or electronic access and which cannot be located in the offices of the 

Sponsored Participant) and be able to take appropriate measures in relation to the 

trading activity of the Sponsored Participant. In particular, the Sponsoring Member 

must be able to demonstrate to Euronext’s satisfaction that:

(a) its arrangements comply with Rules 3.2 and 8106 and Articles 19, 20 and 21 

of the Commission Delegated Regulation (EU) 2017/589 on organisational 

requirements engaged in algorithmic trading and it has the ability to review 

the Sponsored Participant’s internal risk control systems when it deems it 

necessary;; 

(b) all the orders of the Sponsored Participant pass through the pre-trade and 

post-trade controls of the Sponsoring Member and the Sponsoring Member is 

solely entitled to set or modify the parameters or limits that apply to the pretrade and post-trade controls applicable to the Sponsored Participant;

(c) the Sponsoring Member can will monitor in real time any orders submitted by 

the Sponsored Participant in order to prevent, inter alia, trading which could 

create or contribute to a disorderly market or be contrary to the Rules; 

(d) the Sponsoring Member will automatically block or cancel orders from a 

Sponsored Participant in respect of an Admitted Financial Instrument which 

the Sponsored Participant does not have permission to trade; 

(e) the Sponsoring Member will automatically block or cancel orders from a 

Sponsored Participant when they breach the Sponsoring Member’s trading 

and credit thresholds; and

(f) its internal procedures and documentation allow it to suspend or withdraw the 

Sponsored Participant’s access to the Euronext Markets immediately, either 

by its own determination when the Sponsoring Member is not satisfied that 

continued access would be consistent with the Relevant Euronext Market 

Undertaking’s Rules in relation to fair and orderly trading and market integrity
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or when required to do so by the Relevant Euronext Market Undertaking 

pursuant to Rule 3301/6.

3301/5 The Sponsoring Member shall assign to each Sponsored Participant one or more 

unique identifiers (ITMs or SLEs) solely for the use of that Sponsored Participant. 

3301/6 For the avoidance of doubt, where the Sponsored Participant is itself a Member, the 

Sponsored Participant will remain subject to the Rules (and in particular the general 

duties of integrity, fair dealing and care and the obligation to co-operate with a 

Euronext Market Undertaking) however its business is executed. In addition, in 

respect of the Sponsored Participant’s own client business, it is subject to, inter alia, 

the provisions of Chapter 8 regardless of the technical solutions utilised to execute 

such business.

3301/7 The Sponsoring Member shall prohibit a Sponsored Participant from providing 

sponsored access to a Euronext Market to the Sponsored Participant’s clients.

3301/8 A Member shall suspend access of a Sponsored Participant to a Euronext Market with 

immediate effect if required to do so by the Relevant Euronext Market Undertaking.

3301/9 The Relevant Euronext Market Undertaking may cancel orders submitted by a 

Sponsored Participant or suspend or revoke the Sponsored Participant’s access to 

the Euronext Markets where the Sponsored Participant’s actions have infringed a 

requirement of MIFID or MIFIR or have breached a provision of the Rule Book.

3.4. ELECTRONIC ACCESS FACILITIES FOR AFFILIATES 

3401/1 Subject to Rule 3.5, the Relevant Euronext Market Undertaking may consider an 

application from a Member who wishes to obtain direct access to an Euronext Market 

for its Affiliate(s). 

3401/2 For the purposes of this Rule, “Affiliate” means a Person who:

(i) owns 95 per cent or more of the Member; or

(ii) is owned 95 per cent or more by the Member; or

(iii) is owned 95 per cent or more by a third party who also owns 95 per cent or 

more of the Member.

All successful applicants for affiliate access will be notified in writing by the Relevant 

Euronext Market Undertaking.

3401/3 All business undertaken by an Affiliate on an Euronext Market will be done in the 

name of the Member and the Member retains full responsibility for the conduct of all 

such business. 

3.5 REMOTE ACCESS 

3501/1 The Relevant Euronext Market Undertaking will only consider applications in respect 

of Sponsored Participants or Affiliates located in jurisdictions with satisfactory 

regulatory arrangements including those in respect of:
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(i) supervision of investment activity; and

(ii) information sharing and co-operation between the supervisory authority of the 

jurisdiction concerned and the Competent Authorities or, where permitted by 

National Regulations, the Relevant Euronext Market Undertaking.

3501/2 For the avoidance of doubt, a jurisdiction whose legal and supervisory framework has 

been recognised to be an effective equivalent system for the recognition of investment 

firms by the European Commission pursuant to Article 47(1) of MIFIR shall be 

deemed to comply with the requirements of Rule 3501/1.
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CHAPTER 4:

TRADING RULES FOR SECURITIES

4.1. GENERAL

4101 SCOPE OF CHAPTER 4

This Chapter 4 sets forth rules governing trading on the Euronext Securities Markets.

4102 TRADING DAYS

The Trading Days in any given calendar year shall be announced by the Euronext 

Market Undertakings in a Notice published no later than the last Trading Day of the 

preceding year.

4103 CURRENCY OF TRADING

Orders for the purchase or sale of Securities shall be expressed in the currency 

determined by the Euronext Market Undertakings for the relevant class of Securities.

4104 TRADING SYMBOLS

The Euronext Market Undertakings shall define trading symbols for the purpose of 

identifying Securities in Euronext's trading systems. It may in its sole discretion modify 

or reassign such trading symbols at any time. The Issuers of the relevant Securities 

shall have no proprietary rights to such trading symbols.

4105 SYSTEM RULES AND REQUIREMENTS

When trading on a Euronext Securities Market, Euronext Securities Members shall 

comply with the operational, procedural and technical requirements of Euronext’s 

systems and networks, as specified by Euronext. 

4106 MEMBER RESPONSIBILITY

In respect of business conducted on Euronext Securities Markets or business related 

thereto, a Euronext Securities Member shall be responsible for the acts and conduct 

of all Responsible Persons registered in its name and all individuals trading under the 

general authority of such Responsible Persons as if the acts and conduct of each of 

those persons were the acts and conduct of the Euronext Securities Member. In 

particular, a Euronext Securities Member shall be held responsible for a violation of a 

relevant obligation committed by any such person and sanctions may be imposed 

under the Rules.

4107 MARKET MAKERS / LIQUIDITY PROVIDERS

4107/1 Obligation for investment firms to enter into a market making agreement

When the conditions set forth by the Commission Delegated Regulation (EU) 

2017/578 article 1 are met by a Member, this Member shall enter in a Market Making 

Agreement with the Relevant Euronext Market undertaking.

4107/2 Market Making Schemes

When applicable according to Commission Delegated Regulation (EU) 2017/578 

Euronext Market undertakings have in place Market Making Schemes.

4107/3 When the Relevant Euronext Market Undertaking considers it to be in the interest of 
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the market that liquidity in a particular Admitted Financial Instrument be improved, it 

may implement Programmes whereby one or more Members (or, where permitted by 

the relevant Book II, Clients acting purely in a proprietary capacity) not pursuing any 

market making activity as defined in Articles 17(4) and 48(2) of MIFID, assume the 

role of Liquidity Provider for such instrument. 

4107/4 The Relevant Euronext Market Undertaking shall publish and regularly update the list 

of Market Makers and relevant information relating to their activities in accordance 

withArticle 7.1 of the Delegated Regulation (EU)2017/578.., and regularly update the 

List of Liquidity Providers and information relevant to their Liquidity Provision 

Programme. .

4.2. ORDERS

4201 SCOPE OF RULE 4.2

This Rule 4.2 only concerns orders for the purchase or sale of Securities submitted by 

Euronext Securities Members to the Central Order Book of a Euronext Securities 

Market and shall not stand in the way of specific arrangements regarding order 

specifications as between Euronext Securities Members and their Clients.

A Euronext Securities Member may decline to execute orders that are subject to 

conditions precedent or subsequent or other validity constraints, which are not 

contemplated by this Chapter 4.

4202 GENERAL TERMS AND CONDITIONS

4202/1 Minimum indications 

Any order submitted to the Central Order Book shall at least indicate if applicable the 

following elements:

(i) the Security to which the order relates or the trading symbol assigned by the 

Euronext Market Undertakings to such Security;

(ii) whether the order is for a purchase or a sale;

(iii) the order quantity;

(iv) the price conditions;

(v) whether the order is submitted:

(a) for the Euronext Securities Member's own account; 

(b) for the account of an Affiliate granted direct access pursuant to Rule 

3.4; 

(c) for the account of a third party; 

(d) pursuant to a Market Making Agreement or Market Making Scheme or 

Liquidity Provision Programme;

(e) as a Retail Liquidity Firm Quote;

(f) as a Retail Order;

(vi) client identification short code;

(vii) investment decision within Firm identification short code;

(viii) Execution within Firm identification short code.
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When placing an order, a Euronext Securities Member may also indicate special 

conditions as per Rule 4204.

For each order Members have to provide Euronext, before the end of the trading day, 

with all the data requested in the Annex of the Commission Delegated Regulation 

(EU) 2017/580.

4202/2 Order size 

All order sizes can be traded, subject to particular specifications in respect of certain 

types of Securities as set forth in one or more Notices.

4202/3 Certain events 

Unexecuted orders in respect of a particular Security shall be cancelled in the Central 

Order Book upon the occurrence or the announcement of certain events concerning 

the relevant Issuer which are likely to substantially affect the price of such Security, as 

set forth in one or more Notices.

Euronext Securities Members must agree with their Clients whether events of the kind 

referred to in the preceding paragraph require express renewal of orders or whether 

Euronext Securities Members are entitled to re-enter orders after having performed 

the necessary price or quantity adjustments, where appropriate.

4202/4 Modification and cancellation. Any order entered into the Central Order Book may be 

modified or cancelled prior to its execution. Any increase in the order quantity or 

change in the limit price shall cause the forfeiture of time priority.

4202/5 Indication of Interest

For certain warrants and certificates where the activity of a Liquidity Provider is, in the 

sole opinion of Euronext, considered as mandatory to maintain an efficient market, the 

outstanding orders of such Liquidity Provider shall have first the status of indicative 

quotes (hereafter in this context “the indications of interest”) during continuous trading 

phase. However, the incoming Liquidity Provider orders that are immediately 

executable against the rest of the central order book shall be executed as firm orders 

and their balance, if any, shall be treated as indications of interest.

Trades shall take place inside the bid/ask spread resulting of such indications of 

interest as the case may be, boundaries included. Accordingly, trading shall be 

reserved when the Liquidity Provider has not posted indications of interest in 

compliance with its presence obligations, it being understood that such obligation may 

consist of bid-only or offer-only posting in specific circumstances.

To allow for such market organization, market-to-limit orders shall not be allowed and 

stop orders shall run on a “stop-on-quote” basis, implying that they are triggered by 

reference to the LP indication of interest on the relevant side. 

Euronext will specify to which warrants and certificates such provision applies.

4203 ORDER TYPES 

4203/1 Market orders 

An order to buy or to sell a stated amount of a security that is to be executed at the 

best price(s) obtainable when the order reaches the Central Order Book.
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4203/2 Limit orders 

Limit orders are bid or ask orders that can only be executed at their specified price 

limit or at a better price. The price limit must be consistent with the tick specified by 

Notice.

4203/3 Stop orders 

Stop orders are orders which are triggered when a specified price limit is reached in 

trading (implying that the market must trade at or above the stop limit for a buy order 

and at or below the stop limit for a sell order). In the case of a stop loss order, a pure 

market order shall then automatically be generated and added to the Central Order 

Book. In the case of a stop limit order, a limit order shall automatically be generated 

and added to the Central Order Book.

4203/4 Pegged Order

A limit order to buy or sell a stated amount of a security at a display price set to track 

the current bid or ask of the Euronext central Order book The associated price of each 

Pegged Order that is updated will be assigned a new entry time with priority in 

accordance with Euronext Rules.

Pegged orders can have a limit price which if breached will cause the pegging to 

temporarily stop as long as the current bid or ask is more aggressive than this price.

4204 ORDER PARAMETERS

4204/1 Validity

Orders entered into the Central Order Book may be valid for the Trading Day, until a 

specified date, or until cancelled, subject to a maximum duration of 365 days. Absent 

specification of its duration, an order shall be deemed to be valid for the Trading Day.

For a specified trading session as of its entry, an order may be valid until a specified 

time, or for a specified length of time or for the next opening auction or closing auction.

4204/2 Execution parameters

4204/2/A Certain types of orders may be made subject to the following execution conditions in 

accordance with the matrix of order types and execution conditions set forth in one or 

more Notices:

(i) “Immediate Or Cancelled”, are orders which are executed to the fullest extent 

possible either immediately upon entry with any remaining unexecuted portion 

being cancelled;

(ii) "minimum-quantity orders" are orders which must be executed immediately to 

the extent of a specified minimum quantity, with any remaining unexecuted 

portion being added to the Central Order Book; provided that such orders shall 

be cancelled failing immediate execution of the specified minimum quantity;

it being understood that conditions (i) and (ii) above shall be allowed only in respect of 

continuous trading.

4204/2/B Market Orders

(i) Pure Market Orders: any remaining unexecuted portion is being added to the 

Central Order Book for execution as soon as possible at the next prices.
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(ii) Market-to-limit orders: are bid or ask orders which, in continuous trading are 

executed immediately at the best opposite price limit and, in auctions are 

executed at the auction price, with any remaining unexecuted portion being 

automatically transformed into a limit order at the last executed price and 

added to the Central Order Book. 

4204/3 Transparency parameters

"Reserve orders", also referred to as "iceberg orders", are orders, that may not be less 

than a size specified , in accordance with the article 8 of Delegated Regulation (EU) 

2017/587 and article 4 of Delegated Regulation (EU) 2017/583. Iceceberg orders are 

orders of which only specified tranches are successively entered in the Central Order 

Book, and disclosed to the market, with the current time stamp following full execution 

of the preceding tranche.

4205 RETAIL TRADING FACILITY

4205/1 A Retail Member Organisation may not make any change to the terms of the order set 

by the client with respect to price, size or side of market either manually or through the 

use of trading algorithm or any other computerised methodology. This rule is without 

prejudice to the implementation of pre- and post-trade risk management controls 

pursuant to Rule 8106/3.

4.3. TRADING CYCLES IN THE CENTRAL ORDER BOOK

4301 OVERVIEW

Securities shall be traded either through continuous matching of orders at opposite 

sides of the Central Order Book or through call auction procedures following a period 

in which orders have been accumulated without execution.

The allocation of Securities between continuous and auction mode trading shall be 

determined by the Relevant Euronext Market Undertaking on the basis of objective 

criteria including (without limitation) historical and expected trading volumes, the 

inclusion in a Euronext or other internationally recognised index and the presence of 

Liquidity Providers and Market Makers.

4302 CONTINUOUS TRADING

4302/1 Pre-opening phase 

An opening auction shall be held at the beginning of each Trading Day prior to the 

commencement of continuous trading, in the manner specified in one or more Notices.

4302/2 Main trading session 

Upon completion of the opening auction, trading shall take place on a continuous 

basis, with each incoming order being checked immediately for possible execution 

against orders on the opposite side of the Central Order Book and any remaining 

unexecuted portion of such order being added to the Central Order Book (subject to 

different execution conditions permitted by Rule 4204).

4302/3 Closing phase 

Except for certain types of Securities designated by the Relevant Euronext Market 

Undertaking, the final price shall be determined through a closing auction in the 
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manner specified in one or more Notices.

4302/4 Trading-at-last 

Except for certain types of Securities designated by the Relevant Euronext Market 

Undertaking, a short period shall be provided at the close of a Trading Day during 

which orders can be entered for execution at the last traded price.

4303 AUCTIONS

4303/1 Call phase 

Each auction shall begin with a call phase in which orders are automatically recorded 

without giving rise to Transactions. During such call phase, Euronext Securities 

Members may enter new orders as well as modify or cancel existing orders. An 

indicative price, representing the price which the system matcher would determine on 

the basis of the given Central Order Book situation, shall be displayed and updated 

continuously as the Central Order Book situation evolves. 

4303/2 Price determination phase 

Following completion of the call phase, the system shall seek to determine a price so 

as to produce the maximum executable volume as per Rule 4401/3. During such price 

determination phase, no new orders may be entered and existing orders may not be 

modified or cancelled.

4303/3 Trading-at-last 

For Securities designated by the Relevant Euronext Market Undertaking, a period may 

be provided following the fixing during which orders can be entered for execution at 

the auction price.

4304 POST-TRADING ORDER BOOK MANAGEMENT

During a period after the close of trading defined by Notice, Euronext Securities 

Members can access the Central Order Book in order to enter new orders as well as 

modify or cancel existing orders for the next Trading Day.

4305 OUT-OF-HOURS TRADING 

4305/1 Price range 

Without prejudice to the rules applicable to Large In Scale Trades, Transactions made 

outside the trading sessions shall be effected at the last closing price for Financial 

Instrument traded on a continuous mode and at a price within a price range of 1% 

around the last traded price, or the last disseminated indicative net asset value for 

ETFs, or the last known reference price for ETNs and ETVs . Euronext’s decision to 

allow Out-of-Hours trading for such Securities is contingent on the availability of the 

indicative net asset value or reference price after the close of trading in proper 

conditions. 

4.4. MARKET MECHANISMS

4401 ORDER MATCHING AND EXECUTION IN THE CENTRAL ORDER BOOK

4401/1 Execution priority principle

Orders in the Central Order Book shall be executed according to strict price priority.
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Orders at the same price are ranked and executed according to strict time priority, with 

the following exception: during the continuous trading phase, orders at the best limit 

submitted by a Member who is participating in the Internal Matching Facility will be 

executed against such Member’s incoming orders in the Central Order Book.

Retail Liquidity Firm Quotes can be matched only with Retail Orders, whereas Retail 

Orders can match with any other order in the Central Order Book.

Retail Liquidity Firm Quotes shall not be valid for matching if they cross the opposite 

best limit of the Central Order Book.

4401/2 Continuous trading 

During continuous trading, each incoming order shall be checked immediately for 

possible execution against orders on the opposite side of the Central Order Book. 

Orders in the Central Order Book shall be executed according to the execution priority 

principle. The traded price shall be determined by the limit price of orders sitting on 

the book.

For certain warrants and certificates where, for the purposes of this Rule 4401/2, the 

activity of a Liquidity Provider is, in the sole opinion of Euronext, considered as 

mandatory to maintain an efficient market.

Either

- following the entering of an opposite order that could match the initial indication of 

interest; or

- further to an attempt by two other orders to match inside the indication of interest 

spread,

the Liquidity Provider shall receive first a “request for execution” consisting of an alert 

that does not mention the side, price nor the quantity of the incoming order. After a 

refreshment period providing the Liquidity Provider with an opportunity to update its 

indications of interest where appropriate, Liquidity Provider indications of interest shall 

be turned into orders executable, on an immediate basis only, against other orders if:

- the Liquidity Provider has not refreshed its indications of interest in a way that 

would make the orders not executable in the first case;

- the Liquidity Provider has shifted its indications of interest and improved the 

relevant side thereof so as to make it executable in the second instance.

In both circumstances, the immediately active orders of the Liquidity Provider shall 

match according to the standard price/time priority, time priority of the Liquidity 

Provider active order being given by the time of the associated indication of interest 

provided the latter has not been altered in a way that downgrades its priority. 

Following execution, the balance of such orders shall return to the indication of 

interest status.

Euronext shall be empowered to suppress the refresh process if it determines that it 

results in a poor execution quality for a particular instrument, as measured solely by 

Euronext.

Euronext will specify to which warrants and certificates such provision applies.

4401/3 Auctions 

The auction price shall be determined on the basis of the situation of the Central Order

Book at the closing of the call phase and shall be the price which produces the highest 

executable order volume.
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Market orders shall have priority over limit orders. If there are several limits with 

equally high executable volume, the price shall be determined by reference to the 

price of the last automated trade (adjusted to take account of any corporate event that 

may have occurred in the interval) or, if such price is not available, another reference 

price determined in accordance with one or more Notices on the subject, until a single 

auction price is achieved.

4401/4 Financial Instruments admitted to trading on more than one Euronext Securities 

Market

Unless specified otherwise according to Rule 4404/5, a Transaction will be executed 

on the Market of Reference. 

The prices and volumes of the Market of Reference are the ones to be taken into 

account for publication of the Euronext lists and of all kind of reference prices 

(including opening, closing, highest, lowest prices as well as index calculations) on the 

other Euronext Securities Markets on which the Financial Instrument is also admitted 

to trading. 

4402 GUARANTEED CROSS TRADES AND GUARANTEED PRINCIPAL TRADES

Guaranteed Cross Trades, which are negotiated transactions as defined in the 

Delegated Regulation (EU) 2017/587, involve the simultaneous production and 

execution by a single Euronext Securities Member of opposing buy and sell orders of 

Clients for an identical quantity of a particular Security and at the same price in the 

Central Order Book. Guaranteed Cross Trades can be made only for Securities 

traded continuously and shall be effected at a price within the market's best bid/ask 

spread at the time of execution, boundaries included. 

Guaranteed principal trades involve Euronext Securities Members trading voluntarily 

against their Clients and shall be effected on the conditions applicable to guaranteed 

cross trades.

4403 TRADING SAFEGUARDS 

4403/1 Collars and reservation thresholds (volatility monitoring)

4403/1A Continuous trading

Volatility monitoring on the central order book of Securities is based on (i) order 

control upon entry without impact on market running (referred to as the “collar” 

method) or (ii) a general market halt (referred to as the “reservation” method). 

Volatility control methods can relate to either dynamic or static reference prices, as 

appropriate.

In continuous trading, with the exception of certain classes of Securities, volatility 

monitoring is based on:

- collars or reservation thresholds determined in reference to a dynamic reference 

price; and 

- reservation thresholds determined in reference to a static reference price. 

The allocation of Securities between those mechanisms is determined solely by 

Euronext, with a view to facilitating the fair, efficient and orderly trading of such 

Securities. The allocation of Securities and associated parameters are set out in the 

Trading Manual and related technical appendices.

The aforesaid collars shall be determined by Euronext and published in the Trading 

Manual and related appendices. Where the execution of an order is bound to provoke 

a collar breach on the relevant Security, the order will be partially executed at the 
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prices inside the collars subject to specific quantity execution conditions. Continuous 

trading is not halted. Order execution will continue on the basis of the adjusted collar 

if the member confirms that the original collar is to be crossed.

The aforesaid reservation thresholds shall be determined by Euronext and published 

in the Trading Manual and related appendices. Where an order is bound to cause the 

price of the relevant Security to cross a defined dynamic or static threshold, Euronext 

will temporarily interrupt the execution of such orders for the portion which would be 

traded outside the threshold and therefore put the whole market in reservation mode. 

An auction shall be systematically initiated before continuous trading is resumed.

4403/1/B Auction trading

In auction mode trading, the trading resumption process shall consist of a 

postponement to the next auction planned.

4403/2 Trading suspensions

The Relevant Euronext Market Undertaking may suspend trading in any Security in 

order to prevent or halt disorderly market conditions, either on its own initiative, and in 

its sole discretion, or at the reasoned request of the relevant Issuer.

In addition, the Relevant Euronext Market Undertaking shall suspend trading in any 

Security upon the request of a Competent Authority.

4403/3 Trade cancellation 

The Relevant Euronext Market Undertaking may cancel Transactions on its own 

authority if they have been made:

(i) in violation of the Rules, particularly those Rules relating to the principles of 

fair, orderly and efficient market operation; or

(ii) under improper trading conditions; or

(iii) further to a manifest material error.

The power to cancel Transactions on Euronext’s authority shall encompass orderbook and off-order book Transactions.

In addition, and upon request of one of the counterparts:

(i) Euronext may, for certain kinds of Securities defined in a Notice, cancel 

Transactions executed at an aberrant price; or

(ii) Euronext may cancel Transactions with the agreement of the other 

counterpart(s), based on explanations provided by the member concerned.

The Relevant Euronext Market Undertaking shall inform the market under the 

conditions set forth in Rule 4503/1, as promptly as possible upon such a cancellation if 

made during the trading cycle and, for cancellations made after the close thereof, at 

the latest before the opening of the following trading session.

For the avoidance of doubt, Euronext shall not take into account the consequences of 

a trade cancellation on subsequent Transactions. Euronext will notably not cancel 

Transactions executed to close an initial position or Transactions executed further to 

the triggering of contingent orders (notably stop orders).

4403/4 For the avoidance of doubt, references to “the Relevant Euronext Market Undertaking” 

in this Rule 4403 shall be references to the Euronext Market Undertaking which has 

admitted the relevant Financial Instrument to trading.
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4404 OFF-ORDER BOOK TRADING

4404/1 This Rule 4404 defines those transactions that can be deemed to have been effected 

on Euronext securities regulated markets pursuant to Articles article 4 and article 9 of 

MIFIR without having been processed in the central order book system, besides the 

out-of-hours trades referred to in Rule 4305. 

4404/2 Large In Scale transactions. Large In Scale transactions in Securities admitted to 

listing or trading on a Euronext Securities Market may be carried out outside the 

Central Order Book if they are effected in accordance with this Rule 4404. 

4404/2A Definition for Shares and equivalent Securities

Large In Scale Transactions shall mean Transactions that are equal to or exceed the 

size for large scale transactions as set forth by Delegated Regulation (EU) 2017/587 

Annex II tables 1 and 2.

4404/2B Definition for Bonds

Large In Scale Trades shall mean Transactions that are equal to or exceed the size

for large scale transactions as set forth by Delegated Regulation (EU) 2017/583 

Annex III.

4404/3 Trading at or around the value weighted average price

4404/3A Market value weighted average price (“Market VWAP”) Transactions are those where, 

in accordance with the provisions of the Trading Manual, a Member agrees with his 

Client or with another Member to effect a Transaction at a price within a 1% range 

(boundaries included) around the average price, as weighted by volumes, traded in 

the Central Order Book of a Security during a future period of time.

4404/3B Euronext is solely competent for defining the computation method of the weighted 

average prices that may be used as reference prices when registering Transactions of 

this kind on Euronext Securities Markets. In particular, for the purposes of such a 

computation, Euronext may exclude certain types of Transactions as may be specified 

in the Trading Manual.

4404/3C Only Shares traded continuously are eligible for such Market VWAP Transactions 

facility.

4404/4 Hedge component of stock contingent trades in derivatives (“delta neutral”)

The transactions on a security admitted to trading on a Euronext Securities Market

that result from a trade combining an option contract and its underlying security as a 

“stock contingent trade” on a Euronext Derivatives Market operated by the same 

Euronext Market Undertaking are automatically registered on the former Euronext 

Securities Market, provided that the price of the underlying security is set within an 

interval, the terms and conditions for calculation of which are defined according to one 

or more Notices on the subject.

4404/5 Other Negotiated Trades

Other Negotiated Trades consist of the other kinds of Trades negotiated privately but 

which are still executed within this Rule 4404. They should be executed at a price at 

or within the current volume-weighted average spread reflected on the order book.

At the explicit request of the relevant counterparties, it is possible to report such 

Negotiated Trades on another Euronext Securities Market than the Market of 
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Reference, if the concerned Financial Instrument is admitted to trading on that 

Euronext Securities Market.

For the purpose of price control, the price of the Transaction will be compared to the 

market data issued from the Central order book on the concerned security.

The price will be controlled based on the following criteria:

- The price is made at or within the current weighted spread reflected in the 

Central Order Book, and

- The price is within the lowest and the highest price of the concerned Security 

during the concerned Trading session.

If the Transaction occurs after the Trading hours, the price will be the last traded price 

or the last adjusted traded price (reference price). 

Euronext shall specify in a Notice the conditions under which this reporting facility may 

be used.

4404/6 Net asset value trading

ETFs and Open-ended Investment Funds are eligible to net asset value trading on a 

forward pricing basis, subject to the appointment of a fund agent, under conditions 

specified by Euronext in a Notice.

4404/7 Security component of exchange for physicals in derivatives (“EFP”)

Any Transactions in Securities admitted to trading on a Euronext Securities Market 

arising pursuant to the execution of an EFP on a Euronext Derivatives Market are 

automatically registered on that Euronext Securities Market, with the price determined 

by an exchange-maintained algorithm. 

4.5. CONFIRMATION, REPORTING AND PUBLICATION

4501 CONFIRMATION

4501/1 The Euronext Market Undertakings shall send an acknowledgement message for the 

orders entered into the Central Order Book and give them a sequential number per 

Security, which shall be disclosed to the relevant Euronext Securities Member.

The Euronext Market Undertakings shall send a confirmation of execution to the 

relevant counterparties upon full or partial execution of any order, which confirmation 

shall state the unfilled order quantity, if any.

4501/2 For the Transactions reported according to Rule 4404/5, the Relevant Euronext 

Market Undertakings shall send an acknowledgement message for the trade details 

entered into TCS and send a confirmation of execution to the relevant counterparties.

4502 REPORTING OF TRANSACTIONS

4502/1 This rule governs only Transactions (i.e. trades made under the Rules of Euronext 

Securities Markets) and is without prejudice to the transaction reporting obligations set 

forth by European and national regulations implementing Article 26 of MIFIR.. 

4502/2 Order book Transactions 

Transactions carried out in the Central Order Book are automatically and immediately 
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deemed to have been effected on, and reported to, the Euronext Securities Market 

operated by the Relevant Euronext Market Undertaking.

4502/3 Off order book Transactions 

A Euronext Securities Member who has effected a Transaction outside the Central 

Order Book shall immediately report such Transaction to the Relevant Euronext 

Market Undertaking. For the avoidance of doubt, Market VWAP Transactions shall 

be reported immediately after the end of the agreed period of time referred to in Rule 

4404/3.

When reporting, a Euronext Securities Member shall indicate whether it acted as 

principal or not.

Transactions carried out outside the Central Order Book shall only upon reporting be 

deemed to have been effected on the Euronext Securities Market operated by the 

Relevant Euronext Market Undertaking, subject to any trade cancellation action 

pursuant to Rule 4403/3.

4503 PUBLICATION

4503/1 For the purposes of this Rule 4503, “publication” shall be construed as dissemination 

to Euronext Securities Members, Affiliates with whom Euronext Securities Members 

have granted direct access with the consent of the Relevant Euronext Market 

Undertaking pursuant to Rule 3.3, eligible information vendors and other Persons 

which have entered into a Euronext market databases distribution agreement.

4503/2 Pre-trade transparency 

The Relevant Euronext Market Undertakings shall continuously publish:

a) for all Securities other than those traded on the LP quote driven market model:

(i) the market by orders, i.e., all orders outstanding at a given time;

(ii) the market by limits, i.e., the bid and offer limits in the Central Order 

Book, including the number of orders and total disclosed order 

quantity at each such limit; and

(iii) the best bid and offer, i.e. the best bid and offer limits in the Central 

Order Book, including the number of orders and the total disclosed 

order quantity at each such limit.

b) for Securities traded on the LP quote driven market model:

(i) the market by limits, i.e. the bid and offer limits in the Central Order 

Book, including the total disclosed order quantity at each such limit; 

and

(ii) the best bid and offer, i.e. the best bid and offer limits in the Central 

Order Book, including the total disclosed order quantity at each such 

limit.

Retail Liquidity Firm Quotes are specifically identified as such.

During the call phase of auctions, the Euronext Market Undertakings shall 

continuously publish the theoretical opening price and the components of the 

potentially executable volume at that price.

4503/3 Post-trade transparency

4503/3A Order Book Trades
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For each Transaction carried out in the Central Order Book, the Euronext Market 

Undertakings shall immediately publish the quantity, price and time of execution of 

such Transaction.

The Transactions carried out as Guaranteed Cross Transactions shall be published 

with a Negotiated Transaction indicator.

The Transactions resulting from matching with Retail Liquidity Firm Quotes shall be 

specifically identified as such.

4503/3B Off-order Book Trades in Shares and Equivalent Securities

With regard to Shares and equivalent Securities, the following distinctions shall apply:

(i) Large In scale Trades in which the Euronext Securities Member does not act 

as principal shall be published upon reporting;

(ii) principal Large In scale Tradeswith the meaning of a trade between a 

Member dealing on own account and a client of that Member shall be 

published as follows:

(a) with regard to Shares, pursuant to the timeframe set forth by the

Delegated Regulation (EU) 2017/587 Annex II tables 4, ;

(b) with regard toETFs, pursuant to the timeframe and set forth by the 

Delegated Regulation (EU) 2017/587 Annex II table5; (c) with regard 

to certificates and other similar financial instruments, pursuant to the 

timeframe and set forth by the Delagated Regulation (EU) 2017/587 

Annex II table 6.

(iii) negotiated Trades shall be identified as such and published immediately upon 

reporting, unless they qualify for the Large In Scale transaction deferred 

publication regime;

(iv) Market VWAP Transactions shall be identified as such and published 

immediately upon reporting, unless they qualify for the Large In Scale 

transaction deferred publication regime;

(v) hedge of stock contingent trades or Transactions in Securities arising 

pursuant to an EFP shall be identified as such and published immediately 

upon execution; and

(vi) Transactions carried out outside Trading Hours shall be published before 

market opening on the following Trading Day, unless they qualify as Large In 

Scale transaction for a specific publication timetable; and

(vii) Net asset value Trades shall be identified as such and published immediately 

upon execution at the net asset value.

4503/3C Off-order Book Trades in Bonds and equivalent Securities

With regard to Bonds and equivalent Securities, trades are published according 

pursuant the timeframe set forth by Delegated Regulation 'EU) 2017/583 articles 7 

and 8 and Annex III.

4503/4 Use of market data by Euronext Securities Members. The use of market data by a 

Euronext Securities Member is governed by the Euronext market databases 

distribution agreement with Euronext.
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4.6. CLEARING AND SETTLEMENT

4601/1 Transactions executed on a Euronext Securities Market shall be cleared in 

accordance with the rules and procedures set forth in the Clearing Rule Book of the 

relevant Clearing Organisation, and settlement shall be arranged through the 

settlement organisations designated by Euronext.

4601/2 Clearing rules and procedures of the relevant Clearing Organisation may provide that 

some Transactions in Securities are excluded from the performance guarantee of that 

Clearing Organisation. Members should establish from time to time the scope thereof 

by referring to the appropriate information published by the relevant Clearing 

Organisation.
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CHAPTER 5:

TRADING RULES FOR DERIVATIVES

5.1 GENERAL

5101 SCOPE OF CHAPTER 5

This Chapter 5 sets forth rules governing trading on the Euronext Derivatives Markets.

5102 TRADING DAYS AND TRADING HOURS

5102/1 The Trading Days in any given calendar year shall be announced by the Euronext 

Derivatives Markets in a Notice published no later than the last Trading Day of the 

preceding year. 

5102/2 The opening and closing hours of the markets, and the opening and closing trading 

times for each Derivative which is an Admitted Financial Instrument within the 

foregoing hours, shall be determined from time to time and published by the Euronext 

Derivatives Markets. 

5103 ADMISSION TO TRADING AND CONTRACT SPECIFICATIONS

5103/1 Prior to designating a Derivative as an Admitted Financial Instrument, the Relevant 

Euronext Market Undertaking shall determine that the design of such Derivative shall 

allow for its orderly pricing and the existence of effective settlement conditions and 

comply with the provisions of Article 5 of Commission Delegated Regulation (EU) 

2017/568 of 24 May 2016.

5103/2 The prescribed terms of arrangement in respect of a Derivative which is an Admitted 

Financial Instrument are published by the Euronext Derivatives Markets as Contract 

Specifications. 

5103/3 Such Contract Specifications may be amended from time to time and such 

amendments will be published in a Notice. The Relevant Euronext Market 

Undertaking will not perform amendments to Contract Specifications in respect of 

open positions except in exceptional circumstances and/or in the interests of 

maintaining a fair and orderly market.

5104 DELIVERY MONTHS, EXPIRY MONTHS AND EXPIRY DATES

5104/1 The delivery months or expiry months or expiry dates, as the case may require, and 

the option series, where relevant, in respect of all Derivatives which are Admitted 

Financial Instruments shall be determined from time to time and published by the 

Euronext Derivatives Markets. 

5105 LIQUIDITY PROVIDERS/ MARKET MAKERS

5105/1 When the Relevant Euronext Market Undertaking considers it tobe in the interest of 

the market that liquidity in a particular Admitted Financial Instrument be improved, it 

may enter into Liquidity Provider Programme whereby Euronext Derivatives Members 

or Clients of Euronext Derivatives Members not pursuing any market making activity 

as defined in Articles 17(4) and 48(2) of MIFID assume the role of Liquidity Provider

for such Instrument.

5105/2 Obligation for investment firms to enter into a market making agreement
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When the conditions set forth by the Commission Delegated Regulation (EU) 

2017/578 article 1 are met by a Member, this Member shall enter in a Market Making 

Agreement with the Relevant Euronext Market undertaking.

5105/3 Market Making Schemes

When applicable according to Commission Delegated Regulation (EU) 2017/578 

Euronext Market undertakings have in place Market Making Schemes.

5105/4 The Relevant Euronext Market Undertaking shall publish and regularly update the list 

of Market Makers and information relating to their commitments under the terms of the 

applicable Market Making Agreements and Schemes Programmes in accordance with 

Article 7.1 of the Delegated Regulation (EU) 2017/578., and regularly publish and 

update the list of Liquidity Providers and information relating to their commitments 

under the terms of the applicable Liquidity Provision Programme .

5106 TRADING PROCEDURES

5106/1 The Euronext Derivatives Markets shall implement such procedures (“Trading 

Procedures”) as they deem fit including, without limitation, the following:

(i) procedures governing the conduct of trading on the Euronext Trading 

Platform; and

(ii) procedures in relation to any other aspect of business conducted on the 

market.

Such procedures may be introduced or amended from time to time and are published 

by the Euronext Derivatives Markets in accordance with Rule 1501.

5106/2 The Trading Procedures have the same status with regard to enforceability as the 

Rules.

5107 MEMBER RESPONSIBILITY

In respect of business conducted on Euronext Derivatives Markets or business related 

thereto, a Euronext Derivatives Member shall be responsible for the acts and conduct 

of all Responsible Persons registered in its name and all individuals trading through 

Individual Trading Mnemonics associated with such Responsible Persons as if the 

acts and conduct of each of those persons were the acts and conduct of the Euronext 

Derivatives Member. In particular, a Euronext Derivatives Member shall be held 

responsible for a violation of a relevant obligation committed by a Responsible Person 

registered by him under the Rules and all individuals trading through Individual 

Trading Mnemonics associated with such Responsible Persons and sanctions may be 

imposed under the Rules.

5.2. ACCESS TO EURONEXT TRADING PLATFORM

5201 Subject to a Euronext Derivatives Member entering into a Trading Platform Agreement 

and satisfying such conditions as may be required by the Relevant Euronext Market 

Undertaking from time to time and subject to the Rules and Trading Procedures from 

time to time in force, the Relevant Euronext Market Undertaking will provide access to 

the Euronext Trading Platform to a Euronext Derivatives Member who wishes to 

conduct business in respect of Derivatives made available by that Relevant Euronext 

Market Undertaking for trading on the Euronext Trading Platform.
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5202 Pursuant to the arrangements referred to in Rule 5201, the Relevant Euronext Market 

Undertaking may:

(i) suspend a Euronext Derivatives Member’s access, or access via a particular 

ITM or ITMs, to the Euronext Trading Platform following a warning which may 

be made in writing or verbally (and subsequently confirmed in writing); or

(ii) terminate a Euronext Derivatives Member’s access to the Euronext Trading 

Platform by notice in writing.

5203 For the avoidance of doubt, the Relevant Euronext Market Undertaking shall:

(i) terminate a Euronext Derivatives Member’s access to the Euronext Trading 

Platform; and 

(ii) cancel all outstanding orders submitted by, or in the name of, that Euronext 

Derivatives Member, 

if the trading privileges of a Euronext Derivatives Member are suspended or if the 

Euronext Derivatives Member is expelled from membership. 

5.3. TRADING ON THE EURONEXT TRADING PLATFORM

5301 TRADING AND ORDER MATCHING

5301/1 Derivatives shall be traded on the Euronext Trading Platform through continuous 

matching of orders at opposite sides of the Central Order Book in accordance with the 

trade priority rules determined by the Relevant Euronext Market Undertaking from time 

to time and published in Book II of the Rules or in the Trading Procedures, as the case 

may be.

5301/2 Orders Minimum indications

Any order submitted to the Central Order Book shall at least indicate if applicable the 

following elements:

(i) the Financial Instrument to which the order relates or the trading symbol 

assigned by the Euronext Market Undertakings to such Financial Instrument;

(ii) whether the order is for a purchase or a sale;

(iii) the order quantity;

(iv) the price conditions;

(v) whether the order is submitted:

(a) for the Euronext Derivatives Member's own account; 

(b) for the account of a third party; 

(c) pursuant to a Market Making Agreement or Market Making scheme or 

Liquidity Provision Programme;

(vi) client identification short code;

(vii) investment decision within Firm identification short code;

(viii) Execution within Firm identification short code.

For each order Members have to provide Euronext, before the end of the trading day, 

with all the data requested in the 

Annex of the Commission Delegated Regulation (EU) 2017/580.

5302 ORDER TYPES

5302/1 The order types which may be submitted to the Central Order Book consist of:
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(i) limit orders;

(ii) market orders; and

(iii) market on open orders.

The Trading Procedures from time to time in force shall specify the detailed 

requirements for each type of order in respect of each Derivative which is an Admitted 

Financial Instrument.

5303 ORDER EXECUTION

5303/1 Transactions may be executed on the Euronext Trading Platform only through

Individual Trading Mnemonics associated with Responsible Persons.

5303/2 Every Transaction, whether executed on the Central Order Book or otherwise, shall 

be executed in accordance with Trading Procedures from time to time implemented by 

the Euronext Derivatives Markets. Transactions may take place only on Trading Days 

during the hours specified for that purpose under Rule 5102/2.

5303/3 All bids, offers and Transactions made through the Euronext Trading Platform

workstation shall be binding on the Euronext Derivatives Member through whose 

Individual Trading Mnemonics such bids, offers or Transactions (as the case may be) 

are made.

5304 CONTRACTUAL RELATIONSHIPS

5304/1 Valid acceptance of a valid bid or offer shall make a Transaction between the 

members whose traders made the bid or offer and the acceptance. 

5304/2 In the case of the Euronext Trading Platform, the matching of a valid bid with a valid 

offer by the Trading Host shall constitute the valid acceptance of a valid bid or offer for 

the purposes of this Rule 5304.

5.4. TERMINATION, SUSPENSION AND TRADE INVALIDATION/CANCELLATION

5401 TERMINATION OF A TRADING SESSION

5401/1 The Relevant Euronext Market Undertaking may terminate a trading session for one 

or more Derivatives in the interests of an orderly market. The procedures for 

termination and/or resumption of a trading session are detailed in the Trading 

Procedures.

5402 SUSPENSION OR LIMITATION OF TRADING

5402/1 Without prejudice to actions taken pursuant to Chapter 9, the Relevant Euronext 

Market Undertaking may suspend or limit the availability for trading of a Derivative or 

take any other measure it deems necessary in the interests of maintaining an orderly 

and proper market. Such suspension or limitation, and any resumption of availability 

for trading, or the imposition or revocation of any such other measure, shall be 

published by the Relevant Euronext Market Undertaking by the method deemed most 

effective in the circumstances and confirmed, where appropriate, by Notice.

5402/2 Pursuant to Rule 5402/1, the Relevant Euronext Market Undertaking may, in

accordance with Union Law , determine to suspend an option series. Options series 

can be suspended if corresponding call and put series both have no open interest, 

except
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(a) in the case of a just in-the-money, or just out-of-the-money series, or

(b) if there is another series at least as far in-the money (or out-of-the-money) 

with the same expiry date that does not satisfy the criterion for suspension; 

or 

(c) if there is another series with the same Exercise Price but with a later expiry 

date that does not satisfy the criterion for suspension.

5403 INVALIDATION AND CANCELLATION OF TRANSACTIONS

5403/1 A Transaction made or purported to be made may be declared invalid by the Relevant 

Euronext Market Undertaking in the circumstances set out in Book II of the Rules or in 

the Trading Procedures.

5403/2 A transaction made in error in designated Derivatives may be declared invalid by the 

Relevant Euronext Undertaking subject to the conditions set out in Book II of the 

Rules or in the Trading Procedures.

5404 DELISTING OF DERIVATIVES

5404/1 The Relevant Euronext Market Undertaking may, in accordance with Union Law, 

determine to delist a Derivative or remove a Class. A Derivative may be delisted or a 

Class removed for a variety of reasons including the following:

(a) the delisting of one of the underlying instruments of the Contract if these 

underlying instruments have been admitted to listing on a Regulated Market

or on an organised market established outside the European Economic 

Area;

(b) the removal of the underlying index;

(c) a lack of liquidity.

Such delisting, and any subsequent re-listing, shall be published by the Relevant 

Euronext Market Undertaking by the method deemed most effective in the 

circumstances and confirmed, where appropriate, by Notice.

5404/2 The Relevant Euronext Market Undertaking may, in accordance with Union Law, 

determine to delist an option series, and may consult Members prior to such 

determination. Option series can be delisted if corresponding call and put series both 

have no open interest, except:

(a) in the case of a just in-the-money, or just out-of-the-money series, or

(b) if there is another series at least as far in-the money (or out-of-the-money) 

with the same expiry date that does not satisfy the criterion for deletion; or 

(c) if there is another series with the same Exercise Price but with a later expiry 

date that does not satisfy the criterion for deletion.

5.5. PRE-NEGOTIATION AND PRE-ARRANGEMENT

5501/1 Euronext Derivatives Members are permitted to negotiate with other Persons prior to 

executing, or attempting to execute, a Cross Transaction or an Off Order Book 
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Transaction (“pre-negotiation”) where such pre-negotiation is expressly permitted by 

the Rules or the Trading Procedures and such pre-negotiation is conducted strictly in 

accordance with the requirements of such Rules or Trading Procedures.

5501/2 Any prior negotiation with other Persons other than that referred to in Rule 5501/1 

shall give rise to a violation of the Rules. Any Transaction made or purported to be 

made, the execution of which was the subject of prior negotiation other than in 

accordance with Rule 5501/1 (“pre-arrangement”), may be declared invalid.

5.6 CROSS TRANSACTIONS AND OFF ORDER BOOK TRANSACTIONS

5601 CROSS TRANSACTIONS

5601/1 The execution of Cross Transactions shall be permitted, either through the Central 

Order Book or as Off Order Book Transactions, subject to conditions to be specified 

by the Relevant Euronext Market Undertaking in the Trading Procedures. 

5601/2 Cross Transactions in respect of particular classes of Derivatives may be subject to 

additional conditions or restrictions which shall be specified by the Relevant Euronext 

Market Undertaking in the Trading Procedures.

5601/3 The conditions to be specified in the Trading Procedures pursuant to Rules 5601/1 

and 5601/2 shall include, inter alia, conditions relating to price, minimum volume and 

publication.

5602 OFF ORDER BOOK TRANSACTIONS

5602/1 The Relevant Euronext Market Undertaking shall specify in the Trading Procedures 

the conditions under which Transactions may be executed outside the Central Order 

Book (“Off Order Book Transactions”). In particular, the Relevant Euronext Market 

Undertaking may permit the execution of Off Order Book Transactions falling within 

the following categories:

(a) Technical Trades, i.e. Off Order Book Transactions which involve 

combinations of (i) Admitted Financial Instruments or (ii) Admitted Financial 

Instruments and related Financial Instruments or commodities; 

(b) Large-in-Scale Trades, i.e. Transactions whose size equals or exceeds the 

minimum volume specified by the Relevant Euronext Market Undertaking; 

[(d) Other pre-negotiated Trades, including Guaranteed Cross Trades and Flex 

Contracts.

All Transactions executed pursuant to these facilities shall be deemed to be executed 

on the relevant Regulated Market and, with the exception of Flex Contracts, the 

resultant positions shall be fungible with positions resulting from Transactions 

executed on the Central Order Book. The Relevant Euronext Market Undertaking 

shall specify in the Trading Procedures the conditions under which fungibility for Flex 

Contracts will occur.

5602/2 The conditions to be specified in the Trading Procedures pursuant to Rule 5602/1 

shall include, inter alia, conditions relating to price, minimum volume and publication.

5.7. REPORTING AND PUBLICATION

5701 REPORTING
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5701/1 Scope

This rule governs only Transactions (i.e. trades made on a Euronext Derivatives 

market under these Rules) and is without prejudice to any trade reporting obligation to 

which a member is subject by his regulator or supervisor. 

5701/2 On Order Book Transactions

Transactions carried out in the Central Order Book are automatically and immediately 

deemed to have been executed on, and reported to, the Euronext market operated by 

the Relevant Euronext Market Undertaking.

5701/3 Off Order Book Transactions

A Euronext Derivatives Member who has negotiated an Off Order Book Transaction 

shall report such Transaction to the Relevant Euronext Market Undertaking as soon 

as practicable in such manner as may be prescribed by that Euronext Market 

Undertaking. In any event, such report shall be submitted by the Member to the 

Relevant Euronext Market Undertaking within fifteen minutes of the time at which the 

Off Order Book Transaction was negotiated unless the Euronext Market Undertaking 

has specified in the Trading Procedures a longer reporting time.

Such Transactions shall be deemed to have been executed on the Euronext 

Derivatives Market operated by the Relevant Euronext Market Undertaking only when 

they have been received or validated, as the case may be, by that Euronext Market 

Undertaking.

5702 PUBLICATION

5702/1 The Relevant Euronext Market Undertaking shall immediately publish the volume and 

price associated with all bids and offers submitted to the Central Order Book and with 

all Transactions executed in the Central Order Book. 

5702/2 In respect of Off Order Book Transactions, the Relevant Euronext Market Undertaking 

shall specify, inter alia, the publication arrangements in the Trading Procedures. In 

any event, publication shall be immediate except where the Relevant Euronext Market 

Undertaking has specified in the Trading Procedures that deferred publication is 

permitted.

5703 USE OF MARKET DATA BY EURONEXT DERIVATIVES MEMBERS

5703/1 The use of market data by Euronext Derivatives Members is governed by the 

Euronext market data distribution agreement with Euronext.
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CHAPTER 6:

ADMISSION TO LISTING AND 

CONTINUING OBLIGATIONS OF ISSUERS

6.1. SCOPE OF CHAPTER 6

6101 This Chapter 6 sets forth:

(i) the requirements and procedures for the admission to listing and delisting of 

Securities,

(ii) the listing measures that can be taken to facilitate the fair, orderly and efficient 

operation of the markets; and

(iii) the continuing obligations of Issuers whose Securities are admitted to listing with 

their consent (including, without limitation, informing the Relevant Euronext Market 

Undertaking of corporate and securities events).

6102 For the purposes of this Chapter 6, admission to listing shall mean the admission to trading 

of Securities by the Relevant Euronext Market Undertaking on a Euronext Securities 

Market at the request of, or after having informed, the Issuer, and delisting shall be 

construed accordingly.

6103A The Relevant Euronext Market Undertaking shall be competent for all matters with respect 

to admission to listing and delisting of Securities, listing measures and the continuing 

obligations of Issuers as set forth in this Chapter 6, unless provided otherwise by National 

Regulations. 

6103B Issuers must comply with the disclosure and reporting obligations pursuant to Union law to 

ensure transparency for investors and market integrity.

6104 References to amounts denominated in euros in this Chapter 6 and in any Notices or 

supplementary requirements imposed pursuant to this Chapter 6 shall be deemed to refer 

to equivalent amounts in other currencies.

6105 [reserved]

6106 Issuers must satisfy the obligations set forth in this Chapter 6 to enable the Relevant 

Euronext Market Undertaking to perform its functions and meet its responsibilities as the 

operator of a Regulated Market.

6107 The Relevant Euronext Market Undertaking shall, if there has been an actual or it has 

serious indications of a potential infringement by an Issuer of National Regulations in 

respect of any initial or on-going listing obligations pursuant to National Regulations, report 

the matter to the relevant Competent Authority as soon as practicable after becoming 

aware of such (potential) infringement.

6108 This Chapter 6 does not apply to the Euronext Securities Market operated by Euronext

London.

6.2. APPLICATION PROCEDURE

6201 An application for admission to listing must be filed with the Relevant Euronext Market 

Undertaking by submitting a duly signed Application Form.
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6202 The Relevant Euronext Market Undertaking and the Applicant shall jointly agree on a 

timetable in respect of the admission to listing.

6203 [reserved]

6204 Unless specifically provided otherwise, Issuers must appoint a Listing Agent for the first 

admission to listing of Securities and for any subsequent admission to listing of Securities 

requiring the approval of a prospectus. The Relevant Euronext Market Undertaking shall 

specify by Notice the requirements to appoint a Listing Agent and the tasks and the 

responsibilities of a Listing Agent. The requirement to appoint a Listing Agent is without 

prejudice to National Regulations regarding the appointment of financial intermediaries or 

other qualified entities in relation to a public offer or other offerings of Securities.

6205 An Application Form submitted for the admission to listing of Depository Receipts must also 

be signed by the Issuer of the Underlying Securities.

6206 The Relevant Euronext Market Undertaking may: 

(i) impose on an Applicant, on a specific case-by-case basis, such supplementary 

listing requirements in addition to those specified in Rules 6.6 and 6.7 as it 

reasonably considers appropriate and of which it shall duly inform the Applicant 

prior to its decision on the application;

(ii) require any additional documentation and information from an Applicant; or

(iii) conduct such inquiries or investigations as may reasonably be required in 

connection with its review of an application for admission to listing. 

6.3. DECISION BY THE RELEVANT EURONEXT MARKET UNDERTAKING

6301 Unless agreed otherwise by the Applicant and the Relevant Euronext Market Undertaking, 

the Relevant Euronext Market Undertaking shall take a decision in respect of an application

for admission to listing within a maximum period of thirty (30) days. 

The period shall begin as of the date the Relevant Euronext Market Undertaking has 

received a complete set of the documentation and the information required pursuant to 

Rule 6.5 and/or Rule 6206.

6302 The decision of the Relevant Euronext Market Undertaking to admit Securities to listing 

shall remain valid for a maximum period of ninety (90) days, except if the Relevant 

Euronext Market Undertaking becomes aware that any information provided in connection 

with the application for the admission to listing has changed during this period. Upon the 

written request of the Applicant, the Relevant Euronext Market Undertaking may extend 

this period once for a maximum of a further ninety (90) days. 

6303 The Relevant Euronext Market Undertaking shall issue a first notice in relation to the date 

on which the admission to listing of Securities shall become effective, the Market of 

Reference, any conditions and other particulars in respect of the admission to listing of the 

relevant Securities. The Relevant Euronext Market Undertaking may issue a subsequent 

Notice in relation to the admission to listing confirming, among other things, that the 

conditions have been satisfied and the date on which the admission to listing shall become 

effective.

6304 In the case of a public offer of Securities, the listing shall become effective only after the 

completion of the subscription period, except in the case of tap issues of Securities when 

the closing date for subscription is not yet fixed.
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6.4. GROUNDS FOR REFUSAL

6401 The Relevant Euronext Market Undertaking may refuse an application for admission to 

listing of a Security on any appropriate ground, including (without limitation) if:

(i) the Applicant does not meet one or more of the requirements imposed by or 

pursuant to this Chapter 6 or any applicable National Regulations; or

(ii) it considers that the admission to listing of the Securities may be detrimental to the 

fair, orderly and efficient operation of the Euronext Securities Market or to the 

reputation of Euronext as a whole; or

(iii) a Security is already admitted to listing on another market and the Issuer has not 

complied or does not comply with the obligations resulting from such admission to 

listing; or

(iv) the Issuer, any of its board members (including supervisory board members) or its 

beneficial owners are on the EU Sanction List or on the list drawn up by the Office 

of Foreign Assets Control (OFAC).

6402 The Applicant shall be informed in writing of the decision to refuse an application for 

admission to listing and the reasons for this refusal.

6403 Subject to Rule 1.7, an Applicant may appeal against the decision of the Relevant 

Euronext Market Undertaking to refuse an application for admission to listing in accordance 

with National Regulations.

6.5. GENERAL DOCUMENTATION TO BE FURNISHED AT THE TIME OF THE APPLICATION

6501 At the time of the application, to the extent applicable, the following documentation must 

be provided to the Relevant Euronext Market Undertaking:

(i) the Application Form duly signed by the Issuer;

(ii) the documents specified in the Application Form, including but not limited to 

documentation evidencing to the satisfaction of the Relevant Euronext Market 

Undertaking that:

(a) the legal position and organisation of the Issuer are in accordance with 

applicable laws and regulations;

(b) the administration of corporate events and the payment of dividends (if 

applicable) are ensured; and

(c) adequate procedures are available for the clearing and settlement of 

Transactions in respect of the relevant Securities.

(iii) a copy of the prospectus (or equivalent disclosure document) issued by the Issuer in 

connection with the application to listing and each draft version of such prospectus (or 

equivalent disclosure document); 

(iv) a copy of the minutes from the relevant corporate body or bodies containing 

resolutions authorising the application for admission to listing and issue of Securities 

(to the extent applicable ;

(v) a statement from the Issuer that it has filed or intends to file in the near future a 

similar application for listing of the relevant Securities with another Regulated or 

organised market ;
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(vi) the active LEI pertaining to the Issuer.

The documentation referred to in this Rule 6501 is provided to the Relevant Euronext 

Market Undertaking under the sole responsibility of the Applicant and to allow the Relevant 

Euronext Market Undertaking to check if the Applicant satisfies the requirements set out in 

Rules 6.6 and 6.7. The Relevant Euronext Market Undertaking shall not be liable for false 

or incomplete information provided by the Applicant (or, once the Securities have been 

admitted to listing, the Issuer) in connection with the admission to listing of Securities.

6502 The Relevant Euronext Market Undertaking may further specify, in one or more Notices, 

which documentation is deemed to be satisfactory. Without prejudice to Rule 6503 and in 

addition to the documentation and information required pursuant to Rule 6501, the 

Relevant Euronext Market Undertaking may also specify by Notice other documentation 

that must be supplied in respect of particular categories of Securities.

6503 All documentation that is required to be submitted pursuant to this Chapter 6 shall be in 

English or in a language accepted by the Relevant Euronext Market Undertaking and if 

necessary translated by a certified translator. If the registered office of the Issuer is located 

outside the European Economic Area, the Relevant Euronext Market Undertaking may 

require that the Issuer’s financial statements are restated in the GAAP applicable to the 

jurisdiction in which the Relevant Euronext Market Undertaking has its registered office and 

that this restatement is reviewed by an auditor acceptable to it.

6.6. GENERAL LISTING REQUIREMENTS FOR SECURITIES

6601 Upon admission to listing and for as long as the Securities are listed:

(i) the legal form and structure of the Issuer must be in accordance with applicable laws 

and regulations;

(ii) the Issuer must comply with the requirements of any relevant Competent Authority; 

and

(iii) adequate procedures must be available for the clearing and settlement of 

Transactions in respect of such Securities.

6602 The Issuer shall ensure that Securities of the same class have identical rights in 

accordance with National Regulations, the Issuer’s articles of association and other 

constitutional documents.

6603 Securities must be validly issued in accordance with applicable laws and regulations 

governing those Securities, the Issuer’s articles of association and other constitutional 

documents.

6604 The Issuer shall ensure that the form of Securities complies with the requirements of 

applicable National Regulations.

6605 The Issuer shall ensure that Securities are freely transferable and negotiable. 

6606 Securities entitling holders to acquire other Securities (“Underlying Securities”) are eligible 

for admission to listing only if at the time of the application:

(i) the Underlying Securities are admitted to listing on a Regulated Market or, outside the 

European Union, on another organised market subject to equivalent standards as 

determined by the Relevant Euronext Market Undertaking; or

(ii) there are adequate assurances that such Underlying Securities will be admitted on a 

Regulated Market or, outside the European Union, on another organised market 
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subject to equivalent standards as determined by the Relevant Euronext Market 

Undertaking by the time at which the right to acquire them can be exercised.

6607 The Issuer shall apply for admission to listing of all its Securities of the same class issued 

at the time of the application or proposed to be issued.

6608 [reserved]

6609 The Issuer may decide to distribute in whole or in part Securities through a centralisation 

process organized by the Relevant Euronext Market Undertaking. The Relevant Euronext 

Market Undertakings shall specify such procedure in the relevant Book II or in a Notice.

6610 The Relevant Euronext Market Undertaking may create specific segments in the Euronext 

Securities Market it operates, based on Market Capitalisation criteria or other criteria, and 

allocate Securities to those distinct segments. The allocation will be reviewed periodically. 

Securities included in the Recovery Box or the Penalty Bench are not included in these 

segments.

6.7. ADDITIONAL LISTING REQUIREMENTS PER CATEGORY OF SECURITIES 

6701 In addition to the general listing requirements set forth in Rule 6.6, this Rule 6.7 contains

additional listing requirements regarding the admission to listing of specific categories of 

Securities.

6702 SHARES, DEPOSITARY RECEIPTS FOR SHARES AND EQUITY SECURITIES.

6702/1 A first admission to listing of Shares, Depository Receipts for Shares or Equity Securities is 

subject to the following conditions being met:

(i) at the time of admission to listing, a sufficient number of Securities must be distributed 

to the public. A sufficient number of Securities shall be deemed to have been 

distributed to the public if at least 25% of the subscribed capital represented by the 

class of Securities concerned are in the hands of the public or such lower percentage 

determined – in its absolute discretion – by the Relevant Euronext Market Undertaking 

in view of the large number of the Securities concerned and the extent of their 

distribution to the public. This percentage shall not be lower than 5 % of the 

subscribed capital represented by the class of Securities concerned and must 

represent a value of at least five (5) million euro calculated on the basis of the 

subscription price; and

(ii) at the time of admission to listing, the Issuer or, in the case of Depository Receipts, 

the issuer of the Underlying Securities must have published or filed audited annual 

financial statements or pro forma accounts, consolidated where applicable, for the 

preceding three financial years, drawn up in accordance with the accounting 

standards of the country where the Issuer has its registered office, IFRS or any other 

accounting standards allowed by National Regulations for the period covered by the 

financial information. If the fiscal year closed more than nine (9) months before the 

date of the admission to listing, the Issuer must have published or filed semi-annual 

accounts.

6702/2 Without prejudice to Rule 6206, the Relevant Euronext Market Undertaking may grant 

dispensation from the requirement set forth in Rule 6702/1 (ii) if this is in the interests of the

Issuer or in the case of Depository Receipts, the issuer of the Underlying Securities or 

investors and if the Issuer has made sufficient information available enabling investors to 

make an informed assessment of the assets and liabilities, financial position, profit and 

losses, and prospects of the Issuer or, in the case of Depository Receipts, that of the issuer 

of the Underlying Securities and any guarantor (if applicable), and of the rights attaching to 

the Securities to be admitted to listing. In those cases, the Relevant Euronext Market 
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Undertaking may – in its absolute discretion – subject the admission to listing to additional 

requirements in respect of Market Capitalisation, shareholders’ equity and/or lock-up 

requirements, or any other condition determined by the Relevant Euronext Market 

Undertaking.

In those cases, the Relevant Euronext Market Undertaking may subject the admission to 

listing to additional requirements in respect of Market Capitalisation, shareholders’ equity 

and/or lock-up requirements, or any other condition at the time of the admission to listing.

6703 BONDS 

6703/1 Each Issuer requesting an admission to listing of bonds shall on admission be issuing a 

minimum nominal amount of at least:

(i) five million (5,000,000) euro in case of a public offer of bonds; or

(ii) two hundred thousand (200,000) euro for all other types of admission of bonds (i.e. 

without any public offering).

The above minimum amounts do not apply in the case of tap issues where the amount of 

the issue is not fixed.

6703/2 The application for admission to listing must relate to all bonds ranking pari passu.

6703/3 Issuers qualifying as SMEs requesting an admission to listing of bonds via a public offer 

shall obtain, and disclose in the relevant offering documents, a rating (in relation to the 

Issuer or the relevant Securities to be offered) from a credit rating agency duly registered 

with or certified by ESMA, unless specifically agreed otherwise between the Relevant 

Euronext Market Undertaking and the Issuer.

For the purpose of this Rule, “SMEs” means:

(i) in respect of companies whose Equity Securities (or equivalent securities) are 

admitted to listing and/or trading on a Euronext Securities Market or on any other 

Regulated Market (or on any other market having equivalent standards), 

companies that had an average market capitalisation of less than € 100 million on 

the basis of end-day quotes for the 30 Trading Day period prior to the date of 

submission of the application for listing of the relevant bonds to the Relevant 

Euronext Market Undertaking; and

(ii) in respect of companies whose Equity Securities (or equivalent securities) are not 

admitted to listing and/or trading on a Euronext Securities Market or on any other 

Regulated Market (or on any other market having equivalent standards), 

companies, according to their last annual or consolidated accounts, that meet at 

least two of the following three criteria: an average number of employees during 

the financial year of less than 250, a total balance sheet not exceeding € 43 million 

and an annual net turnover not exceeding € 50 million.

Any Issuer not qualifying as an SME shall provide the Relevant Euronext Market 

Undertaking with satisfactory evidence that it does not qualify as an SME.

Without prejudice to the above, the Relevant Euronext Market Undertaking may notably 

further require that:

(i) bonds to be admitted pursuant to an admission process not involving a public offer 

as above described are rated by a credit rating agency; and/or

(ii) irrespective of the type of admission (i.e. with a public offering or not), a guarantee 

for the principal amount and interest is issued by a parent company or by a third 

party as agreed with the Relevant Euronext Market Undertaking.

The Euronext Market Undertakings may further specify the above admission criteria by 

way of a Notice.
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6704 CLOSED-ENDED INVESTMENT FUNDS AND INVESTMENT COMPANIES

6704/1 A first admission to listing of Securities issued by a Closed-ended Investment Fund or by 

an Investment Company is subject to the following conditions being met:

(i) at the time admission to listing, the Market Capitalisation of the Securities for which 

admission to listing is sought must be at least five (5) million euro;

(ii) at the time of admission to listing, a sufficient number of Securities must be 

distributed to the public. A sufficient number of such Securities shall be deemed to 

have been distributed to the public if at least 25% of the subscribed capital 

represented by the class of Securities concerned are in the hands of the public or 

such lower percentage determined – in its absolute discretion – by the Relevant 

Euronext Market Undertaking in view of the large number of the Securities 

concerned and the extent of their distribution to the public; and

(iii) at the time of the admission to listing or, if that admission coincides with an issue and 

the Securities to be issued have already been allotted at the time of admission, after 

the issue of the allotted Securities, the Market Capitalisation must be at least five (5) 

million euro.

6705 ETFS, ETNS, ETVS AND OPEN-ENDED INVESTMENT FUNDS OTHER THAN ETFS

6705/1 The conditions for the first admission to listing of ETFs, ETNs, ETVs and other Openended Investment Funds are set out in a Notice.

6706 STRUCTURED PRODUCTS

6706/1 Any Issuer seeking the admission to listing and/or trading of warrants must be:

(i) a Credit Institution or an Investment Firm; or

(ii) an entity subject to a comparable supervision and control, whereby certification of 

such supervision and control and proof of the comparability must be provided by the 

Issuer; or

(iii) any other entity whose obligations, in relation to the warrants being issued, are 

unconditionally and irrevocably guaranteed by, or benefit from an arrangement which 

is equivalent in its effect to such a guarantee provided by, an entity which satisfies (i) 

or (ii) above.

6706/2 The Relevant Euronext Market Undertaking may require that in relation to the admission to 

listing of a Warrant a Liquidity Provision Agreement is entered into between a Liquidity 

Provider and the Relevant Euronext Market Undertaking and the signing of any other 

agreement as the Relevant Euronext Market Undertaking deems, in its absolute discretion,

appropriate.

6706/3 The Relevant Euronext Market Undertaking may subject the admission to listing and/or 

trading of warrants to a minimum quantity per issue or to a minimum order size.

6706/4 For Structured Derivatives products indexed to (1) a commodity underlying, (2) a 

commodity index underlying (3) or any underlying with a commodity component, the 

Relevant Euronext Market Undertaking will subject the admission to listing and/or trading 

(and subsequent potential increase) to a maximum total quantity of 2.5 million securities 

per ISIN code.
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6707 OTHER TRANSFERABLE SECURITIES

6707/1 The admission to listing of other transferable Securities shall be subject to such specific 

requirements as the Relevant Euronext Market Undertaking may specify in a Notice taking 

into account the nature of the Securities for which admission is sought and, to the extent 

possible, the general listing requirements specified in this Chapter 6 for comparable 

Securities. 

6707/2 The Relevant Euronext Market Undertaking may determine that certain other transferable 

Securities do not qualify for admission to listing. 

6.8. ADDITIONAL REQUIREMENTS FOR THE ADMISSION TO TRADING OF SECURITIES ON A “IF AND

WHEN ISSUED/DELIVERED” BASIS

6801/1 At the request of the Issuer, the Relevant Euronext Market Undertaking may, by way of a 

derogation from the Rule 6603, admit to trading Securities that have not yet been 

effectively issued and/or delivered, as applicable, (and such admission to trading will be 

referred to as an admission on a “If and When Issued/Delivered” basis) for a maximum 

period of time not exceeding the standard settlement date calculated from the first date of 

such admission on a If-and-When-Issued/Delivered basis (unless agreed otherwise). In 

addition to the general listing requirements set forth in Rules 6.6 and 6.7, admission to 

trading of Securities on a “If and When Issued/Delivered” basis is subject to the following 

conditions being met:

(i) the Issuer has provided to the Relevant Euronext Market Undertaking a description of 

the various elements that will be taken into account by the Issuer to determine 

whether or not to cancel the admission to listing;

(ii) the Issuer confirms to the Relevant Euronext Market Undertaking that adequate 

measures have been taken to ensure that sufficient information is available to the 

market, namely in the prospectus or equivalent document and, subsequently, to 

potential investors should official listing not take place;

(iii) the Issuer has taken adequate measures to ensure that sufficient information is made 

available to potential investors and other market participants regarding the 

consequences of a cancellation of the listing;

(iv) until the Securities are issued and/or delivered, any publication issued or published by 

the Issuer in relation to the offering contains a statement that the Securities offered will 

first be admitted and traded on a If and When Issued/Delivered basis and the 

scheduled period of such admission to trading on a If and When Issued/Delivered 

basis;

(v) a commitment from the Issuer that it will immediately inform the Relevant Euronext 

Market Undertaking of the completion of the issuance and/or delivery of the Securities;

(vi) a commitment from the Issuer that it will immediately inform the Relevant Euronext 

Market Undertaking if it is not in a position to issue and/or deliver the Securities by the 

date expressed in the prospectus or any equivalent document as the expected date 

for completion of the offering.

6801/2 If the Securities admitted on a If and When Issued/Delivered basis are not issued and/or 

delivered by the date expressed in the prospectus or equivalent disclosure document as 

the expected date of completion of the offering, the offer may be withdrawn by the Issuer 

and subsequently all Transactions made in such Securities shall be annulled. The Issuer 
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shall ensure that the prospectus (or any equivalent disclosure document) issued in 

connection with the admission to listing of the relevant Securities will contain a warning to 

this effect. 

The Relevant Euronext Market Undertaking and/or Euronext shall not be responsible or 

liable for any loss incurred by any person as a result of the withdrawal of the offer by the 

Issuer and/or the subsequent annulment of the relevant Transactions. The Issuer shall 

ensure that the prospectus (or equivalent disclosure document) issued in connection with 

the admission to listing of the relevant Securities shall contain a statement to that effect.

6.9. LISTING MEASURES

6901 GENERAL

6901/1 The Relevant Euronext Market Undertaking may take all such measures in respect of 

Financial Instruments admitted to listing on an Euronext Securities Market as it deems 

necessary to facilitate the fair, orderly and efficient operation of its markets. The Relevant 

Euronext Market Undertaking will inform the relevant Issuer on any measure taken by it as 

soon as practicable possible.

6901/2 Subject to National Regulations, the Relevant Euronext Market Undertaking may, inter alia, 

take the following measures:

(i) impose specific conditions upon the Issuer to ensure that the obligations imposed and 

the requirements set pursuant to this Chapter 6, in any Notices or the Application 

Form are being complied with; and/or

(ii) allocate a Security to a special compartment; and/or

(iii) list a Security with a special indicator; and/or

(iv) issue a notice informing the market that an Issuer does not comply with its obligations 

set forth in the Rules; and/or

(v) suspend the trading of a Security; and/or

(vi) delist the relevant Securities in accordance with Rule 6905; and/or

(vii) determine the Market of Reference.

6902 MARKET CAPITALISATION COMPARTMENTS

6902/1 [reserved]

6903 SPECIFIC COMPARTMENTS - RECOVERY BOX AND PENALTY BENCH

6903/1 The purpose of allocating Securities to the Recovery Box is to group together Securities of 

Issuers that are subject to insolvency proceedings. 

The purpose of allocating Securities to the Penalty Bench is to group together Securities of 

Issuers that do not comply with the Rules.

In the context of allocation of Securities of Issuers to the Recovery Box or the Penalty 

Bench the Relevant Euronext Market Undertaking will regularly examine the situation of 

Issuers.

6903/2 The Relevant Euronext Market Undertaking may decide to include a Security to the 

Recovery Box if any of the insolvency proceedings specified in Council Regulation (EC No 
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1346/2000 of 29 May 2000, as amended from time to time (or analogous procedure as 

appropriate) has been declared applicable to the Issuer of such Security.

The allocation of the relevant Securities in the Recovery Box shall be terminated at the 

request of the Issuer or at the initiative of The Relevant Euronext Market Undertaking 

provided that an Issuer provides satisfactory evidence that that the insolvency proceedings 

no longer apply to the Issuer.

6903/3 The Relevant Euronext Market Undertaking may decide to include a Security to the Penalty 

Bench if the Issuer fails to comply with the Rules.

The allocation of the relevant Securities to the Penalty Bench shall be terminated at the 

request of the Issuer or at the initiative of The Relevant Euronext Market Undertaking 

provided that the Issuer has satisfied the requirements and conditions determined by the 

Relevant Euronext Market Undertaking – in its absolute discretion – for re-allocation of the 

relevant Securities to the normal compartment

6903/4 The Relevant Euronext Market Undertaking may further specify the criteria and the 

procedures for the allocation of Securities to a special compartment (including the 

Recovery Box or the Penalty Bench) in one or more Notices.

6904 ADDITIONAL LISTING MEASURES FOR SECURITIES ADMITTED ON A “IF AND WHEN 

ISSUED/DELIVERED” BASIS

6904/1 [reserved]

6905 DELISTING

6905/1 Subject to National Regulations, each Relevant Euronext Market Undertaking may delist 

Securities admitted to listing on its markets:

(i) at the request of the relevant Issuer; or

(ii) on its own initiative.

Each Relevant Euronext Market Undertakings may delist Securities listed on its markets at 

its own initiative on any appropriate grounds including (without limitation):

a) manifest failure of the Issuer to comply with the obligations imposed and the 

requirements set pursuant to the Rules or the Application Form; or

b) the legal entity that has issued the Securities shall cease to exist pursuant to a 

liquidation, merger, dissolution (or equivalent corporate event in any jurisdiction);

c) the Issuer of the Securities has been declared bankrupt (or analogous procedure has

been declared applicable in any jurisdiction); or

d) without prejudice to Rule 4403/2, in the opinion of the Relevant Euronext Market 

Undertaking, facts or developments occur or have occurred with regard to a Security 

which prevent the continued listing of that Security or which cause the Relevant 

Euronext Market Undertaking to believe that a fair, orderly and efficient market for a 

Security cannot be maintained; or

e) adequate clearing and/or settlement services for a type of Securities are no longer 

available; or

f) the delisting of the Shares or other Securities into which they are convertible or for 

which they are exchangeable, as the case may be; or

g) facts or developments occur or have occurred in respect of an Issuer which in the 

opinion of the Relevant Euronext Market Undertaking is detrimental to the reputation of 

Euronext as a whole;

h) the Issuer or its beneficial owners are on the EU Sanction List or the list drawn up by 

the Office of Foreign Assets Control (OFAC).
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6905/2 If the Relevant Euronext Market Undertaking decides to delist a Security pursuant to Rule 

6905/1 (ii), the following procedure shall apply:

(i) the Relevant Euronext Market Undertaking shall inform the Issuer of its intention to 

delist and give the Issuer the opportunity to respond before the relevant decision on 

the delisting is made;

(ii) the Relevant Euronext Market Undertaking shall determine the date on which delisting 

of the Securities shall become effective;

(iii) the Relevant Euronext Market Undertaking shall notify the Issuer in writing of the 

scheduled date of delisting; 

(iv) the Relevant Euronext Market Undertaking shall publish the date on which delisting of 

the Securities shall become effective as well as the conditions of delisting and any 

other relevant information concerning the delisting;

On the date on which the delisting of the Securities becomes effective the agreement 

between the relevant Issuer and the Relevant Euronext Market Undertaking (constituted by 

the Application Form)will be terminated without any further action being required.

6905/3 If a request for delisting of Securities is made by the Issuer pursuant to Rule 6905/1 (i), the 

following procedure shall apply:

(i) the Issuer of the relevant Securities shall request the delisting in writing and state the 

relevant grounds for delisting.

(ii) subject to the relevant conditions for the delisting of the Securities being satisfied, the 

Relevant Euronext Market Undertaking shall determine the date on which the delisting 

of the Securities shall become effective.

(iii) the Relevant Euronext Market Undertaking shall publish the date on which delisting of 

the Securities shall become effective and other relevant information concerning the 

delisting of the Securities.

The Relevant Euronext Market Undertaking may specify by Notice the conditions that 

should be satisfied in relation to a delisting of Securities at the request of an Issuer.

6905/4 Notwithstanding the above, the Relevant Euronext Market Undertaking may decide not to 

delist Securities upon the Issuer’s request if such delisting would adversely impact the fair, 

orderly and efficient functioning of the market.

6905/5 The Relevant Euronext Market Undertaking may subject any delisting of Securities to such 

additional requirements as it deems appropriate.

6905/6 Subject to Rule 1.7, an Issuer may appeal against the decision of the Relevant Euronext 

Market Undertaking to delist in accordance with National Regulations.

6906 Appeals

6906/1 [reserved]

6.10. CONTINUING OBLIGATIONS

61001 GENERAL

61001/1 Scope

Each Issuer must meet the obligations set forth in this Rule 6.10 as long as its Securities 
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are admitted to listing.

The Relevant Euronext Market Undertaking may further detail those obligations in one or 

more Notices. For the avoidance of doubt, none of the obligations set out in this Rule 

61001 shall exempt the Issuers from complying with the disclosure or reporting obligations 

pursuant to National Regulations and Union law.

61001/2 Fees

The Issuer shall promptly pay any fees charged by the Relevant Euronext Market 

Undertaking in accordance with the conditions established by the Relevant Euronext 

Market Undertakings and communicated to the Issuers.

61002 LISTING OF NEWLY-ISSUED SECURITIES OF THE SAME CLASS

61002/1 When additional Securities of the same class as Securities already admitted to listing are 

issued, application for admission to listing of such additional Securities shall be made:

(i) as soon as they are issued in the case of a public offering of Securities; and

(ii) no later than ninety (90) days after their issue in cases other than a public offering.

61003 INVESTOR RELATIONS

61003/1 Equal treatment 

An Issuer shall treat holders Securities of the same class issued by it equally in accordance 

with National Regulations.

61003/2 Information 

An Issuer shall provide the market all necessary information to enable holders of its 

Securities to exercise their rights. 

An Issuer shall communicate to the Relevant Euronext Market Undertaking all information 

which (i) may impact the fair, orderly and efficient functioning of the markets operated by 

the Relevant Euronext Market Undertakings or (ii) may modify the price of its Securities

(ultimately) at the same time at which such information is made public.

The Relevant Euronext Market Undertaking may specify by Notice specific obligations 

regarding disclosure and reporting obligations.

61004 ADMINISTRATION OF CORPORATE AND SECURITIES EVENTS

61004/1 Each Issuer shall inform the Relevant Euronext Market Undertaking of corporate or 

securities events in respect of its Securities admitted to listing in order to facilitate the fair, 

orderly and efficient functioning of the market.

The relevant information shall be provided to the Relevant Euronext Market Undertaking at 

least two (2) Trading Days in advance of the earlier of (i) the public announcement of the 

timetable for any such corporate or securities event or (ii) the corporate or securities event 

having effect on the market or the position of the holders of the relevant Securities. 

At the request of the Relevant Euronext Market Undertaking, the relevant Issuer shall 

provide to the Relevant Euronext Market Undertaking the underlying legal and corporate 

documents relating to the corporate and securities events.

The Relevant Euronext Market Undertaking may further specify by Notice the details, 
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documents and method of submission of the information and documents to be provided 

and submitted to it pursuant to this Rule 61004/1.

For the avoidance of doubt, any obligation for Issuers to provide documentation to the 

Relevant Euronext Market Undertaking as set forth in this Chapter 6 is for the sole purpose 

to allow the Relevant Euronext Market Undertaking to perform its functions and meet its 

responsibilities as the operator of a Regulated Market. In reviewing this documentation, the 

Relevant Euronext Market Undertaking solely performs controls on the technical 

information that allow the Relevant Euronext Market Undertaking to operate the market, 

without prejudice to Rule 6107. None of the obligations exempts the Issuer from providing 

the same documentation to the Competent Authority.

61004/2 The information referred to in Rule 61004/1 includes (without limitation): 

(i) amendments which affect the respective rights of different categories of Securities;

(ii) any issue or subscription of Financial Instruments; 

(iii) any mandatory reorganization (e.g. stock split, reverse stock split, redemption in 

part or in whole of Securities); 

(iv) any voluntary reorganisation with or without option element (e.g. tender offer, rights 

offer, repurchase offer);

(v) any securities distribution (e.g. stock dividend, bonus issue);

(vi) any cash distribution (e.g. cash dividend); 

(vii) any announcement of coupons or cash dividend non payment; 

(viii) any prospectus (or equivalent disclosure document) relating to public offerings; 

(ix) any reports on the status of liquidation and more generally any decision regarding 

any situation of ( temporary) suspension of payments, bankruptcy or insolvency 

situation (or analogous procedure has been granted or declared applicable in any 

jurisdiction;

(x) a name change of the Issuer; and

(xi) the admission to listing or trading on any Regulated Market or other organised 

market.

61004/3 If the admission to listing concerns Depositary Receipts, warrants or other Securities 

entitling holders to acquire other Securities, the information mentioned in Rule 61004/1 

includes (without limitation and in addition to the information referred to in Rule 61004/1):

(i) corporate or securities events of the issuer of the Underlying Securities; and

(ii) any adjustment or modification that the Issuer makes to the exercise condition of 

the warrant as a result of any change in or to the Underlying Securities including 

details of the underlying event that required the adjustment or modification.

61004/4 If the admission to listing concerns Securities issued by a Closed-ended Investment Fund, 

the information mentioned in Rule 61004/1 that the management company of such Closedended Investment Fund shall provide to the Relevant Euronext Market Undertaking 

includes (without limitation and in addition to the information referred to in Rule 61004/1):

(i) an announcement of any distribution;
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(ii) coupons being declared without value.

61004A LEGAL ENTITY IDENTIFIER

61004A/1 An Issuer shall take all necessary measures to have its LEI active for as long as its 

financial instruments are admitted to trading on a Euronext Securities Market.

61005 COOPERATION WITH A EURONEXT MARKET UNDERTAKING

61005/1 In dealing with Euronext, its directors, officers, employees, agents and representatives, 

Issuers shall act in an open and cooperative manner, be honest and truthful and not 

mislead or conceal any material matter.

61005/2 In particular, without limiting the generality of Rule 61005/1, an Issuer shall:

(i) provide full and prompt responses to all requests for information by Euronext in 

respect of business conducted on Euronext Markets or business related thereto, 

and

(ii) notify the Relevant Euronext Market Undertaking promptly of any matter which may 

reasonably be expected to be a matter of concern to the Euronext Market 

Undertaking in the context of its relationship with such Issuer, including (without 

limitation) any corporate action or other event that may cause such Issuer to cease 

to be in compliance with the Rules. This duty of disclosure shall arise as soon as 

the Issuer becomes aware, or has reasonable grounds for believing, that such a 

matter has arisen or will arise. 
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CHAPTER 7: 

[Reserved]
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 CHAPTER 8:

RULES OF CONDUCT

8.1. GENERAL

8101 SCOPE OF CHAPTER 8

8101/1 This Chapter 8 sets forth rules of conduct specific to the Euronext Markets which the 

Members must observe when trading on such Markets.

8102 GENERAL DUTIES OF INTEGRITY, FAIR DEALING AND CARE

8102/1 When trading on the Euronext Markets, a Member shall:

(i) observe high standards of integrity, market conduct and fair dealing; 

(ii) act with due skill, care and diligence; and

(iii) refrain from any act or course of conduct which is likely to harm the reputation 

of Euronext or any Euronext Market. 

8102/2 A Member shall behave in a responsible manner when using a Euronext Trading 

Platform and associated facilities provided by a Euronext Market Undertaking and 

shall only use the Platform and these facilities when there is a legitimate need to do 

so.

8102/3 A Member acting on behalf of Clients shall ensure that, pursuant to National 

Regulations, each such Client has been informed of the risk characteristics of the 

Financial Instruments concerned.

8103 COOPERATION WITH A EURONEXT MARKET UNDERTAKING

8103/1 In dealing with Euronext, its directors, officers, employees, agents and 

representatives, Members shall act in an open and cooperative manner, be honest 

and truthful and not mislead or conceal any material matter.

8103/2 In particular, without limiting the generality of Rule 8103/1, a Member shall:

(i) provide full and prompt responses to all requests for information by Euronext 

in respect of business conducted on Euronext Markets or business related 

thereto and provide access to all relevant books, records, audio logs and 

other forms of documentation, and

(ii) notify the Relevant Euronext Market Undertaking promptly of any matter 

which may reasonably be expected to be a matter of concern to the Euronext 

Market Undertaking in the context of its relationship with such Member, 

including (without limitation) any corporate action or other event that may 

cause such Member to cease to be in compliance with the Rules. This duty of 

disclosure shall arise as soon as the Member becomes aware, or has 

reasonable grounds for believing, that such a matter has arisen or will arise. 

8104 NO ABUSIVE OR MISLEADING CONDUCT

8104/1 In conducting business for itself or on behalf of its Clients, a Member must not engage 

in or attempt to engage in Insider Dealing or Market Manipulation and, in particular,

must not engage in, knowingly facilitate or fail to take reasonable steps to prevent:
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(i) any action or any course of conduct that has the effect, or may be expected to 

have the effect, of artificially and/or abnormally moving the price or value of 

any Admitted Financial Instrument or any instrument underlying an Admitted 

Financial Instrument or the level of any index of which an Admitted Financial 

Instrument is a component;

(ii) entering artificial orders or otherwise entering into or causing any artificial 

Transaction;

(iii) reporting a fictitious Transaction or any other false data to Euronext or 

causing such data to be input into any Euronext system;

(iv) any action or any course of conduct that creates or may reasonably be 

expected to create any false or misleading impression as to the market in, or 

price or value of, any Admitted Financial Instrument or any other unfair trading 

conditions;

(v) any other action or any other course of conduct that may damage the integrity 

and the transparency of any of the Euronext Markets; or

(vi) agreeing or acting in concert with, or providing any assistance to, any Person 

(whether or not a Member) with a view to or in connection with any action or 

course of conduct referred to in paragraphs (i) to (v) inclusive of this Rule 

8104 or otherwise causing or contributing to a breach of any applicable Rule 

by such other Person.

8104/2 For the avoidance of doubt, a Member is responsible for all business conducted in its 

name, whether or not such business has been executed on behalf of a Client and 

whether or not such business has been input through the Member via an Automated 

Order Routing System or via Sponsored Access by such Client.

8104/3 If a Member becomes aware of any action or course of conduct taken by a Client or 

by a Responsible Person or an individual trading through a Responsible Person which 

is or appears to be inconsistent with the requirements of this Rule 8104, it shall report 

it promptly to Euronext pursuant to Rule 8103. Each Member should ensure that it 

has adequate controls and procedures to identify activity by its Clients or by or 

through its Responsible Persons which might be inconsistent with the requirements of 

this Rule 8104.

8105 USE OF EURONEXT TRADING PLATFORMS

8105/1 When using a Euronext Trading Platform and associated facilities, a Member is 

prohibited from engaging in practices which may cause degradation of the service or 

give rise to a disorderly market. Such practices include, but are not limited to, 

submitting unwarranted or excessive electronic messages or requests to a Euronext 

Trading Platform.

8106 INTERNAL CONTROLS

8106/1 A Member shall set up and maintain an appropriate system of internal controls, which 

ensures that the Member continuously complies with all requirements imposed by or 

pursuant to the Rules. 

8106/2 The system of internal controls shall contain internal procedures specific to the 

Member’s capacity on the Euronext Markets. These procedures shall be documented 

and updated on a regular basis. Where a Member executes business on behalf of 

Clients it must have adequate controls and procedures to ensure that, as far as 

reasonably possible, such business complies with, inter alia, Rule 8104.
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8106/3 A Member’s internal controls shall include pre- and post-trade risk management 

controls which are appropriate to the nature, scale and complexity of the Member’s 

business on the Relevant Euronext Market Undertaking. For the avoidance of doubt 

this means that, inter alia, a Member shall ensure that it has appropriate 

arrangements in place:

(i) to vet orders prior to their submission to the Central Order Book, irrespective 

of whether such orders have been submitted manually or electronically 

(including via an Automated Order Routing System or via Sponsored Access); 

and

(ii) to monitor the positional and financial risks inherent in the business it 

conducts.

8106/4 In respect of arrangements put in place by a Member pursuant to Rule 8106/3, the 

Member must be able to demonstrate to Euronext that the following monitoring 

requirements have been incorporated in the Member’s risk control systems:

(i) position limits;

(ii) user definitions (i.e. the ability to define the individual user(s));

(iii) product definitions (i.e. the ability to restrict access to particular Admitted 

Financial Instruments or groups of Admitted Financial Instruments);

(iv) maximum order size per user; and

(v) either automatic order rejection when a limit is exceeded or the order being 

held subject to manual override by an appropriately authorised risk manager.

8106/5 Euronext may specify in Book II of the Rules or by Notice additional requirements in 

respect of pre-trade vetting and post-trade risk management for specific Euronext 

Markets and/or Admitted Financial Instruments.

8106/6 A Member shall have adequate arrangements to ensure that all staff involved in the 

conduct of business on the Euronext Markets are suitable, adequately trained and 

properly supervised.

8106/7 The Relevant Market Undertaking may make available to Members and Clearing 

Members facilities for pre- and post-trade risk management including arrangements 

which would allow a Clearing Member to suspend with immediate effect the access to 

the Euronext Trading Platform of a Member for which it clears or for a Member to 

suspend its own access. The conditions for the use of such facilities and 

arrangements shall be specified by Notice.

8.2. RESERVED

8.3. AUDIT TRAIL

8301 RECORDING OF ORDER DETAILS

8301/1 A Member shall ensure that each order received from a Client is recorded and timestamped immediately by a process other than handwriting. The order record must be 

time-stamped again on execution and also at the time of any amendment or 

cancellation of the order by the Client.
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8301/2 Order records may be maintained on order slips or by electronic means or by any 

other means specified by the Relevant Euronext Market Undertaking, providing that 

any such method of recording complies with the requirements of this Rule 8301.

8301/3 Order records must contain the orders data listed in the annex of the Delegated 

Regulation (EU) 2017/580and any additional information required by the Relevant 

Euronext Market Undertaking.

8301/4 All order records, of whatever kind, must be:

(i) robust, secure and not prone to alteration;

(ii) made available: 

(a) immediately on the day of the transaction; and 

(b) within a reasonable period of time thereafter, where required by the 

Relevant Euronext Market Undertaking; and

(iii) presented in a manner which is easily decipherable by the Relevant Euronext 

Market Undertaking.

8301/5 Members who employ electronic means to maintain order records must have suitable 

contingency procedures in the event of systems failure, which may include back up 

systems or recourse to a paper-based audit trail, such that no loss of audit trail data 

can occur.

8302 RETENTION OF INFORMATION

8302/1 A Member shall maintain for a period of five years records of:

(i) automatic screening parameters and modifications thereof as well as rejected 

orders, pursuant to Rule 8106/3;

(ii) orders, arranged chronologically, pursuant to Rule 8301/1; and

(iii) Transactions and, if applicable, the settlement thereof and the custody of 

Securities traded on the Euronext Markets.

All records maintained pursuant to this Rule 8302 shall be available for inspection by 

Euronext.

8303 VOICE RECORDING

 

(i) In respect of Euronext Securities Markets, the Relevant Euronext Market 

Undertaking requires recordings to be made by or on behalf of the Member of 

conversations regarding Transactions made, or intended to be made, on the 

market which are conducted on telecommunications equipment of any kind 

located in a Member’s premises. Any such recordings made pursuant to such 

requirements shall be retained by the Member for a period of six months for 

possible inspection by Euronext.

(ii) In respect of Euronext Derivatives Markets, the Relevant Euronext Market 

Undertaking may specify in Book II of the Rules requirements in respect of 

recording by or on behalf of the Member of conversations regarding 

Transactions made, or intended to be made, on the market. 
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CHAPTER 9:

MEASURES IN CASE OF VIOLATION OF THE RULES

9.1. SCOPE OF CHAPTER 9

9101 An alleged violation by a Member of an obligation of the Rules related to the operating 

of Euronext markets other than the Euronext Securities Market established in the 

United Kingdom (an Alleged Violation) shall be dealt with in accordance with the 

provisions of this Chapter.

9102 This Chapter is without prejudice to:

(i) any action and/or measures that may be taken by Euronext based on any 

procedure laid down in another part of the Rules;

(ii) the right to carry out on-site investigations on basis of Chapter 2;

(iii) any provision of National Regulation concerning enforcement by the 

Competent Authorities.

9103 Immediate measures

In case a violation of the Rules by a Member constitutes a threat to the fair, orderly 

and efficient functioning of the Euronext Markets, or upon instruction of the Competent 

Authority, Euronext may take immediate measures to protect the market, including 

suspension of all or some of a Member’s trading rights. 

9.2. PROCEDURE 

9201 EXAMINATION

9201/1 For the examination of an Alleged Violation Euronext may:

(i) require the Member to provide any information, copies of records and 

documents that may be relevant for the examination of Alleged Violation;

(ii) send a representative to a Member’s offices at any time during normal 

business hours in the country in which such offices are located, who may 

require immediate access, to all such information, records and documents 

kept by a Member that may be relevant for the examination of the Alleged 

Violation; and/or

(iii) require any Member to procure the attendance of any of its directors, officers, 

employees, agents and representatives at a specified time and place, at either 

the offices of the Relevant Euronext Market Undertaking or those of the 

Member, in order to answer questions or provide explanations that may be 

relevant for the examination of the Alleged Violation.

9202 CONFIDENTIALITY

Euronext shall use any information obtained pursuant to Rule 9201 exclusively for 

purposes and within the scope of this Chapter 9 and any related arbitration or court 

proceedings and shall not otherwise disclose such information except:
EURONEXT RULE BOOK – BOOK I: HARMONISED RULES 

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(i) to the Competent Authorities or other public authorities having jurisdiction over 

the relevant matter;

(ii) when otherwise required by applicable law and regulation; or

(iii) pursuant to exchange-of-information arrangements with other exchanges or 

Clearing Organisations, provided that these arrangements are bound by an 

equivalent confidentiality undertaking.

9203 REPORT

9203/1 When there is an Alleged Violation Euronext shall make a written report.

9203/2 This report shall contain the findings of Euronext and a reference to the Rule allegedly 

breached by the relevant Member.

9203/3 Euronext shall send this report upon completion to the relevant Member.

9203/4 Euronext shall give the relevant Member an opportunity to present its response in 

writing within two weeks, unless otherwise specified, after receiving the report.

9203/5 Any comments made by the Member shall be attached to said report.

9204 EXPLORATORY MEETING 

9204/1 Upon completion of the report and after receiving the written comments, if any, of the 

Member, Euronext shall, at either party’s request, organize a meeting with the 

Member. This meeting will allow both parties to ask further questions and respond on 

an Alleged Violation.

9204/2 The meeting will be held at the premises of the Relevant Euronext Market 

Undertaking or, if both parties agree, in another place.

9204/3 In this meeting both parties may, at their own discretion, bring any representative, 

expert or other person. Each party shall ensure the confidentiality of the non-public 

information provided to such attendees and will be liable for breach of confidentiality 

by those present on their behalf, unless those attendees have a statutory obligation to 

disclose the information. Both parties shall have the possibility to deny the attendance 

of experts or other persons if they are able to prove that these persons are affected by 

conflicts of interest.

9204/4 The number of persons attending a meeting for each party shall not exceed eight, 

unless agreed upon otherwise between Euronext and the Member. 

9204/5 Upon prior request of the Member, Euronext shall draft minutes of the said meeting to 

be signed by Euronext and the Member.

9.3. RECTIFICATION, SUSPENSION AND TERMINATION

9301/1 If a Rule has been violated, Euronext may:

(i) require the Member to fulfill its obligations under the Rules or require 

rectification towards Euronext of the violation by a Member of an obligation 

under the Rules within a term specified;

(ii) either:
EURONEXT RULE BOOK – BOOK I: HARMONISED RULES 

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(a) require from the Member liquidated damages for the violation of the 

Rule, of a fixed amount between EUR 500 and EUR 250.000 

according to a scale published in a Notice; or

(b) claim any kind of compensation for actual damage caused to 

Euronext’s interest as a commercial operation and as a Regulated 

Market or to the integrity or safety of its markets, if the damage is 

proven to be patently higher than the fixed amount under a). The 

claim shall be limited to direct damage except in case of willful 

misconduct or gross negligence;

(iii) suspend some of the Member’s trading or membership rights for no more than 

six months;

(iv) suspend for no more than six months the Member’s Euronext Membership;

(v) terminate access to certain facilities;

(vi) terminate the Member’s Euronext Membership; and/or

(vii) publish all or part of the decision taken by Euronext under this Rule. 

9301/2 The relevant Member shall be informed of the decision of the Relevant Euronext 

Market Undertaking by a letter sent by registered mail.

9301/3 The Relevant Euronext Market Undertaking shall promptly inform the other Euronext 

Market Undertakings, the Members, the Clearing Organisation and parties with whom 

Euronext has concluded a cross-membership agreement of:

(i) a suspension or termination of the Membership of any Member; 

(ii) the period of such suspension; and 

(iii) the decision of the Member to contest the decision before the competent court 

or an arbitration institution.

9.4. REPORTING AND PUBLICATION

9401 REPORTING

9401 Euronext shall:

(i) report on the monitoring of Rule Book compliance and violations of the Rules 

to the Competent Authority on the basis of arrangements between Euronext 

and the Competent Authority;

(ii) immediately notify the Competent Authority of a decision to suspend or to 

terminate a Member’s trading or membership rights under Chapter 9;

(iii) prepare and publish a general report on the application of Chapter 9 from time 

to time but at least once a year. If necessary to protect the integrity or the 

safety of the markets such report may disclose the identities of the Members 

involved.
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9402 INFRINGEMENT OF NATIONAL REGULATIONS

If Euronext finds in the course of an examination of an Alleged Violation or on any 

other occasion serious indications of a possible infringement of National Regulations, 

it shall report the matter to the relevant Competent Authority as soon as possible.

9.5. LIABILITY AFTER MEMBERSHIP TERMINATION OR RESIGNATION 

9501 Termination or resignation of Euronext Membership is without prejudice to the right of 

Euronext to ask for evidence and to require financial compensation pursuant to Rule 

9301/1 (ii) for damages caused by any violations of the Rules by a Member.
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

Euronext Amsterdam

23 November 2017

Book II General Rules for the

Euronext Amsterdam Securities Market
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

C O N T E N T S

Article

Definitions A – 1

General Provisions A – 2

Local Membership Rules A – 3

Local trading rules A – 4

Local rules with respect to trading and admission to listing A – 5

Appendixes 

Appendix I, Requirements relating to the contents of administration conditions
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

A - 1 DEFINITIONS

The capitalised terms used in these Rules are defined in Chapter 1, Book I, of the Rule Book, except where 

defined below. 

Admission:

Admission to official listing on the Euronext Amsterdam Securities Market

Bonds Issued on Tap:

Mortgage bonds, bank bonds and similar debt instruments which the Issuer mainly issues on tap, i.e. every 

Trading Day

Cash Market Operations:

Euronext Amsterdam’s cash market operations department

Depositary receipt:

A certificate embodying an entitlement to specific rights attaching to a security, where the issuer of the 

depositary receipts is not the issuer of the underlying security

Euronext Amsterdam Daily Official List:

The Euronext Amsterdam Daily Official List (Officiële Prijscourant) published by Euronext Amsterdam

General Clearing Member:

A Clearing Member authorised to clear Transactions which have been allocated to it or which it has

executed for its own account or for the account of Clients or other Members

IAS/IFRS:

International Accounting Standards/International Financial Reporting Standards

Individual Clearing Member:

A Clearing Member authorised to clear Transactions which have been allocated to it or which it has 

executed for its own account or for the account of its Clients

Participation certificate:

A certificate of participation in a mutual investment fund

Placing:

The transfer to a third party, in return for payment, of one or more Bonds Issued on Tap by the Issuer or its 

Representative

Representative:

Insofar as the Issuer is not a Member itself, the Member whose name is reported by the Issuer to Euronext 

Amsterdam and which represents the Issuer at the Euronext Amsterdam Securities Market

Series:

Bonds Issued on Tap which - with the exception of the Placing price - have identical loan conditions and are 

placed on the basis of the same resolution to issue bonds

Statement of Authority:

A statement and authorisation issued by a Clearing Member, stating that the Member with which the 

Clearing Member has concluded a Clearing Agreement is authorised to act in the name of the Clearing 

Member as referred to in Rule A – 4.4
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

A - 2 GENERAL PROVISIONS

A – 2.1 Application

This Rulebook contains rules with which Members that exercise a capacity and/or are 

admitted to a Euronext Market operated by Euronext Amsterdam must comply.

These Rules apply to trading in Securities listed or traded on a Euronext Market operated by 

Euronext Amsterdam, and to the rights and obligations of the Members of these Euronext

Markets, unless this Rulebook provide otherwise or the context indicates otherwise.

A – 2.2 Entry into force

This Rulebook has entered into force on 29 October 2001 and was most recently revised on 

23 November 2017.

A - 3 LOCAL MEMBERSHIP RULES

A - 3101 Fees

A - 3101/1 Euronext Amsterdam may request that Members pay the fees they owe to Euronext 

Amsterdam by direct debit in accordance with the provisions of collection rules to be laid 

down for this purpose by Euronext Amsterdam. 

A - 3101/2 If a currency is replaced by another or if a unit of account is converted into a currency or 

ceases to exist owing to a change in legislation or new legislation applicable to that currency 

or unit of account, all financial obligations on the part of Members which arise from Euronext 

Amsterdam’s rules, regulations and guidelines and are expressed in the original currency or 

unit of account without any translation gains or losses, shall be settled in the replacement 

currency.

A - 3101/3 In the event that the law provides for a transitional period to allow for the replacement of a 

currency or the conversion of a unit of account into a currency, financial obligations arising 

from Euronext Amsterdam’s rules, regulations and guidelines shall, contrary to the 

provisions of Rule A - 3101/2, be settled in the currency or unit of account as Euronext 

Amsterdam shall determine. In such cases, Euronext Amsterdam may decide that 

settlement must be made in the original currency or unit of account, or in the replacement 

currency, or in either currency, with due observance of such further conditions as it shall 

deem necessary.

A - 3101/4 Euronext Amsterdam’s decision as referred to in Rule A - 3101/3 shall not affect the 

Members’ right to make individual contractual agreements with their Clients in respect of the 

currency in which financial obligations shall be settled with those Clients during the relevant 

transitional period. 

A - 4 LOCAL RULES GOVERNING TRADING

A – 4.1 Special measures affecting trading

A – 4101/1 In unusual market conditions not provided for in this Rulebook, Euronext Amsterdam may 

impose the reasonable measures deemed necessary to ensure a fair and orderly market.

A – 4101/2 Rule 4403/2 of Euronext Rule Book, Book I, offers the Relevant Euronext Market 

Undertaking the possibility of suspending trading in a security in order to prevent or stop 

disorderly market conditions, either on its own initiative and at its own discretion, or on the 

basis of a well-founded request from an Issuer concerned. Provided that:

(i) requests from Issuers related to price sensitive information will be dealt with by the 

Autoriteit Financiële Markten (AFM);
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

(ii) requests from Issuers related to the fair and orderly market and with a purely 

technical background (for example incorrect handling of a corporate action or 

inability to quote for structured products) will be dealt with by Euronext Amsterdam;

(iii) for all other requests from Issuers related to the fair and orderly market, Euronext 

Amsterdam NV will not take its decision until it has consulted the Autoriteit 

Financiële Markten.

A - 4.2 Bonds Issued on Tap

A - 4201/1 This Rule applies only to Bonds Issued on Tap. Bonds Issued on Tap that belong to the 

same Series shall only be admitted to official listing if:

a. the general Admission requirements laid down by Euronext Amsterdam in the 

relevant rules have been complied with, unless otherwise provided in this Rule;

b. a nominal value of at least EUR 2,500,000 of the bonds for which Admission is 

sought has been placed;

c. the application relates to all the bonds of a particular Series issued at the time of the 

application;

d. the Issuer has given Euronext Amsterdam an undertaking to seek Admission, within 

90 days of Placing, whenever bonds are placed in a Series of which the previously 

placed part has been admitted to listing.

A - 4201/2 Each day, the Issuer is obliged repurchase any bonds offered on the Euronext Market 

operated by Euronext Amsterdam that belong to the Series issued by the Issuer up to the 

nominal value of the bonds in the Series which are sold by the Issuer on the exchange on 

that day.

A - 4201/3 In the event of a repurchase as referred to in Rule A - 4201/2, the Issuer is entitled to deduct 

from the quoted price all or part of any payment made by it in respect of the issue.

A - 4201/4 If the Issuer exercises its right as provided in Rule A - 4201/3, the selling Member is required 

to execute the Transaction at the price thus arrived at.

A - 4201/5 The Issuer may make a payment to Members in respect of Bonds Issued on Tap. If it does 

so, that fact must be stated in the prospectus, as must the amount of any such payment.

A - 4201/6 The amount of the payment may not be changed unless the issue price changes. The Issuer 

must report any such change in the accompanying advertisements.

A - 4201/7 The provisions of this Rule shall not apply to issues made by the Kingdom of the 

Netherlands.

A – 4.3 Stabilisation activities

Only Members are authorised to act as stabilisers on the Euronext Amsterdam Securities 

Market.

A – 4.4 Clearing of Transactions

If and insofar as Transactions are executed via the trading system of a Euronext Market

operated by Euronext Amsterdam that are to be cleared by a Clearing Member, the following 

provisions apply:

1a) In the case of a Member that has concluded a Clearing Agreement with a General 

Clearing Member and wishes to clear Transactions it executed via the Clearing 

House, before that Member is authorised to make offers to conclude agreements with 

the Clearing House in the name of the General Clearing Member in question, that 

General Clearing Member must submit to Euronext Amsterdam a Statement of 

Authority for the Member in question.
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

1b) If a Member exercises the capacity of Individual Clearing Member or General Clearing 

Member, the Member shall be entitled to make offers to conclude agreements in its 

own name, provided a Statement of Authority relating to this has been submitted to 

Euronext Amsterdam.

2) The Statement of Authority must comply with the requirements set by Euronext 

Amsterdam. It may be revoked at any time, on the understanding that this will only 

have effect with regard to Euronext Amsterdam and the Clearing House as from the 

time that they receive written notice of the revocation of the Statement of Authority 

and confirm this.

3) Members must check immediately the accuracy and completeness of the confirmation 

reports they receive for Transactions concluded by them.

4) As soon as possible following the close of trading, Euronext Amsterdam will send to 

the Clearing House a list of all the Securities Transactions concluded on that day on a 

Euronext Market operated by Euronext Amsterdam so that these Transactions can be 

cleared with due observance of the applicable rules, all on the basis of an agreement 

concluded between Euronext Amsterdam and the Clearing House and maintained 

between them.

A – 5 LOCAL RULES WITH RESPECT TO TRADING, ADMISSION TO LISTING AND

REVERSE LISTINGS

A – 5.1 Admission: applicable provisions

The provisions contained in Chapter A – 4 of this Rule Book and Chapter 6 of the Euronext 

Rule Book, Book I apply to Securities in respect to admission to listing as far as is not 

otherwise imposed by the provisions of this Rule Book. In the case of conflict between the 

provisions of Chapter A – 4 of this Rule Book and the provisions of Chapter 6 of Euronext 

Rule Book, Book I, the provisions of Chapter A – 4 of this Rule Book shall prevail.

A – 5.2 Special provisions relating to Depositary receipts

Where an application for admission of Securities relates to Depositary receipts, the 

administration conditions must comply with the requirements contained in Appendix I. If the 

administration conditions have most recently been approved before 2 September 2016, the 

administration conditions have to comply with the requirements relating to the contents of 

administration conditions as set out in the Appendix per the first moment of amendment of 

the administration conditions after that date.

A – 5.3 Policy regarding requests to delist on one’s own initiative

The delisting policy of Euronext Amsterdam with respect to shares or depositary receipts is 

instead of that which is referred to in Rule 6905/1 under (i), Euronext Rule Book, Book I, laid 

down in a Notice.

A – 5.4 Policy regarding reverse listings

Euronext Amsterdam may impose requirements (and publish such requirements by Notice) 

in respect of reverse listings.

A – 5.5 General

In cases where A – 4 of this Rule Book or Chapter 6, Euronext Rulebook, Book I does not 

cover, Euronext Amsterdam shall decide.
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

APPENDIX I 

REQUIREMENTS RELATING TO THE CONTENTS OF ADMINISTRATION CONDITIONS

1. The administration conditions must provide that the original securities shall be taken into 

administration

2. The administration conditions must set out the obligations undertaken by the company of which 

securities are taken into administration with regard to such administration and the issued 

Depositary receipts.

3. The administration conditions must provide that all expenses shall be borne by the company of 

which securities are taken into administration, with the exception of printing (in case of physical 

securities) or allocation (in case of non-physical securities) and conversion costs.

4. The administration conditions must lay down the method of custody of registered securities taken 

into administration.

Custody shall be performed in the name of the trust office by one or more banks and/or securities 

depositaries to be appointed in consultation with Euronext Amsterdam.

5 If permitted by the administration conditions and all securities taken into administration are 

registered securities, such securities may be given into custody outside the Netherlands.

6. The administration conditions must state the name and address of the custodian or provide that 

these shall be announced by advertisement and on the website of the company of which securities 

have been taken into administration.

The administration conditions must further provide that, save in very exceptional circumstances, at 

the discretion of Euronext Amsterdam, any change in the name or address of the custodian shall 

be notified to the holders of Depositary receipts by advertisement and on the website of the 

company of which securities have been taken into administration at least eight business days in 

advance, specifying the new name and/or address of the custodian and the reasons for the 

relocation.

7. The administration conditions must provide that the trust office shall have power to deposit the 

securities taken into administration temporarily elsewhere, and/or in a manner other than the usual 

manner as described in the conditions, or to place them into custody elsewhere.

8. The administration conditions must further provide:

- that relocation (in case of physical securities) or transfer (in case of non-physical securities)

of the securities taken into administration shall require the prior approval of the managing 

board of the trust office.

- that a copy of such approval must be submitted to the transferee of the securities taken into 

administration.

9. In case of physical securities, the administration conditions must provide that proper insurance 

must be taken out in the case of transportation of the Securities taken into administration.

10. The administration conditions must contain provisions to the effect:

- that the trust office shall be entitled to exercise the voting right attaching to the securities 

taken into administration in such a manner as it shall deem appropriate in the interests of the 

holders of Depositary receipts. The preceding paragraph shall not apply, however, if the 

objects set out in a trust office's Articles of Association restrict the administration of the 
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

underlying securities to shares issued by just one institution identified by name, taking article 

2:118a DCC into consideration;

- that, in the event of a proposal to modify the rights attaching to the securities taken into 

administration, the trust office undertakes to inform the holders of Depositary receipts by 

advertisement and on the website of the company of which securities have been taken into 

administration, if possible no later than fourteen business days in advance, whether it 

intends to exercise the voting right or not, without having to indicate in which direction it will 

vote;

11. The administration conditions must provide that they shall be amendable, subject to a proper 

announcement being made, provided that any such amendment is required or advisable at the 

discretion of the managing board of the trust office and without prejudice to the other provisions of 

Appendix I with respect to amendments to the administration conditions. Such amendment shall 

not entitle holders of Depositary receipts to a conversion free of charge.

12. The administration conditions must provide that any other amendment of the administration 

conditions whereby rights or collateral of holders of Depositary receipts are reduced or obligations 

are imposed upon them, shall not take effect until 3 months have elapsed after the date of the 

amendment of the administration conditions. During this period holders of Depositary receipts must 

be enabled to convert their Depositary receipts free of charge.

13. The administration conditions must provide that dividend, interest and distributions on Depositary 

receipts, of whatsoever nature, shall be made payable without charge, and that notice thereof shall 

be given by advertisement and on the website of the company of which securities have been taken 

into administration.

If there is a choice between a distribution in cash and one in other values, the trust office shall 

announce this in advance by advertisement and on the website of the company of which securities 

have been taken into administration and thereby as far as possible enable holders of Depositary 

receipts to indicate their wishes as to the choice to be made by the trust office. This possibility shall 

exist until the fourth business day prior to the day on which the trust office must have made its 

choice. If the wishes of Depositary receipts holders have not come to the knowledge of the trust 

office four business days prior to the date on which the trust office must have made its choice, the 

trust office shall choose as it deems fit in the interests of the holders of Depositary receipts.

14. If the administration conditions contain a provision to the effect that holders of Depositary receipts 

who fail to claim amounts collected on their behalf forfeit their rights to such distributions after a 

specific period, such period shall not be shorter than twenty years, as regards both principal and 

dividend and interest.

15. The administration conditions must provide that if the trust office should be wound up or should 

wish to terminate the administration of the original securities, this shall be notified by advertisement

and on the website of the company of which securities have been taken into administration,.

In addition, the period for surrender and exchange of the securities into administration must be 

indicated. This period shall be not less than two years from the day of the announcement. During 

this period the administration conditions shall remain in force. The conversion shall in this case be 

effected free of charge. It must further be provided that on expiry of such period the trust office 

shall be entitled, after consultation with Euronext Amsterdam and after due announcement, either 

to deposit the securities taken into administration with a third party, for the account and risk of the 

holders of the Depositary receipts still outstanding at such time, or to sell the same and to hold the 

proceeds thereof at the disposal of the holders of Depositary receipts then outstanding.

For a period of two months after an announcement as referred to in the first paragraph above, the 

printing of Depositary receipts shall continue to be allowed, provided the trust office is informed of 

the number of original securities to be presented for the printing of Depositary receipts no later 

than on the fourth business day following the day of publication, and provided that it is shown 
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

satisfactorily that these original securities had already been acquired prior to or on the day of the 

announcement referred to in the first paragraph above.

16. The administration conditions must provide that all announcements which this institution is required 

to make pursuant to the administration conditions or otherwise, shall be made available for public 

inspection in the Netherlands and free of charge to holders of Depositary receipts as soon as 

possible after publication.

17. In case of physical securities, the administration conditions must provide:

- that duplicates or new receipts shall be issued to replace Depositary receipts which have 

been rejected by Euronext Amsterdam, of which all component parts are available and from 

which all details can be ascertained;

- If Euronext Amsterdam deems it advisable, duplicates or new receipts shall be made 

available in Amsterdam to replace Depositary receipts which do not or no longer satisfy the 

requirements concerning the physical production of securities set out in this Rule Book.

18. The administration conditions must provide that bonus shares distributed to the trust office, writing 

up of shares, stock dividends and the like shall as far as possible be made available to the holders 

of Depositary receipts in the form of Depositary receipts or by writing up on Depositary receipts.

19. The administration conditions must provide that amendments thereof shall not come into force until 

the approval of Euronext Amsterdam has been obtained.

20. The administration conditions must provide that a transfer of the administration to another trust 

office in the circumstances referred to in 23 and 27 shall require the approval of the company of 

which securities have been taken into administration, of the trust office and of the holders of 

Depositary receipts, and that if any of the parties withholds its approval to the transfer, the readiest 

party may request a decision from Euronext Amsterdam, which shall be binding upon all the 

parties.

21. Where the administration conditions relate to the issue of non-convertible Depositary receipts, the 

provisions referred to in items 12 and 15 above shall not apply.

22. Where the holder of Depositary Receipts does not exercise his voting rights pursuant to article 

2:118a Dutch Civil Code, the trust office shall, where the administration conditions relate to the 

issue of non-convertible Depositary receipts, in the administration conditions undertake at all times 

to vote against an amendment of the Articles of Association of the company of which shares have 

been taken into administration against the issue of non-convertible Depositary receipts, insofar as 

such amendment would contemplate a restriction of the number of votes which can be cast by one 

and the same shareholder.

23. Where the administration conditions relate to the issue of non-convertible Depositary receipts the 

trust office shall in the administration conditions undertake to provide Euronext Amsterdam with all 

particulars necessary for the assessment of its independence of the company of which securities 

have been taken into administration.

In that case the administration conditions must provide that if during the existence of the 

administration a situation develops in which Euronext Amsterdam no longer deems the trust office 

to be independent of the company of which securities have been taken into administration, and its 

independence is not restored within such time as determined by Euronext Amsterdam, or if the 

trust office has not within such time as determined by Euronext Amsterdam provided such 

particulars as Euronext Amsterdam deems necessary for the assessment of its independence, the 

trust office shall be obliged to transfer the administration to another (independent) trust office, all 

expenses incurred in connection therewith being borne by the transferring trust office.

24. Where the administration conditions relate to the issue of non-convertible Depositary receipts, they 

must provide that discontinuation of the administration shall require the consent of the company of 
Book II General Rules of the Euronext Amsterdam Securities Market – 23 November 2017

which securities have been taken into administration, of the trust office and of the meeting of 

holders of Depositary receipts.

In such a case it must further be provided that amendments of the administration conditions with 

the object of discontinuing the non-convertibility of the Depositary receipts shall require the 

consent of the company of which securities have been taken into administration and of either the 

trust office or the meeting of holders of Depositary receipts.

Any other amendments of the administration conditions shall require the consent of the company

of which securities have been taken into administration, of the trust office and of the meeting of 

Depositary receipts holders, with the exception of the amendments as referred to in item 11 above.

25. Where the administration conditions relate to the issue of non-convertible Depositary receipts they 

must prescribe the voting procedure at meetings of holders of Depositary receipts.

It must further be provided that whenever the consent of the holders of Depositary receipts is 

required pursuant to the administration conditions, such consent must be evidenced by a 

resolution passed at a meeting of Depositary receipt holders at which at least three-fourths (or twothirds) of the (nominal) amount of Depositary receipts outstanding is represented and with a 

majority of at least three-fourths (or two-thirds) of the votes cast; that if at such meeting the said 

amount of Depositary receipts is not represented, a second meeting shall be convened and held, 

at which resolutions may be passed with a majority of at least three-fourths (or two-thirds) of the 

votes cast, irrespective of the amount of Depositary receipts represented, which resolutions shall 

be binding upon all holders of Depositary receipts.

26. Where the administration conditions relate to the issue of non-convertible Depositary receipts they 

must provide that one or more holders of Depositary receipts who jointly represent at least 3/100 of 

the nominal amount of the Depositary receipts outstanding, shall be entitled to request the trust 

office in writing and with an exact specification of the subjects to be discussed to convene a 

meeting of holders of Depositary receipts, and that if the trust office has not proceeded to do so 

within one month, the readiest holder shall be entitled to convene the meeting, with due 

observance of periods and formalities prescribed by the administration conditions for the 

convening of a meeting of holders of Depositary receipts.

27. Where the administration conditions relate to non-convertible Depositary receipts they must 

provide that, if the Articles of Association of the trust office no longer satisfy the requirements of 

Euronext Amsterdam, the trust office shall be obliged to either amend the Articles of Association of 

the trust office such that they satisfy the requirements of Euronext Amsterdam or transfer the 

administration to another trust office whose Articles of Association do meet such requirements, and 

that all expenses incurred in connection therewith shall be borne by the transferring trust office.
1

Euronext Derivatives Markets:

Trading Procedures

Issue Date: 21 February 2017

Effective: 21 February 2017

Department: Group Regulation

Euronext, Beursplein 5, PO Box 19163, 1000 GD Amsterdam, The Netherlands

www.euronext.com
2

TABLE OF CONTENTS

PART ONE Harmonised Provisions 

Section 1 GENERAL

1.1 Introduction

1.2 Definitions

1.3 Compliance with the Rules and conduct

1.4 The Responsible Person

Section 2 THE OPERATION OF UTP

2.1 Price limits

2.2 Settlement prices – Futures Contracts

2.3 Settlement prices – Options Contracts

2.4 Emergency termination of a trading session and subsequent 

resumption

2.5 Evening trading session

Section 3 ON ORDER BOOK TRANSACTIONS

3.1 [Deleted] 

3.2 Entering orders and making acceptances

3.3 Making of trades

3.4 Cross Transactions

3.5 Trade cancellations

3.6 Strategy trades

3.7 Delta neutral strategy trades

3.8 Stock Contingent Trades

3.9 Index Futures Exchange for Physical Facility 

Section 4 OFF ORDER BOOK TRANSACTIONS

4.1 Transactions negotiated outside the Central Order Book

4.2 Basis Trading

4.3 Asset Allocations

4.4 Against Actuals

4.5 Large-in-Scale Trades

4.6 Guaranteed Cross Trades

4.7 Flex Contracts

__________________________

PART TWO Non-Harmonised and Market-Specific Provisions

Section 1 Trading Procedures in relation to the Amsterdam and Brussels 

Markets

AB.1 Application of Section 1 

AB.2 Account type identifier and Order execution

AB.3 Trade matching Primary Market Makers and/or Competitive Market 

Makers
3

Annexe One Trading Arrangements

Annexe Two Recognised Strategies

Annexe Three [Deleted]

Annexe Four European Market Services Contact Details
4

PART ONE

SECTION 1 – GENERAL

1.1 Introduction

1.1.1 These Trading Procedures are issued pursuant to Rule 5106 and apply 

in respect of all Exchange Contracts.

1.1.2 These Trading Procedures have the same status with regard to 

enforceability as the Rules.

1.1.3 Nothing contained in these Trading Procedures overrides any term 

(expressed or implied) of the Rules and, in the case of any conflict 

between any provision of these Trading Procedures and the Rules, the 

Rules will prevail.

1.1.4 The following rules of construction apply to these Trading Procedures:

(a) expressions referred to in writing must be construed as including 

references to printing, lithography, photography and other modes 

of representing or reproducing words or data in a visible form;

(b) any words importing the singular number include, where the 

context permits, the plural number and vice versa. Any words 

importing the masculine gender include the feminine gender and, 

where the context permits or requires, a partnership or an 

incorporated company; and

(c) the headings in these Trading Procedures are for convenience 

only and do not affect the construction of these Trading 

Procedures.

1.2 Definitions

1.2.1 The following provisions apply to, or should be noted in connection 

with, the interpretation of these Trading Procedures:

(a) references herein to Trading Procedures should be construed as 

references to the Trading Procedures which comprise this 

document;

(b) a term defined in the Rules has the same meaning in these 

Trading Procedures; and

(c) certain terms which appear in these Trading Procedures but 

which do not appear in the Rules are defined in Trading 

Procedure 1.2.2.

1.2.2 In these Trading Procedures, unless otherwise expressly stated:
5

“Against Actuals” a Transaction negotiated and executed 

pursuant to Trading Procedure 4.4;

“approved basis trade 

instrument”

a security, a basket of securities, a nonEuronext exchange traded contract or an 

OTC instrument approved for the time being 

by the Relevant Euronext Market 

Undertaking in relation to a basis trade 

Exchange Contract specified by that 

Relevant Euronext Market Undertaking;

“asset allocation” a Transaction consisting for one party (“A”) 

of:

(a) the purchase of an appropriate 

number of contracts in the terms of 

an asset allocation Exchange 

Contract (A’s first futures/options 

element); 

simultaneously combined with

(b) the sale of an appropriate number of 

contracts in the terms of another 

asset allocation Exchange Contract 

(A’s second futures/options element) 

whereby the ratio between the 

number of contracts purchased and 

sold must be such as to ensure that 

the purchase and sale have an equal 

notional value when valued in a 

common currency;

and, at the same time, for another party 

(“B”) of:

(c) the sale of an appropriate number of 

contracts in the terms of an asset 

allocation Exchange Contract (B’s 

first futures/options element); 

simultaneously combined with

(d) the purchase of an appropriate 

number of contracts in the terms of 

another asset allocation Exchange 

Contract (B’s second futures/options 

element) whereby the ratio between 

the number of contracts sold and 

purchased must be such as to ensure 

that the sale and purchase have an 

equal notional value when valued in a 

common currency;
6

“asset allocation 

Exchange Contract”

an Exchange Contract designated by the 

Relevant Euronext Market Undertaking as 

an Exchange Contract which may form an 

element of an asset allocation;

“Automated Price 

Injection Model”

an electronic system or computer software 

which interfaces with UTP and both 

determines the requirement for sending, and 

sends, order handling messages to the 

Trading Host without necessarily requiring 

the intervention of an individual;

“basis trade” (i) a Transaction consisting for one party 

(“A”) of:

(a) the spot sale of an approved 

basis trade instrument (A’s 

cash element);

simultaneously combined with

(b) the purchase of an appropriate 

number of contracts in the 

terms of a basis trade 

Exchange Contract (A’s 

futures element);

and, at the same time, for another 

party (“B”) of:

(c) the spot purchase of an 

approved basis trade 

instrument (B’s cash element);

simultaneously combined with

(d) the sale of an appropriate

number of contracts in the 

terms of a basis trade 

Exchange Contract (B’s 

futures element); 

(ii) where the Transaction is an 

Exchange for Swap, the Basis Trade 

Facility may be used to enable the 

parties to an OTC swap or option 

transaction to exchange their 

respective OTC positions with the 

appropriate number of futures 

contracts in the terms of a basis trade 

Exchange Contract; and
7

(iii) where the Transaction is an 

Exchange of Options for Options, the 

Basis Trade Facility may be used to 

enable the parties to an OTC option 

transaction to exchange their 

respective OTC positions with the 

appropriate number of options 

contracts in the terms of a basis trade 

Exchange Contract.

“basis trade Exchange 

Contract”

(a) an Exchange Contract designated by 

the Relevant Euronext Market 

Undertaking as an Exchange 

Contract in respect of which contracts 

comprising the futures element of a 

basis trade may be made; or 

(b) in respect of asset allocation basis 

trades, means an Exchange Contract 

designated by the Relevant Euronext 

Market Undertaking as an Exchange 

Contract in respect of which contracts 

comprising one of the futures 

elements of an asset allocation basis 

trade may be made;

“cash element” or 

“cash leg”

that part of a basis trade comprising the sale 

and purchase of approved basis trade 

instruments;

“Equity Option 

Contract”

an Exchange Contract the subject of which 

is either an equity share or an index of 

equity share prices;

“Euronext Derivatives 

Market” 

any market, including any Regulated 

Market, for Derivatives operated by any 

Euronext Market Undertaking referred to as 

The Amsterdam, Brussels, Lisbon and Paris 

Markets;

“Euronext 

Trading Procedures”

this document, comprising the sections and 

headings listed in the Table of Contents 

included herein;

“Exchange Contract” a Derivative which is an Admitted Financial 

Instrument;
8

“fair value” in relation to any Large-in-Scale Trade price 

or Flex Contract price quoted by a Member 

to another Member or to a Client or in 

respect of a Large-in-Scale Trade or Flex 

Contract (as the case may be) entered into 

by a Member, a price which is considered by 

the Member to be the best available for a 

trade of that kind and size. When 

determining a Large-in-Scale Trade price or 

a Flex Contract price, a Member should, in 

particular, take into account the prevailing 

price and volume currently available in the 

relevant Central Order Book, the liquidity of 

the Central Order Book and general market 

conditions, but is not obliged to obtain prices 

from other Members, unless this would be 

appropriate in the circumstances;

“fast market” in respect of a particular Exchange Contract, 

a period declared as such by Market 

Services during which price limits are 

widened or suspended and Liquidity 

Providers may be relieved of some or all of 

their obligations or be required to meet 

relaxed obligations, as the case may be;

“futures element” or 

“futures leg”

that part of a basis trade comprising the sale 

and purchase of contracts in the terms of a 

basis trade Exchange Contract(s);

“Index Option 

Contract”

As the context requires, either an Equity 

Option Contract which is an option on an 

index of equity share prices or a contract in 

the terms of such Contract;

“ISDA” the International Swaps and Derivatives 

Association;

“Large-in-Scale 

Facility”

The facility established by the Relevant 

Euronext Market Undertaking pursuant to 

the Rules in relation to the trading of Largein-Scale Trades in accordance with these 

Trading Procedures.

“Large-in-Scale 

Package”

shall mean a facility which allows a Member 

to submit a Large-in-Scale Trade involving 

one or more legs and/or more than one 

counterparty via one single entry identifier, 

namely the package ID;
9

“Large-in-Scale Trade 

Contracts”

those Exchange Contracts designated by 

the Relevant Euronext Market Undertaking 

as contracts that may be traded as a Largein-Scale Trade pursuant to these Trading 

Procedures;

“Large-in-Scale Trade

Executing Member”

the Member, or where the Large-in-Scale 

Trade has been negotiated between two 

Members, the Member(s) submitting Largein-Scale Trade details to the Relevant 

Euronext Market Undertaking;

 “Market Close” the time specified by the Relevant Euronext 

Market Undertaking for the cessation of 

trading in contracts on UTP on that Trading 

Day;

“Market Open” the time specified by the Relevant Euronext 

Market Undertaking for the commencement 

of trading in contracts on UTP on that 

Trading Day;

“Market Services” the Relevant Euronext Market Undertaking’s 

facilities for monitoring and regulating the 

conduct of business by its Members on 

UTP;

“minimum volume 

thresholds”

the thresholds as determined by the 

Relevant Euronext Market Undertaking and 

published from time to time being the 

minimum number of lots in respect of each 

Large-in-Scale Trade Contract or Flex 

Contract (as the case may be);

“orders” bids or offers, as the case may be;

“post-settlement 

trading”

the period of trading following the time 

specified by the Relevant Euronext Market 

Undertaking for the calculation of the daily 

settlement price for a contract;

“Pre-Opening” the period immediately prior to Market 

Open, beginning at a time specified by the 

Relevant Euronext Market Undertaking, 

during which Members may log on to the 

Trading Host and submit, amend and 

withdraw orders, but no trading can occur;
10

“RFQ” the request for quote facility;

“Session End” the period immediately following Market 

Close, ending at a time specified by the 

Relevant Euronext Market Undertaking, 

during which Members may withdraw any 

GTC orders that they do not wish to remain 

in the market for the following Trading Day; 

“Trade Registration” The Clearing System or the Trade 

Registration System, as the case may be; 

and

“Universal Trading 

Platform” or “UTP”

the Euronext Trading Platform for 

Derivatives consisting of “UTP for Futures 

and Options” and “UTP for Equity Options” 

and associated infrastructure as the context 

permits.

1.3 Compliance with the Rules and conduct

1.3.1 A Member must, in respect of business conducted on, or submitted 

through, UTP:

(a) implement suitable security measures such that only those 

individuals explicitly authorised to trade by the Member may gain 

access to passwords and security keys; and

(b) ensure that any trading access granted to individuals (whether 

staff of the Member or otherwise), for example by way of order 

routing systems, is adequately controlled and supervised 

including appropriate checks before orders are submitted to the 

Trading Host.

1.3.2 A Member is responsible for the use of any Automated Price Injection 

Model in respect of business conducted on, or submitted through, 

UTP. In particular, notwithstanding the Relevant Euronext Market 

Undertaking’s own obligations (as described in Rule 1.5A), any 

adverse effect on the fair, orderly and efficient operation of the market 

arising from the use of such a Model shall be the responsibility of the 

Member and sanctions may be imposed under the Rules.

1.3.3 Members and Responsible Persons must ensure that, when 

negotiating and executing a Client order they comply fully with the 

obligations imposed by Chapter 8 of the Rules (“Rules of Conduct”) 

and, in particular:

(a) they act with due skill, care and diligence; and

(b) the interests of the Client or Clients, as the case may be, are not 

prejudiced.
11

1.4 The Responsible Person

1.4.1 A Responsible Person must be assigned one, or at least one, ITM and 

a valid password for each, by the Relevant Euronext Market 

Undertaking.

1.4.2 In the normal course of events, the Relevant Euronext Market 

Undertaking will direct all queries in relation to business submitted 

under his ITM(s) to the Responsible Person concerned, whether or not 

the business was actually input directly by him. In this respect, the 

Responsible Person must:

(a) have the authority to adjust or withdraw any orders submitted 

under his ITM(s);

(b) satisfy himself of the competence and suitability of any person 

conducting business under his ITM(s), if applicable;

(c) ensure, as far as possible, that all business conducted under his 

ITM(s) is conducted in accordance with the Rules and Trading 

Procedures; and

(d) know, and be willing to disclose to the Relevant Euronext Market 

Undertaking, the immediate source of all orders.

The Responsible Person must be contactable by the Relevant Euronext 

Market Undertaking while his ITM(s) is/are in use. When a 

Responsible Person is absent, and therefore not contactable, yet his 

ITM(s) is/are to continue to be used, the Member must nominate to the 

Relevant Euronext Market Undertaking a replacement Responsible 

Person to fulfil his role in respect of the relevant ITM(s).

1.4.3 For the avoidance of doubt, this Trading Procedure 1.4 shall apply to all 

business conducted on a Euronext Derivatives Market, whether 

executed on the Central Order Book (pursuant to section 3 of these 

Trading Procedures) or Off-Order Book (pursuant to section 4).
12

SECTION 2 – THE OPERATION OF UTP

2.1 Price limits

2.1.1 Throughout each UTP trading session and during the Pre-Open period, 

price limits for Futures Contracts will be calculated from the Price Limit 

Reference Price (“PLRP”): the limit bid being the allowed spread 

greater than the PLRP and the limit offer being the allowed spread 

lower than the PLRP.

2.1.2 The PLRP is calculated using one of the following two methods:

(a) Central Order Book price method;

(b) theoretical fair value method;

(c) theoretical Exchange For Physical fair value method.

2.1.3 In respect of the Central Order Book price method, the PLRP is:

(a) for the most actively traded (“blue”) contract month only:

(i) prior to the first trade, the mid point between the best bid 

and offer; or

(ii) the last traded price; or

(iii) a bid above or an offer below the last traded price;

(b) for all other contract months, the fair value as derived from 

outright and implied spread relationships with the blue month.

2.1.4A In respect of the theoretical fair value method, the PLRP is the price of 

the underlying plus the cost of carry for each contract month, as 

calculated by the Relevant Euronext Market Undertaking. The 

theoretical fair value method may be used for futures contracts where 

there is limited central market activity.

2.1.4B In respect of the theoretical EFP fair value method, which shall apply to 

orders submitted to the Index Futures EFP Facility only, the PLRP for 

each contract month shall be calculated by the Relevant Euronext 

Market Undertaking as the difference between the previous day’s 

settlement price for the relevant futures contract and a corresponding 

index basket, based on the previous day’s closing prices of the 

individual stocks, adjusted for any corporate actions. A spread value 

range is then employed by the Trading Host as the price limit for the 

EFP contract month concerned. 

2.1.5 [Deleted].
13

2.1.6 For Options Contracts, the Relevant Euronext Market Undertaking will 

calculate a theoretical fair value price (the PLRP) for each series. The 

theoretical fair value price will generate a spread value range which is 

then employed by the Trading Host as the price limit for the option 

series concerned. The spread range is calculated either by reference 

to the fair value price or the applicable option delta value.

2.1.7 Subject to Trading Procedure 2.1.9, attempts to trade or, during the 

Pre-Open period where applicable, to enter orders, outside the 

prevailing price limits in the relevant contract/expiry month will be 

rejected by the Trading Host. The Trading Host will send a message to 

the Member via the relevant ITM to inform him of the rejection.

2.1.8 The permitted spreads for price limits for each contract/expiry month 

will be determined from time to time by the Relevant Euronext Market 

Undertaking. Such spreads may be adjusted to reflect market 

conditions with the objective of preventing the execution of any orders 

submitted to the Trading Host with manifest pricing errors and/or at 

unrepresentative price levels.

2.1.9 In response to volatile market conditions, Market Services may, at its 

discretion, remove the restriction on the entry of orders outside the 

prevailing price limits.

2.1.10 Price limit value ranges and the PLRP calculation method (Futures 

Contract) and spread value range reference method (Options 

Contracts) are published on the Euronext website.

2.2 Settlement prices – Futures Contracts

2.2.1 The Daily Settlement Price for Futures Contracts is calculated using 

one of the following two methods:

(a) Central Order Book price method (described in Trading 

Procedures 2.2.2-2.2.3); or

(b) official closing price method (described in Trading Procedure 

2.2.4).

The method used to establish the Daily Settlement Price for each 

Futures Contract is indicated in Annexe One.

2.2.2 In respect of the Central Order Book price method, the Settlement 

System in Market Services will be used to calculate the Daily 

Settlement Price by taking a feed of reported prices for a period of no 

less than two minutes before the time specified for the settlement of a 

contract, as notified by the Relevant Euronext Market Undertaking. 

This period is known as the “Settlement Range”. However, the 

Relevant Euronext Market Undertaking will also monitor market activity 

throughout the Trading Day to ensure that settlement prices are a fair 

reflection of the market.
14

2.2.3 The Settlement Range will be used to monitor spread levels. 

Thereafter, the following criteria will be taken into account, as 

applicable:

(a) the traded price during the last minute of the Settlement Range; 

or, if there is more than one traded price during this time:

(b) the trade weighted average of the prices traded during the last 

minute of the Settlement Range, rounded to the nearest tick; or, 

if there are no traded prices during this time:

(c) the price midway between the active bids and offers at the time 

the settlement price is calculated, rounded to the nearest tick.

Where a trade weighted average or a midway price between active bids 

and offers results in a price which is not a whole tick, the rounding 

convention that will apply in respect of (b) and (c) above will be in 

accordance with that set out in the relevant contract specifications.

In addition, the following criteria are monitored in Market Services and 

may be taken into account, as applicable:

(d) price levels as indicated by spread quotations;

(e) spread relationships with other contract months of the same 

contract; and

(f) price levels and/or spread relationships in a related market.

2.2.4 In respect of the official closing price method, which shall be used for 

such stock futures and index futures as may be specified in Annexe 

One, the Daily Settlement Price shall be determined by a fair value 

calculation using the official daily closing price of the company security 

or the index of such securities (as the case may be) established by the 

Relevant Stock Exchange. Where such official daily closing price is not 

available, the Relevant Euronext Market Undertaking shall determine 

the Daily Settlement Price, at their absolute discretion, on the basis of a 

fair value calculation which is consistent with cash market values of the 

shares the subject of such Contract.

2.2.5 Settlement prices will be displayed on UTP and for a minimum period of 

five minutes thereafter, the Relevant Euronext Market Undertaking may 

deem it necessary to amend the settlement prices to ensure they are a 

fair reflection of the market.

2.2.6 When the Relevant Euronext Market Undertaking is satisfied that the 

settlement prices are appropriate in respect of a particular contract, the 

revised settlement prices will be displayed and for a minimum period of 

three minutes thereafter any further appropriate revisions will be 

displayed accordingly.

2.2.7 The prices established by the procedure set out in this Trading 

Procedure 2.2 will be transmitted to the Clearing Organisation. In the 
15

event that the Clearing Organisation considers that prices do not 

correctly reflect the true value of contracts in the terms of Futures 

Contracts within the market, the Relevant Euronext Market Undertaking 

may amend prices as appropriate.

2.2.8 Settlement prices will be displayed on UTP or any such other means of 

communication as the Relevant Euronext Market Undertaking sees fit.

2.2.9 Where the settlement price of a contract available for trading on UTP is 

calculated during the course of the UTP session for that contract, the 

Relevant Euronext Market Undertaking will additionally post the UTP 

closing price for each contract month at Market Close. 

2.3 Settlement prices – Options Contracts

2.3.1 The Relevant Euronext Market Undertaking’s objective when 

determining settlement prices for Options Contracts is to maintain a 

consistent pricing relationship between the volatilities of one exercise 

price and the exercise price(s) nearest to it, whilst taking account of 

market activity.

2.3.2 The procedures for establishing Daily Settlement Prices are as follows:

(a) Market Services will maintain continuous information on market 

activity, both for each series of each Options Contract and for 

the underlying Futures Contract or security (as applicable);

(b) using this information, implied volatilities will be calculated for 

each series throughout the Trading Day, which the Relevant 

Euronext Market Undertaking will review at regular intervals in 

light of market activity;

(c) in the case of less actively traded Options Contracts, or those 

where no recent bids or offers exist, the Relevant Euronext 

Market Undertaking may contact Members throughout the 

trading session in order to ascertain whether implied volatilities 

are reflective of the market view. In the case of more actively 

traded Options Contracts, Market Services will monitor implied 

volatilities toward the settlement time to check consistency with 

market activity throughout the trading session;

(d) at the settlement time, the Relevant Euronext Market 

Undertaking will calculate settlement prices from implied 

volatilities. These settlement prices will be displayed on UTP; 

and

(e) for a minimum period of five minutes following publication of 

settlement prices, the Relevant Euronext Market Undertaking 

may deem it necessary to amend the settlement prices and any 

appropriate revisions will be displayed accordingly.

2.3.3 The prices established by the procedures set out in this Trading 

Procedure 2.3 will be transmitted to the Clearing Organisation. In the 
16

event that the Clearing Organisation considers that prices do not 

correctly reflect the true value of contracts in the terms of Options 

Contracts within the market, the Relevant Euronext Market Undertaking 

may amend prices as appropriate.

2.4 Emergency termination of a trading session and subsequent 

resumption

2.4.1 The conduct of business on UTP in one or more Exchange Contracts 

may be suspended by the Relevant Euronext Market Undertaking, in 

the case of an event, or when conditions or circumstances prevail, 

which in the Relevant Euronext Market Undertaking’s opinion threatens 

or prevents the orderly conduct of business. Such events include, but 

are not limited to:

(a) an act of God or some other event outside the Relevant 

Euronext Market Undertaking’s control occurring; or

(b) a UTP technical failure or failures including, but not limited to, a 

part of the central processing system, a number of Member 

trading applications, or the electrical power supply to the system 

itself or any related system.

2.4.2 In the event that the conduct of business on UTP in one or more 

Exchange Contracts is suspended by the Relevant Euronext Market 

Undertaking or forcibly halted (as distinct from being suspended by the 

Relevant Euronext Market Undertaking) as a consequence of an event 

described in Trading Procedure 2.4.1, the conduct of business will be 

resumed when, in the opinion of the Relevant Euronext Market 

Undertaking, business may be resumed on an orderly basis.

2.4.3 In the event that the conduct of business on UTP in one or more 

Exchange Contracts is suspended or halted at or around the time 

specified for the establishment of Daily Settlement Prices or Closing 

Prices (as the case may be), the Relevant Euronext Market 

Undertaking may in its absolute discretion determine either:

(a) to change such times for that Trading Day; or

(b) to set such prices at levels determined by them as being a fair 

reflection of the market, as they see fit.

2.4.4 In the event that the conduct of business on UTP in one or more 

Exchange Contracts is suspended or halted and the Relevant Euronext 

Market Undertaking determines that it may not be resumed either:

(a) before Market Close; or

(b) within sufficient time prior to Market Close to allow an orderly 

close to the market,
17

it may determine that the conduct of business in one or more Exchange 

Contracts should be resumed but that the relevant scheduled closing 

time should be delayed to a later time.

2.4.5 Instead of making a determination contemplated by Trading Procedure 

2.4.4 the Relevant Euronext Market Undertaking may determine that 

the conduct of business cannot be resumed on that same Trading Day 

but will be resumed on such later Trading Day, and at such time, as 

they determine. If necessary, such determination may also be made on 

a Trading Day later than the Trading Day on which the conduct of 

business was suspended or halted.

2.4.6 Any determination made by the Relevant Euronext Market Undertaking 

pursuant to Trading Procedures 2.4.4 or 2.4.5 may be revoked by a 

later determination. Any such later determination may likewise be 

revoked. Any determination made under this Trading Procedure 2.4 

will be published by the Relevant Euronext Market Undertaking as a 

Notice. If circumstances arise which, in the opinion of the Relevant 

Euronext Market Undertaking, indicate that some or all Members are 

unlikely to become aware of the existence of a particular Notice via 

their trading application, the Relevant Euronext Market Undertaking 

may decide to use other means of communication as it sees fit.

2.4.7 In the event of a general failure in UTP (e.g. central breakdown, 

breakdown in a significant number of communication lines which, in the 

opinion of the Relevant Euronext Market Undertaking, poses a potential 

threat to the orderly operation of the market), the Relevant Euronext 

Market Undertaking may determine alternative trading arrangements as 

appropriate. Notification of alternative trading arrangements will be 

made by way of Notice or such other means of communication as the 

Relevant Euronext Market Undertaking sees fit.

2.5 Evening trading session

2.5.1 Business executed during the evening trading session shall be treated 

as business executed on the following Trading Day.
18

SECTION 3 – ON ORDER BOOK TRANSACTIONS

3.1 [Deleted] 

3.2 Entering orders and making acceptances

3.2.1 Orders for outright trades and strategy trades can be submitted to the 

Trading Host from commencement of Pre-Opening until Market Close. 

Submitted orders, once validated by the Trading Host, are timestamped.

3.2.2 On UTP:

(a) a bid is represented as an order to buy (“buy order”);

(b) an offer is represented as an order to sell (“sell order”); and

(c) an acceptance is defined as the matching of a buy order and sell 

order in the Central Order Book.

3.2.3 Trading Procedures 3.2.3 to 3.2.5 describe the various order types, 

order designations and associated requirements, which may be 

submitted to the Trading Host. Not all order functionality applies to 

each Relevant Euronext Market Undertaking or to all contracts 

available for trading on a Relevant Euronext Market Undertaking.

Members must refer to Annexe One to these Trading Procedures which 

details which functionality applies to a Derivative of a Relevant 

Euronext Market Undertaking. 

(a) Limit Order

Limit Orders entered into the Central Order Book are executed at 

the price stated or better. Any residual volume left after part of a 

Limit Order has traded is retained in the Central Order Book until 

it is withdrawn or traded (unless a designation described in 

Trading Procedure 3.2.4 is added which prevents the untraded 

part of a Limit Order from being retained). All Limit Orders (with 

the exception of those with a GTC designation as described in 

Trading Procedure 3.2.4 (a) below) are automatically withdrawn 

by the Trading Host on Market Close and in the circumstances 

outlined in Trading Procedures 3.2.9 and 3.2.10; and

(b) Market Order

Market Orders entered into the Central Order Book are executed 

at the best price(s) available in the market until all available 

volume has been traded. Any residual volume left after part of a 

Market Order has traded is automatically cancelled by the 

Trading Host.
19

(c) Market on Open Order (MoO)

MoO Orders may be submitted to the Trading Host during the 

Pre-Open period. MoO Orders will be executed at the 

calculated opening price at Market Open. Where a MoO Order 

has traded in part at Market Open, the residual volume will be 

converted to a Limit Order at the calculated opening price of that 

order. If no trading takes place at Market Open, the MoO Order 

will trade with any matching MoO Order at the mid-price of the 

opening bid and offer (including bids and offers implied from 

related strategy markets where applicable). Any residual MoO 

Order volume will then convert to a Limit Order at this mid-price. 

Where no bid and/or no offer exists at Market Open, the MoO 

Order will be cancelled by the Trading Host.

3.2.4 The designations set out in (a) to (e) below can be added to Limit 

and/or Market Orders and the designation set out in (a) only can be 

added to MoO Orders:

(a) Good ‘Til Cancelled (GTC)

a GTC designation can be added to Limit Orders and MoO 

Orders. Such orders remain in the Central Order Book 

(provided, in the case of MoO Orders, there was a calculated 

opening price at Market Open) until the order:

(i) trades;

(ii) is withdrawn by, or under the authority of, the relevant 

responsible person or the Relevant Euronext Market 

Undertaking at the Member’s request;

(iii) is automatically withdrawn by the Trading Host at Market 

Close on the date specified at the time of order entry; or

(iv) is automatically cancelled by the Trading Host on expiry of 

the delivery month to which the order related;

(b) Good In Session (GIS)

a GIS designation can be added to Limit Orders and will remain 

in the Central Order Book until Market Close occurs in the 

trading session during which the GIS order was submitted;

(c) Immediate and Cancel (IC)

an IC designation can be added to Limit Orders and will be 

added to Market Orders automatically if no other designation is 

specified. IC orders are immediately executed against any 

existing orders (at the specified price or better in the case of 

Limit Orders) up to the volume of the IC order. Any residual 
20

volume left after part of the IC order has traded will be 

automatically cancelled by the Trading Host;

(d) Complete Volume (CV)

a CV designation can be added to both Limit Orders and Market 

Orders. CV orders will only be executed if there is sufficient 

volume available (at the specified price or better in the case of 

Limit Orders) for the order to be executed in full. If this is not the 

case the order will be automatically cancelled by the Trading 

Host; and

(e) Minimum Volume (MV)

an MV designation can be added to both Limit Orders and 

Market Orders. MV orders will only be executed if the specified 

minimum volume is immediately available to trade (at the 

specified price or better in the case of Limit Orders). Where a 

volume equal to or greater than the specified minimum volume of 

an MV order has traded, the residual volume will be retained in 

the Central Order Book in the case of non IC limit orders, or 

cancelled by the Trading Host in the case of market orders.

3.2.5 Members may submit up to eight Limit Orders as a Contingent Multiple 

Order in up to two designated Exchange Contracts, in line with 

arrangements which may be prescribed from time to time by Notice. 

Exchange Contracts eligible for execution as a Contingent Multiple 

Order will likewise be notified by Notice. On submission of a 

Contingent Multiple Order, the Trading Host will attempt to execute 

each individual leg in the relevant outright market. Unless each leg of 

the Contingent Multiple Order can be executed immediately in full, the 

order will be cancelled by the Trading Host.

3.2.6 The identity of Members (and the Responsible Persons to whom their 

ITMs are assigned) who submit orders to the Trading Host will remain 

anonymous to market participants at all times.

3.2.7 Orders can be edited once they are held in the Central Order Book. 

Editing of orders may be applied to price, volume and cancellation date 

(for GTC orders). The time-stamp assigned by the Trading Host at the 

entry of the original order will be updated if either the price is changed 

or the volume increased i.e. the order will assume an inferior position in 

the time priority “queue”, where applicable. A reduction in volume or an 

amendment to the cancellation date has no affect on the time-stamp.

3.2.8 Orders held in the Central Order Book can be withdrawn, individually or 

as a block, by the relevant Responsible Person or under his authority.

3.2.9 All orders with the exception of GTC orders will be cancelled 

automatically at Market Close or when the ITM under which the order 

was submitted is logged out without the Member having nominated a 

replacement ITM, whichever is the earlier. All orders, including GTC 

orders, will be cancelled at close of business on the Last Trading Day 
21

of the delivery month to which they relate, or the Last Trading Day of 

the delivery month of one or more legs of a GTC strategy order, as the 

case may be.

3.2.10 In the event of failure of the Trading Host, all orders with the exception 

of GTC orders will be cancelled automatically.

3.2.11 When submitting an order to UTP, a Member must also submit an 

identifier denoting whether the order is for a House, Client or Liquidity 

Provider account.

3.3 Making of trades

3.3.1 The following order prioritisation criteria will determine trade priority. 

Members should refer to Annexe One which details the order 

prioritisation applicable to each Exchange Contract: 

(a) Price/Time priority:

(i) best price. A buy order at the highest price and a sell 

order at the lowest price has priority over orders in the 

same contract/delivery month/strategy; and

(ii) oldest time-stamp. Buy/sell order(s) at the best price will 

trade in order according to the time they were accepted by 

the Trading Host,

(b) Pro-rata priority:

(i) best price. A buy order at the highest price and a sell 

order at the lowest price has priority over orders in the 

same contract/delivery month/strategy; 

(ii) pro-rata. All buy orders at the highest price and all sell 

orders at the lowest price in the same contract/delivery 

month/strategy are traded in accordance with the pro-rata 

algorithm, the details of which, including any element of 

priority, will be specified by Notice;

albeit that in both instances (a) and (b), following the application of the 

uncrossing algorithm at Market Open (described in Trading Procedure 

3.3.2) Market on Open Orders may take priority over Limit Orders 

submitted during the Pre-Open period, by trading with other Market on 

Open Orders, where such Limit Orders cannot be executed during the 

opening algorithm. Furthermore, certain contracts, as detailed by 

Notice, provide for Designated Market Makers to receive trade priority 

status. The details of such trade priority, and its implications for the 

order prioritisation above, are detailed by Notice.

3.3.2 Where backwardation (bids higher than offers) or choice prices (bids 

equal to offers) exist at Market Open, the Trading Host will run an 

uncrossing algorithm to calculate the price at which the maximum 

volume can be traded and automatically executes trades accordingly: 
22

any orders executed in this way will be traded at a price equal to or 

better than that at which they were entered and any untraded bids 

and/or offers will remain in the market.

3.3.3 The details of each trade on UTP other than the identity of the 

counterparties to such trade will be transmitted to Trade Registration 

and to all market participants who have successfully logged on and 

subscribed to the relevant market. All post-trade details will be 

published on an anonymous basis. 

3.3.4 For Futures Contracts and designated Options Contracts (Annexe 

One), during the Pre-Open period, details of indicative opening prices 

and volume, except volume associated with Market on Open Orders, 

will be transmitted to all market participants who have successfully 

logged on and subscribed to the relevant market, until Market Open.

3.3.5 Members are required to make available personnel responsible for the 

resolution of trade processing queries when required to do so.

3.3.6 Uncrossing

3.3.6.1 Subject to Trading Procedure 3.3.6.2 and pursuant to Trading 

Procedure 3.3.2, the Trading Host will not run the uncrossing algorithm 

at Market Open for Equity and Equity Index Option Contracts until a 

trade price for the relevant underlying has been received. 

3.3.6.2 Notwithstanding the requirements provisions of Trading Procedure 

3.3.6.1, the Relevant Euronext Market Undertaking may, in its absolute 

discretion, run the uncrossing algorithm and open trading in Contracts 

in the event that no underlying trade price is received.

3.3.7 Corporate Actions 

3.3.7.1 Any adjustment of Options Contracts and/or Futures Contracts will be 

determined in accordance with the Corporate Actions Policy of the 

Relevant Euronext Market Undertaking unless the Relevant Euronext 

Market Undertaking, in its absolute discretion, determines otherwise. 

The Corporate Actions Policy and any adjustment to the Contract will 

be published by Notice from time to time and shall have such effect 

with regard to existing and/or new Option Contracts and/or Futures 

Contracts as the Relevant Euronext Market Undertaking may 

determine.

3.3.7.2 The Relevant Euronext Market Undertaking may cancel orders in the 

Central Order Book of a contract where that contract’s characteristics 

have been altered following one or more corporate actions affecting the 

underlying security. Any such cancellation of outstanding orders (and 

any requirements to re-submit orders) will be published by the Relevant 

Euronext Market Undertaking by way of Notice or such other means of 

communication as the Relevant Euronext Market Undertaking sees fit.
23

3.4 Cross Transactions

3.4.1 [Deleted]

3.4.2 Matching business may be procured for an order by way of prenegotiation within the same Member, with other Members or with 

Clients.

3.4.3 Matching business may be entered to the Trading Host using one of the 

following three methods:

(a) by submission to the Central Order Book; or

(b) by submission in a dedicated order book for designated 

contracts set out in Annexe One; or

(c) by submission as a Guaranteed Cross Trade in designated 

contracts set out in Annexe One.

3.4.4 Subject to Trading Procedures 3.4.5 and 3.4.6, orders for which 

matching business has been found by pre-negotiation may be entered 

to the Trading Host without delay between the submission of the 

separate buy and sell orders.

3.4.4A Except where the Relevant Euronext Market Undertaking provides 

alternative facilities to execute pre-negotiated business as a single 

Transaction, all pre-negotiated business must be executed as a cross.

In particular, the Request for Cross facility (as described in Trading 

Procedure 3.4.5A) must be used for Commodity Option Contracts and 

is also available for those Contracts set out in Annexe One. All crosses 

not executed through the Request for Cross facility must be executed in 

accordance with Trading Procedure 3.4.5.

3.4.5 For all Contracts other than those executed through the use of the 

Request for Cross facility, where no bid and/or no offer exists in the 

Central Order Book for the relevant contract month or strategy, a 

Request for Quote (“RFQ”) must first be entered for such contract 

month or strategy. The matching business may only be entered to the 

Trading Host where a period of five seconds in the case of Futures 

Contracts and ten seconds in the case of Options Contracts (“the RFQ 

Period”) has elapsed. If the matching business is to be submitted, the 

applicable buy and sell orders must be submitted as soon as 

practicable and in any event no later than thirty seconds following the 

RFQ Period.

3.4.5A Request for Cross Facility

A Request for Cross (“RFC”) must first be entered for the relevant 

series or strategy in all cases, whether or not a bid and/or offer exists in 

the Central Order Book for such series or strategy. 
24

An RFC initiating Member may not enter either side nor a part of the 

matching business into the order book prior to the submission of an 

RFC. 

An RFC shall be rejected upon entry if its intended matching price is 

outside the best bid and offer available in the Central Order Book at its 

entry time.

The RFC has the simultaneous effect of entering in an irrevocable way 

the buy and the sell orders in the matching system and of sending an 

alert message to the rest of the market.

The market only receives notice of an RFC in the relevant series or 

strategy and of its associated duration. The market does not receive 

notice of the orders’ size or intended execution price level. 

Neither an RFC initiating Member, when acting via an ITM involved in 

pre-negotiation of the RFC, nor its clients having placed orders for the 

cross may submit any further orders during the RFC period nor give 

orders for some other Member to input into the matching system. 

During the RFC period, 

(i) Members other than the RFC initiating Member, and

(ii) the RFC-initiating Member, but not through the ITM involved in 

pre-negotiation of the RFC and not in respect of its clients who 

have placed orders for the cross, 

may (subject to minimum size) respond and enter limit orders, which 

will not be published. 

Once the RFC period has elapsed, the buy and sell orders of the RFC 

initiating Member shall interact with such other orders as follows:

- in a preliminary step, all response orders are matched amongst 

themselves according to an uncrossing process matching in price/time 

priority;

- then, all remaining response orders that improve the RFC intended 

execution price shall be executed against the RFC business according 

to the same uncrossing process;

- following that, (and the consequential impact on the balance of the 

RFC’s associated buy and sell orders), the resulting RFC balance is 

confronted with response orders that match the RFC execution price as 

follows:

(i) the RFC balance shall be executed against such other orders, 

ranked according to their time priority, up to a maximum sharing level;

(ii) the rest of the RFC balance shall be executed as a cross by the 

RFC initiating Member. 
25

Orders entered via the RFC may be subject to additional size 

requirements. RFC parameters in terms of duration, minimum order 

size and sharing are set in Annexe One.”

3.4.6 A bid and/or offer must not be entered to the Trading Host deliberately 

to circumvent the RFQ procedures set out in Trading Procedures 3.4.5.

and 3.4.5A.

3.4.7 [Deleted] 

3.4.8 The requirements in respect of Guaranteed Cross Trades are set out in 

Trading Procedure 4.6.

3.4.9 A Member and his Responsible Persons may deliberately seek to

execute a trade involving two wholly or partially matching orders 

providing the requirements in these Trading Procedures are met.

3.5 Trade cancellations

Trade cancellations may be carried out under specific conditions 

published by Notice.

3.6 Strategy trades

3.6.1 Members may execute strategies comprising combinations of 

Exchange Contracts. A list of strategies available for trading on UTP is 

specified by the Relevant Euronext Market Undertaking by Notice from 

time to time and is contained in Annexe Two to these Trading 

Procedures.

3.6.2 A separate market will be created for each strategy where one or more 

RFQs have been submitted to the Trading Host. With the exception of 

stock contingent volatility trades, the traded price of each leg will be 

calculated by an Exchange maintained algorithm.

3.6.3 In addition, there will be certain strategies for which implied trading 

functionality applies as specified by the Relevant Euronext Market 

Undertaking from time to time.

3.6.4 For those explicit strategy markets where implied trading functionality 

applies, the relevant outright contract/expiry months will generate 

implied-in prices to the explicit strategy market. For outright 

contract/expiry month markets, the interaction of an explicit strategy 

order and a relevant outright contract month order(s) will generate an 

implied-out price in the other outright contract month.

3.6.5 Strategy trades must, for each side, comprise a single order or 

aggregate of orders, which result in the same Client or account trading 

each element of the relevant strategy.

3.6.6. A member may not execute a strategy order otherwise than in the 

relevant strategy market unless the member can demonstrate that 

doing so would be disadvantageous to the client.
26

3.7 Delta neutral strategy trades

3.7.1 Members may execute delta neutral trades involving the simultaneous 

execution of financial or index options and an appropriate number of 

offsetting futures where the relevant futures and options are available 

for trading on the same Trading Host. A list of delta neutral trade types 

available for trading on UTP is specified by the Relevant Euronext 

Market Undertaking by Notice from time to time and is contained in 

Annexe Two to these Trading Procedures. 

3.7.2 In order to execute delta neutral strategy trades on UTP, a Member 

must have appropriate trading rights for the trading of both the options 

and futures legs.

3.7.3 A separate market will be created for each delta neutral trade order 

submitted with different option price(s) or delta details. A Member is 

not permitted to create a new delta neutral strategy market unless there 

is a genuine need to do so. For the avoidance of doubt, a Member 

must not create a new delta neutral strategy market in order to avoid 

his order(s) being entered to, and thereby interacting with, a delta 

neutral strategy market with almost identical characteristics which has 

already been created.

3.7.4 Following submission of a delta neutral trade order, the Trading Host 

will validate both its option price(s) and delta and automatically assign 

offsetting futures to the counterparty(ies) to the resulting trade(s). 

Where a Member submits a delta neutral order to the Trading Host, the 

size of the order must be such as to be delta neutral in nature, as 

determined by the applicable delta (e.g. for a delta of 20%, orders 

being in multiples of 5 option lots). For the avoidance of doubt, a 

Member must not submit orders to the delta neutral market with the 

intention of securing a non delta neutral Transaction.

3.7.5 Delta neutral trades must, for each side, comprise a single order or 

aggregate of orders, which result in the same Client or account trading 

both the option and futures contracts.

3.8 Stock Contingent Trades

3.8.1 Subject to the appropriate trading rights, Members may execute 

strategies in Individual Equity Option Contracts that are contingent 

upon the execution of a transaction in the underlying security using the 

Euronext UTP for Equity Options stock contingent trade facility. Both 

the Individual Equity Option Contracts (“options”) and underlying 

company security components (“stock”) of any order in respect of a

stock contingent trade must be executed on behalf of the same Client 

or account, as the case may be.

3.8.2 For certain options designated by the Relevant Euronext Market 

Undertaking, the stock transaction shall automatically take place on the 

corresponding Euronext Securities Market. In this case, Members must 

hold appropriate trading rights in such market. Otherwise, the Member 
27

must have in place arrangements for the execution of the stock via a 

Member holding a relevant trading right. 

3.8.3 A list of stock contingent trades available for trading on Euronext UTP 

(“on order book transactions”) is contained in Annexe One to these 

Trading Procedures and may be varied from time to time by the 

Relevant Euronext Market Undertaking.

3.8.4 In order to execute a stock contingent trade a Member must specify, in 

addition to the order details required for options trades, the name, 

volume and price of the stock, as well as the delta in the case of 

volatility trades. Members are required to quote:

(a) an options price consistent with the best bid and best offer 

available in the market at the time; and

(b) a stock price consistent with prices prevailing in the equity 

market on that Trading Day. Where the stock transaction takes 

place on a Euronext Securities Market, as referred to in Trading 

Procedure 3.8.2, the stock price must meet the price conditions 

applicable in that market for the validation of such transactions.

In the case of volatility trades, the options and stock prices and the 

delta quoted in the order will be checked against an Exchangemaintained model in order to ensure the appropriateness of the stock 

price used.

3.8.5 In the case of conversions and reversals, the volume of stock 

transacted must be consistent with the net delta for that position. 

3.8.6 A separate market will be created for each stock contingent trade order 

submitted with different option price or delta details. A Member is not 

permitted to create a new stock contingent trade market unless there is 

a genuine need to do so. For the avoidance of doubt, a Member must 

not create a new stock contingent trade market in order to avoid his 

order being entered to, and thereby interacting with, a stock contingent 

trade market with almost identical characteristics which has already 

been created.

3.8.7 Orders in respect of stock contingent trades will only trade if:

(a) details of both the stock and the options components (and the 

delta in the case of volatility trades) match, albeit that an order 

may be accepted in part providing the ratio of stock to options 

contracts traded is the same for both the buying and selling 

sides; and

(b) in the case of stock contingent volatility trades, the options and 

stock price and the delta quoted are consistent with a model 

maintained by the Relevant Euronext Market Undertaking used 

to ensure the appropriateness of the order details submitted.
28

3.8.8 Details of the options component of stock contingent trades will be 

posted to market participants and quote vendors, identified as part of a 

strategy. Details of the stock component will also be published.

3.9 Index Futures Exchange for Physical Facility 

3.9.1 For certain Index Futures contracts designated by the Relevant 

Euronext Market Undertaking and specified in Annexe One to these 

Trading Procedures, basis trades can take place on a dedicated index 

futures “Exchange for Physical (EFP)” Central Order Book, resulting in 

the simultaneous execution of the index futures and the relevant 

underlying stock on the corresponding markets operated by Euronext. 

3.9.2 In order to execute trades on the EFP Facility on UTP, a Member must 

have appropriate trading rights for the execution of the index futures 

contract and the relevant stocks. Otherwise, the Member must have in 

place arrangements for the execution of the stocks via a Member 

holding a relevant trading right. 

3.9.3 The use of the EFP Facility is subject to specific requirements in 

relation to minimum price movement and method of quotation differing 

from those normally applicable to the index futures contract, as 

specified in the contract specifications published on the Euronext 

website.

3.9.4 Following the execution of an EFP, the relevant prices and volumes 

shall be automatically allocated by the UTP system to the individual 

futures and stock components of the EFP, calculated using an 

Exchange-maintained algorithm. In the event the stock price algorithm 

generates an individual price failing to account for a recent corporate 

action on that stock:

(i) the Relevant Euronext Market Undertaking may invalidate the 

trade as per section 3.5.; or

(ii) Members having executed the EFP may request the invalidation 

of the original execution in accordance with section 3.5, with a 

view to resubmitting the EFP orders for execution with an 

adjusted individual stock price. 

Any invalidation of an EFP determined by the Relevant Euronext 

Market Undertaking or conducted at a Members’ request will 

automatically entail the cancellation of both the index futures 

transaction and individual stock component transactions. 

3.9.5 The following information with respect to the futures leg of a trade 

executed on the EFP Facility will be broadcast on UTP:

(a) Futures Contract(s) and delivery month(s);

(b) futures price(s); and

(c) volume of futures traded.
29

Such details shall also be distributed to Quote Vendors.

In addition, details of the stock component leg of a trade executed on 

the EFP facility will be published pursuant to the rules of the 

corresponding Euronext Securities Markets.
30

SECTION 4 – OFF ORDER BOOK TRANSACTIONS

4.1 Transactions negotiated outside the Central Order Book

4.1.1 This Section 4 describes various trading facilities and associated 

requirements for executing Off Order Book Transactions. However, not 

all trading facilities apply to each Derivative which is an Admitted 

Financial Instrument. Members must refer to Annexe One to these 

Trading Procedures which details which functionality and/or which 

requirements apply to each such Derivative.

4.1.2 For the purposes of this Section 4, an Off Order Book Transaction is a 

Transaction which is:

(i) negotiated outside the Central Order Book but subject to the 

Rules and these Trading Procedures; and 

(ii) reported to the Relevant Euronext Market Undertaking pursuant 

to the Rules and these Trading Procedures. 

4.1.3 An Off Order Book Transaction is deemed to have been executed when 

the details are authorised by the Relevant Euronext Market 

Undertaking.

4.1.4 For Contracts other than Flex Contracts, where an Admitted Financial 

Instrument can either be traded through the Central Order Book or 

executed as an Off Order Book Transaction, a position arising from an 

Off Order Book Transaction is fungible with positions arising from 

Transactions entered via the Central Order Book. Once an Off Order 

Book Transaction has been accepted for clearing, the resulting position 

is settled and recorded in the same way as a position created in the 

Central Order Book. For Flex Contracts, Trading Procedure 4.7.2 

applies.

4.1.5 For the avoidance of doubt, actions taken by the Relevant Euronext 

Market Undertaking pursuant to Rule 5402/1 shall apply to Off Order 

Book trading as well as to the Central Order Book. In particular, where 

a financial instrument underlying a Derivative admitted to trading on a 

Euronext Market Undertaking has been suspended at the request of 

the relevant competent authority or the issuer (as the case may be), Off 

Order Book Transactions in respect of such Derivative shall not be 

negotiated during the period of such suspension.

4.1.6 Trading Procedures 4.2 to 4.4 inclusive deal with Technical Trades (i.e. 

basis trades, asset allocations against actuals); Trading Procedure 4.5 

deals with Large-in-Scale Trades and Trading Procedures 4.6 and 4.7 

deal respectively with Guaranteed Cross Trades and Flex Contracts.
31

TECHNICAL TRADES

4.2 Basis Trading

4.2.1 The Basis Trading Facility (“BTF”) allows Members to organise and 

execute, subject to this Trading Procedure 4.2, Transactions involving a 

combination of an approved basis trade instrument and an appropriate 

number of offsetting Futures Contracts or, in the case of an Exchange 

for Swap or Exchange of Options for Options, the appropriate number 

of related Futures or Options Contracts. For the purposes of these 

Trading Procedures such Transactions are called “basis trades”. 

4.2.2 Any Member is permitted to arrange basis trades, subject only to the 

Member having in place arrangements for the execution of the futures 

or options leg of a basis trade via a Member holding a relevant trading 

right (“the basis trade executing Member”) to trade the basis trade 

Exchange Contract.

4.2.3 A basis trade may be negotiated only during the trading hours of the 

Futures or Options Contract concerned, as published by the Relevant 

Euronext Market Undertaking from time to time by Notice.

4.2.4 Basis trades may be transacted only in Exchange Contracts which 

have been designated by the Relevant Euronext Market Undertaking 

for that purpose. Such designations will be published, from time to 

time, by Notice and are detailed in Annexe One. 

4.2.5 The basis trade executing Member is responsible for assigning the 

price of the futures or options leg(s) of a basis trade. For the futures or 

options leg(s) to be authorised, the price(s) assigned must be in 

accordance with the following :

in respect of equity index Contracts and Single Stock Futures, at or 

within the Contract high/low traded price of that Trading Day, at or 

within the Contract best bid and offer at the time the basis trade is 

negotiated, or at or within the high/low price calculated by the 

Exchange maintained algorithm (factoring in the cost of carry). 

In exceptional circumstances, the Exchange may, at its absolute 

discretion, authorise a basis trade where the price of the futures or 

options leg(s) is outside of the parameters set out above. Prior to 

authorising such basis trade, the Exchange will require additional 

information from the basis trade executing Member, in relation to the 

organisation of the basis trade.

4.2.5A (a) Where the basis trade is an EFS in accordance with Trading

Procedure 4.2.6(e), for the futures leg(s) to be authorised the 

price(s) assigned must be within the price range established to 

date in respect of the delivery month in the relevant Exchange 

Contract.

(b) Where the basis trade is an EOO in accordance with Trading 

Procedure 4.2.6(f), for the options leg(s) to be authorised the 
32

price(s) assigned must be within the implied volatility range 

established to date in respect of the expiry month in the relevant 

Exchange Contract.

4.2.6 The following approaches to the construction of hedge ratios for basis 

trades are considered acceptable:

(a) Equity securities against Single Stock Futures Contracts: A 

method based on the relative value of the equity security and the 

nominal underlying value of the Single Stock Futures Contracts;

(b) Baskets of equity securities against equity index futures 

contracts: A method based on the relative value of the basket of 

equity securities and the nominal underlying value of the equity 

index futures contracts;

(c) European or American style OTC equity options (stock and 

equity index options) against equity index futures contracts:

A method based on the relative deltas of the OTC option and 

futures contracts in order to achieve a delta neutral position;

(d) European or American style OTC or non-Euronext exchange 

traded equity options against Single Stock Futures Contracts: A 

method based on the relative deltas of the OTC or exchange 

traded option and Single Stock Futures Contracts in order to 

achieve a delta neutral position;

(e) OTC swaps or options conforming to ISDA standards in relation 

to milling wheat, rapeseed, corn, malting barley and skimmed 

milk powder, or in relation to a direct product of such commodity,

against the relevant Commodity Futures Contract, herein defined 

as an Exchange for Swap (“EFS”): A method which is based on 

the quantity of the commodity or a direct product of such 

commodity underlying the swap or options position relative to the 

quantity of the commodity underlying the Futures Contract.

(f) OTC options conforming to ISDA standards in relation to milling 

wheat, rapeseed, corn, and malting barley, or in relation to a 

direct product of such commodity, against the relevant 

Commodity Options Contract, herein defined as an Exchange of 

Options for Options (“EOO”): A method which is based on the 

quantity of the commodity or a direct product of such commodity 

underlying the OTC option position relative to the quantity of the 

commodity underlying the Options Contract.

Where a hedge ratio differs from such methods, the Member who is 

submitting the trade for authorisation (see Trading Procedure 4.2.7) is 

required to justify the method employed in advance of such submission.

4.2.6A Members shall not submit or cause to be submitted to Euronext for 

authorisation any basis trade Exchange Contract unless there is a 

corresponding execution of an approved basis trade instrument. The 
33

number of basis trade Exchange Contracts must be appropriate to the 

quantity of the approved basis trade instrument. Members shall satisfy 

themselves in advance of any such submission of basis trade 

Exchange Contracts to Euronext for authorisation, that the approved 

basis trade instrument has been executed in appropriate quantity. 

4.2.7 When a Member accepts a basis trade order, he must record the order 

details set out in Trading Procedure 4.2.8 – 4.2.10D and, in addition, 

the details prescribed by (a) – (c) below, on an order slip. Where a 

Member employs an electronic system for order routing, such details 

must be recorded electronically:

(a) time of order receipt;

(b) identity of individual organising the basis trade; and

(c) time stamp (at time of organisation).

All information required to be retained by the basis trade executing 

Member, pursuant to this Trading Procedure 4.2.7, must be retained by 

the Member for a minimum period of five years.

After a basis trade has been negotiated the Member, or where the 

basis trade has been negotiated between two Members, the Member 

who will be the seller of the futures or options leg of the basis trade, 

must execute the futures or options leg of the basis trade as a cross 

transaction, as specified in Trading Procedures 4.2.8 – 4.2.10D, or 

must procure that the futures or options leg of the basis trade is so 

executed by another appropriately authorised Member.

4.2.8 Where a basis trade involves equity index futures contracts against a 

basket of equity securities, or Single Stock Futures Contracts against 

equity securities, the following details must submitted via UTP by the 

basis trade executing Member:

(a) Futures Contract in which the BTF is being transacted;

(b) delivery month;

(c) agreed futures price;

(d) number of Futures Contracts;

(e) a unique identifier/reference number for the equity security or 

basket of equity securities transaction, as applicable;

 In addition, the basis trade executing Member must retain, in an easily 

accessible form that can be audited by the Relevant Euronext Market 

Undertaking, documentary evidence of the following information:

(f) the identity and volume traded of the equity security or each 

equity security comprising the basket, as applicable;
34

(g) the price (including currency) at which each equity security was 

traded; and

(h) any supplementary cash payment made in conjunction with the 

transaction.

All information required to be retained by the basis trade executing 

Member, pursuant to this Trading Procedure 4.2.8, must be retained by 

the Member for five years. If the basis trade executing Member is not 

directly responsible for the execution of the cash leg of the basis trade, 

he must have appropriate arrangements in place with the party 

organising/executing that leg such that the information in (f) - (h) above 

can be provided promptly to the Relevant Euronext Market 

Undertaking.

4.2.9 Where a basis trade involves Single Stock Futures Contracts, or equity 

index futures contracts against an OTC option/options strategy, the 

following details must submitted via UTP by the basis trade executing 

Member:

(a) Futures Contract(s) in which the BTF is being transacted;

(b) delivery month(s);

(c) agreed futures price(s);

(d) number of Futures Contracts;

(e) a unique identifier/reference number for the OTC options/options 

strategy transaction;

In addition, the basis trade executing Member must retain, in an easily 

accessible form that can be audited by the Relevant Euronext Market 

Undertaking, documentary evidence of the following information:

(f) the price(s) (including currency) and nominal value of the OTC 

option/ options strategy;

(g) the strike price(s) of the OTC option/options strategy;

(h) class – call(s) and/or put(s);

(i) the price(s) of the underlying instrument(s) for the OTC 

option/options strategy;

(j) the time to expiration of the OTC option/options strategy; and

(k) the delta of the OTC option/options strategy.

All information required to be retained by the basis trade executing 

Member, pursuant to this Trading Procedure 4.2.9, must be retained by 

the Member for five years. If the basis trade executing Member is not 

directly responsible for the execution of the cash leg of the basis trade, 

he must have appropriate arrangements in place with the party 
35

organising/executing that leg such that the information in (f) - (k) above 

can be provided promptly to the Relevant Euronext Market 

Undertaking.

4.2.10 Where a basis trade involves Single Stock Futures Contracts against a 

non-Euronext exchange traded option/options strategy, the following 

details must be submitted via UTP by the basis trade executing 

Member:

(a) Futures Contract(s) in which the BTF is being transacted;

(b) delivery month(s);

(c) agreed futures price(s);

(d) number of Futures Contracts;

(e) a unique identifier/reference number for the exchange traded 

options/options strategy transaction;

In addition, the basis trade executing Member must retain, in an easily 

accessible form that can be audited by the Relevant Euronext Market 

Undertaking, documentary evidence of the following information:

(f) the exchange on which the option contract was executed;

(g) the price(s) (including currency) and nominal value of the 

exchange traded option/ options strategy;

(h) the strike price(s) of the exchange traded option/options 

strategy;

(i) class – call(s) and/or put(s);

(j) the price(s) of the underlying instrument(s) for the exchange 

traded option/options strategy;

(k) the time to expiration of the exchange traded option/options 

strategy; and

(l) the delta of the exchange traded option/options strategy.

All information required to be retained by the basis trade executing 

Member, pursuant to this Trading Procedure 4.2.10, must be retained 

by the Member for five years. If the basis trade executing Member is 

not directly responsible for the execution of the cash leg of the basis 

trade, he must have appropriate arrangements in place with the party 

organising/executing that leg such that the information in (f) - (l) above 

can be provided promptly to the Relevant Euronext Market 

Undertaking.
36

4.2.11 Where a basis trade is an EFS involving a Commodity Futures Contract 

against an OTC swap or option, the following details must be submitted 

via UTP by the basis trade executing Member:

(a) Futures Contract in which the EFS is being transacted;

(b) delivery month;

(c) agreed futures price; and

(d) number of lots of each Futures Contract.

In addition, the basis trade executing Member must retain, in an easily 

accessible form that can be audited by the Relevant Euronext Market 

Undertaking, a copy of the relevant ISDA agreement (the “ISDA 

Agreement”) or the relevant confirmation which forms part of the ISDA 

Agreement. 

The following information should be contained in the documentary 

evidence:

(a) the price formulae of the swap or OTC option;

(b) the termination/maturity date;

(c) the effective (start) date of the swap or OTC option;

(d) the quantity of the swap or OTC option position relating to the 

underlying commodity or the direct product of such commodity; 

and

(e) the referenced futures delivery month.

All information required to be retained by the basis trade executing 

Member, pursuant to this Trading Procedure 4.2.11, must be retained 

by the Member for five years. If the basis trade executing Member is 

not directly responsible for the execution of the cash leg of the basis 

trade, he must have appropriate arrangements in place with the party 

organising/executing that leg such that the information above in (a) to 

(e) can be provided promptly to the Relevant Euronext Market 

Undertaking.

4.2.12 Where a basis trade is an EOO involving a Commodity Options 

Contract against an OTC option, the following details must be 

submitted via UTP by the basis trade executing Member:

(a) Options Contract in which the EOO is being transacted;

(b) Options Contract expiry month;

(c) agreed strike price and premium; and
37

(d) number of lots of each Option Contract.

In addition, the basis trade executing Member must retain, in an easily 

accessible form that can be audited by the Relevant Euronext Market 

Undertaking, a copy of the relevant ISDA Agreement or the relevant 

confirmation which forms part of the ISDA Agreement.

The following information should be contained in the documentary 

evidence:

(a) the price formulae of the OTC option;

(b) the termination date;

(c) the start date;

(d) the quantity of the position relating to the underlying commodity 

or the direct product of such commodity; and

(e) the referenced options expiry month.

All information required to be retained by the basis trade executing 

Member, pursuant to this Trading Procedure 4.2.12, must be retained 

by the Member for five years. If the basis trade executing Member is 

not directly responsible for the execution of the cash leg of the basis 

trade, he must have appropriate arrangements in place with the party 

organising/executing that leg such that the information above in (a) to 

(e) can be provided promptly to the Relevant Euronext Market 

Undertaking.

4.2.13 The basis trade details must be submitted on UTP as soon as 

practicable. In any event, details of the basis trade must be submitted 

by the basis trade executing member within fifteen minutes of the time 

at which the basis trade was negotiated. Members must not delay 

submission of a basis trade. . The Relevant Euronext Market 

Undertaking will check the validity of the details submitted by the 

executing Member. If the Relevant Euronext Market Undertaking is 

satisfied that all such details are valid, it will authorise the futures or 

options leg of the basis trade. The executing Member will then receive 

confirmation of the details of the trade.

4.2.14 Details of the executed futures or options leg(s) of a basis trade will be 

submitted to Trade Registration by the Trading Host.

4.2.15 Authorisation by the Relevant Euronext Market Undertaking of a 

Transaction does not preclude the Relevant Euronext Market 

Undertaking from instigating disciplinary proceedings in the event that 

the Transaction is subsequently found to have been made other than in 

compliance with Rules and Trading Procedures.

4.2.16 With the exception of a basis trade which is an EFS or an EOO in 

accordance with Trading Procedure 4.2.6(e) or 4.2.6(f) respectively, the 
38

following information with respect to the futures leg of a basis trade will 

be broadcast on UTP immediately upon authorisation:

(a) Futures Contract(s) and delivery month(s);

(b) futures price(s); and

(c) volume of futures traded.

In addition, these details will be distributed to Quote Vendors, marked 

with a special trade type indicator.

For each Exchange Contract, the cumulative volume of futures traded 

as the futures leg of basis trades/asset allocations during the day will 

also be published.

4.2.17 Where the basis trade is an EFS or an EOO in accordance with Trading 

Procedure 4.2.6(e) or 4.2.6(f) respectively, the following information 

with respect to the futures or options leg of an EFS or EOO respectively 

will be broadcast on UTP immediately upon authorisation:

 Futures Contract(s) and delivery month(s) or Options Contract(s) 

and expiry month(s); and

 volume of futures or options traded.

In addition, these details will be distributed to Quote Vendors, marked 

with a special trade type indicator .

For each Exchange Contract, the cumulative volume of futures or 

options traded as the futures or options leg of basis trades/asset 

allocations during the day will also be published.

4.2.18 Both the long and short positions associated with the futures or options 

leg(s) of a basis trade will be passed to Trade Registration and 

matched under the basis trade executing Member’s mnemonic.

4.2.19 Upon request by the Relevant Euronext Market Undertaking the basis 

trade executing Member must produce satisfactory evidence that the 

basis trades have been negotiated in accordance with the Rules and 

Trading Procedures. Basis trade executing Members must, therefore, 

be in a position to supply documentary evidence in connection with a 

basis trade, including, but not limited to, evidence confirming the cash 

leg of basis trades.

Basis trade executing Members may also be required from time to time 

by the Relevant Euronext Market Undertaking to request, and copy to 

it, confirmation of the details of the cash leg of a basis trade where 

another party was responsible for the execution of the cash leg.

4.3 Asset Allocations

4.3.1 Euronext provides an Asset Allocation Facility which allows Members to 

negotiate and execute, subject to this Trading Procedure 4.3, 
39

Transactions involving a specified combination of two Exchange 

Contracts in an appropriate ratio. For the purposes of these Trading 

Procedures such Transactions are called “asset allocations”. 

4.3.2 Any Member is permitted to arrange asset allocations, subject only to 

the Member having in place arrangements for the execution of the 

individual legs of the asset allocation via a Member holding a relevant 

trading right (“the asset allocation executing Member”) to trade the 

asset allocation Exchange Contracts.

4.3.3 An asset allocation may be negotiated only during the trading hours of 

the Futures or Options Contracts concerned, as published by the 

Relevant Euronext Market Undertaking from time to time by Notice.

4.3.4 Asset allocations may be transacted only in Exchange Contracts which 

have been designated by the Relevant Euronext Market Undertaking 

for that purpose. Such designations are published, from time to time by 

Notice and are detailed in Annexe One. Asset allocations are not 

permitted in respect of a delivery month or an expiry month of a 

designated contract which has never traded. The Asset Allocation 

Facility can be used in respect of a delivery month for a Futures 

Contract, or an expiry month for an Options Contract on any Trading 

Day up to and including the business day preceding the Last Trading 

Day of that delivery month or expiry month.

4.3.5 The asset allocation executing Member is responsible for assigning the 

price of the individual legs of an asset allocation. For the individual 

legs to be authorised, the prices must be at the level trading on UTP at 

the time the asset allocation is submitted for execution, as specified in 

Trading Procedure 4.3.8A, or within the high/low traded price that 

occurred on UTP in the preceding thirty minutes. In the event that no 

trade has occurred in the relevant delivery month or expiry month on 

that day at the time the asset allocation is submitted for execution or in 

the preceding thirty minutes, the price of the individual legs of the asset 

allocation must be at or within the high/low traded price calculated by 

an Exchange maintained algorithm.

4.3.6 The hedge ratio considered acceptable will be nominal value for 

nominal value (currency converted if applicable) for contracts of the 

same duration or asset class or where no duration bias applies.

4.3.7 After an asset allocation has been negotiated, the asset allocation 

executing Member (or where the asset allocation has been negotiated 

between two Members, the Member agreed by mutual consent), must 

submit the asset allocation details via UTP, as specified in Trading 

Procedures 4.3.8A – 4.3.9, or must procure that the individual legs of 

the asset allocation are so executed by another appropriately 

authorised Member.

4.3.8A In respect of each asset allocation submitted, the Member accepting 

the asset allocation order must record the order details prescribed by 

(a) to (j) below, on an order slip. Where a Member employs an 
40

electronic system for order routing, such details must be recorded 

electronically:

(a) time of order receipt;

(b) time of organisation;

(c) executing Member mnemonic;

(d) each Contract in which the asset allocation is being transacted;

(e) delivery month(s) of the Futures Contracts or expiry month(s) of 

the Options Contracts;

(f) agreed futures prices or options premia;

(g) number of lots of each Futures or Options Contract;

(h) put / call indicators and the exercise price of the Options 

Contracts (if applicable);

(i) name and signature of individual presenting the trade; and

(j) time-stamp on execution.

4.3.8B All information required to be retained by the asset allocation executing 

Member, pursuant to Trading Procedures 4.3.8A, must be retained by 

the Member for five years.

4.3.9 The asset allocation details set out in Trading Procedure 4.3.8A (c) –

(h), must be submitted to the Relevant Euronext Market Undertaking as 

soon as practicable. In any event, details of the asset allocation must 

be submitted by the asset allocation Executing Member within fifteen 

minutes of the time at which the asset allocation was negotiated. 

Members must not delay submission of an asset allocation. No asset 

allocation can be submitted for execution later than five minutes prior to 

the close of trading of the contracts concerned. In the case of 

contracts with different closing times, no asset allocation can be 

submitted for execution later than five minutes prior to the earliest close 

of trading of the contracts concerned. The Relevant Euronext Market 

Undertaking will check the validity of the asset allocation details 

submitted. If the Relevant Euronext Market Undertaking is satisfied 

that all such details are valid, it will authorise execution of the asset 

allocation. 

4.3.10 Authorisation of a Transaction does not preclude the Relevant 

Euronext Market Undertaking from instigating disciplinary proceedings 

in the event that the Transaction is subsequently found to have been 

made other than in compliance with the Rules and Trading Procedures.
41

4.3.11 The following information with respect to the individual legs of the asset 

allocation will be published on UTP immediately upon authorisation:

(a) Futures Contracts and delivery month(s) or Options Contracts 

and expiry month(s);

(b) futures prices or option premia; and

(c) volume of futures or options traded.

In addition, these details will be distributed to Quote Vendors, marked 

with a trade type indicator.

For each Exchange Contract, the cumulative volume of futures and 

options traded as asset allocations/basis trades during the day will also 

be published.

4.3.12 Both the long and short positions associated with the individual legs of 

the asset allocation will be entered to Trade Registration and matched 

under the asset allocation executing Member’s mnemonic.

4.3.13 Upon request by the Relevant Euronext Market Undertaking the asset 

allocation executing Member must produce satisfactory evidence that 

the asset allocation has been negotiated in accordance with the Rules 

and Trading Procedures. Asset allocation executing Members must, 

therefore, be in a position to supply documentary evidence in 

connection with an asset allocation.

4.4 Against Actuals

4.4.1 Euronext provides an Against Actuals (“AA”) Facility which allows 

Members to negotiate and execute, subject to this Trading Procedure 

4.4, Transactions which relate directly to a specific identifiable 

underlying transaction in the same or similar physical commodity. 

Specifically, an AA is a Transaction between two parties involving the 

purchase or sale of a contract in the terms of an Exchange Contract 

and either:

(a) the simultaneous price fixing of a directly related contract for sale 

or purchase, which expressly contemplated price fixing; or

(b) the hedging of a directly related contemporaneous contract for 

sale or purchase.

4.4.2 AAs may be transacted only in respect of Exchange Contracts which 

have been designated by the Relevant Euronext Market Undertaking 

from time to time for that purpose and published from time to time by 

Notice. The Exchange Contracts designated for AAs are set out in 

Annexe One to these Trading Procedures. 

4.4.3 Any Member is permitted to arrange AAs, subject only to the Member 

having in place arrangements for the execution of the futures leg of the 
42

AA via a Member holding a relevant trading right (“the AA executing 

Member”) to trade contracts in terms of the AA Exchange Contract.

4.4.4 An AA may be negotiated only during the trading hours of the 

Exchange Contract concerned, as published by the Relevant Euronext 

Market Undertaking from time to time by Notice.

4.4.5 When a Member accepts an AA order, he must record the order details 

set out in Trading Procedure 4.4.7 and, in addition, the details 

prescribed by (a) – (c) below, on an order record. Where a Member 

employs an electronic system for order routing, such details must be 

recorded electronically:

(a) time of order receipt;

(b) identity of individual organising the AA; and

(c) time stamp (at time of organisation).

All information required to be retained by the AA executing Member, 

pursuant to this Trading Procedure 4.4.5, must be retained by the 

Member for five years. After an AA has been negotiated the Member 

or, where the AA has been negotiated between two Members, the 

Member who will be the seller of the futures leg of the AA must submit 

details of the futures leg of the AA to the Relevant Euronext Market 

Undertaking via UTP, as specified in Trading Procedures 4.4.6 – 4.4.8, 

or must procure that the futures leg of the AA is so submitted by 

another appropriately authorised Member.

4.4.6 The AA executing Member is responsible for assigning the price of the 

futures leg(s) of the AA. For the futures leg(s) to be authorised, the 

price(s) must be transacted within the high low range of traded prices 

on that Trading Day or at or within the best bid and offer at the time at 

which the AA is negotiated.

4.4.7 The following details must be submitted via UTP by the AA executing 

Member:

(a) Exchange Contract in which the AA is being transacted;

(b) delivery month(s);

(c) agreed futures price(s);

(d) number of lots of each Exchange Contract; and

(e) counterparty Member mnemonic.

In addition, and subject to Trading Procedure 4.4.15, the AA executing 

Member must retain, in an easily accessible form that can be audited 

by the Relevant Euronext Market Undertaking, documentary evidence 

of the following information:
43

either

(i) a copy of the physical contract itself, if this was transacted at a 

specific outright price. The date of the physical contract must be 

the same as the date of registration of the futures leg;

or

(ii) a copy of a price-fixation confirmation, together with a copy of 

the directly related contract which shows the price differential or 

ratio at which the contract was transacted. The date of the pricefixation confirmation must be the same as the date of registration 

of the futures leg;

and

(iii) that the price (plus premium, less discount, or multiplied by ratio) 

equates to the price at which the AA was transacted;

(iv) that the futures delivery month referred to in the physical 

contract or price-fixation confirmation is the same as that for 

which the AA was registered; and

(v) that the physical contract or price-fixation confirmation relates to 

at least the equivalent amount of the underlying commodity or a 

related commodity.

4.4.8 Details of an AA Transaction must be submitted to the Relevant 

Euronext Market Undertaking by the AA executing Member as soon as 

practicable. In any event, details of the AA must be submitted by the 

AA executing Member within fifteen minutes of agreeing to execute the 

AA. Members must not delay submission of an AA. . If the Relevant 

Euronext Market Undertaking is satisfied that all such details are valid, 

it will authorise the futures leg of the AA. The executing Member will 

then receive confirmation of the details of the trade.

4.4.9 Details of the executed AA will be submitted to Trade Registration by 

the Trading Host. 

4.4.10 The following information with respect to the futures leg of an AA will 

be broadcast on UTP immediately upon authorisation:

 Futures Contract(s) and delivery month(s); and

 Volume of futures traded. 

In addition, these details will be distributed to Quote Vendors, marked 

with a special trade type indicator.

For each Exchange Contract, the cumulative volume of futures traded 

as the futures leg of AA’s posted during the day will also be published.

4.4.11 Both the long and short positions associated with the futures leg(s) of 
44

an AA will be submitted to Trade Registration and matched under the 

AA executing Member’s mnemonic.

4.4.12 Authorisation by the Relevant Euronext Market Undertaking of a 

Transaction does not preclude the Relevant Euronext Market 

Undertaking from instigating disciplinary proceedings in the event that 

the Transaction is subsequently found to have been made other than in 

compliance with the Rules and Trading Procedures.

4.4.13 All information required to be retained by the AA executing Member, 

pursuant to Trading Procedure 4.4.7, must be retained by the Member 

for five years. If the AA executing Member is not directly responsible 

for the execution of the physical leg of the AA, he must have 

appropriate arrangements in place with the party organising/executing 

the physical leg such that the information in 4.4.7(i) – (v) above can be 

provided promptly to the Relevant Euronext Market Undertaking.

4.4.14 Upon request by the Relevant Euronext Market Undertaking, the AA 

executing Member must provide satisfactory evidence that the AA has 

been executed in accordance with the Rules and Trading Procedures.

LARGE-IN-SCALE TRADES

4.5 Large-in-Scale Trades

Introduction

4.5.1 The Large-in-Scale Trade Facility allows Members to negotiate and 

execute Transactions involving Large-in-Scale Trades in accordance 

with these Trading Procedures.

4.5.2 Large-in-Scale Trades may be transacted only in Exchange Contracts 

which have been designated by the Relevant Euronext Market 

Undertaking for that purpose, as set out in Annexe One to these 

Trading Procedures. 

4.5.3 The Large-in-Scale Trade Facility allows Members to enter into Largein-Scale Trades in any Exchange-recognised strategy (as set out in 

Annexe Two), including inter-contract spreads, through a single 

Transaction. 

4.5.4 The Large-in-Scale Package is available to Members who wish to enter 

into Large-in-Scale Trades with one or more counterparties and/or in 

strategies involving combinations of Large-in Scale Trade Contracts

(including, but not limited to, Exchange-recognised strategies). 

However, each leg of any order executed via a Large-in-Scale Package 

must relate to a single counterparty and meet the applicable minimum 

volume threshold condition and the Large-in-Scale Package is limited 

to the following combinations:
45

(a) futures contracts with the same underlying;

(b) option classes with the same underlying;

(c) delta-neutral strategies, where trades may be in both an option 

and the related futures contract.

Large-in-Scale Trading Hours/Availability of the Facility

4.5.5 A Large-in-Scale Trade may be negotiated and submitted during the 

hours published by Notice by the Relevant Euronext Market 

Undertaking.

4.5.6 Unless specified otherwise by Notice, on the Last Trading Day of a 

delivery/expiry month the latest time that a Large-in-Scale Trade in 

respect of such month may be submitted shall be the time at which 

trading in such month ceases in the Central Order Book.

Minimum Volume Thresholds

4.5.7 For those Exchange Contracts designated pursuant to Trading 

Procedure 4.5.2 as Large-in-Scale Trade Contracts, Annexe One to 

these Trading Procedures shall specify the minimum volume thresholds 

applying to Large-in-Scale Trades. 

4.5.8 In respect of strategies, minimum volume thresholds apply to each leg, 

except in the case of strategies covered by Trading Procedure 4.5.11. 

Where a strategy involves the trading of two or more different 

Exchange Contracts, the smaller of the minimum volume thresholds of 

the contracts comprising the Large-in-Scale Trade will be applied to 

each of these contracts. Where the strategy involves the trading of two 

or more different delivery/expiry months and/or exercise prices of the 

same contract, the minimum volume threshold will apply to the lot size 

of each leg of the trade. Members must not aggregate separate orders 

in order to meet the minimum volume thresholds.

4.5.9 In respect of futures contracts designated as Large-in-Scale Trade 

Contracts, Members must not aggregate separate orders in order to 

meet the minimum volume thresholds nor may they combine separate 

orders in respect of different contracts to generate an inter-contract 

spread trade. 

4.5.10 In respect of options contracts designated as Large-in-Scale Trade 

Contracts, Members must not aggregate separate orders in order to 

meet the minimum volume threshold on both sides of a Large-in-Scale 

Trade. However, where a Member receives a Large-in-Scale Trade 

order which meets or exceeds the relevant minimum volume threshold, 

he may aggregate orders on the matching side only, in order to 

facilitate execution of the Large-in-Scale Trade. 
46

4.5.11 In respect of delta neutral strategies, minimum volume thresholds apply 

to each options leg but not to the related futures leg. In respect of 

volatility strategies, it is permitted to execute such strategies even if 

one leg is less than the minimum volume threshold provided that each 

other leg meets the threshold.

Fair Value

4.5.12 Members should ensure when negotiating Large-in-Scale Trades that

their Clients and their potential counterparty(ies) are made aware that 

the price being quoted is a Large-in-Scale Trade price.

4.5.12A The Large-in-Scale Trade Executing Member is responsible for 

assigning the price of the Large-in-Scale Trade. For the Large-in-Scale 

Trade to be authorised by the relevant Euronext Market Undertaking, 

the price assigned must represent a fair value for that trade, as 

determined by the Relevant Euronext Market Undertaking.

Large-in-Scale Trade Execution

4.5.13 Once a Large-in-Scale Trade has been negotiated, the Large-in-Scale 

Trade Executing Member(s) must submit the Large-in-Scale Trade 

details to the Relevant Euronext Market Undertaking, as specified in 

Trading Procedures 4.5.15 to 4.5.17. Where a Member is unable to 

execute the Large-in-Scale Trade himself, he must ensure that he has 

arrangements in place with another appropriately authorised Member to 

submit and execute Large-in-Scale Trades before he negotiates any 

such Large-in-Scale Trade.

Submission by Large-in-Scale Executing Members shall occur in one of 

two ways:

(a) either one Member is authorised by his counterparties to enter 

all legs and/or sides of the Trade and see to it that other 

Members involved are properly allocated their respective side of 

the Trade; or

(b) each Member involved enters the relevant details for his 

respective leg(s) and/or side(s) with a view to having such trade 

details matched within the Trading Host.

4.5.14 [Deleted] 

4.5.15 In respect of each Large-in-Scale Trade order, the following details 

must be recorded on an order slip, or, where the Member employs an 

electronic system for order routing, must be recorded electronically, by 

the Large-in-Scale Trade Executing Member:

(i) time of order receipt;

(ii) an indication of “buy” or “sell”;
47

(iii) Contract(s) in which the Large-in-Scale Trade is being 

transacted;

(iv) strategy (as applicable)

(v) delivery/expiry month(s);

(vi) exercise price(s) (as applicable);

(vii) price of each leg of the trade;

(viii) number of lots of each leg of the trade 

(ix) an indication of “open” or “close” (customer account) where 

applicable;

(x) the Package ID where applicable; and

(xi) name of the individual authorised to submit Large-in-Scale 

Trades on behalf of the Member.

All information required to be retained by the Large-in-Scale Trade 

Executing Member, pursuant to this Trading Procedure, must be 

retained by the Member for five years.

4.5.16 The individual submitting the Large-in-Scale Trade for execution must, 

if the Member requires regulatory authorisation, be authorised in a

capacity which permits him to commit the Member to an “investment 

agreement”. It is the Member’s responsibility to ensure that only staff 

he has authorised negotiate or enter into Large-in-Scale Trades on his 

behalf. Members must also ensure that only staff they have authorised 

submit details of Large-in-Scale Trades to the Relevant Euronext 

Market Undertaking. 

4.5.17 Once the Large-in-Scale Trade has been negotiated, the Large-inScale Trade Executing Member must submit details, contained in 

Trading Procedure 4.5.15 (ii) to (x) inclusive, of the Large-in-Scale 

Trade to the Relevant Euronext Market Undertaking as soon as 

practicable. In any event, the details of the Large-in-Scale Trade must 

be submitted by the Large-in-Scale Trade Executing Member:

(a) within fifteen minutes in the case of a Large-in-Scale Trade 

which does not involve the use of a Large-in-Scale Package 

or

(b) within one hour in the case of a Large-in-Scale Trade involving 

the use of a Large-in-Scale Package.

4.5.18 Members must not delay submission of a Large-in-Scale Trade.

4.5.19 The time limit for the submission of a Large-in-Scale Trade commences 

as soon as verbal agreement on all the terms of the Large-in-Scale 

Trade is reached between the parties to the Large-in-Scale Trade. 

4.5.20 For the purposes of Trading Procedure 4.5.17, a transaction in another 
48

instrument shall include any such transaction executed in the OTC 

market or on-exchange, including a Transaction in another Exchange 

Contract or Security executed on a Euronext Derivatives Market or a 

Euronext Securities Market.

4.5.21 Market conditions shall be regarded as exceptional during periods of 

increased trading activity or volatility, whether predictable or not, or at 

times of significant directional price movement or re-pricing (for 

instance, following relevant economic announcements).

4.5.22 The Relevant Euronext Market Undertaking will check the validity of the 

Large-in-Scale Trade details submitted by the Large-in-Scale Trade 

Executing Member and assess whether the price represents fair value 

for that trade, taking into account, inter alia, the liquidity of the contract 

concerned. If the Relevant Euronext Market Undertaking (following 

consultation, where necessary, with the Clearing Organisation) is 

satisfied that all such details are valid, it will authorise execution of the 

Large-in-Scale Trade. The Large-in-Scale Trade volume will be shown 

as executed to the Large-in-Scale Executing Member via the ITM 

through which the Large-in-Scale Trade was submitted.

4.5.23 Authorisation by the Relevant Euronext Market Undertaking of a 

Transaction does not preclude the instigation of enforcement 

procedures in the event that the Transaction is subsequently found to 

have been made other than in compliance with the Rules and Trading 

Procedures.

4.5.24 Upon request by the Relevant Euronext Market Undertaking the Largein-Scale Trade Executing Member must produce satisfactory evidence 

that the Large-in-Scale Trade(s) has been negotiated in accordance 

with the Rules and these Trading Procedures

Publication of Large-in-Scale Trades

4.5.25 Except in the cases specified in Trading Procedure 4.5.26, once the 

trade has been authorised, the following information with respect to the 

Large-in-Scale Trade will be published immediately by the Relevant 

Euronext Market Undertaking with a relevant trade type indicator:

(i) Contract(s) and delivery/expiry month(s);

(ii) price of each delivery/expiry month(s) and exercise price(s) (as 

applicable); and

(iii) volume of each delivery/expiry month.

Details of the Large-in-Scale Trade will also be broadcast on UTP. 

4.5.26 For those Exchange Contracts designated for such purposes in Annexe 

One to these Trading Procedures, Members may opt for deferred 

publication of a Large-in-Scale Trade. The period of deferral shall be: 
49

(i) For trades at or above the minimum volume threshold, at the end 

of that Trading Day; and

(ii) For trades twice the minimum volume threshold or above, either 

(a) at the end of that Trading Day or (b) the end of the Trading 

Day three Trading Days after acceptance of the trade by the 

Relevant Euronext Market Undertaking, as determined by the 

Member.

[NB: Paragraph (ii) of this Trading Procedure is not yet in force; 

Members shall be informed by Notice when it becomes effective.]

The Member submitting the Large-in-Scale Trade for execution must 

ensure prior to submission that his counterparty to the trade (or all 

counterparties, as the case may be) agrees with the proposed period of 

deferral of publication.

For the avoidance of doubt, election of publication deferral is without 

effect on the timetables for trade detail submission to the Relevant 

Euronext Market Undertaking, as provided for by Trading Procedure 

4.5.17, which have to be strictly observed irrespective of the 

contemplated publication mode.

4.5.27 For each Exchange Contract, the cumulative volume of Large-in-Scale 

Trades executed during the Trading Day will also be published at the 

end of that Trading Day, including those individual trades whose 

publication is deferred to a subsequent Trading Day pursuant to 

Trading Procedure 4.5.25 (ii).
50

OTHER PRE-NEGOTIATED TRADES

4.6 Guaranteed Cross Trades

4.6.1 Where a matched trade (negotiated in accordance with Trading 

Procedures 3.4.2 to 3.4.6 inclusive) is to be submitted as a Guaranteed 

Cross Trade, the price of the trade must be:

(a) within the prevailing best bid and offer price in the Central 

Order Book; or

(b) for contracts designated in Annexe One, at the best bid or offer 

where the differential between such best bid and offer is the 

minimum price movement for the Contract concerned (such 

trade must also meet the applicable minimum volume set out in 

Annexe One); or

(c) where a bid but no offer, or an offer but no bid, exists in the 

Central Order Book, better than such bid or offer; and

(d) in any event, at a price which represents a fair value for the 

trade.

4.6.2 The Relevant Euronext Market Undertaking shall immediately publish 

(with a relevant trade type indicator) the volume and price associated 

with each Guaranteed Cross Transaction submitted to it.

4.7 Flex Contracts

4.7.1 The Relevant Euronext Market Undertaking may make Flex Contracts 

available for trading. Such Flex Contracts may only be executed as 

Off-Order Book Transactions pursuant to this section 4.7 of the Trading 

Procedures. Annexe One to these Trading Procedures specifies the 

minimum number of lots required to be executed in any such trade.

4.7.2 A Flex Contract can only be executed as such if at least one of the 

parameters which a Member is permitted to vary (excluding for the 

avoidance of doubt the tick size alone) has been varied, making the 

Flex Contract distinct from a standardised Contract with the same 

characteristics.

4.7.3 For the avoidance of doubt, a position arising following the execution of 

a Flex Contract shall become fungible with Contracts executed on the 

Central Order Book if the Relevant Euronext Market Undertaking 

subsequently introduces a standardised Contract with the same 

characteristics.

4.7.4 Members should ensure, when negotiating or executing Flex 

Transactions, that the price of any such Transaction being quoted 

represents a fair value for that trade. On each occasion of quoting a 

Flex Transaction price, the Member must, at the time, make it clear to 
51

the potential counterparty(ies), whether a Member or a non-Member 

Client, that the price being quoted is a Flex Transaction price.

4.7.5 The following information must be submitted to the Relevant Euronext 

Market Undertaking by the Member:

(a) the Flex Contract concerned;

(b) Expiry Date or Delivery Date (as applicable);

(c) Price and/or Exercise Price (as applicable);

(d) class – call or put (where applicable); 

(e) number of lots; 

(f) exercise style; and

(g) whether cash settled or physically delivered.

4.7.6 The Member must submit to the Relevant Euronext Market Undertaking 

the details of the Flex Contract as soon as practicable. In any event, 

details of the Flex Contract must be submitted by the Member within 

fifteen minutes of the time at which the Flex Contract was negotiated. 

4.7.7 The Relevant Euronext Market Undertaking will check the validity of the 

details of the Flex Contract submitted by the Member. If the Relevant 

Euronext Market Undertaking is satisfied that all such details are valid 

and that the Flex Contract has been entered into at a fair value (to be 

determined by the Relevant Euronext Market Undertaking in its 

absolute discretion), it will authorise the Flex Contract and notify the 

Member accordingly.

4.7.8 Subject to Trading Procedure 4.7.9, once the Flex Contract has been 

authorised, the information specified in Trading Procedure 4.7.5 will be 

published immediately, with a relevant trade type indicator:

4.7.9 Members may opt for deferred publication of a Flex Contract for trades 

at or above the minimum volume thresholds specified in Annexe One to 

these Trading Procedures. The period of deferral shall be until the end 

of that Trading Day.

The Member submitting the Flex Contract for execution must ensure 

prior to submission that his counterparty to the trade agrees with the 

proposed period of deferral of publication.

For the avoidance of doubt, election of publication deferral is without 

effect on the timetables for trade detail submission to the Relevant 

Euronext Market Undertaking, as provided for by Trading Procedure 

4.7.6, which have to be strictly observed irrespective of the 

contemplated publication mode.
52

4.7.10 For each Exchange Contract, the cumulative volume of Flex Contracts 

executed during the Trading Day will also be published at the end of 

that Trading Day, including those individual trades whose publication 

was deferred pursuant to Trading Procedures 4.7.9.

4.7.11 Members must not seek to negotiate a Flex Contract in order to 

circumvent any conditions concerning the execution of standardised 

Contracts, including minimum volume threshold conditions applying to 

the execution of Large-in-Scale Trades. Such action would be 

considered a violation of Rule 8104/1(v) and may lead to action against 

the member pursuant to Chapter 9 of the Rules.
53

PART TWO – NON-HARMONISED AND MARKET-SPECIFIC PROVISIONS

SECTION 1 – TRADING PROCEDURES IN RELATION TO THE AMSTERDAM

AND BRUSSELS MARKETS

For convenience, each provision in this Section 1 in relation to the 

Euronext Derivatives Market organised by Euronext Amsterdam and 

Brussels is prefixed with the letters “AB”.

General

AB.1 Application of Section 1 

AB.1.1 Provisions of this Section 1 of PART TWO apply (in addition to those 

contained in PART ONE) only to Derivatives admitted on the markets 

organised by Euronext Brussels or by Euronext Amsterdam. 

Trading on UTP

AB.2 Account type identifier and Order execution 

AB.2.1 When submitting order details to UTP, a Member must submit all 

material details (including the identifier required by Trading Procedure 

3.2.11 and, if applicable, marking the order as a public order, and if so, 

whether the order is an opening or closing order and specifying the 

account of the Client).

AB.3 Trade matching Primary Market Makers and/or Competitive Market 

Makers 

AB.3.1 Pursuant to Trading Procedure 3.3.1, PART ONE, in the case of two or 

more bids or offers of the same price, the Relevant Euronext Market 

Undertaking may determine and publish by Notice that the relevant 

bids or offers sent to the market by Primary Market Makers and/or 

Competitive Market Makers will in certain circumstances have priority 

up to a certain percentage of the trade to be determined at the 

discretion of the Relevant Euronext Market Undertaking. 
This Info-Flash is for information purposes only and is not a recommendation to engage in investment activities. Whilst all reasonable care has been 

taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will not be held liable for any loss or 

damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication shall 

form the basis of any contract except as provided otherwise. Some information may be subject to regulatory approval. The Euronext Markets comprise 

the markets operated by Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Euronext London and Euronext Paris, referred to respectively as the 

Amsterdam, Brussels, Lisbon, London and Paris markets, as relevant. Euronext refers to Euronext N.V. and its affiliates. Information regarding 

trademarks and intellectual property rights of Euronext is located at www.euronext.com/terms-use. © 2017, Euronext N.V. - All rights reserved.

Euronext N.V., PO Box 19163, 1000 GD Amsterdam, The Netherlands www.euronext.com

DATE: 6 DECEMBER 2017

MARKET: EURONEXT DERIVATIVES MARKETS

PROJECT: MiFID II

EURONEXT LARGE IN SCALE PRE-TRADE AND POST-TRADE 

THRESHOLDS UNDER MIFID II

Executive Summary

Euronext announces the minimum volume thresholds regarding pre-trade and post-trade transparency 

that will be applied to our wholesale facilities as of the implementation of MiFID II on 3 January 2018.

In preparation for the implementation of MiFID II, Euronext hereby announces the large in scale (LIS) 

thresholds regarding pre-trade and post-trade transparency that will be applied to our wholesale facilities

as from 3 January 2018.

The LIS pre-trade threshold per contract defines the minimum volume threshold that is applied to the 

Euronext wholesale facilities.

For large in scale trades that are reported via AtomX, Members may opt to defer the publication of the 

trade. Deferred publication is permitted for trades that are at or above the minimum LIS post-trade 

threshold. The period of deferral is until the end of the Trading Day.

In general, the currently applicable minimum volume thresholds for the Large-in-Scale Facility will remain in 

place1. For the contracts shown in Appendix 1, a higher LIS pre-trade threshold will be applied as from 

3 January 2018.

The complete list of LIS thresholds per contract can be found on the Euronext website: 

https://derivatives.euronext.com/wholesale-trading-offer

The LIS thresholds communicated by ESMA are expressed in notional value (EUR). These thresholds are 

converted into a number of lots as follows:

■ Options: ESMA threshold value / (option lot size x highest-listed strike price)

■ Stock and Index Futures: ESMA threshold value / (futures lot size x settlement price first expiry 

month or underlying value closing price)

■ Stock Dividend Futures: ESMA threshold value / (futures lot size x settlement price first expiry 

month)

 

1

The current minimum volume thresholds are shown on the Euronext website 

https://derivatives.euronext.com/wholesale-trading-offer in the document “Euronext Wholesale Facilities”
INFO-FLASH

Page 2 of 4

Subject to final regulatory approval, the LIS thresholds are applied to our wholesale facilities as follows:

■ Large-in-Scale Facility: the minimum LIS volume threshold applies to each leg of the trade

■ Delta Neutral trades: involves the simultaneous execution of options and an appropriate number of 

offsetting futures or shares/ETFs in order to create a zero net delta. The minimum LIS volume 

threshold applies to each options leg but not the related other leg

■ Basis trades: involves a combination of a basis trade instrument (a correlated security, a basket of 

securities, a traded contract listed on another trading venue or an OTC instrument) and an 

appropriate number of offsetting futures in order to trade the difference in prices of the two 

related instruments. A minimum LIS volume threshold applies to one leg but not the related other 

leg.

For further information in relation to this Info-Flash, contact your relationship manager at 

ccc@euronext.com or contact:

Euronext Market Services: www.euronext.com/services-support

Tel. (calling from): France +33 1 8514 8585; The Netherlands +31 20 721 9585; UK +44 20 7660 8585;

Belgium +32 2 620 0585; Portugal +351 2 1060 8585
INFO-FLASH

Page 3 of 4

Appendix 1: Contracts for which a higher LIS pre-trade threshold will be applied

Product group Underlying name Contract Code

Euronext LIS 

pre-trade 

threshold

Stock Dividend LLOYDS BANKING GROUP LY8 90

Futures BARCLAYS YS8 80

MEDIASET MA8 70

A2A QT8 60

BPER BANCA PV8 50

GLENCORE GX8 50

STANDARD CHARTERED SX8 50

BOLLORE GROUP HA8 50

MORRISON (WM) SUPERMARKETS WM8 40

OLD MUTUAL OL8 40

BANKIA QU8 30

ERICSSON B ER8 30

KPN, KONINKLIJKE KP8 30

UBI BANCA UF8 30

TECHNIPFMC TE8 30

BAE SYSTEMS BX8 20

BANCO SANTANDER BS8 20

BANCO SANTANDER B8O 20

BANKINTER BI8 20

BT GROUP BT8 20

CAIXABANK CB8 20

CENTRICA CC8 20

DEUTSCHE BANK DB8 20

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION DI8 20

E.ON EO8 20

ENEL QC8 20

INTESA SANPAOLO IO8 20

ITALGAS WG8 20

LEGAL & GENERAL GROUP LL8 20

MAPFRE MP8 20

NOKIA NO8 20

ROLLS-ROYCE HOLDINGS RR8 20

SBM OFFSHORE SB8 20

SNAM WS8 20

STMICROELECTRONICS ST8 20

TELIA COMPANY TJ8 20

TERNA TX8 20

THYSSENKRUPP TH8 20

UNIPOLSAI UQ8 20

VODAFONE GROUP VO8 20

THE NAVIGATOR COMPANY PO8 20
INFO-FLASH

Page 4 of 4

Appendix 1 (continued)

Product group Underlying name Contract Code

Euronext LIS 

pre-trade 

threshold

Stock Options ING GROEP ING 750

American style PHILIPS, KONINKLIJKE PHI 500

ROYAL DUTCH SHELL A RD 500

NOKIA CG1 500

AXA CS1 500

Stock Options NOKIA CG3 5,000

European style AXA CS9 5,000

ING GROEP IN9 750

PHILIPS, KONINKLIJKE PH9 500

ROYAL DUTCH SHELL A RD9 500

Stock Futures BANCO SANTANDER BS6 2,750

ENGIE GA6 1,250

MAPFRE MP6 1,250

SEADRILL DR6 1,250

ING GROEP IN6 500

UNILEVER UN6 500

ORANGE FT6 500

TOTAL TO6 500

TELECOM ITALIA TI6 500

DEUTSCHE BANK DB6 500

BANCO BILBAO VIZCAYA ARGENTA BA6 500

TELEFONICA TA6 500

Index option AEX-INDEX MINI OPTION MOA 3,000

Index future AEX-INDEX MINI FUTURE MFA 2,000

CAC 40 MINI FUTURE MFC 5,500
Clearing Rule Book 1 / 80 Published on 19th December 2017

LCH SA

Clearing Rule Book

LCH SA
Clearing Rule Book 2 / 80 Published on 19th December 2017

TITLE I - GENERAL PROVISIONS & LEGAL FRAMEWORK 5

CHAPTER 1 - DEFINITIONS 6

CHAPTER 2 - GENERAL PROVISIONS 18

Section 1.2.1 General 18

Section 1.2.2 Interpretation and references 18

Section 1.2.3 Clearing Rules modifications 18

Section 1.2.4 Publication and effectiveness 19

Section 1.2.5 Fees 19

Section 1.2.6 Currency 19

Section 1.2.7 Time reference 19

CHAPTER 3- LEGAL FRAMEWORK 20

Section 1.3.1 Status and activity of LCH SA 20

A. Status 20

A.1. A Clearing House 20

A.2. A Security Settlement System 20

B. Scope of activity 20

Section 1.3.2 General Clearing principles 22

A. General 22

A.1. Novation and irrevocability 22

A.2. Scope of LCH SA’s obligations 22

A.3. General Clearing Process 23

B. Provisions related to financial products traded on markets operated by Euronext Brussels

24

Section 1.3.3 Liability and Force majeure 24

A. Liability of Clearing Members 24

B. Liability of LCH SA 24

C. Force majeure 25

Section 1.3.4 Confidentiality 26

Section 1.3.5 Applicable law 26

Section 1.3.6 Disputes 26

CHAPTER 4 – LCH SA DEFAULT 27

CHAPTER 5 – WINDING DOWN 30

TITLE II – MEMBERSHIP 31

CHAPTER 1- GENERAL PROVISIONS 32

Section 2.1.1 Participants 32

A. Clearing Members 32

B. Allied Clearing Houses 33

Section 2.1.2 Application Procedure 33

CHAPTER 2 - LEGAL OBLIGATIONS 36

Section 2.2.1 Regulatory framework 36

Section 2.2.2 Corporate organisation 37

A. Location of offices 37

B. Authorised Clearing Operators 37

Section 2.2.3 Third party contractual obligations 38

A. Relationship with Settlement Agents and Payment Agents 38

A.1. Common provisions 38

A.2. Provisions related to Payment Agents 38

A.3. Provisions related to Settlement Agents 38

B. Relationship withClient « del credere » Agents 39

C. « del credere » Agents 39
Clearing Rule Book 3 / 80 Published on 19th December 2017

C.1 Authority to cancel settlement instructions 39

Section 2.2.4 Record Keeping 40

Section 2.2.5 Test Processing 40

CHAPTER 3 - CAPITAL REQUIREMENTS 41

Section 2.3.1 Common General Provisions 41

Section 2.3.2 Provisions related to Securities and Derivatives product Groups 41

Section 2.3.3 Provisions related to Trading & Matching Platforms and MTS Italy 42

CHAPTER 4- INFORMATION OBLIGATIONS AND AUDIT 43

Section 2.4.1 Information 43

A. Information on Request 43

B. Mandatory Information 43

Section 2.4.2 Audit and Inspection 44

CHAPTER 5- SUSPENSION AND TERMINATION OF MEMBERSHIP 46

Section 2.5.1 Common and General Provisions 46

Section 2.5.2 Suspension 46

Section 2.5.3 Termination 46

TITLE III – CLEARING OPERATIONS 48

CHAPTER 1- REGISTRATION 49

Section 3.1.1 Registration of Transactions 49

A. Registration of Transactions registered in the Cash & Derivatives Clearing System 49

B. Registration of Transactions registered in the Fixed Income Clearing System 49

Section 3.1.2 Registration of Open Positions in the Cash & Derivatives Clearing System 50

CHAPTER 2 - ACCOUNT STRUCTURE 51

Section 3.2.1 Trade Legs Registration 51

A. Trade Legs Registration in the Cash & Derivatives Clearing System 51

A.1. Position Accounts 51

A.2. Market Maker’s Position 51

B. Trade Legs Registration in the Fixed Income Clearing System 53

Section 3.2.2 Risk management 53

A. For Transactions registered in the Cash & Derivatives Clearing System 53

A.1. Margin Accounts 53

A.2. Market Makers Margin Accounts 54

B. For Transactions registered in the Fixed Income Clearing System 54

C. Collateral Accounts 54

Section 3.2.3 Settlement 55

A. For Transactions registered in the Cash & Derivatives Clearing System 55

B. For Transactions registered in the Fixed Income Clearing System 54

Section 3.2.4 Client Account Structure of Indirect Clients 55

CHAPTER 3 - OPERATIONAL MANAGEMENT 56

Section 3.3.1 General Provisions for Transactions registered in the Cash & Derivatives Clearing 

System 56

A. Give-up 56

B. Transaction Cancellation 56

C. Correction 56

D. Transfer of Open Positions 56

E. Exercise and Assignment (for Derivatives) 56

Section 3.3.2 Functionalities available in the Fixed Income Clearing System 57

CHAPTER 4 - SETTLEMENT AND DELIVERY 58
Clearing Rule Book 4 / 80 Published on 19th December 2017

Section 3.4.1 Settlement and Delivery of Transactions registered on the Cash & Derivatives 

Clearing System 58

A. Common Provisions 58

A.1. General 58

A.2. Provisions related to Derivatives (excluding commodities) 58

A.3. Provisions related to commodities 58

Section 3.4.2 Settlement and delivery of Transactions registered in the Fixed Income Clearing 

System. 59

Section 3.4.3 Settlement failure 60

A. Net fails 60

B. Management of settlement failure for futurecontracts on commodities 60

CHAPTER 5 - REGISTRATION IN A TRADE REPOSITORY 61

TITLE IV – RISK MANAGEMENT 62

CHAPTER 1 - GENERAL PROVISIONS 63

CHAPTER 2 - MARGIN REQUIREMENTS 64

CHAPTER 3 - DEFAULT FUND 66

Section 4.3.1 Contribution to the Default Funds 66

Section 4.3.2 Calls on the Default 66

Section 4.3.3 Refilling of the Default Funds and service continuity 67

A Refill Contributions to the Default Funds 67

B Service Continuity 67

C Service Closure 67

D Effect on Termination of Clearing Members’ Membership 68

CHAPTER 4 - COLLATERAL 69

A. Principles 69

B. Specificities 69

B.1. Trading & Matching Platforms 69

CHAPTER 5 - EVENT OF DEFAULT 70

Section 4.5.1 Notification of an Event of Default 70

Section 4.5.2 Measures in case of an Event of Default 70

Section 4.5.3 Provisions applicable on Euronext Paris 74

Section 4.5.4 Events of Default of an Allied Clearing House and consequences on Clearing 

Members 74

TITLE V – TRIPARTY REPO CLEARING SERVICES 76

CHAPTER 1 - GENERAL PROVISIONS AND LEGAL FRAMEWORK 77

CHAPTER 2 - CLEARING OPERATIONS 78

Section 5.2.1 Registration 78

Section 5.2.2 Account Structure 78

Section 5.2.3 Settlement and Delivery 78

Section 5.2.4 Corporate Events 79

CHAPTER 3 - RISK MANAGEMENT 80

Section 5.3.1 Margin Requirements 80

Section 5.3.2 Event of Default 80
Clearing Rule Book 5 / 80 Published on 19th December 2017

TITLE I - GENERAL PROVISIONS & LEGAL 

FRAMEWORK
Clearing Rule Book 6 / 80 Published on 19th December 2017

CHAPTER 1 - DEFINITIONS

For the purposes of this Clearing Rule Book, the following capitalised terms shall, unless specifically 

provided otherwise, have the respective meanings set out below: 

Account Structure: The House Account Structure(s) and the Client Account Structure(s) registered in 

the Clearing System in the name of a Clearing Member.

Admission Agreement: The written agreement entered into between LCH SA and a Clearing Member 

pursuant to Chapters 1 and 2 of Title II of the Clearing Rule Book.

Admission Fee: The fee that is due once, upon its admission, by the Clearing Member to LCH SA, as 

communicated by LCH SA. 

Allied Clearing House: A Participant, admitted as such by LCH SA under the conditions set forth in 

Chapters 1 and 2 of Title II and authorised to clear Transactions as described in Article 1.3.1.3.

Ancillary System Interface: The technical device allowing an ancillary system to TARGET2 to use a 

range of special, predefined services for the submission and settlement and ancillary systems payment 

instructions.

Applicant: A legal person that wishes to be admitted as a Clearing Member.

Assignment: The process, following an Exercise, by which a Clearing Member that holds a selling 

Open Position in an option contract is designated to fulfil its commitments resulting from the option 

contract.

Associated Trading Member: Any Person that:

(i) trades Fixed Income Securities or Baskets directly on Trading & Matching Platforms and/or MTS 

Italy; and

(ii) has entered into a Clearing Agreement with a General Clearing Member for the purpose of 

clearing such Fixed Income Securities or Baskets on the Clearing System.

Authorised Clearing Operator: Any individual authorised by the Clearing Member who represents the 

Clearing Member vis-à-vis LCH SA in respect of Transactions including organisation and control over 

the Systems and Operation and related clearing functions in respect of Financial Instruments.

Bank Recovery and Resolution Directive: Directive 2014/59/EU of the European Parliament and of 

the Council of 15 may 2014 establishing a framework for the recovery and resolution of credit institutions 

and investment firms.

Basket: A basket of securities eligible for Triparty Repo Transactions, as specified in a Notice.

Börse Berlin: Börse Berlin AG, a Market Undertaking founded as an exchange and incorporated under 

the laws of Germany by the Authorization of the Berlin Senate as State Supervisory Authority of 31 July 

2000, with trading name “Börse Berlin Equiduct Trading”, and to whom LCH SA provides Clearing 

Services for the Transactions in Securities

Bourse de Luxembourg/BdL: Société de la Bourse de Luxembourg SA, a Market Undertaking 

incorporated under the law of Luxemburg on April 5th, 1928 to whom LCH SA provides Clearing 

Services for the Transactions in Securities listed in a Notice.

Business Combination: A single separate legal entity combining one or more Persons that are jointly 

and severally liable, and form part of, and are generally considered to belong to, the same corporate 

group of businesses, including, but not limited to, European Economic Interest Groups.

Capital: Shareholders’ equity determined by LCH SA on the basis of the Capital Adequacy Directive, 

comprised of core capital (tier 1) and supplementary capital (tier 2), and, as from 1 January 2014, core 

capital (Tier 1) and additional core capital (Tier 1) and Tier 2 capital as defined by the CRR and the 

amount of which is determined by LCH SA.
Clearing Rule Book 7 / 80 Published on 19th December 2017

Capital Adequacy Directive: Directive 2006/49/EC of the European Parliament and of the Council of 

June 14, 2006 on the capital adequacy of investment firms and credit institutions.

Cash and Derivatives Clearing System: The Clearing System managed by LCH SA to clear 

Transactions in Securities and/or Derivatives Product Group

Cash Borrower or Collateral Giver: In the framework of a Triparty Repo, a Clearing Member that 

borrows cash against collateralising Basket eligible Securities. 

Cash Lender or Collateral Taker: In the framework of a Triparty Repo, a Clearing Member that lends 

cash against collateralising Basket eligible Securities. 

Central Bank Guarantee: First demand guarantee issued by a central bank in favour of LCH SA eligible 

as Collateral in accordance with the terms of an Instruction.

Clearing Agreement: (i) The agreement entered into between a Clearing Member and a Trading 

Member for the purpose of clearing eligible Transactions; and (ii) from the date of the entry into force of 

the Chapter 1 of the Instruction II.2-3 pursuant to a Notice issued following related amendments of the 

AMF General Regulations (Règlement Général de l'AMF), the agreement entered into between a 

Clearing Member and a Client for the purpose of clearing eligible Transactions. 

Clearing Day: Any day indicated in a Notice published by LCH SA at least annually.

Clearing Fee: Such fee as is communicated by LCH SA from time to time.

Clearing Member: A Participant, either a General Clearing Member or an Individual Clearing Member 

admitted as such by LCH SA, under the conditions set forth in Chapters 1 and 2 of Title II.

Clearing Rules: The rules set forth in the Clearing Rule Book, including all Instructions and Notices 

thereto, as may be amended from time to time.

Clearing Rule Book: This document as may be amended from time to time.

Clearing Services: Services provided by LCH SA pursuant to Article 1.3.1.5 in relation to Product 

Groups.

Clearing System: The relevant IT system managed by LCH SA and giving a technical access to 

clearing activities.

Client:

(i) For Transactions in Securities and Derivatives Product Groups, a Non Trading Member or a 

Trading Member; and

(ii) For Transactions in Fixed Income Securities Product Groups, an Associated Trading 

Member.

Client Account(s): A Client Collateral Account, a Client Margin Account and/or a Client Position 

Account.

Client Account Structure: The following complete set of Client Accounts, which may take the form of 

Individual Segregated Accounts or Omnibus Segregated Accounts and which are opened for 

administrative, risk management and Collateral purposes in the name of a Clearing Member for the 

account of the relevant Client(s) or, as applicable, Indirect Client(s) of such Clearing Member:

(i) In the Cash and Derivatives Clearing System 

- one or several Client Position Account(s);

- one or several Client Margin Account(s); 

- one or several Client Collateral Account(s).

(ii) In the Fixed Income Clearing System: 

- one or several Client Position Account(s); and
Clearing Rule Book 8 / 80 Published on 19th December 2017

- one or several Client Collateral Account(s).

Client Collateral Account: An account opened by LCH Clearnet SA at the request and in the name of a 

Clearing Member in the books of LCH SA to record Collateral provided by such Clearing Member in 

respect of the relevant Client Open Positions of such Clearing Member.

Client Margin Account: (i) For the Cash and Derivatives Clearing System: an account opened by LCH 

SA at the request and in the name of a Clearing Member for risk management purposes, in which the 

relevant Client Open Positions of such Clearing Member (including relevant Net Fails if applicable) are 

registered in order to calculate the Margin requirements of such Clearing Member in respect of the 

relevant Client(s) or, as applicable, Indirect Client(s) of such Clearing Member; and (ii) for the Fixed 

Income Clearing System: each Position Account which is used for risk management purposes in 

accordance with Article 3.2.2.8.

Client Open Position: The net sum of the relevant Client Trade Legs determined in accordance with 

the Clearing Rules.

Client Position Account: An account opened by LCH SA at the request and in the name, of a Clearing 

Member in order to register all the relevant Client Trade Legs or, as applicable, Client Open Positions of 

such Clearing Member.

Client Trade Leg: Either a payment obligation or a delivery obligation in respect of Financial 

Instruments owed by or to LCH SA resulting from a Transaction registered by LCH SA, in the name of a 

Clearing Member, executed for the benefit of a Client or, as applicable, an Indirect Client of such 

Clearing Member.

Collateral: Any Security, cash, or Central Bank Guarantee, as specified in an Instruction, pledged, 

granted or transferred outright to LCH SA, in order to secure the performance of the Clearing Member’s 

obligations. Any surplus of Security, cash or central bank guarantee registered in a Collateral Account is 

deemed to be Collateral.

Collateral Account(s): A House Collateral Account and/or a Client Collateral Account.

Commodities Dealer: Trading Member on a Derivative market which is authorised to trade 

commodities.

Competent Authority: Any authority recognised by its home member state as such under the terms of 

the Capital Adequacy Directive, and as from 1 January 2014 the CRR or of Emir.

Contractual Event of Default: The Clearing Member failing at any time to comply duly with any of its 

obligations under the Clearing Rules or being likely to become unable to meet any of its obligations 

under the Clearing Rules or in the case of an Allied Clearing House such Allied Clearing House failing to 

pay, when due, any Margin or any cash settlement Amount in case of service closure. According to 

article 68(3) of the Bank Recovery and Resolution Directive , a Clearing Member shall not be deemed to 

be in Contractual Event of Default on the sole ground that it is subject to a resolution procedure, within 

the meaning of such Bank Recovery and Resolution Directive.

Correction: The modification of an original Posting within the Account Structure of the same Clearing 

Member or a modification of an original Posting within the Account Structure of another Clearing 

Member. This functionality is available to Clearing Members on Derivatives markets.

Counter-guarantee Agreement: An agreement concluded between the Central Bank of Belgium or the 

Central Bank of the Netherlands and the Clearing Member or a third party, duly authorised by the central 

bank, whereby, the Clearing Member or the third party provides the central bank with enough collateral 

security for the latter to issue a guarantee in favour of LCH SA under the terms of the relevant Guarantee 

Agreement for the fulfilment of the Clearing Member’s obligations towards LCH SA regarding Margin

and the Default Fund, in accordance with article 46(1) of Emir.
Clearing Rule Book 9 / 80 Published on 19th December 2017

Credit Institution: Any credit institution as defined in Directive 2006/48/EC of the European Parliament 

and of the Council of June 14th, 2006 relating to the taking up and pursuit of the business of credit 

institutions, and as from 1 January 2014 by the CRR.

CSD of Reference: Central securities depositary in which Securities are settled.

CRR : Regulation (UE) 575/2013 of the European Parliament and of the Council of 26 juin 2013 on 

prudential requirements for credit institutions and investment firms and amending Regulation (UE) 

648/2012.

Debt Securities Intra-day Margin: In the framework of Transactions in debt securities cleared on the 

Fixed Income, Clearing System, the required margin amount calculated by LCH SA, to cover risk on an 

intra-day basis and resulting from the revaluation of Clearing Members’ Open Positions and Collateral 

as specified in an Instruction.

Default Fund: The collective system of collateralisation of commitments as set out in Chapter 3 of Title 

IV.

Defaulting Clearing Member: A Clearing Member that is subject to an Event of Default, and in respect 

of whom LCH SA has issued a notice of default, in accordance with Article 4.5.1.1.

Delivery Account(s): An account opened by LCH SA pursuant to Section 3.2.3 exclusively for 

settlement purposes. In relation to the Fixed Income Clearing System, Delivery Account means each 

Position Account used for settlement purposes only in accordance with Article 3.2.3.5.

Derivative: Any financial contract of one of the following categories: 

(i) options and futures contracts in respect of Securities or commodities, including equivalent 

cash-settled instruments, 

(ii) any other financial contract, the value of which is determined by reference to prices of Securities or 

commodities, interest rates or yields, foreign exchange rates or other indices or measures which, 

subject to relevant National Regulations, a Market Undertaking may determine to be eligible for trading 

on a Derivatives Market.

Credit default swaps are explicitly excluded from this definition. The clearing of such financial products 

by LCH SA is governed by a dedicated set of rules.

Derivatives Market: Any Regulated Market, for Derivatives

EMIR: Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on 

OTC derivatives, central counterparties and trade repositories and all delegated regulatory and 

implementing technical standards adopted pursuant to Regulation (EU) No. 648/2012 and published in 

the Official Journal of the European Union from time to time.

Euroclear Collateral Management System (CMS): In the framework of a Triparty Repo, a tool named 

“Autoselect” operated by Euroclear France that automatically allocates, values and manages 

collateralising securities and sends delivery and settlement instructions to the CSD of Reference.

Euroclear Inter-operability Agreement : The standard service agreement (named “interoperability 

repurchase service agreement”) to be entered into between the Triparty Repo Clearing Member and 

Euroclear France or Euroclear Bank.

Euronext Amsterdam: Euronext Amsterdam N.V., a Market Undertaking (“naamloze vennootschap”) 

organised under the laws of the Netherlands, operating a Securities exchange and Derivatives 

exchange (“houder van een effectenbeurs”) authorised pursuant to Article 22 of the Dutch Securities 

Markets Supervision Act of 1995 (“Wet toezicht effectenverkeer 1995”).

Euronext Brussels: Euronext Brussels S.A./N.V., a corporation (“société anonyme”/“naamloze 

vennootschap”) organised under the laws of Belgium and recognised as Market Undertaking in 

accordance with Article 16 of the Belgian Law of August 2, 2002 governing the supervision of the 

financial sector and the financial services (“Loi relative à la surveillance du secteur financier et aux 

services financiers / Wet betreffende het toezichtop de financïele sector en de financïele diensten”). 
Clearing Rule Book 10 / 80 Published on 19th December 2017

Euronext Lisbon: Euronext Lisbon – Sociedade Gestora de Mercados Regulamentados, S.A 

("sociedade anónima"), a Market Undertaking organised under the laws of Portugal,authorised pursuant 

to Article 19 of the Portuguese Decree-Law n°357-C/2007, of 31st October, as amended by the

Decree-Law n.o 52/2010 of 26 May ("Regime jurídico das sociedades gestoras de mercado 

regulamentado, das sociedades gestoras de sistemas de negociação multilateral, das sociedades 

gestoras de câmara de compensação ou que actuem como contraparte central das sociedades 

gestoras de sistema de liquidação e das sociedades gestoras de sistema centralizado de valores 

mobiliários”). 

Euronext London Limited: a company incorporated in England and Wales (registered under number 

8631662), having its registered office at Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU, 

England, which has been recognised as an investment exchange pursuant to section 290 of the 

Financial Services and Markets Act 2000.

Euronext Paris: Euronext Paris S.A., a corporation (“société anonyme”) organised under the laws of 

France, authorised as a Market Undertaking (“Entreprise de Marché”) within the meaning of Article L. 

421-1 of the French Monetary and Financial Code (Code Monétaire et Financier).

Event of Default: A Contractual Event of Default or an Insolvency Event of Default.

Exercise: The process by which a Clearing Member that holds a buying Open Position exercises its 

right resulting from the option contract.

Financial Group: Two companies belong to the same Financial Group where one exercises a “control” 

over the other. Such control exists when one such company:

- directly or indirectly holds a fraction of the share capital which confers it the majority of voting rights in 

the other company’s shareholders' meetings;

- holds the majority of the voting rights in the other company, pursuant to an agreement with the other 

company’s other shareholders and partners;

- in practice takes the decisions of the other company in its shareholders’ meetings, by virtue of the 

voting rights which it holds.

The parent company is presumed to exercise control over the other when it directly or indirectly holds 

more than 40 % of the voting rights and no other shareholder holds more.

Financial Instrument: Any Security or Derivative.

Fixed Income Securities: Securities traded on Trading & Matching Platforms, and on MTS Italy.

Fixed Income Clearing System: The Clearing System managed by LCH Clearnet.SA to clear 

Transactions in Fixed Income Securities and Triparty Repos concluded on Trading & Matching 

Platforms, and MTS Italy.

Forward Repo: A Repo registered in the Clearing System but in respect of which the Initial Transaction 

intended Settlement Date has not occurred yet.

General Clearing Member: (i) For Securities and Derivative Products Groups, as set-out in an 

Instruction, a Clearing Member authorised to clear Transactions which have been dealt for its own 

account, or have been concluded for the account of its Non Trading Members and/or Trading Members;

and (ii) for Fixed Income Securities and Basket Product Group, as set-out in an Instruction, a General 

Clearing Member is a Clearing Member authorised to clear the Transactions which have been dealt for 

its own account or for the account of its Associated Trading Members.

Give-Up: An intra day process by which a Trade Leg or a part of it is transferred:

- by a Clearing Member (“the allocator”) to another one (“the allocatee”) after the explicit agreement of 

the allocatee, or;

- by a Clearing Member within its Account Structure from a Position Account to another, the two 

relevant Position Accounts must belong to two different Trading Members (the Clearing Member 

possibly being a Trading Member itself).
Clearing Rule Book 11 / 80 Published on 19th December 2017

This can be done upon the request of a Trading Member whose Transactions are cleared by a General 

Clearing Member.

Gross Omnibus Segregated Account Structure (or GOSA Structure): an Omnibus Segregated 

Account including several Margin Accounts and one Collateral Account. 

Guarantee Agreement: An agreement between a central bank and LCH SA under which the central 

bank guarantees towards LCH SA the fulfilment of the Clearing Member’s obligations towards LCH SA 

under the Clearing Rules as regards the Margins and the Default Fund.

Home State: The State in which a Person has its registered office, if any or, its head office or, in the 

case of an individual, the State in which such individual has its principal place of business.

House Account(s): A House Collateral Account, a House Margin Account and/or a House Position 

Account.

House Account Structure: The following set of House Accounts opened in the name of a Clearing 

Member for administrative, risk management and Collateral purposes in the name of a Clearing Member 

for its own account:

(i) In the Cash and Derivatives Clearing System 

- one or several House Position Account(s); and

- one or several House Margin Account(s); and

- one or several House Collateral Account(s); 

(ii) In the Fixed Income Clearing System: 

- one or several House Position Account(s); and

- one or several House Collateral Account(s).

House Collateral Account: An account opened by LCH SA in the name of a Clearing Member in the 

books of LCH SA to record (i) any Collateral provided by such Clearing Member in respect of the House 

Open Positions of such Clearing Member, and (ii) any contribution to the Default Fund of such Clearing 

Member.

House Margin Account: (i) For the Cash and Derivatives Clearing System, an account opened by LCH 

SA in the name of a Clearing Member in the Clearing System for risk management purposes, in which 

the House Open Positions of such Clearing Member (including relevant Net Fails if applicable) are 

registered, in order to calculate the relevant Margin requirements of such Clearing Member for its own 

account; and (ii) for the Fixed Income Clearing System: each Position Account which is used for risk 

management purposes in accordance with Article 3.2.2.8.

House Open Position: The net sum of the House Trade Legs determined in accordance with the 

Clearing Rules. 

House Position Account: An account opened by LCH SA in the name, of a Clearing Member in order 

to register all House Trade Legs or, as applicable, House Open Positions of such Clearing Member.

House Trade Leg: Either a payment obligation or a delivery obligation in respect of Financial 

Instruments owed by or to LCH SA resulting from a Transaction registered by LCH SA in the name of a 

Clearing Member, executed for the latter’s own account.

ICSD : international central securities depositary.

Indirect Client: A client of a Client 

Individual Clearing Member: (i) For Securitie and Derivative Product Groups or for Baskets, as set-out 

in an Instruction, a Clearing Member authorised to clear Transactions dealt for its own account, or 

allocated to it or which have been concluded for the account of its Non Trading Members; (ii) for Fixed 
Clearing Rule Book 12 / 80 Published on 19th December 2017

Income Securities Product Group, as set-out in an Instruction, a Clearing Member authorised to clear 

Transactions dealt for its own account exclusively.

Individual Segregated Account (ISA): A Client Account which is subject to "individual client 

segregation" within the meaning of EMIR, and which has been designated as such by a Clearing 

Member in relation to any of its Known Clients.

Individual Segregated Account Structure (or ISA Structure): A Client Account Structure exclusively 

composed of Individual Segregated Accounts.

Initial Leg: In the framework of a Repo, the Initial Leg is a Trade Leg incorporating:

 for the seller of debt securities, an obligation to deliver securities to LCH SA 

 for the buyer of securities, an obligation to pay the transactions amount to LCH SA.

Initial Margin: The amount calculated by LCH SA, as specified in an Instruction, to cover the liquidation 

risk and resulting from a Clearing Member’s Open Positions in Financial Instruments as a result of 

Transactions registered with LCH SA in the name of such Clearing Member.

For option contracts, the Initial Margin amount includes the variation of the Option Premium.

Initial Transaction: The Initial Transaction is composed of two Initial Legs.

Insolvency Event of Default: (i) The Clearing Memberor Allied Clearing House being subject to an 

Insolvency Proceeding, or (ii) on the basis of publicly available information, the Clearing Member being 

likely to become subject to an Insolvency Proceeding. Pursuant to article 68(1) of the Bank Recovery 

and Resolution Directive , a Clearing Member shall not be deemed to be subject to an Insolvency Event 

of Default on the sole ground that it is subject to a resolution procedure, within the meaning of such Bank 

Recovery and Resolution Directive.

Insolvency Proceeding:With respect to the head office or any of the branches of the Clearing Member:

(i) a declaration of a governmental or judicial moratorium or any equivalent procedure;

(ii) a cessation of business, commencement of a voluntary winding-up procedure or any other 

equivalent procedure;

(iii) a commencement of a prevention procedure including (A) commencement of a scheme of 

arrangement (“conciliation”), (B) appointment of an administrator by the regulators or the 

courts, or any equivalent procedure;or

(iv) measures for the treatment of business difficulties under French law, or any equivalent 

procedure governed by foreign law, including (A) commencement of a safeguard procedure, 

(B) appointment of an administrator by the regulators or the courts, (C) commencement of a 

reorganisation procedure, (D) commencement of a court-ordered winding-up procedure or 

any equivalent procedure to those referred to in (A) to (D).

A resolution procedure, within the meaning of the Bank Recovery and Resolution Directive, does not 

qualify as an Insolvency Proceeding.

Instruction: Any document issued as such by LCH SA, as amended from time to time, whereby the 

provisions of this Clearing Rule Book are interpreted or implemented and which is binding upon Clearing 

Members generally or upon any category of Clearing Members in particular.

Intra-day Margins: The amount calculated by LCH SA, as specified in an Instruction, to cover risk and 

resulting from the revaluation in real time of prices and Clearing Member Positions.

Investment Firm: Any investment firm as defined in MIFID.
Clearing Rule Book 13 / 80 Published on 19th December 2017

Known Client: means a Client of a Clearing Member, identified by the latter at Client Margin Account 

level, whose full identity has been notified in writing by the Clearing Member to LCH SA, together with:

- a copy of the registration certificate or certificate of incorporation or other equivalent document 

in the case of a legal entity or proof of identity in the case of a natural person; 

- contact details of the authorised representatives of the Client (names of individuals, phone 

numbers, email addresses, postal address);

- any non public document which LCH SA may request to carry on anti money laundering checks 

in accordance with applicable laws, regulations and procedures.”

LCH SA: The commercial name of "Banque Centrale de Compensation", a clearing house as defined by 

Article 440-1 of the French Monetary and Financial Code (Code Monétaire et Financier) complying with 

Title IV of Book V of the General Rules of the Autorité des Marchés Financiers. LCH SA is incorporated 

in France and may have branches in other countries in which it operates.

LCH Insolvency Proceeding: For the purpose of Title I Chapter 4, where a safeguard procedure 

(procédure de sauvegarde), accelerated financial safeguard proceeding (procédure de sauvegarde 

financière accélérée), judicial reorganisation procedure (procédure de redressement judiciaire) or 

winding-up procedure (procédure de liquidation judiciaire) is formally opened by a French court against 

LCH SA in accordance with French applicable law. 

Letter of Credit: A letter of credit issued by a Credit Institution in the form of the model issued by LCH 

SA and sent to Clearing Members upon request..

Mandatory Client Clearing Provisions: Provisions, as set out in an Instruction, which must be 

included in any Clearing Agreement.

Margin: Any margin, including Initial Margin, Variation Margin, Intraday Margins, Cash Interest and 

Loan Fee Margin calculated daily by LCH SA and any additional margin for each Clearing Member on 

the basis of this Clearing Rule Book.

Margin Account(s): A House Margin Account and/or a Client Margin Account.

Market Maker: A liquidity provider or a market maker, as defined in the appropriate Trading Rules, who 

has undertaken, and been authorised by the Market Undertaking, to enhance the market liquidity of a 

particular Financial Instrument in accordance with those rules.

Market Member: A Person (other than a Trading Member) that: (i) has been admitted to the 

membership in a market (other than those operated by a Market Undertaking) and (ii) that has signed an 

agreement with a Person that has been admitted to LCH SA membership for the clearing of the 

Transactions traded on markets operated by the relevant market and pursuant to the relevant market 

rules and (iii) that is defined as such in the appropriate legal documentation issued by LCH SA.

Market Undertaking: Any market undertaking duly authorised by its National Regulations or its 

Competent Authority, to operate Regulated Markets and/or MTFs, for which LCH SA provides Clearing 

Services.

Member State: Any of the Member States of the European Economic Area.

MiFID: Directive 2004/39/EC of the European Parliament and of the Council of April 21st, 2004 on 

markets in financial instruments, as amended.

MiFID2/MiFIR: Directive 2014/65/EU of May 15, 2014 on markets in financial instruments ("MiFID2") 

and Regulation (EU) no. 600/2014 of May 15, 2014 on markets in financial instruments ("MiFIR"), and 

any delegated act or any regulatory technical standards or implementing standards made or to be made 

thereunder, as implemented under the relevant Member States of the European Union and as amended 

or replaced from time to time;
Clearing Rule Book 14 / 80 Published on 19th December 2017

Minimum Deposit: In the framework of a Triparty Repo, a Collateral deposit initially required by LCH SA 

from Clearing Members, as set out in an Instruction.

MTS Italy: MTS S.p.A, a Market Undertaking organised under the laws of Italy and responsible for the 

management of the Regulated wholesale Market for Italian and foreign government Securities, as per 

Article 66 of Italian legislative decree No. 58 dated 28th February 1998.

Multilateral Trading Facility (MTF): A multilateral trading facility which brings together multiple 

third-parties buying and selling interests in financial instruments – in the system and in accordance with 

non-discretionary rules – in a way that results in a contract, in accordance with Article 4 of MIFID.

National Regulations: Any and all laws and regulations applicable in the jurisdiction of the Market 

Undertaking

National Treasury Agency: A governmental entity which is tasked with carrying out Government's debt 

management and handling treasury management.

Net Fail (“Suspens” “ Niet Vereffende Open Positie”): Any net Open Position in respect of which a 

cash payment or delivery of Securities has failed to take place during the last settlement windows of the 

designated Settlement Date, as defined by the Securities settlement system and/or a central securities

depository. 

Net Position Exposure: In the framework of a Triparty Repo, a net position corresponding to an 

obligation for a Cash Borrower and/or Cash Lender to pay cash and/or to deliver collateralising 

securities. This Net Position Exposure is calculated by LCH SA per Clearing Member, per Basket, and 

per settlement window, as set out in Article 5.2.2.1

Net Omnibus Segregated Account Structure (or NOSA Structure): an Omnibus Segregated 

Account including one Margin Account and one Collateral Account.

Non Trading Member: Any Person that:

(i) has no direct access to trading and uses the services of a third party (i.e. Clearing Member or a 

Trading Member) to negotiates Transactions in Derivatives or Securities Product Groups ; and

(ii) has entered into a Clearing Agreement with a Clearing Member for the purpose of clearing such 

Transactions.

Notice: Any document issued as such by LCH SA, as amended from time to time, informing Clearing 

Members generally, or a particular category of Clearing Members, of specific matters of relevance with 

respect to the proper functioning of the clearing of Transactions and which is binding upon such Clearing 

Members. Unless stated otherwise in the Clearing Rule Book, Notices may only cover issues of 

technical and operational nature, implementing the main principles laid down in the Clearing Rule Book 

or in an Instruction.

Omnibus Segregated Account: A Client Account which is subject to "omnibus client segregation"

within the meaning of EMIR.

Omnibus Segregated Account Structure: A Client Account Structure which is composed of one or 

more Omnibus Segregated Account(s).

Open Position: A Client Open Position or a House Open Position, as the case may be.

Option Premium: Amount per option contract paid by the buying Clearing Member to LCH SA for the 

right to buy or sell the underlying Financial Instrument.

Participant: A legal person admitted, either as a Clearing Member or as an Allied Clearing House, by 

LCH SA in the framework of the Settlement Finality Directive and of the relevant articles of the French 

Monetary and Financial Code. 
Clearing Rule Book 15 / 80 Published on 19th December 2017

Payment Agent: A third party which holds a cash account with a central bank and/or a Credit Institution 

designated by LCH SA in an Instruction, and which a Clearing Member can use to fulfil some or all of its 

payment or Margin obligations towards LCH SA.

Person: Any individual, legal entity, corporation, partnership, association, fiduciary or entity as the 

context admits or requires.

Position: Obligations of a Clearing Member vis-à-vis its Client resulting from a Transaction, either to 

deliver Financial Instruments or pay.

Position Account(s): A House Position Account and/or a Client Position Account.

Posting: The process whereby a Clearing Member registers a Trade Leg, or part of it, on a Position 

Account within its Account Structure according to the parameterisation in the Clearing System or the 

clearing information entered in the trading system. A Posting can be modified until the end of the 

Clearing Day on which the Transaction has been registered.

Power of Attorney: Authority given by a Person to another to allow the latter to act in the name of the 

former.

Product Group: All products of a particular category of Financial Instruments, as specified in an 

Instruction, and in particular: Securities, Fixed Income Securities, Derivatives, and Baskets

Regulated Market: Any organised market for Financial Instruments specified as such in the list 

published by the European Commission in accordance with Article 4 of MiFID. 

Repo: A repurchase transaction in respect of on debt Securities cleared in the Fixed Income, Clearing 

System and whereby the seller agrees to repurchase the securities at an agreed price and at a stated 

time. A Repo is set up by an Initial Transaction and closed by a Return Transaction.

Return Transaction: 

In the framework of a Repo, a transaction in respect of registered in the Clearing System whereby: 

 the buyer of Securities of the Initial Transaction returns debt securities; and

 the seller of Securities of the Initial Transaction returns a cash amount including, if 

appropriate,interest. 

Same-day Repo: A Repo for which the Initial Transaction trade date corresponds to the Initial 

Transaction intended Settlement Date.

Security: Any financial instrument of one of the following categories:

(i) shares or other equity securities,

(ii) certificates,

(iii) depositary receipts in respect of shares;

(iv) bonds or other debt securities,

(v) warrants or similar financial instruments entitling the holder to acquire any of the aforesaid 

securities or any basket of such securities or to receive a cash amount determined by reference to 

a future price or value of such security or basket,

(vi) units in collective investment undertakings or participation units in other investment vehicles, and

(vii) any other instruments which, subject to relevant National Regulations, the Market Undertakings 

may decide to be eligible for trading on a market for Securities which they operate.

Settlement Address: The identification of an account or sub-account in a securities settlement system

and/or a central securities depository opened in the name of the Settlement Agent or of the Clearing 

Member or the identification of an account in a central bank/Credit Institution opened in the name of the 

Clearing Member or of the Payment Agent, as the case may be.

Settlement Agent: A third party which is admitted as a participant of a securities settlement system 

and/or a central securities depository designated by LCH SA in an Instruction and so holds a Securities 
Clearing Rule Book 16 / 80 Published on 19th December 2017

account, which a Clearing Member can use to fulfil some or all of its Securities delivery obligations or 

Margin obligations towards LCH SA.

Settlement Date: The date on which delivery against payment takes place, which is:

(i) for Transactions cleared on the Cash and Derivatives Clearing System, in principle the second 

Clearing Day following the Transaction day, unless otherwise set out in an Instruction 

(ii) for Transactions cleared on the Fixed Income Clearing System, the applicable date as agreed at 

the time of the Transaction as set out in an Instruction. 

Settlement Finality Directive: Directive 98/26/EC of the European Parliament and of the Council of 

May 19, 1998, on settlement finality in payment and securities settlement systems.

Settlement Price: A benchmark price, used daily for the calculation of Variation Margin and for the 

valuation of Open Positions. In case the relevant Financial Instrument is traded on markets operated by 

several Market Undertakings, as a principle, the relevant price will be the one of the relevant Regulated 

Market, as defined in a Notice and the method of calculation of the Settlement Price is set out in the 

relevant Trading Rules.

For Trading & Matching Platforms specificities, the method of calculation of the Settlement Price is set 

out in a Notice.

Systems and Operations: All parts and components of the technical system of the Clearing Member, 

including hardware and software that is operated and maintained by or on behalf of a Clearing Member 

to clear Transactions together with the procedures that are in place to operate such system, including 

risk management provisions.

TARGET2 Account: An account held by a TARGET2 participant in TARGET2 payment module with a 

Eurosystem Central Bank which is necessary for such TARGET2 participant to: (a) submit payment 

orders or receive payments via TARGET2; and (b) settle such payments with such Eurosystem Central 

Bank.

TARGET Settlement Day: means any day on which the Trans-European Automated Real-Time Gross 

Settlement Express Transfer (TARGET2) System is open for the settlement of payments in Euro.

Termination Amount: For the purpose of Title I Chapter 4, the single, net positive or negative amount, 

denominated in Euro and determined pursuant to and in accordance with Article 1.4.1.9. 

Termination Date: For the purpose of Title I Chapter 4, the date determined in accordance with the 

provisions of Article 1.4.1.2 or Article 1.4.1.3, as applicable, , , upon which the Trade Legs or Open 

Positions in a Clearing Member’s Account Structure, will be terminated and liquidated in accordance 

with Article 1.4.1.1 to 1.4.1.13.

Trade Leg(s): A House Trade Leg and/or a Client Trade Leg.

Trade Repository: A trade repository duly registered in accordance with EMIR, as appointed by LCH 

SA in a Notice, or if such trade repository is unavailable, the European Securities and Markets Authority.

Trading Day: Any day on which the relevant markets are open for trading.

Trading Member: Any Person which:

(i) negotiates Transactions in Derivatives and/or Securities Product Groups directly on a Regulated 

Market and/or MTF in one or both capacity of broker/dealer; and

(ii) has entered into a Clearing Agreement with a General Clearing Member for the purpose of clearing 

such Transactions.

Trading Rules: The rules set forth by the relevant Market Undertaking.

Trading & Matching Platform: Any platform, designated as such by a Notice, providing a service for 

the execution or matching of Transactions which are concluded neither on a Regulated Market nor on a 

MTF and which may be cleared by LCH SA.
Clearing Rule Book 17 / 80 Published on 19th December 2017

Transaction(s): Any purchase, sale or exchange of Financial Instruments, carried out on a market 

operated by a Market Undertaking including a repurchase agreement or a Securities loan or a buy and 

sell back, and the terms "buyer" and "seller" used in this Clearing Rule Book shall be construed 

accordingly.

Transfer of Open Positions: The process available for Clearing Members on Derivatives Markets by 

which a Clearing Member transfers:

- either the Open Positions registered in one of its Position Accounts, to another Position Account 

within its own Account Structure,

- or the Open Positions registered in one or several Position Accounts to the Account Structure of 

another Clearing Member.

Triparty Repo: Repo Transaction secured by collateralising securities belonging to pre-defined 

Baskets, and governed by the provisions of Title V. The eligibility criteria for clearing of Triparty Repos 

are set out in a Notice.

Triparty Repo Interest Margin: In the framework of a Triparty Repo, this Margin is calculated and 

called daily from the novation date by LCH SA to cover the cash interest until the maturity date of the 

Triparty Repo, including forward positions.

Variation Margin: The amount calculated by LCH SA, as specified in an Instruction, to cover the 

negotiation risk and which is based on the daily revaluation of the Settlement Price of Clearing Member’s 

Open Positions on futures contracts.
Clearing Rule Book 18 / 80 Published on 19th December 2017

CHAPTER 2 - GENERAL PROVISIONS 

Section 1.2.1 General

Article 1.2.1.1

This Clearing Rule Book sets out the principles and general conditions governing the organisation and 

operation of the clearing activities of LCH SA.

Article 1.2.1.2

General or specific decisions, which are provided by the Clearing Rule Book, to fall within the authority of 

LCH SA shall be adopted in accordance with the conditions established by the board of directors of LCH 

SA.

Article 1.2.1.3

Any general or specific decisions which LCH SA is required or permitted to take pursuant to the 

provisions of the Clearing Rules shall be taken in accordance with general principles of good faith and 

fair dealing, in a commercially reasonable manner, in accordance with high standards of integrity, and at 

an appropriate level of seniority.

Section 1.2.2 Interpretation and References

Article 1.2.2.1

References to any law, regulation or European directive or regulation shall be construed as those in 

force from time to time.

Article 1.2.2.2

Chapter or Section headings in this Clearing Rule Book or in the Instructions are for ease of reference 

only; they are not part of the content of the relevant Chapter or Section and may not in any way affect the 

interpretation thereof.

Article 1.2.2.3

Capitalised terms used in this Clearing Rule Book shall be construed to be of such number as the 

context admits or requires. 

Article 1.2.2.4

Capitalised terms used in this Clearing Rule Book and not defined in Instructions or in other 

communications of LCH SA shall have the meaning as set forth in this Clearing Rule Book.

Article 1.2.2.5

The specific provisions dedicated to a market apply in addition to, and not in lieu of, the general 

provisions.

Article 1.2.2.6

In case of any inconsistency between the specific provisions dedicated to a market and general 

provisions, the specific provisions will prevail.

Article 1.2.2.7

The Clearing Rule Book shall be implemented and interpreted through Instructions and by Notices, 

issued by LCH SA and published in accordance with Section 1.2.4. Instructions and Notices shall not be 

used to amend the principles and general conditions set out in the Clearing Rule Book.

Section 1.2.3 Clearing Rules Modifications

Article 1.2.3.1

The Clearing Rule Book may be modified from time to time by decision adopted by LCH SA. Clearing 

Members will be informed with reasonable prior notice of each change in writing or by such other means 

as may be specified by LCH SA. 
Clearing Rule Book 19 / 80 Published on 19th December 2017

Prior to implementing any material changes, LCH SA shall consult with all affected Clearing Members, 

following the consultation process set-out in an Instruction.

Article 1.2.3.2

If any modification of the Clearing Rules, other than a modification required by European Union or 

national law, materially adversely affects the rights or obligations of the Clearing Members generally or 

of any category of Clearing Members, then any Clearing Member so affected may terminate its 

membership by notification in writing given to LCH SA within 10 Clearing Days from the date of 

publication of the relevant modification.

Section 1.2.4 Publication and Effectiveness 

Article 1.2.4.1

LCH SA shall ensure publication of the Clearing Rule Book, Instructions, Notices and other decisions of 

general application to its Clearing Members or to the relevant category of Clearing Members through 

dissemination via posting on its website, or individual notification as appropriate.

Article 1.2.4.2

Except cases of emergency, such provisions shall become effective and binding on all Clearing 

Members upon the Clearing Day following the day of publication or at a later date as specified in such 

publication. 

Section 1.2.5 Fees

Article 1.2.5.1

Clearing Members shall pay to LCH SA Admission Fees, Clearing Fees and any other fees pursuant to 

the fee grid available on LCH SA web site and as modified from time to time.

Section 1.2.6 Currency

Article 1.2.6.1

If a specific currency is replaced by another currency, such as the euro for example, in pursuance of the 

amendment of existing legislation or the coming into effect of new legislation, the clearing of all the 

financial obligations of Clearing Members arising under this Clearing Rule Book and which are 

denominated in the currency that is replaced shall take place in the substitute currency as from the 

effective date of such replacement.

Article 1.2.6.2

If substitution of a specific currency involves a period of transition, clearing by Clearing Members during 

this period of transition will take place in the currency as specified by LCH SA by Notice. 

Article 1.2.6.3

If necessary, LCH SA shall establish the conversion rate of the substitute currency and the currency due 

to be replaced as well as the applicable rounding rules, subject to the applicable laws and regulations.

Article 1.2.6.4

LCH SA shall determine in a Notice the currency of the Financial Instruments which are cleared in 

another currency than Euro.

Section 1.2.7 Time Reference

Article 1.2.7.1 

Where reference is made in the Clearing Rules to a time or deadline, it shall be understood to mean the 

Central European Time (CET). 
Clearing Rule Book 20 / 80 Published on 19th December 2017

CHAPTER 3- LEGAL FRAMEWORK

Section 1.3.1 Status and Activity of LCH SA 

A. Status

A.1. Clearing House

Article 1.3.1.1

LCH SA is a clearing house within the meaning of Article L.440-1 of the French Monetary and Financial 

Code and acts as a central counterparty, between the Clearing Member of the buyer or the borrower and 

the Clearing Member of the seller or of the lender in the conditions described in the Clearing Rules.

In this framework, LCH SA acts in accordance with applicable banking and financial regulations.

LCH SA is under the supervision of the Competent Authorities within the scope of their respective remit 

as granted by their national law.

LCH SA provides its services in accordance with recommendations from the ESCB (European System 

of Central Banks) and ESMA (the European Securities and Markets Authority) for central counterparties 

in the European Union and follows the best practices in Clearing Services.

Article 1.3.1.2

When a participant of an Allied Clearing House, or one of its clients, enters into a Transaction with a 

Clearing Member of LCH SA, or with one of its Clients: 

- LCH SA acts as a central counterparty between its Clearing Member, pursuant to Chapter 3 of Title I

on the one hand, and its Allied Clearing House, on the other hand, under the conditions defined by 

the Clearing Rules. The Open Positions of the Allied Clearing House in the books of LCH SA 

correspond to the Transactions carried out by its own participants, and;

- The Allied Clearing House acts as a central counterparty between its own participants and LCH SA, 

under the conditions defined by the Allied Clearing House's rules.

A.2. Securities Settlement System

Article 1.3.1.4

LCH SA has been notified to the European Commission as a system pursuant to the Settlement Finality 

Directive. Thus, as described in a Notice, any person with a legitimate interest can obtain information on 

LCH SA and its rules from its participants, upon request.

B. Scope of Activity

Article 1.3.1.5

In accordance with this Clearing Rule Book, and for Transactions eligible to novation pursuant to Article 

1.3.1.6 below, LCH SA registers Transactions, calculates Open Positions of its Clearing Members, and 

the associated risk, calls Margin to cover this risk, guarantees the proper settlement of positions as 

central counterparty, manages the default procedures, transmits settlement instructions to the 

settlement provider and performs all other functions specified by the Clearing Rules.

Article 1.3.1.6 

Transactions executed on any Regulated Market or MTF, or executed or matched on any Trading & 

Matching Platform, may give rise to novation by LCH SA provided that the Financial Instruments in 

question comply with the following criteria: 

- LCH SA has entered into an agreement, for the provision of Clearing Services in respect of the 

relevant Financial Instruments, with the Market Undertaking operating the Regulated Market, or

the MTF or the operator of the Trading and Matching Platform on which the Financial 

Instruments are negotiated;
Clearing Rule Book 21 / 80 Published on 19th December 2017

- The Financial Instruments are admitted for clearing under the terms of the relevant risk policy of 

LCH SA;

- Unless otherwise agreed by LCH SA, accommodating such Financial Instruments in the 

Clearing System does not involve additional substantial development costs;

- When the Financial Instruments are Securities or their underlying is a Security, such Securities 

are admitted for settlement by at least one of the CSDs or ICSDs with which LCH SA has 

entered into an agreement;

- Corporate events are capable of being managed by LCH SA.

In addition to the above listed criteria the Regulated Market, the MTF or the Trading and Matching 

Platform may allow their members to opt for LCH SA novation or to exclude their Transactions from the 

Clearing Services.

The eligible novation criteria listed above also apply to rights attached to a Financial Instrument and 

deriving from corporate events in respect of such Financial Instruments.

Article 1.3.1.7

Where so specified in a Notice, LCH SA can also clear off-exchange Transactions that are not executed 

on a Trading & Matching Platform.

Article 1.3.1.8

Any Transaction that does not comply with all the criteria mentioned in Article 1.3.1.6 is excluded from 

novation by LCH SA and therefore excluded from the scope of the Clearing Services globally described 

under Article 1.3.1.5 of the Clearing Rule Book.

A Notice details the Financial Instruments or Transactions concerned per trading venue. Any such 

decision will come into effect at least one Clearing Day after communication thereof by LCH SA to the 

relevant Market Undertaking or operator and Clearing Members via a Notice . 

Article 1.3.1.9 

Without prejudice to Article 1.3.1.8 above, LCH SA may accept to register Transactions in Securities 

which do not comply with the criteria listed in Article 1.3.1.6 as long as they are admitted for settlement 

by at least one of the CSDs or ICSDs with which LCH SA has entered into an agreement. In such case, 

such Transactions do not give rise to novation and LCH SA may either send the relevant information for 

settlement to the relevant CSD or ICSD or make available to Clearing Members the relevant information

in respect of such settlement.

Article 1.3.1.10

Notwithstanding Article 1.3.1.8, as a consequence of irrevocability, in the event that the risk policy is 

amended, any Transaction novated pursuant to Article 1.3.2.1 prior to the entry into force of the 

amended risk policy will remain within the scope of the Clearing Services provided by LCH SA until its

expiry date.

Section 1.3.2 General Clearing Principles

A. General

A.1. Novation and Irrevocability

Article 1.3.2.1

All Transactions complying with the criteria mentioned in Article 1.3.1.6 that are submitted to LCH SA, 

within the clearing hours as set out in a Notice are registered in the name of the Clearing Member. Upon 

registration, novation occurs. As a result of novation, LCH SA becomes counterparty to the Clearing 

Member and becomes therefore subject to the rights and subject to the obligations arising from the 

Transaction registered in the name of such Clearing Member.
Clearing Rule Book 22 / 80 Published on 19th December 2017

Article 1.3.2.2

Any Transaction received by LCH SA from a Clearing Member, pursuant to Article 1.3.2.1 is deemed 

irrevocable in the sense of Article L 330 1 § III of the Financial and Monetary Code as soon as it is 

registered in the Clearing System in accordance with Article 3.1.1.1 and within the clearing hours as 

set-out in a Notice, without prejudice to the exception foreseen in Article 3.3.1.3.

Article 1.3.2.3

Submission by Clearing Members of Transactions complying with the criteria mentioned in Article 

1.3.1.6 signifies the acceptance by such Clearing Members of the novation.

Article 1.3.2.4

Novation takes place on a gross basis with respect to the original Transactions.

A.2. Scope of LCH SA’s Obligations

Article 1.3.2.5

In accordance with Article 3 of the Settlement Finality Directive, upon registration in the Clearing 

System, Trade Legs and netting shall be legally enforceable and shall be binding on third parties.

Upon registration and as a consequence of Article 3.1.1.1, LCH SA undertakes to fulfil its obligations to 

deliver or to pay each Clearing Member on the basis of Open Positions or Net Position Exposures, as 

applicable, registered in its name, per Financial Instrument or per Basket.

The fulfilment of such obligations is conditional upon the timely performance by such Clearing Member 

of its own obligations. 

Article 1.3.2.6

Upon novation, the obligations that LCH SA undertakes to perform as counterparty to the relevant 

Clearing Members with respect to Transactions and as detailed in the relevant provisions of the Clearing 

Rules, cover:

- For Transactions in Securities: the payment of cash and the delivery of the Securities. 

- For Transactions in option contracts:

 payment of Option Premium pursuant to Transactions and of cash amounts resulting 

from exercise and assignment,

 payment of cash and delivery pursuant to the settlement of positions in the underlying 

Financial Instruments or assets resulting from exercise and assignments.

- For Transactions in futures contracts (excluding commodities): payment of Variation Margin 

and, in the case of deliverable financial futures, delivery of Financial Instruments versus 

payment.

- For Transactions in commodities futures contracts : 

 payment of Variation Margin;

 payment of the amount due to the selling Clearing Member; and

 delivery of commodities to the buying Clearing Member. 

- For Repos: For both Initial Transactions and Return Transactions, payment of cash and 

delivery of the debt Securities. For Return Transactions payment of cash includes applicable 

interest.

- For Triparty Repos: 

 to the Cash Lender, payment of the total interest amount corresponding (a) to the cash 

amount traded pursuant to the terms of the initially traded contract, irrespective of the 

cash amount effectively settled in the case of a securities allocation fail, and (b) to the 

cash amount effectively settled in the case of a cash settlement fail; 
Clearing Rule Book 23 / 80 Published on 19th December 2017

 to the Cash Borrower, receipt of a cash amount equivalent to the collateralising 

securities effectively settled; 

 to the Cash Borrower and Lender, return of the amount of cash or collateralising 

securities effectively paid or settled.

The circumstances in which LCH SA performs its delivery obligation, including delivery at a later time 

than the time originally specified, are set out in the applicable Instructions.

Article 1.3.2.7

For Open Positions settled through payment of a price difference, the LCH SA obligations as described 

in Article 1.3.2.6 apply to such difference. 

Article 1.3.2.8

For commodities future contracts, the performance of the obligations described in Article 1.3.2.6 will take 

the form of a cash compensation to be calculated and applied in accordance with an Instruction.

If the Clearing Members opt for the alternative delivery procedure, as described in Article 3.4.1.11, LCH 

SA is discharged from performing its obligations as described in Article 1.3.2.6.

Article 1.3.2.9

If LCH SA is unable to deliver a given Financial Instrument, as a result of the market conditions, LCH SA 

will notify the relevant Clearing Member accordingly. In such case, LCH SA will pay a cash amount in 

lieu of delivery of the Financial Instrument or the assets involved. The amount will be calculated on the 

basis of the market price of the Financial Instrument according to a formula and a method of calculation 

to be specified in an Instruction. 

For the avoidance of doubt, this article shall not apply to Triparty Repos.

Article 1.3.2.10

Unless otherwise stated in the Clearing Rule book, the netting of Clearing Members’ obligations with 

those of LCH SA is not permitted.

A.3. General Clearing Process 

Article 1.3.2.11

Unless otherwise specified in the Clearing Rule Book, at the end of the Clearing Day or at such other 

time as may be published in a Notice, LCH SA aggregates Transactions with respect to payment of cash 

or delivery of Securities, into Open Positions.

Article 1.3.2.12

Unless otherwise specified in the Clearing Rule Book, LCH SA sends the requisite delivery and payment 

instructions once calculated in accordance with Article 1.3.2.11 and per Financial Instrument, to the 

relevant central Securities depository or Securities settlement system.

The rules of the relevant central Securities depositary or Securities settlement system apply with respect 

to transmission of such delivery and payment instructions to the central Securities depositary or 

Securities settlement system.

In the event of settlement failure, the unsettled position is managed in accordance with the provisions on 

Net Fails in Chapter 4 of Title III of this Clearing Rule Book

A Notice will give details of the timeframe in which such delivery and payment instructions are sent to 

each central Securities depository or Securities settlement system. LCH SA is discharged of its 

obligations towards Clearing Members once payment and settlement have occurred.

The payment of funds and delivery of Securities are linked so as to occur on a simultaneous basis.
Clearing Rule Book 24 / 80 Published on 19th December 2017

B. Provisions Related to Financial Products Traded on Markets Operated by 

Euronext Brussels 

Article 1.3.2.13

The Belgian Common Civil Law Provisions are applicable for determining the moment of the transfer of 

ownership of Financial Instruments bought, sold or exchanged pursuant to as Transaction.

C. Provisions Related to Transactions on Derivatives

Article 1.3.2.14

For the purpose of compliance with MiFID2/MiFIR, details on the information needed by LCH SA from 

Market Undertakings in order to clear Transactions on Derivatives, and the format in which that 

information shall be provided, are described in a Notice.

Section 1.3.3 Liability and Force Majeure

A. Liability of Clearing Members 

Article 1.3.3.1

A Clearing Member shall be liable for any damages suffered by LCH SA as a direct consequence of the 

Clearing Member’s default resulting in LCH SA having to satisfy its obligation under Article 1.3.2.6 and 

as provided for in the Clearing Rules, without any notice of default by LCH SA being required.

Such damages may include without limitation any one or more of the following: interest, exchange rate 

differences, purchase price.

Article 1.3.3.2

A Clearing Member will not be held liable for any detrimental consequences of abnormal or fraudulent 

use of the Clearing System or for any detrimental consequences of acts or omissions of third parties.

Article 1.3.3.3

The Clearing Member shall take all reasonable care in the selection and monitoring of any Person that is 

to act on its behalf. 

B. Liability of LCH SA

Article 1.3.3.4

LCH SA ensures the delivery of Securities or the payment of cash, in accordance with the Clearing Rule 

Book following the registration of Transactions provided in Article 1.3.2.2 and the clearing of obligations 

deriving thereto as provided in Article 1.3.2.6, save in the event of a force majeure or third party action.

Article 1.3.3.5

The buying Clearing Member can make no claim for compensation in respect of late delivery of 

Securities other than as provided for in the Clearing Rules or where such late delivery results from a 

failure on the part of LCH SA itself.

The buying Clearing Member’s Open Positions are no longer admitted for clearing once it has taken 

delivery of the relevant Securities from either LCH SA or the selling Clearing Member.

Article 1.3.3.6

For obligations other than the obligation to deliver Securities or pay cash amounts as referred to in 

Article 1.3.3.4 above, LCH SA is only accountable for obligations of means (“obligation de moyens”). 

In particular, LCH SA may under no circumstances be held liable for the above mentioned damages, 

unless such damages are direct result of gross negligence or a deliberate act or omission on the part of 

LCH SA.
Clearing Rule Book 25 / 80 Published on 19th December 2017

Article 1.3.3.7

LCH SA may under no circumstances be held liable for direct or consequential loss suffered by any 

Clearing Member including without limitation loss of business, profits or revenues believed by the 

Clearing Member to be the consequence of a total or partial failure by LCH SA to perform,its obligations 

in accordance with the Clearing Rules or the Admission Agreement.

Article 1.3.3.8

If a Clearing Member does not comply with its obligations, as provided for in the Clearing Rule Book or in 

the Admission Agreement or in case of suspension of payments, scheme of arrangement, safeguard, or 

receivership of the Clearing Member, or any other equivalent amicable or legal procedure commenced 

pursuant to the law of jurisdictions other than France, LCH SA may cease to perform all its obligations 

with respect to the Clearing Member in question, notwithstanding implementation of the measures 

provided in Chapter 5 of Title IV of the Clearing Rule Book. In particular, following an Event of Default, 

LCH SA will act promptly in the manner LCH SA deems most appropriate to contain its exposure and 

mitigate consequences for market participants.

In such events, LCH SA may not be held liable for any detrimental consequence save in the case of 

gross negligence or deliberate act or omission. In particular, following an Event of Default, 

implementation of measures provided in Chapter 5 of Title IV cannot result in any liability for LCH SA (a) 

in respect of the failing Clearing Member, including in connection with (i) process and conditions for 

liquidating Trade legs or Open Positions or (ii) the selling or liquidation of Margins or any other Collateral 

and (b) in respect of the Defaulting Clearing Member and non-defaulting Clearing Members regarding 

the triggering of any call on the Default Fund.

Article 1.3.3.9

Furthermore, LCH SA may not be held liable for any breach by a Clearing Member of its obligations, to 

segregate client and house assets, notably in securities settlement systems or central securities

depositories in accordance with applicable law and regulations. LCH SA only sends delivery and 

payment instructions to the account indicated by the Clearing Member irrespective of such account

beneficiary.

Article 1.3.3.10

LCH SA may not be held liable for any detrimental consequences of abnormal or fraudulent use of the 

Clearing System or for any detrimental consequences of acts or omissions of third parties.

Article 1.3.3.11

LCH SA shall take reasonable care in the selection and monitoring of any third party which may act on its 

behalf.

C. Force Majeure

Article 1.3.3.12

Force majeure is to be constructed in accordance with French law, meaning extraordinary events 

independent of the Parties’ will, which cannot be foreseen or avoided even with due diligence, being 

beyond their control and preventing them from fulfilling their obligations pursuant to the Clearing Rules 

or the Admission Agreement. 

Such events include inter alia, disasters, such as hurricane, earthquake, international conflicts, stroke of 

lightning and war.

If circumstances as referred to in the previous paragraph arise or are, likely to arise, LCH SA or Clearing 

Members, as the case may be, will take such measures as may be reasonably expected of them in order 

to limit as much as possible the detrimental consequences for the other party resulting from such

circumstances.

Section 1.3.4 Confidentiality
Clearing Rule Book 26 / 80 Published on 19th December 2017

Article 1.3.4.1

LCH SA may in accordance with applicable statutory provisions provide any information it may have to 

Competent Authorities. 

Where a Clearing Member is also a member of a Regulated Market, MTF , or clearing house with whom 

LCH SA has entered into an agreement to clear Transactions, or to grant mutual access, such as an 

Allied Clearing House, LCH SA may likewise, and under the same conditions, pass any such information 

to such Regulated Market, MTF or Allied Clearing House.

Article 1.3.4.2

Upon request, LCH SA may provide Competent Authorities or National Treasury Agencies with 

information related to Net Fails in respect of Clearing Members. Any such disclosure to the National 

Treasury Agencies may only take place if the National Treasury Agencies are able to justify that a valid 

authorisation has been given by the relevant Clearing Members to LCH SA. 

Article 1.3.4.3

Without prejudice to any monitoring and auditing powers granted by law to other bodies, LCH SA has an 

obligation in accordance with applicable statutory or regulatory provisions, to prevent or limit any 

fraudulent, illicit or irregular acts. 

Article 1.3.4.4

Notwithstanding any other provision to the contrary, LCH SA shall be authorised to supply any 

information whatsoever concerning a Clearing Member or its Clients or a Trading Member and its or 

their trading activity to LCH Group Limited, LCH Ltd, LCH LLC or any other sub-contracting entity 

belonging to the same Financial Group.

Section 1.3.5 Applicable Law

Article 1.3.5.1

The Clearing Rules shall be governed by and construed in accordance with the laws of France unless 

explicitly stated otherwise.

Section 1.3.6 Disputes

Article 1.3.6.1

Any dispute between LCH SA and a Clearing Member that may arise under the Clearing Rules shall be 

finally settled through the French courts or arbitration centre referred to in the Admission Agreement, 

subject to the complaints resolution procedure as set out in an Instruction.

Article 1.3.6.2 

A Clearing Member shall, in accordance with Article 1.3.3.4 et seq., notify LCH SA of any claim within 

twelve (12) months from the Clearing Day on which the Clearing Member becomes aware, or should 

have become aware of the occurrence of any event that may result in loss or damages.
Clearing Rule Book 27 / 80 Published on 19th December 2017

CHAPTER 4 – LCH SA DEFAULT

Article 1.4.1.1

An LCH SA default shall occur if at any time:

(i) except where such failure to pay is permitted or where LCH SA is acting in accordance with 

Title IV Chapter 5, LCH SA fails to make a payment due by LCH SA to a Clearing Member 

(other than to a Defaulting Clearing Member) under any novated Transaction, and such failure 

has not been cured within 30 days from the date when the obligation to pay fells due; or

(ii) LCH SA becomes subject to LCH Insolvency Proceedings duly notified by the French 

prudential control authority (Autorité de contrôle prudentiel) pursuant to article R.613-18 of the 

Financial and Monetary Code.

Article 1.4.1.2

In the event of an LCH SA default occurring pursuant to Article 1.4.1.1 (i) the relevant Clearing Member 

may notify LCH SA in writing specifying a Termination Date, which shall be the TARGET Settlement Day 

following the occurrence of such an LCH Clearnet SA default, for the termination and liquidation of all 

Trade Legs and/or Open Positions, as relevant, registered in its Account Structure. 

Article 1.4.1.3

In the event of an LCH SA default pursuant to Article 1.4.1.1 (ii), LCH SA will make available a notice on 

its Website specifying the Termination Date, which shall be the TARGET Settlement Day following the 

occurrence of such an LCH Clearnet SA default. Upon the occurrence of a Termination Date, a Clearing 

Member other than a Defaulting Clearing Member may exercise the right given to it under Article 

1.4.1.4.et seq.

Where LCH SA fails to make available such notice on its Website:

(i) by 19:00 on the Clearing Day following the Clearing Day on which LCH SA becomes subject to 

LCH Insolvency Proceedings pursuant to Article 1.4.1.1 (ii); or

(ii) where LCH SA becomes subject to an LCH Insolvency Proceeding pursuant to Article 1.4.1.1 (ii) 

after 19:00 on a Clearing Day or on a day which is not a Clearing Day, by 19:00 on the second 

Clearing Day following that day, 

then each individual Clearing Member shall be entitled, by notice in writing to LCH SA, to designate a 

Termination Date.

Article 1.4.1.4

As from the Termination Date, neither LCH SA nor any Clearing Member (other than a Defaulting 

Clearing Member) having exercised its rights pursuant to Articles 1.4.1.2 or 1.4.1.3 shall be obliged to 

make any further payment or delivery under any Trade Leg or Open Position, as the case may be, 

between them which would, but for this Title I Chapter 4, have fallen due for performance on or after the 

Termination Date.

Such obligations shall be satisfied by settlement (whether by payment, set-off or otherwise) of the 

Termination Amount.

Article 1.4.1.5

Following an LCH SA default pursuant to the conditions of Article 1.4.1.1, the Clearing Member other 

than a Defaulting Clearing Member, having exercised its rights pursuant to Article 1.4.1.2 or 1.4.1.3, 

determines on the Termination Date or as soon as possible after such date (discounting if appropriate):

(i) its total loss or total gain, as the case may be, in respect of each Trade Leg or Open Position, 

as relevant, (in each case expressed in Euro); and 

(ii) the value of all other amounts which it owes to LCH SA and which LCH SA owes to it, in each 

case whether future, liquidated or unliquidated, actual or contingent.

Pursuant to Article 1.4.1.9 below, such calculation shall be undertaken separately in respect of the Trade 

Legs, or Open Positions as applicable, and all other amounts owed in relation to Trade Legs, or Open 
Clearing Rule Book 28 / 80 Published on 19th December 2017

Positions registered in (i) the House Account Structure or (ii) an Individual Segregated Account 

Structure or (iii) an Omnibus Segregated Account Structure of the Clearing Member.

Article 1.4.1.6

For the purposes of Article 1.4.1.5 (i), the Clearing Member calculates (in a commercially reasonable

manner) its total loss or its total gain, as the case may be, in respect of each Trade Leg or Open Position, 

as relevant, as a result of the termination of each payment or delivery which would otherwise have been 

required to be made under the relevant Trade Leg or Open Position, as relevant and including, if 

appropriate, any loss of bargain, any cost of funding, and/or without duplication, any loss or, as the case 

may be, gain as a result of the termination, liquidation, obtaining, performing or re-establishing of any 

hedge or related trading position.

Article 1.4.1.7

For the purpose of the calculation to be made pursuant to Article 1.4.1.5 (ii), the Clearing Member will 

determine the value of all Collateral that, as of the Termination Date, LCH SA is due to return to it in 

accordance with the Clearing Rules without applying any haircuts to such valuation. In making such 

determination, the Clearing Member will not separately value and will not take into account, as an 

amount due to it, any Collateral:

(i) in respect of which the value has been accounted for in determining of any profit or loss on 

any Trade Leg or Open Position, as applicable; 

(ii) which the Clearing Member has transferred to LCH SA other than on a full title transfer basis 

and which the Clearing Member will receive back in accordance with the Clearing Rules; or

(iii) which, if the Clearing Member is a Defaulting Clearing Member, has been deposited by a 

Defaulting Clearing Member to meet (a) its Margin requirement (other than Variation Margin) 

calculated in respect of its House Margin Account(s) or as a contribution to the Default 

Fund(s) and which LCH SA has applied or will be required to apply in order to reduce its loss 

in accordance with Article 4.5.2.7 or (b) its Margin requirement (other than Variation Margin) 

calculated in respect of its Client Margin Account(s) which will be transferred to a new 

Clearing Member as provided in an Instruction, or, in case of liquidation, returned to the Client 

or Indirect Client, when applicable, as provided in an Instruction.

Article 1.4.1.8

Pursuant to the determination made under Article 1.4.1.5:

(i) each gain by the Clearing Member and each amount which LCH SA owes to it, shall be 

treated as a positive amount; and

(ii) each loss suffered by the Clearing Member and amounts which it owes to LCH SA shall be 

treated as a negative amount.

Article 1.4.1.9

The Clearing Member shall :

(i) aggregate all positive and negative amounts related to House Trade Legs or House Open 

Positions to produce one net termination amount (the "House Termination Amount”), and

(ii) aggregate: (a) all positive and negative amounts related to Client Trade Legs or Client Open 

Position registered in an Individual Segregated Account Structure to produce one net 

termination amount for such Individual Segregated Account Structure; and (b) all positive 

and negative amounts related to Client Trade Legs or Client Open Positions registered in an

Omnibus Segregated Account Structure to produce one net termination amount for such 

Omnibus Segregated Account Structure (each a "Client Termination Amount"). 

To the extent a Clearing Member is also a member of the CDSClear service(s) provided by LCH SA, 

such Clearing Member shall aggregate the House Termination Amount and the house termination 

amount calculated in respect of a house account structure held in connection with such CDSClear

service(s) where LCH SA is subject to a default in accordance with the Clearing Rules and the rules 

applicable to CDSClear, in order to produce one net termination amount owed in relation to the Clearing 

Service and such CDSClear service(s) provided by LCH SA (the “Global House Termination 

Amount”).
Clearing Rule Book 29 / 80 Published on 19th December 2017

The Clearing Member shall notify LCH SA of the House Termination Amount and the Client Termination 

Amount(s), by which party each such amount is payable, and showing in reasonable detail how they 

have been calculated, immediately after the calculation thereof. The Global House Termination Amount 

shall be notified in accordance with the clearing rules governing the service(s) provided by LCH SA in 

respect of CDSClear.

If any of the House Termination Amount or Global House Termination Amount if applicable, or the Client 

Termination Amount(s) calculated pursuant to this Chapter 4 is a positive amount, LCH SA shall pay it to 

the Clearing Member and, if any of the House Termination Amount or Global House Termination Amount 

if applicable, or the Client Termination Amount(s) is a negative amount, the Clearing Member shall pay it 

to LCH SA, in accordance with Article 1.4.1.10 below.

Article 1.4.1.10

The House Termination Amount (to the extent not aggregated into the Global House Termination 

Amount) or Client Termination Amount(s) in respect of each Clearing Member shall be paid by either 

LCH SA or the Clearing Member, as the case may be, in Euro by 17:00 on the Clearing Day following 

notification pursuant to Article 1.4.1.9 above (converted as required by Applicable Law into any other 

currency, any costs of such conversion to be borne by, and (if applicable) deducted from any payment to, 

LCH SA). Neither LCH SA nor a Clearing Member, as the case may be, shall be permitted to effect 

payment netting between the House Termination Amount or Global House Termination Amount if 

applicable, on the one hand and the Client Termination Amounts on the other hand.

The Global House Termination Amount shall be paid in accordance with the clearing rules governing the

service(s) provided by LCH SA in respect of CDSClear.

Article 1.4.1.11

For the purposes of any calculation required to be made under this Chapter 4, the Clearing Member may 

convert amounts denominated in any other currency into Euro at such rate prevailing at the time of the 

calculation as it shall reasonably select.

Article 1.4.1.12

The Clearing Member's rights under this Chapter 4 shall be in addition to, and not in limitation or 

exclusion of, any other rights which the Clearing Member may have.

Article 1.4.1.13

This Chapter 4 shall be without prejudice to the rights that LCH SA may have pursuant to the Clearing 

Rules against any Clearing Member prior to the occurrence of the LCH SA default.
Clearing Rule Book 30 / 80 Published on 19th December 2017

CHAPTER 5 – WINDING DOWN

Article 1.5.1.1

LCH SA shall be entitled to cease all its activities with immediate effect, following the occurrence of:

 a closing down of all of its Clearing Services, following one or several Event(s) of Default,

 a decision by the Autorité de Contrôle et de Résolution or a court decision which forces LCH 

to cease its activities (in this latter case, LCH SA may apply close out all its clearing services 

pursuant to the service closure process applicable to each service and as describe in an 

Instruction). 
Clearing Rule Book 31 / 80 Published on 19th December 2017

TITLE II – MEMBERSHIP
Clearing Rule Book 32 / 80 Published on 19th December 2017

Article 2.0.0.1 

Clearing Members shall at all time comply with the requirements set out in this Chapter and any 

additional conditions and limitations imposed upon admission and with any provision of the Clearing 

Rules.

Article 2.0.0.2

The provisions of this Title which are applicable to the Clearing Members’ clearing Transactions carried 

out either on a Regulated Market or on a MTF may be extended by LCH SA to the Clearing Members’ 

clearing Transactions in Financial Instruments executed on a market which has neither the status of a 

Regulated Market, nor an MTF, if all Financial Instruments that may be traded on such market are traded 

elsewhere on a Regulated Market.

CHAPTER 1- GENERAL PROVISIONS

Section 2.1.1 Participants

Article 2.1.1.1

As a securities settlement system within the meaning of the Settlement Finality Directive, LCH SA has 

only direct participants which are its Clearing Members and its Allied Clearing Houses. It does not have 

indirect participants.

A. Clearing Members

Article 2.1.1.2

The following entities are eligible to become a Clearing Member, pursuant to Article L 440-2 of the 

French Monetary and Financial Code:

1. Credit Institutions, which have their head office in a European Community (EC) Member State or 

in another State party to the agreement on the European economic area (EEA).

2. Investment firms, having their head office in a European Community (EC) Member State or in 

another State party to the agreement on the European economic area (EEA).

3. Legal persons whose members or shareholders have unlimited joint and several liability for their 

debts and obligations, provided that such members or shareholders are institutions or firms 

mentioned under 1 and/or 2 above,

4. Legal persons having their head office in metropolitan France or in French overseas departments 

and whose principal or sole object is the clearing of Financial Instruments,

5. In the circumstances set out in the general regulations of the Autorité des Marchés Financiers 

(AMF), Credit Institutions and investment firms which do not have their head office neither in a 

European Community Member State, nor in a State party to the Agreement on the European 

economic area, and legal persons whose principal or sole object is the clearing of Financial 

Instruments, that are not established in metropolitan France or in French overseas departments,

under prior approval of the Autorité des Marchés Financiers. An agreement between the Autorité 

des Marchés Financiers and (an) other Competent Authority(ies) may provide for an exemption 

from prior authorisation for a category of entities.

Article 2.1.1.3

A Clearing Member is a legal person admitted as such by LCH SA and authorised, subject to the 

Clearing Rules, to submit Transactions for registration, pursuant to an Admission Agreement between 

LCH SA and itself. 

Article 2.1.1.4

A Clearing Member can operate as:

(i) an Individual Clearing Member; or 

(ii) a General Clearing Member.
Clearing Rule Book 33 / 80 Published on 19th December 2017

A. Allied Clearing Houses 

Article 2.1.1.5

An Allied Clearing House is a legal person, incorporated in a Member State, which is a Credit Institution 

or an investment firm or whose principal or sole object is the clearing of Financial Instruments, which is 

recognised and supervised/overseen as a central counterparty clearing house by its Competent 

Authorities and which has signed an agreement with LCH SA for this purpose. An Allied Clearing House 

is a Participant, authorised by LCH SA to submit Transactions for registration under the conditions 

set-out below.

The admission of an Allied Clearing House is subject to the prior approval of Autorité des Marchés 

Financiers.

Article 2.1.1.6

Vis-à-vis LCH SA, an Allied Clearing House is subject, at all times, to the same rights and obligations as 

a General Clearing Member on the same market.

In the conditions set out in Article 2.1.1.7, on a case-by-case basis, this Clearing Rule Book or an 

Instruction can depart from such principle and set out specific provisions applicable to an Allied Clearing 

House with respect to the following subjects:

(i) Information with the exception of financial reporting;

(ii) On-site inspections/audit obligations;

(iii) Authorised Clearing Operators’ obligations;

(iv) Default Fund contribution obligations as well as Collateral to fulfil them;

(v) Consequences of Events of Default of Clearing Members for Allied Clearing Houses;

(vi) Definition and management of Events of Default of an Allied Clearing House and their impact on 

Clearing Members;

(vii) Buy-in and sell-out procedures;

(viii) Payment of fees ; and

(ix) Debt Securities Intra-day Margin.

Article 2.1.1.7

LCH SA can only apply specific conditions to an Allied Clearing House after having assessed that, and 

subject to verifying on a continuous basis that: 

(i) Adequate resources and risk management measures, and international recommendations and 

standards applicable to a central counterparty, are implemented, if need be, so that LCH SA’s 

operational, credit or liquidity risks are not increased compared to the risks stemming from the 

participation of a General Clearing Member having the same Open Positions;

(ii) LCH SA maintains adequate and sufficiently liquid financial resources to ensure a timely 

discharge of its obligations vis-à-vis its Participants;

(iii) The Allied Clearing House’s financial resources are adequate and sufficiently liquid to ensure a 

timely discharge of its obligations vis-à-vis LCH SA. 

Section 2.1.2 Application Procedure

Article 2.1.2.1

Subject to the completion of the procedure published on LCH SA’s website, the Applicant shall complete

LCH SA’s application file which is available on LCH SA’s website and shall provide all documents listed 

in the application file as well as other documentation or information required by LCH SA.

In the event that incomplete or unsatisfactory information is contained in the application file, additional 

information and/or documents may be requested by LCH SA from the Applicant.

The application file specifies, inter alia, the Product Group, as set-out in an Instruction, and the 

membership category (ICM or GCM) the Applicant is applying for.

Whilst the application is pending, the Applicant must notify LCH SA in writing of any changes relating to:
Clearing Rule Book 34 / 80 Published on 19th December 2017

(i) the items to be included in the admission application form application file;

(ii) information contained in the application file ; and 

(iii) any facts and circumstances concerning the Applicant which may be relevant in the context of its 

ability to perform its obligations under the Clearing Rules.

Article 2.1.2.2

LCH SA shall examine the information in the application file within two months from the date of receipt 

of the complete application file, including any additional information required by LCH SA. 

LCH SA shall notify the Applicant of its admission decision by registered letter with an acknowledgment 

of receipt.

Article 2.1.2.3

In approving an application, LCH SA may impose additional conditions and/or limitations on the exercise 

of certain rights under the Clearing Rules provided that such conditions and/or limitations are imposed 

without discrimination and only to the extent that its objective is to control the risk for the clearing house.

Membership approval is granted for a Product Group and a membership category (ICM or GCM).

Article 2.1.2.4

LCH SA may refuse an admission to membership, if it considers that such admission may adversely 

affect the operation of the clearing and settlement system, or where the Applicant does not comply with 

its obligations resulting from its admission to another clearing house or central securities depository or

where the Applicant does not satisfy a minimum internal credit score which is determined by LCH SA as 

set out in Article 2.3.1.1 below.

LCH SA shall provide justification for its decision not to admit an Applicant to membership within one 

month following receipt of a request for justification from the relevant Applicant. 

Article 2.1.2.5

If an Applicant has been approved as a Clearing Member, it shall before commencing operations (i) 

provide LCH SA with any outstanding documents and/or information as notified in the approval letter (ii) 

and comply with the specific requirements, as set-out in this Title II and in an Instruction.

Article 2.1.2.6

Upon approval and execution of the Admission Agreement the Clearing Member shall at all times

comply with the provisions of the Clearing Rules.

In particular, the Clearing Member shall,inter alia :

(i) pay any fees due;

(ii) contribute to the Default Fund as set-out in Chapter 3 of Title IV;

(iii) bear the risk of any instructions which are incorrect or provided late to LCH SA;

(iv) comply with the continuing obligations described hereunder; 

(v) be liable for the accuracy of all information provided to LCH SA, especially information relating to 

the Clearing member’s Account Structure as described in Chapter 2 of Title III of the Clearing 

Rule Book.

Article 2.1.2.7

The Applicant shall confirm its acceptance of the Clearing Rules by returning the Admission Agreement 

executed by a duly authorised signatory.

The Admission Agreement is concluded on the basis of the identity of the relevant Clearing Member and 

cannot therefore be assigned or transferred without LCH SA’s prior written approval. 

Clearing Members shall not transfer or pledge their rights vis-à-vis LCH SA to third parties unless 

expressly provided otherwise in the Clearing Rules.

Article 2.1.2.8

A Clearing Member must commence operations within six months after LCH SA notifies its admission, 

unless LCH SA accepts an extension to such time limit. Failing this, the admission decision shall be 
Clearing Rule Book 35 / 80 Published on 19th December 2017

automatically revoked and any new admission will require compliance with the provisions of this Section 

Chapters 1 and 2 of Title II.

The six months time limit does not apply where a Clearing Member, which is already active on one or 

several markets, applies to extend its activityies to (an) other market(s) or Product Group(s).

Article 2.1.2.9

LCH SA may organise training sessions, on request of Clearing Members, dedicated to individuals that 

are under the Clearing Member’s authority or acting on behalf of the Clearing Member who perform, or 

wish to perform, clearing functions on all Financial Instruments, as accepted by LCH SA pursuant to 

article 1.3.1.6. Such training sessions may be organised as from the notification of membership 

admission decision and at any time provided that Clearing Member’s membership remains valid.
Clearing Rule Book 36 / 80 Published on 19th December 2017

CHAPTER 2 - LEGAL OBLIGATIONS 

Section 2.2.1 Regulatory Framework

Article 2.2.1.1

Any Applicant wishing to be admitted as a Clearing Member by LCH SA should satisfy the following 

conditions:

a) be validly incorporated;

b) undertake to accept the Clearing Rules by executing the Admission Agreement;

c) be supervised by its Competent Authorities, or other comparable supervision in its home 

jurisdiction;

d) undertake to execute the agreement governing technical access to LCH SA’s Clearing System;

e) meet the financial requirements as determined by LCH SA from time to time and as specified in 

Chapter 3 of this Title and in addition meet any further requirements with respect to liquidity and/or 

solvency as may be set-out by LCH SA;

f) meet the quality requirements as specified in an Instruction;

g) satisfy LCH SA that it has sufficient expertise in relation to clearing activities, that its technical 

systems and related organisational structure are operationally reliable and that its risk management 

policy is adequate,;

h) ensure that the persons who represent the Applicant fulfills the requirements of expertise and

capability as determined by LCH SA pursuant to Articles 2.2.2.5 to 2.2.2.7 and ensure that the 

persons competent to take decisions will be accessible to LCH SA during working hours of every 

Clearing Day;

i) submit details accounts for the purposes of cash payments and delivery of Financial Instruments, as 

well as evidence that a Power of Attorney has been issued in favour of LCH SA to allow the debiting 

or crediting of such accounts for the settlement of Open Positions registered by LCH SA;

j) irrevocably authorise such persons as may be specified by LCH SA pursuant to the conditions set 

out in Article 2.4.2.2 to inspect its facilities, interview its staff, audit its Systems and Operations, 

check the proposed procedures (as recorded in writing) and inspect its books, papers and other data, 

for the purpose of determining whether the Clearing Rules are being properly complied with;

k) have at its disposal the technical environment to be connected to the relevant Clearing System 

managed by LCH SA depending on the market concerned;

l) satisfy such other requirements as may be imposed by LCH SA generally or with respect to a 

category of Clearing Members.

Article 2.2.1.2

Applicants that are not established under the laws of the countries where market operators are 

established, or any other country that may be specified by LCH SA, are obliged to provide LCH SA, as 

soon as possible, with all relevant information on rules and regulations that are in force in their Home 

State, which deal with clearing activities, and especially those rules and regulations that concern the 

registration of Transactions and the resolution of delivery fails between Clearing Members and their 

Clients.
Clearing Rule Book 37 / 80 Published on 19th December 2017

Section 2.2.2 Corporate Organisation

A. Location of Offices

Article 2.2.2.1

A Clearing Member may locate the necessary human and technical resources required to carry on its 

clearing and back office activities wherever it chooses, provided that it can satisfy LCH SA that such 

activities are carried out in a country in which on-site inspections by, or on behalf of LCH SA, are 

practicable and permitted by applicable laws and regulations. In any case, the head office and the 

registered office of the Clearing Member must be located in the same State as provided in Directive 

95/26/EC which applies to all financial undertakings.

Article 2.2.2.2

A Clearing Member may subcontract all or part of its clearing activities to another Clearing Member or to 

a company in the same group with the prior authorisation of LCH SA, provided that such arrangements 

shall not relieve the subcontracting Clearing Member of any of its obligations under these Clearing 

Rules. The request for authorisation must give all appropriate details as to the organisation, structure 

and procedures of the subcontractor and as to the means of control and supervision available to the 

subcontracting Clearing Member. 

Article 2.2.2.3

LCH SA may require from a subcontractor the same information as may be required from a Clearing 

Member pursuant to the Clearing Rules. To that effect, LCH SA may require in advance a written 

undertaking by the subcontractor, which will include a provision authorising LCH SA and any Person 

acting on its behalf to perform inspections at the premises in which the clearing activities actually take 

place.

Article 2.2.2.4

A Clearing Member that relies on an outside contractor to operate its information systems hereby 

undertakes to inform LCH SA of the control mechanisms pertaining to the hardware and software used 

or made available by the contractor. Such communications do not constitute approval by LCH SA; nor 

do they relieve the Clearing Member of any of its obligations under these Clearing Rules. The Clearing 

Member alone is answerable to LCH SA for the proper execution of its operations.

B. Authorised Clearing Operators 

Article 2.2.2.5 

Individuals that are under the Clearing Member’s authority or acting on behalf of the Clearing Member 

who perform, or who wish to perform, clearing functions on Financial Instruments traded on Regulated 

Markets ( with the exception of MTS ITALY) or MTFs shall have the Authorised Clearing Operator status

provided by the relevant Clearing Member, under the terms and subject to the conditions specified in an 

Instruction.

Article 2.2.2.6

Before granting the authorisation, the Clearing Member may assess the applicant's professional 

knowledge and ability, if necessary by means of an examination.

Article 2.2.2.7

A Clearing Member cannot disclaim responsibility for the acts or omissions of any person acting on its 

behalf on the basis that such person was not duly authorised.

Section 2.2.3 Third Contractual Obligations

A. Relationship with Settlement Agents and Payment Agents 

A.1. Common Provisions
Clearing Rule Book 38 / 80 Published on 19th December 2017

Article 2.2.3.1 

A Clearing Member that wishes to use a Settlement Agent and/or a Payment Agent must guarantee that 

the agreement(s) by which the Settlement Agent and/or the Payment Agent agrees to deliver Securities 

or to pay cash amounts, as the case may be, to LCH SA on behalf of the Clearing Member complies with 

the LCH SA requirements. 

The provisions which are required to be included in such agreement(s) are outlined in a declaration of 

compliance, the template of which is provided by LCH SA upon request of the Clearing Member. Such 

declaration of compliance must be duly completed and signed by the Clearing Member (and, if 

applicable, the relevant Settlement Agent and/or Payment Agent) and returned to LCH SA.

Any amendment made to the agreement entered into between the Clearing Member and a Settlement 

Agent or a Payment Agent shall be in accordance with the principles set-out in the declaration of 

compliance. 

Notwithstanding the above, such an agreement(s) shall not relieve the Clearing Member from its 

obligations under the Clearing Rules.

Article 2.2.3.2

With respect to execution of the obligations set-out in Articles 2.2.3.3 and 2.2.3.5, LCH SA must be 

provided with the relevant Powers of Attorney enabling it to debit directly the account(s) of the Clearing 

Member or the Settlement Agent as referred to in Article 2.2.3.6, or of the Payment Agent as referred to 

in Article 2.2.3.4, to meet the Clearing Member’s payment or delivery obligations vis-à-vis LCH SA.

A.2. Provisions Related to Payment Agents 

Article 2.2.3.3

Clearing Members must ensure that they are able to:

(i) comply with cash payments obligations;

(ii) and, if relevant, provide Collateral in cash.

To that end, each Clearing Member shall have entered into appropriate arrangements with the relevant 

central banks and/or commercial banks as the case may be, as described in an Instruction.

Article 2.2.3.4

When the obligations set-out in Articles 2.2.3.3 regarding the obligations to comply with cash payments 

are performed indirectly through a Payment Agent, the Clearing Member shall have entered into an 

appropriate agreement with the Payment Agent.

A.3. Provisions Related to Settlement Agents

Article 2.2.3.5

Clearing Members must ensure that they are able to:

(i) perform the settlement of all their Transactions irrespective of the currency in which they are 

settled, as described in an Instruction;

(ii) and, if relevant, provide Securities as Collateral.

To that end, each Clearing Member shall have entered into appropriate arrangements with the relevant 

CSD of Reference or securities settlement system, as described in an Instruction.

Article 2.2.3.6 

When the obligations set-out in Articles 2.2.3.5 regarding the settlement and the provision of Securities 

as Collateral are performed indirectly through a Settlement Agent, the Clearing Member shall sign an 

agreement with the Settlement Agent.
Clearing Rule Book 39 / 80 Published on 19th December 2017

Article 2.2.3.7

A Clearing Member may use the services of one or several Settlement Agent(s) per Securities

settlement system or per central Securities depositary and of one or several Payment Agent(s) per 

central bank or Credit Institution.

Article 2.2.3.8

The Clearing Member shall require the Settlement Agent to open in its books (an) account(s) to be used 

for the settlement of the Clearing Members’ Transactions, in the applicable Securities settlement system 

or central Securities depository, in compliance with applicable segregation regulations.

B. Relationship with Clients

Article 2.2.3.9

A Clearing Member that wishes to clear Transactions for one or more Client(s) must have entered into a 

Clearing Agreement containing the Mandatory Client Clearing Provisions with each of such Client(s).

LCH SA shall not be liable for any damages arising from any Clearing Agreement, whether sustained by 

the Clearing Member or by a third party. The Clearing Member shall comply with the Clearing 

Agreement. 

Any amendment made to the Clearing Agreement shall be in accordance with the principles set out in an 

Instruction. 

The Clearing Member must ensure that it complies in all relevant jurisdictions with all applicable 

legislations and regulations requiring client assessment and/or sanctions screening, and upon request 

from LCH SA, will be required to evidence the same.

C. « del credere » Agents 

Article 2.2.3.10

Clearing Members act as del credere agents for the Clients whose accounts they administer when the 

Transactions are executed on any French Regulated Market. They guarantee to their Clients that all 

such Transactions will be settled.

Article 2.2.3.11

Clearing Members guarantee their Clients the fulfillment of all obligations arising from their Transactions 

on Euronext Lisbon Derivatives Market.both for their own account and/or on behalf of third parties. 

C.1 Authority to cancel settlement instructions

Article 2.2.3.12

Each Clearing Member active in Transactions carried out on Trading & Matching Platforms and MTS Italy or 

wishing to become active in such Transactions grants LCH SA the irrevocable authority (but not the 

obligation) to cancel settlement instructions concerning Transactions and associated Trade Legs and Open 

Positions of such Clearing Member carried out on Trading & Matching Platforms and MTS Italy which have 

not yet settled and to instruct any CSD of Reference or International CSD and securities settlement system, 

directly or indirectly, to cancel any such pending instructions and to stop issuing any new instructions, 

following an Event of Default of an Allied Clearing House or service closure initiated by LCH SA or an Allied 

Clearing House. LCH SA may request each such Clearing Member to confirm such irrevocable authority in 

writing at any time.

LCH SA shall have no liability to any Clearing Member for any actions taken by LCH SA in connection 

with the above mentioned authority.
Clearing Rule Book 40 / 80 Published on 19th December 2017

Section 2.2.4 Record Keeping 

Article 2.2.4.1

Clearing Members must keep accurate and complete accounting records of all Transactions they have 

entered into for the account of the (Associated) Trading Member or the Clients. Such accounting records 

should, where applicable, disclose at least the following particulars:

(i) the (Associated) Trading Member on the relevant market with which a Clearing Agreement has 

been entered into;

(ii) in respect of each (Associated) Trading Member on the relevant market with which a Clearing 

Agreement has been entered into, all rights and obligations arising from the Transactions entered 

into by a General Clearing Member for the account of the (Associated) Trading Member 

concerned; and

(iii) any further requirements as may be specified by LCH SA. 

Article 2.2.4.2

The Clearing Member is required to keep all data relating to its clearing activity with LCH SA, pursuant to 

the Clearing Rules, for at least five years and must make the data available to LCH SA upon request

throughout that period.

Section 2.2.5 Test Processing 

Article 2.2.5.1 

Clearing Members must comply with LCH SA’s request for technical and operational tests. Such tests 

may be required either prior to the implementation of a project or prior to the execution of specific and 

individual operations.
Clearing Rule Book 41 / 80 Published on 19th December 2017

CHAPTER 3 - CAPITAL REQUIREMENTS

Section 2.3.1 Common General Provisions 

Article 2.3.1.1

The Clearing Member must satisfy the credit risk assessment minimum requirements. LCH SA 

assesses the credit risk of the Clearing Member in accordance with its internal credit score based on a 

range of quantitative and qualitative data. These include financial analysis, external market data as well 

as consideration of any implicit or explicit support available to the Clearing Member. The analysis is 

performed on a predetermined methodology applicable to any Clearing Member.

Article 2.3.1.2

Any Letters of Credit that have been issued by a Clearing Member in favour of LCH SA to cover the 

obligations of another Clearing Member, pursuant to Articles 2.3.2.3 and 2.3.2.5, shall reduce the 

issuer's Capital pro tanto.

Article 2.3.1.3

In the case of Business Combinations, the minimum Capital shall be determined by aggregating the 

Capital of each Person in such combination which is jointly and severally liable, and subtracting any 

cross-shareholdings between such Persons. The total Capital must at all times be at least equivalent to 

the minimum amounts set forth in these Clearing Rules. 

Article 2.3.1.4

A Clearing Member whose Capital at any point falls below the required amount is obliged to 

immediately ensure it is brought back up to the minimum requirement, without prejudice to the powers 

of LCH SA specified in Chapter 5 of this Title.

Article 2.3.1.5

LCH SA shall, on a daily basis, compare the market risk associated with each Clearing Member’s level 

of business with their level of Capital as reported to LCH SA in order to ascertain whether, in LCH SA’s 

opinion, such Clearing Member is sufficiently capitalised to support the level of risk associated with such 

Clearing Member. In determining whether a Clearing Member is sufficiently capitalised, LCH SA may 

also consider:

(i) the Clearing Member’s aggregate exposure to other clearing houses and other entities; and/or

(ii) the total amount of Collateral deposited with, transferred to or otherwise delivered to LCH SA by 

the Clearing Member.

In the event that LCH SA considers that a Clearing Member is not sufficiently capitalised to support the 

level of risk associated with its Open Position, LCH SA may take any measures it considers necessary to 

contain its exposure, including, inter alia, a request for additional margin, reduction in exposures,and/or

increase in net capital.

Section 2.3.2 Provisions Related to Securities and Derivatives Product Groups 

Article 2.3.2.1 

LCH SA may apply the provisions of this Section to the Clearing Members’ clearing Transactions in 

Financial Instruments executed on a market which has neither the status of Regulated Market nor 

MTF, if all Financial Instruments that may be traded on such market are traded elsewhere on a 

Regulated Market.

Article 2.3.2.2

An Individual Clearing Member must at all times maintain Capital of at least EUR 10 million. 

If the Clearing Member is not able to fulfil this requirement, a Letter of Credit may be accepted subject to

the conditions set forth below to cover the shortfall. 
Clearing Rule Book 42 / 80 Published on 19th December 2017

Article 2.3.2.3 

An Individual Clearing Member with Capital between EUR 5 and EUR 10 million must provide a Letter of 

Credit in favour of LCH SA to cover the shortfall.

In such case, the identity of the issuer must be satisfactory to LCH SA.

Article 2.3.2.4

A General Clearing Member must at all times maintain Capital of at least EUR 25 million. The required 

Capital depends on the number of Trading Members/Market Members cleared by the General Clearing 

Member, and is determined as follows: 

- EUR 30 million from the tenth Trading Member/ Market Members cleared;

- EUR 33.75 million from the fifteenth Trading Member/ Market Members cleared;

- EUR 37.5 million from the twentieth Trading Member/ Market Members cleared and above. 

If the Clearing Member is not able to fulfil such requirement, a Letter of Credit may be accepted subject 

to the conditions set forth below, to cover the shortfall. 

Article 2.3.2.5

A General Clearing Member with Capital below the amounts stipulated in Article 2.3.2.3, but in excess of 

EUR 15 million, must provide a Letter of Credit in favour of LCH SA to cover the shortfall.

In such case, the identity of the issuer must be satisfactory to LCH SA.

Article 2.3.2.6

If LCH SA considers a Regulated Market as insufficiently liquid, it may by a Notice apply the provisions 

of Section 2.3.3 to the clearing of Transactions executed on that market.

Section 2.3.3 Provisions Related to Trading & Matching Platforms and MTS Italy

Article 2.3.3.1

An Individual Clearing Member wishing to clear Transactions traded or matched via a Trading & 

Matching Platform and/or via MTS Italy must, unless otherwise permitted by the provisions of this 

Section, at all times maintain a capital of at least EUR 100 million.

If the Clearing Member is not able to fulfil the financial requirement, a Letter of Credit may be accepted 

up to a maximum of 50% of the minimum requirement subject to the condition set forth below to cover 

the shortfall.

Article 2.3.3.2

A General Clearing Member wishing to clear Transactions traded or matched via a Trading & Matching 

Platform and/or via MTS Italy must at all times maintain Capital of at least EUR 400 million.

If the Clearing Member is not able to fulfil such financial requirement, a Letter of Credit may be accepted 

up to a maximum of 50% of the minimum requirement subject to the condition set forth below to cover 

the shortfall.

Article 2.3.3.3

LCH SA may,but is not obliged to, adjust any of the requirements specified in Articles 2.3.3.1 and 2.3.3.3

to take into account a Clearing Member's consolidated financial situation, the quality of its shareholders, 

members or associates, and its legal structure.

Article 2.3.3.4

If a Letter of Credit has to be issued by a Clearing Member pursuant to Articles 2.3.3.1 and 2.3.3.2, the

identity of the issuer must be satisfactory to LCH SA.

Any Letters of Credit that have been issued by a Clearing Member in favour of LCH SA to cover the 

obligations of another Clearing Member, pursuant to Articles 2.3.3.1 and 2.3.3.2, shall reduce the 

issuer’s Capital pro -tanto.
Clearing Rule Book 43 / 80 Published on 19th December 2017

CHAPTER 4- INFORMATION OBLIGATIONS AND AUDIT 

Section 2.4.1 Information

Article 2.4.1.1

The obligation of Clearing Members to provide information also covers information about their Clients 

(including physical persons), concerning the identity, trading activities and Positions of Clients. LCH SA 

shall have the right to furnish this information to the same persons as mentioned in Article 1.3.4.1 and on 

the same terms. LCH SA may give further details as to the application of these provisions in an 

Instruction.

A. Information upon Request

Article 2.4.1.2

The Clearing Member shall respond , within a reasonable period of time, to all requests for information 

from LCH SA concerning its clearing activities, exposure to general and financial risks in the context of 

its clearing activities, or any requests made under the terms and conditions set out in an Instruction.

B. Mandatory Information

Article 2.4.1.3

Clearing Members must send the following information to LCH SA: 

(i) Annually:

- audited financial statements – balance sheet, profit and loss accounts, and notes to the annual 

financial statements;

- audited consolidated financial statements – balance sheet, profit and loss accounts, and notes to the 

financial statements;

- in addition, LCH.Clearnert SA may at its discretion require the provision of financial accounts and 

reports for any company belonging to the same Financial Group as the Clearing Member.

(ii) At the intervals required by the Competent Authority or by the regulations of the Home State or 

at other less frequent intervals accepted by LCH SA:

- interim balance sheet;

- profit and loss account;

- documents concerning prudential supervision of market risks, prepared on a consolidated or 

unconsolidated basis; and

- statements concerning core capital (tier 1) and supplementary capital (tier 2) as defined by the said 

authority or regulations.

Article 2.4.1.4

The Clearing Member must ensure that it complies with the standards and principles of applicable 

laws, rules and regulations in relation to the prevention and detection of money-laundering, combating 

the financing of terrorism, and international sanctions in all relevant jurisdictions and upon request from 

LCH SA, will be required to evidence the same.

Article 2.4.1.5

A Clearing Member must notify LCH SA in advance in writing of every change in the data supplied in its 

application for admission and of any facts and circumstances concerning the Clearing Member which 

may significantly affect the exercise of its duties or the orderly conduct of its activities as a Clearing 

Member. Such developments include in particular without limitation:

(i) developments which could, or are likely to, result in the Clearing Member no longer being 

able to comply with its obligations under the Clearing Rules ;
Clearing Rule Book 44 / 80 Published on 19th December 2017

(ii) any significant change in its financial situation, in particular where shareholders' equity or 

Letters of Credit have declined by more than 10% compared with the amounts previously 

reported or if shareholders' equity and Letters of Credit fall below the amount specified in

Chapter 3 of Title II of these Rules;

(iii) any other change which has, or could have, a significant impact on its financial position, 

reliability or operations ;

(iv) any change in its legal status or structure, including change of address, office or object under

its Articles of Association ;

(v) changes in the power of control (shareholders) over its business with respect to the 

appointment and dismissal of its personnel, changes in the composition of its management 

or executive bodies, in its accounting system or organisation, in the holders of a qualified 

participating interest in its business, in the participating interests it holds or the joint ventures 

or alliances it has entered into ; and/or

(vi) any event occurring between the reporting dates set out in Article 2.4.1.3 that would 

significantly reduce the Clearing Members' Capital.

The obligation to notify becomes effective at the time the Clearing Member anticipates or becomes 

aware of the events, or, if earlier, at the time at which the Clearing Member ought reasonably to have 

anticipated or become so aware.

Article 2.4.1.6

Clearing Members shall send LCH SA a copy of all injunctions, formal notifications or sanctions imposed 

on them by any Competent Authority in respect of any event that could be relevant for LCH SA.

Article 2.4.1.7

Clearing Members must inform LCH SA of any instances of default they detect among their Clients 

and/or Indirect Clients.

Section 2.4.2 Audit and Inspection

Article 2.4.2.1

The Clearing Member authorises LCH SA to request all relevant information regarding its 

payment-delivery commitments in the payment and settlement systems used by LCH SA, either directly 

or through another organisation.

Article 2.4.2.2

The Clearing Member agrees to submit its clearing activity to inspections by LCH SA, whether on the 

latter's initiative or at the request of a national Competent Authority, and to respond to all requests by 

LCH SA for information on a regular or exceptional basis. 

It will only decline to provide the required information where it is prevented from doing so by a mandatory 

provision of law or national regulation.

Article 2.4.2.3

The Clearing Member authorises LCH SA, or any person or entity that has been duly designated, to

carry-out an audit of its Systems and Operations. Further, it undertakes to provide all information 

needed to complete such an audit. LCH SA reserves the right, upon completion of the audit, to require 

any changes that may prove necessary. The Clearing Member hereby agrees to implement such 

modifications as soon as possible.

Article 2.4.2.4

For the purpose of this Clearing Rule Book, LCH SA may delegate its investigation powers to any 

appropriate and professional body which it considers fit.
Clearing Rule Book 45 / 80 Published on 19th December 2017

Where there is any such delegation, LCH SA will ensure the confidentiality of any information provided 

by the Clearing Member.

The Clearing Member shall have the possibility to deny the attendance of certain LCH SA 

representatives, experts or other persons, if the Clearing Member is able to prove that they are affected 

by conflicts of interest.

Article 2.4.2.5

The Clearing Member shall be available during clearing hours.
Clearing Rule Book 46 / 80 Published on 19th December 2017

CHAPTER 5- SUSPENSION AND TERMINATION OF MEMBERSHIP 

Section 2.5.1 Common and General Provisions 

Article 2.5.1.1

Without prejudice to the possible applicability of the provisions set out in Chapter 5 of Title IV, if LCH SA 

is of the opinion that some events could, or are likely to, result in a situation in which a Clearing Member 

is no longer able to satisfy one or more of the requirements set in Chapters 2 and 3 of Title II or 

endangers the proper functioning of the Clearing System, or can no longer comply with its obligations 

under these Clearing Rules, LCH SA may:

(i) suspend its membership;

(ii) terminate its membership as stated in the Admission Agreement;

(iii) refuse to register Transactions; and/or

(iv) subject registration of Transactions to specific conditions, or impose additional conditions which 

LCH SA deems appropriate in the circumstances and notifies in writing to the Clearing Member.

Article 2.5.1.2

Before exercising any such power, however, LCH SA may, enter into consultations with the Clearing 

Member, which may result in LCH SA specifying the latest date and time limit within which the Clearing 

Member must have remedied the situation.

Article 2.5.1.3

In the event a Clearing Member breaches or no longer complies with any of the requirements set out 

in this Title II, LCH SA shall consult with the relevant Competent Authority to determine whether such 

breach shall be publicly disclosed in accordance with EMIR, in which case the suspension or revocation 

of such membership shall be promptly notified to: (i) the Clearing Members by means of publication in a 

Notice ; and (ii) to the relevant Market Undertaking(s).

Section 2.5.2 Suspension

Article 2.5.2.1

In any event and at any time, LCH SA may decide to temporarily suspend a Clearing Member's activities 

subject to the conditions set out in the Admission Agreement. The Clearing Member shall inform its 

Clients accordingly.

Such Clearing Member is informed in writing of the reasons for suspension.

Article 2.5.2.2

When a Clearing Member's membership is suspended, LCH SA shall suspend the registration of any 

new Transactions in the Clearing Member's name. However, LCH SA may decide, in view of the 

particular circumstances to only suspend the registration of a new Transaction increasing the Clearing 

Member's Open Position. The Clearing Member will continue to be required to provide Collateral and 

settle Open Positions as they fall due.

Section 2.5.3 Termination

Article 2.5.3.1

A Clearing Member shall have the right at all times to terminate its membership as a Clearing Member,

as specified in the Admission Agreement.

Article 2.5.3.2

In any event and at any time, LCH SA may decide to terminate a Clearing Member’s membership 

subject to the conditions set out in the Admission Agreement. The Clearing Member shall inform its 

Clients accordingly.

Such Clearing Member is informed in writing of the reasons for termination.
Clearing Rule Book 47 / 80 Published on 19th December 2017

The termination is subject to a period of notice set out in the Admission Agreement.

Article 2.5.3.3

When a Clearing Member's membership is terminated, LCH SA shall discontinue registration of any new 

Transactions in the Clearing Member's name and transfer to another Clearing Member or liquidate the 

Clearing Member's Open Position(s).
Clearing Rule Book 48 / 80 Published on 19th December 2017

TITLE III – CLEARING OPERATIONS
Clearing Rule Book 49 / 80 Published on 19th December 2017

CHAPTER 1- REGISTRATION

Section 3.1.1 Registration of Transactions

Article 3.1.1.1

From the matching of the Transaction, LCH SA guarantees that the Transaction is automatically and 

immediately registered in the Clearing System in accordance with Article 1.3.2.1.

LCH SA will not be held liable if a Transaction is not registered or is improperly registered in the Clearing 

System because of a third party’s fault or Force Majeure.

Article 3.1.1.2

LCH SA shall keep accounting records of the Trade Legs of all Clearing Members concerning the 

Financial Instruments they are due to receive and deliver and of the related rights and obligations, by 

means of an account which LCH SA opens in its books in the name of each Clearing Member.

A. Registration of Transactions Registered in the Cash & Derivatives 

Clearing System 

Article 3.1.1.3

The Cash & Derivatives Clearing System, monitors Transactions on real time basis, and is a single 

system for processing Transactions carried out on markets operated by a Market Undertaking, in 

respect of both Securities and Derivatives Product Groups.

Article 3.1.1.4

Each Clearing Day, LCH SA registers in real time Transactions carried out in Securities & Derivatives

Product Groupsin accordance with Article 1.3.2.1.

LCH SA informs each Clearing Member of the Trade Legs registered in its name.

Article 3.1.1.5

LCH SA also registers in real time Transactions resulting from the exercise or assignment of options on 

Securities.

B. Registration of Transactions Registered in the Fixed Income Clearing 

System 

Article 3.1.1.6

The Fixed Income Clearing System is a real-time system for the monitoring of Transactions in respect of

debt securities (including sell & purchase transactions as well as Repos) carried out on Trading & 

Matching Platforms or MTS Italy.

Article 3.1.1.7

Each Clearing Day, , LCH SA registers in real time Transactions in accordance with Article 1.3.2.1, 

within the clearing hours, as set-out in a Notice.

Article 3.1.1.8

LCH SA may prescribe the criteria which Transactions executed on or reported by Trading & Matching 

Platforms or MTS Italy must meet in order for them to be registered in real time.

Article 3.1.1.9

Upon real-time registration by LCH SA, Transactions governed by a national or international master 

agreement become immediately subject to the Clearing Rules, which override the provisions of such 

master agreement.
Clearing Rule Book 50 / 80 Published on 19th December 2017

Section 3.1.2 Registration of Open Positions in the Cash & Derivatives Clearing System

Article 3.1.2.1

On the basis of the registered Transactions, LCH SA calculates an Open Position per Clearing Member 

per Delivery Account, per Financial Instrument and per Settlement Date.

Article 3.1.2.2 

LCH SA may perform adjustments, on Open Positions reflecting corporate events on flows at the record 

date in compliance with market practices and/or the information of the relevant Market Undertaking or 

the relevant CSD of Reference or the Securities settlement system and in the currencies listed in a 

Notice.
Clearing Rule Book 51 / 80 Published on 19th December 2017

CHAPTER 2 - ACCOUNT STRUCTURE 

Article 3.2.0.1

LCH SA opens in the Clearing System an Account Structure in the name of each Clearing Member.

The said Account Structure is created by LCH SA in accordance with the Clearing Member's 

instructions pursuant to this Chapter 2 and provided it does not adversely affect, or is not likely to 

adversely affect, the proper functioning of the Clearing System.

Article 3.2.0.2

The Clearing Member may request the opening of several Individual Segregated Account Structure(s) 

and Omnibus Segregated Account Structure(s) for the account of its Clients or Indirect Clients provided 

that the opening of such Client Account Structure(s) does not adversely affect, or is not likely to 

adversely affect, the proper functioning of the Clearing System.

Section 3.2.1 Trade Legs Registration 

A. Trade Legs Registration in the Cash & Derivatives Clearing System

A.1. Position Accounts

Article 3.2.1.1

Registration of Trade Legs in the Clearing Member’s books shall be identical to the Posting performed in 

its Position Accounts in the Clearing System, as described in an Instruction.

Article 3.2.1.2

For each Clearing Member, LCH SA opens at least:

(i) one House Position Account in the House Account Structure of such Clearing Member; and 

(ii) one Client Position Account in each Client Account Structure of such Clearing Member, where 

relevant.

Without prejudice to the above principles, the Clearing Member can request to open as many additional 

Position Accounts as needed. Such additional Position Account(s) is (are) opened at the Clearing 

Member’s sole discretion.

The Clearing Member registers each Trade Leg in the relevant Position Account, such registration being 

the sole responsibility of the Clearing Member.

Therefore, all the Trade Legs registered in the Position Accounts of a Clearing Member are deemed to 

have been posted in the correct Position Accounts. 

A.2. Market Maker’s Position Accounts

Article 3.2.1.4

In addition to the Position Accounts mentioned in Article 3.2.1.1, LCH SA will open one or more Market 

Maker Position Accounts for Clearing Members that act as Market Makers. 

Such Position Accounts are exclusively opened upon request of such Clearing Members to register the 

Trade Legs related to:

(i) its own trading activity as Market Maker; and/or

(ii) for its Trading Members which carry out an activity as Market Maker in accordance with a Market 

Maker agreement entered into with the relevant Market Undertaking. 

Checking the existence of such Market Maker agreement is the sole responsibility of the Clearing 

Member.
Clearing Rule Book 52 / 80 Published on 19th December 2017

Such Market Maker’s Position Accounts are managed on a net basis.

Article 3.2.1.5

The Market Maker’s Position Account registers exclusively all Transactions executed by (i) the Clearing 

Member in its capacity as a Market Maker or, as applicable, (ii) by a Trading Member in its capacity as 

Market Maker.

B. Trade Legs Registration in the Fixed Income Clearing System 

Article 3.2.1.6

For each General Clearing Member, LCH SA opens at least:

(i) one House Position Account in the House Account Structure of such General Clearing Member; 

and

(ii) one Client Position Account in each Client Account Structure of such General Clearing Member.

Without prejudice to the above principles, the General Clearing Member can request to open as many 

additional Position Accounts as needed Such additional Position Account(s) is (are) opened at the 

Clearing Member’s sole discretion.

Article 3.2.1.7

For each Individual Clearing Member, LCH SA opens at least one House Position Account in the House 

Account Structure of such Individual Clearing Member.

Without prejudice to the above principle, the Individual Clearing Member can request to open as many 

additional House Position Accounts as needed. Such additional House Position Account(s) is (are) 

opened at the Clearing Member’s sole discretion.

Article 3.2.1.8

LCH SA informs each Clearing Member both on real-time basis and, on a daily consolidated basis, of the 

Trade Legs registered in its name.

Article 3.2.1.9 

Corporate events on Transactions in respect of debt Securities shall be managed as set out in an 

Instruction.

Section 3.2.2 Risk management 

A. For Transactions Registered in the Cash & Derivatives Clearing System

A.1. Margin Accounts

Article 3.2.2.1

Within each Margin Account of each Clearing Member, for the purpose of risk calculation, as described 

in Title IV “Risk Management”, LCH SA nets, per Financial Instrument, the Trade Legs registered in the 

Position Account(s) which are attached to such Margin Account.

Article 3.2.2.2

For each Product Group in which the Clearing Member is active, LCH SA shall open at least:

(i) one House Margin Account in the House Account Structure of such Clearing Member; and

(ii) one Client Margin Account in each Client Account Structure of such Clearing Member.

Without prejudice to the above principles, the Clearing Member can request to open as many additional 

Margin Accounts as needed. Such additional Margin Account(s) is (are) opened at the Clearing 

Member’s sole discretion.
Clearing Rule Book 53 / 80 Published on 19th December 2017

Article 3.2.2.3

A Client Margin Account may be linked to one or more Client Position Account(s) depending on the level 

of segregation requested by the relevant Client(s).

A.2.Market Makers Margin Accounts

Article 3.2.2.4

Upon request of a Clearing Member, in addition to the Margin Accounts mentioned in Article 3.2.2.1, 

LCH SA will open, one or more: 

(i) House Margin Accounts for the registration of its House Open Positions resulting from Transactions 

negotiated by such Clearing Member in its capacity as Market Maker;

(ii) Client Margin Accounts for the registration of Client Open Positions resulting from Transactions 

negotiated by their Trading Members which have entered into a Market Maker agreement with the 

relevant Market Undertaking. Checking the existence of such Market Maker agreement is the sole 

responsibility of the Clearing Member.

Article 3.2.2.5

The Market Maker's Margin Account registers exclusively all Transactions executed for the Clearing 

Member’s own account in its capacity as Market Maker or, as applicable, for the account of a Trading 

Member in its capacity as a Market Maker.

B. For Transactions Registered in the Fixed Income Clearing System 

B.1. Margin Accounts

Article 3.2.2.6.

Pursuant to the risk calculation described in Title IV, LCH SA carries-out daily or several times a day, a 

Margin calculation on the basis of Open Positions corresponding to the Trade Legs registered in the 

Clearing Member’s Position Accounts.

For the purpose of risk calculation, the off-setting is performed by origin (Client Account or House 

Account) and by Financial Instrument.

B.2. Collateral Accounts

Article 3.2.2.7

For each Clearing Member, LCH SA shall open at least: 

(i) one House Collateral Account in the House Account Structure of such Clearing Member; and

(ii) one Client Collateral Account in each Client Account Structure of such Clearing Member.

Without prejudice to the above principles, the Clearing Member can request to open as many Collateral 

Accounts as it needs. Such additional Collateral Account(s) is (are) opened at the Clearing Member’s 

sole discretion.

Article 3.2.2.8

A Client Collateral Account may be linked to one or more Client Margin Account(s) depending on the 

level of segregation requested by the relevant Clearing Member.
Clearing Rule Book 54 / 80 Published on 19th December 2017

Section 3.2.3 Settlement 

A. For Transactions Registered in the Cash & Derivatives Clearing System

Article 3.2.3.1

For each Clearing Member, LCH SA opens at least one Delivery Account.

Without prejudice to the above principles, the Clearing Member can request LCH SA to open as many 

Delivery Accounts as it needs. Such additional Delivery Account(s) is (are) opened at the Clearing 

Member’s sole discretion.

Article 3.2.3.2

At the Clearing Member’s request and at its sole responsibility, Open Positions contained in one or 

several Position Account(s) are registered in one or several Delivery Account(s), according to criteria set 

out in an Instruction.

Article 3.2.3.3

Each Delivery Account is linked to one Settlement Address for the delivery of Securities and to one 

Settlement Address per currency, for payment of cash.

Article 3.2.3.4

The organisation of the Delivery Accounts reflects the Clearing Member's use of the Settlement 

Agent(s)/Payment Agent(s) facility. For delivery versus payment purposes, a Clearing Member can use 

the services of one or several Payment Agent(s) per central bank and per Credit Institution, accepted by 

LCH SA, and/or one or several Settlement Agent(s) per securities settlement system and/or per central 

securities depository. 

The Clearing Member notifies to LCH SA, the complete settlement address details so that LCH SA can 

parameterise the roll up from the relevant Position Accounts of such Clearing Member to its Delivery 

Accounts according to the conditions set out in an Instruction.

B. For Transactions Registered in the Fixed Income Clearing System 

Article 3.2.3.5

On the basis of Trade Legs registered in the Position Accounts, LCH SA calculates Open Positions by 

ISIN code and by intended Settlement Date at the end of the Clearing Day before the intended 

Settlement Date.

Article 3.2.3.6

As an exception to the above Article, LCH SA does not calculate Open Positions for settlement purpose 

on the basis of Trade Legs resulting from:

(i) Same-day Repos Initial Transactions; and 

(ii) Transactions in Fixed Income Securities received on D after the cut off time set-out in a Notice 

and whose intended Settlement Date occurs on D+1 ("late trades" as set-out in a Notice).

Such Trade Legs are settled on a gross basis. 

Section 3.2.4 Client Account Structure of Indirect Clients 

Article 3.2.4.1

A Clearing Member shall open, in respect of its Indirect Clients, one or several dedicated Client Account 

Structures which will be composed of Client Accounts pursuant to Sections 3.2.1 to 3.2.3.

Article 3.2.4.2

For the Fixed Income Clearing System, a Clearing Member may request the opening of a Client Account 

Structure for Indirect Client(s) provided that:

(i) the relevant Client has opted for an Individual Segregated Account Structure; and
Clearing Rule Book 55 / 80 Published on 19th December 2017

(ii) the Indirect Client can trade Fixed Income Securities directly on Trading & Matching Platforms 

and/or MTS Italy.

Article 3.2.4.3

For the Cash and Derivatives Clearing System, a Clearing Member may request the opening of the 

following Client Account Structure(s) for Indirect Client(s) exclusively:

(a) one or several Gross Omnibus Segregated Account Structures, where Indirect Client(s) relate to a

single Known Client only;

(b) one or several Net Omnibus Segregated Account Structures, where Indirect Client(s) relate(s) to 

different Clients.

The opening of the above Client Account Structures for Indirect Client(s) by LCH SA shall be made upon 

the request, and under the sole responsibility, of the Clearing Member.
Clearing Rule Book 56 / 80 Published on 19th December 2017

CHAPTER 3 - OPERATIONAL MANAGEMENT

Section 3.3.1 General Provisions for Transactions Registered in the Cash & Derivatives 

Clearing System 

A. Give-up

Article 3.3.1.1

Give-Up is performed by use of the specific functions available to Clearing Members in the Clearing 

System.

Terms and conditions for Give-Up are set out in an Instruction.

Article 3.3.1.2

A Give-Up function may involve a sending Clearing Member (“the allocator”) and a receiving Clearing 

Member (“the allocatee”).

In such case, the receiving Clearing Member must accept, by a take-up, the Give-Up. It must confirm the 

recording of the Transaction in its books by the appropriate Posting.

B. Transaction Cancellation

Article 3.3.1.3

The cancellation of a Transaction is possible only upon the request of the relevant Market Undertaking,

as specified in its Trading Rules. 

Such request results in LCH SA cancelling the two corresponding Trade Legs. Therefore, the obligation 

of delivery and the corresponding obligation of payment are revoked, and parties are put back in the 

situation as if the relevant Clearing Members obligations had never existed.

The conditions under which such cancellation may occur are set out in an Instruction.

C. Correction

Article 3.3.1.4

Terms and conditions for Corrections are set out in an Instruction

D. Transfer of Open Positions 

Article 3.3.1.5

The Transfer of Open Positions shall have no consequences on the segregation principles set out in 

Title III Chapter 2.

Transfers of Open Positions may be carried out till the expiry of the relevant Open Positions.

The Transfer of an Open Position is performed by LCH SA upon the explicit request of the Clearing 

Members pursuant to the conditions set out in an Instruction.

E. Exercise and Assignment (for Derivatives)

Article 3.3.1.6

An Instruction specifies how Assignment takes place for each option contract upon Exercise.

When exercised, an option on underlying Financial Instruments is either converted on the Exercise date 

into a Transaction in such underlying Financial Instruments at the exercise price or cash settled.

The trades thus generated are registered and settled under the terms and conditions set out in an 

Instruction.
Clearing Rule Book 57 / 80 Published on 19th December 2017

Section 3.3.2 Functionalities Available in the Fixed Income Clearing System

Article 3.3.2.1

A reverse Transaction, having the same intended Settlement Date as the initial Transaction may,

following to the netting process, limit or cancel the effects of the initial Transaction provided that such

reverse Transaction is registered in the Clearing System at the latest on the Clearing Day before the 

intended Settlement Date of the initial Transaction and within the clearing hours, as set-out in a Notice.

Such process is initiated by the related Clearing Member(s).
Clearing Rule Book 58 / 80 Published on 19th December 2017

CHAPTER 4 - SETTLEMENT AND DELIVERY 

Section 3.4.1 Settlement and Delivery of Transactions Registered on the Cash & Derivatives 

Clearing System 

A. Common Provisions 

A.1. General

Article 3.4.1.1

For Transactions registered in the Cash & Derivatives Clearing System carried out on markets operated 

by a Market Undertaking, giving rise to delivery of Financial Instruments, payment and delivery of 

Financial Instruments, are made, except as otherwise stipulated in an Instruction, through a system 

called "settlement connect", which is managed by LCH SA.

Article 3.4.1.2

Without prejudice to Article 1.3.2.5, which defines legal enforceability of netting, the Clearing Day before 

the Settlement Date, after having processed the corporate events, LCH SA operationally nets all the 

Open Positions having the same Settlement Date which are registered in one Delivery Account and 

sends the settlement instructions to the corresponding Settlement Addresses. Delivery and payment 

instructions may give rise to partial payments and deliveries.

Article 3.4.1.3

Following the operational netting of Open Positions within the Delivery Account, LCH SA will apply Net 

Fails’management processset out in an Instruction.

Article 3.4.1.4

Following a continuous net settlement process, if an Open Position is not settled, an adjustment will take 

place upon the terms specified in an Instruction.

Article 3.4.1.5

A Clearing Member can choose to have Securities delivered/debited either at the relevant central 

securities depository or at a securities settlement system, pursuant to the conditions set out in an 

Instruction.

A.2. Provisions Relating to Derivatives (excluding commodities)

Article 3.4.1.6

When clearing Derivatives, the underlying of which are Securities, a Clearing Member, which is not itself 

a Trading Member or a Clearing Member on the corresponding Securities markets must designate one 

Trading Member or Clearing Member active on the market where the underlying is traded and having the 

appropriate settlement solutions to perform all its Exercises or Assignments of option contracts.

Article 3.4.1.7

The delivery of the underlying Financial Instruments of Derivatives is performed on outstanding Open 

Positions at the maturity date and under the conditions set out in an Instruction. The delivery gives rise 

either to the exchange of underlying asset against cash payment, or to a cash settlement. Upon expiry of 

a Derivative, either the delivery of the underlying Securities, or a cash settlement occur pursuant to the 

conditions set out in an Instruction.

A.3. Provisions Related to Commodities

Article 3.4.1.8 

Clearing Members must, on a daily basis, net their Open Positions registered in their Position Account. 

In case of failure to perform such obligation, LCH SA will charge a penalty fee for late netting as set out 

in the fee grid published on the LCH SA web-site.

Article 3.4.1.9 
Clearing Rule Book 59 / 80 Published on 19th December 2017

At expiry, any Open Position gives rise to the payment or delivery of a lot of goods, pursuant to an 

Instruction, within the limits of Article 1.3.2.9.

Article 3.4.1.10

For the delivery of commodities,a buying Clearing Member and a selling Clearing Member are placed in 

contact with each other.

The delivery requirements for commodities’ contracts take account of customary practices in the 

relevant physical market, as specified in a Notice.

Article 3.4.1.11

Clearing Members can opt between the two following delivery procedures:

 LCH SA delivery procedure (also known as “MATIF guarantee”) whereby LCH SA’s obligations, 

as set out in Article 1.3.2.6 and 1.3.2.9 of the Clearing Rule Book, apply ;

 An alternative delivery procedure, consisting in an amicable agreement between the selling 

Clearing Member and the buying Clearing Member on the delivery terms. In such case, LCH 

SA’s obligations, as set out in Article 1.3.2.6 of the Rule Book, will not apply.

Unless otherwise stated by the Clearing Members on the third Clearing Day following the contract 

expiry, according to a process defined in an Instruction, the LCH SA delivery procedure applies. 

Article 3.4.1.12

The delivery requirements for commodities contracts are detailed in an Instruction.

Section 3.4.2 Settlement and Delivery of Transactions Registered in the Fixed Income Clearing 

System.

Article 3.4.2.1

For Transactions carried out on Trading & Matching Platforms or MTS Italy, payment and delivery 

thereof are made pursuant to an Instruction.

Article 3.4.2.2

As far as Transactions executed on and reported on Trading & Matching Platforms or on MTS Italy are 

concerned, and without prejudice to provisions regarding calculation of Margin, LCH SA sends on the 

Clearing Day before the intended Settlement Date of the relevant Transaction, settlement instructions, 

on the basis of Open Positions as described in Article 3.2.3.5 or Trade Legs as described in Article 

3.2.3.6, registered in each Delivery Account to the relevant central Securities depositary or Securities

settlement system.

Article 3.4.2.3

For Transactions in debt Securities listed in a Notice, settlement instructions are divided in regular 

parcels equal to a pre-defined amount (i.e. shape size), in order to reduce the size of each instruction 

pursuant to the conditions specified in a Notice. The residual balance will constitute an additional 

instruction.

Notwithstanding the above, if instructions remain unsettled and are lower than the regular parcels 

referred to above, LCH SA may request the buying Clearing Member to accept the partial delivery of 

Securities under the conditions set out in an Instruction. If the latter refuses to do so, LCH SA may 

charge the buyer for the cost of capital of cash employed as a result of its refusal to do so.

Article 3.4.2.4

Each Delivery Account is linked to one Settlement Address.

The organisation of the Delivery Accounts reflects the Clearing Member's use of the Settlement 

Agent(s)/Payment Agent(s) facility. A Clearing Member can use the services of one or several Payment 

Agent(s) per central bank and per Credit Institution, accepted by LCH SA, and/or one or several 

Settlement Agent(s) per Securities settlement system and/or per central Securities depository.
Clearing Rule Book 60 / 80 Published on 19th December 2017

Section 3.4.3 Settlement Failure

A. Net Fails

Article 3.4.3.1

Net Fails may at any time be subject, to repurchase or resale at the initiative of LCH SA, . Such 

repurchase or resale is to be made in accordance with buy in or sell out procedures specified in an 

Instruction, at the risk and expense of the defaulting Clearing Member.

Article 3.4.3.2

Net Fails are subject to an indemnity for late delivery or payment, charged to the defaulting Clearing 

Member by LCH SA pursuant to the fee grid.

Article 3.4.3.3 

In case of Net Fails corresponding to Transactions registered in the Cash and Derivatives Clearing 

System, LCH SA continues to call Variation Margin for the failed Open Positions. No additional Initial 

Margin is required for such Open Positions. 

In case of Net Fails corresponding to Transactions registered in the Fixed Income Clearing System, LCH 

SA will call dedicated Margin (negotiation risks on Net-Fails) as stated in an Instruction.

B. Management of Settlement Failure for Futures Contracts on Commodities

Article 3.4.3.4

Settlement failures in respect of commodities futures contracts are subject to an indemnity for late 

delivery or late payment, charged to the defaulting Clearing Member by LCH SA, pursuant to an 

Instruction.

Article 3.4.3.5

In case of payment or delivery failure corresponding to Transactions in futures contracts in respect of

commodities, LCH SA continues to call Variation Margin for the failed Open Positions, until receipt of the 

notice of performance dully fulfilled and signed by the buying Clearing Member and the selling Clearing 

Member. No additional Initial Margin is required for these Open Positions.

Article 3.4.3.6

The delivery failure procedure is defined in an Instruction.
Clearing Rule Book 61 / 80 Published on 19th December 2017

CHAPTER 5 - REGISTRATION IN A TRADE REPOSITORY

Article 3.5.1 

LCH SA shall report for itself, and on behalf of Clearing Members, the details of each Trade Leg resulting 

from Transactions in Derivatives Markets and any modification or termination of such Trade Leg to a 

Trade Repository no later than the working day following the conclusion, modification or termination of 

such Trade Leg, in accordance with the requirements of EMIR. 

For the avoidance of doubt, LCH SA does not report to the Trade Repository any Transaction entered 

into between a Clearing Member and/or any of its Clients.

The reporting service to a Trade Repository will be implemented by LCH SA at a date to be specified in 

a Notice.
Clearing Rule Book 62 / 80 Published on 19th December 2017

TITLE IV – RISK MANAGEMENT
Clearing Rule Book 63 / 80 Published on 19th December 2017

CHAPTER 1 - GENERAL PROVISIONS

Article 4.1.0.1

The risk calculations described in this Title are based on the Open Positions registered in the Clearing 

Members’ Margin Accounts as described in Section 3.2.2.

Article 4.1.0.2

At LCH SA's request, Clearing Members shall communicate to LCH SA all information concerning the 

identity, the Positions, and the solvency of their Clients. 

They will only decline to provide the required information where they are prevented from doing so by a 

mandatory provision of law or national regulation.

Article 4.1.0.3

LCH SA can request information daily from the Clearing Member in order to continuously monitor the risk 

management as performed by the Clearing Member.

Article 4.1.0.4

LCH SA requires Clearing Members to open Position Accounts, in order to record separately the Positions of 

the Clearing Member's Clients under the conditions set out in an Instruction.

Article 4.1.0.5

LCH SA may define Open Position limits and limits on risk exposure applicable to Clearing Members. Such 

limits are set out in an Instruction.

Article 4.1.0.6

When these limits are reached, LCH SA can increase the Margin requirements in respect of a Clearing 

Member’s Open Positions after having informed the operators of the relevant market or Trading & Matching 

Platforms. 

Article 4.1.0.7

In addition, LCH SA may order a Clearing Member to reduce its Open Positions within a stipulated time limit. 

If the size of the Open Positions is not reduced within the time limit, LCH SA can automatically liquidate the 

Open Positions that exceed the authorised limits. Moreover, LCH SA can also establish a market position 

limit and may require that, from a specified date onwards, only closing orders will be accepted.
Clearing Rule Book 64 / 80 Published on 19th December 2017

CHAPTER 2 - MARGIN REQUIREMENTS

Article 4.2.0.1

Variation Margin and Initial Margin are debited or credited by LCH SA on a daily basis.

Article 4.2.0.2

Intra-day Margin is called and debited in case of exceptional circumstances pursuant to the terms and 

conditions described in an Instruction and in a Notice. 

Article 4.2.0.3

In addition to Margin LCH SA shall, in its sole discretion, at all times and at any time during the day, be 

entitled to impose upon a Clearing Member additional margin requirements as it reasonably deems 

useful or necessary.

This can be done either on an individual basis or based on the nature of the Financial Instruments to 

which the relevant Open Positions relate. Any decision made on the basis of these provisions will be 

duly notified to the Clearing Members.

Article 4.2.0.4

Unless otherwise indicated by LCH SA, the Clearing Member(s) in question shall be obliged to ensure 

that the amount of Collateral corresponding to the additional margin requirement is transferred or, as the 

case may be, guaranteed, at the latest within one hour of it having been informed thereof.

Article 4.2.0.5

LCH SA shall publish in an Instruction:

(i) the method used to calculate Margin requirements;

(ii) the type of Securities, assets or bank guarantees to be accepted as Collateral to meet Margin 

calls by LCH SA and by Clearing Members; or

(iii) Margin requirements.

LCH SA shall publish in a Notice:

(i) parameters used to calculate Initial Margin;

(ii) any discount (“haircut’) to be applied to the market value of Collateral, depending on its nature 

and maturity;

(iii) price fluctuation limits; and

(iv) Intra-day Margin detailed terms and conditions and notably thresholds and frequency.

Article 4.2.0.6

Clearing Members shall call initial margin and variation margin from their Clients having Positions in

Securities or Derivatives traded on Market Undertakings in an amount based on the same parameters 

and methodology as the LCH SA Initial Margin and Variation Margin requirements.

LCH SA may authorise the use of other methods and parameters after having checked that they are 

adequate and that they offer the same level of security in relation to the risks it assumes. To this end, the 

Clearing Member must submit the details of the method it proposes to LCH SA for prior approval. 

Submitted methods will be assessed by LCH SA on a case by case basis.

As far as Intra-day Margin is concerned, the Clearing Members have no obligation to call for Intra-day 

Margins from their Clients having Positions in Derivatives traded on Market Undertakings in an amount 

based on the same parameters and methodology as the LCH SA Intra-day Margin.

Article 4.2.0.7

Clearing Members clearing Securities shall ensure that their Clients provide them with such collateral as 

the Clearing member considers from time to time necessary for the proper completion of the Client’s 

Positions.
Clearing Rule Book 65 / 80 Published on 19th December 2017

Article 4.2.0.8

No Margin will have to be charged if the settlement obligation of the Client is covered by the cash 

equivalent in case of purchase, or the Securities equivalent in case of a sale. The amount in cash or the 

number of Securities is blocked by the Clearing Member from the execution up until the Transaction is 

settled.

Article 4.2.0.9

Once the Settlement Price has been communicated, the Variation Margin and Initial Margin amounts

become immediately payable without further notice. An Instruction specifies the maximum time limit for 

payment of the Variation Margin and Initial Margin amount.

Article 4.2.0.10

LCH SA shall calculate and call Margin on Transactions executed on Trading & Matching Platforms, as 

specified in an Instruction.
Clearing Rule Book 66 / 80 Published on 19th December 2017

CHAPTER 3 - DEFAULT FUND

Article 4.3.0.1

Three separate Default Funds are established by LCH SA pursuant to this Clearing Rule Book:

(i) one for Clearing Members complying with the financial requirements set-out in Section 2.3.2 and 

authorised to clear Transactions in Securities and/or Derivatives Product Groups (excluding MTS 

Italy); (the “cash and derivatives Default Fund”);

(ii) one for Clearing Members complying with the financial requirements set-out in Section 2.3.3 and 

authorised to clear Transactions executed on, or reported by, Trading & Matching Platforms and 

the MTS Italy Regulated Market; (the “fixed income Default Fund” ; and

(iii) one for Clearing Members complying with the financial requirements set-out in Section 2.3.3 and 

authorised to clear Triparty Repos; called the “Triparty Repo Default Fund”.

The purposes of the Default Fund are the same in each case. 

However, each of the cash and derivatives Default Fund, fixed income Default Fund and Triparty Repo

Default Fund may only be used to cover losses resulting from an Event of Default relating to a Clearing 

Member’s cash and derivatives business, and fixed income business or Triparty Repo business 

respectively.

Section 4.3.1 Contribution to the Default Funds

Article 4.3.1.1

A Clearing Member is obliged to contribute to the relevant Default Fund(s) mentioned in Article 4.3.0.1 

according to the terms and conditions set-out in an Instruction. Such contribution will depend on the 

Product Group(s) that it is authorised to clear and it will be delivered by:

(i) transferring Collateral outright to LCH SA; or

(ii) by transferring, directly or indirectly, to a central bank, assets accepted as Collateral by such 

central bank under the conditions defined by the central bank for the issuance by it of a guarantee 

in favour of LCH SA.

In the second case, the Clearing Member must ensure the performance of the central bank’s obligations 

by entering into arrangements acceptable to LCH SA for the issuance of such guarantees.

Thus, the Clearing Member must fulfil its obligation to provide eligible Collateral to the central bank 

within the time stipulated in the relevant Counter-guarantee Agreement so that the central bank can 

issue its guarantee to LCH SA within the time and under the conditions specified in a Notice.

Article 4.3.1.2

The amount to be contributed by a Clearing Member to the relevant Default Fund shall be determined 

taking into account the risk associated with the Open Positions of such Clearing Member in respect of 

the relevant Product Group(s).

Article 4.3.1.3

Once a month, LCH SA shall determine the size of each Default Fund and the level of each individual 

Clearing Member’s contribution. The method of calculation of such contribution together with the level of 

any applicable minimum contribution is specified in an Instruction. Upon being authorised to clear a new 

Product Group, and before starting their activities in relation thereto, Clearing Members shall be required 

to pay the minimum contribution to the relevant Default Fund, where applicable. 

Section 4.3.2 Calls on the Default Funds

Article 4.3.2.1

Calls may be made on the relevant Default Fund following an Event of Default, in accordance with the 

provisions of Article 4.5.2.7 (for the avoidance of doubt, following an Event of Default, LCH SA is allowed 
Clearing Rule Book 67 / 80 Published on 19th December 2017

to draw partial amounts from the relevant Default Fund as many times as needed to cover the estimated 

losses incurred as a result of, following, or in connection with, an Event of Default).

Article 4.3.2.2

Following a call, funds received from a central bank pursuant to any guarantees issued in favour of LCH 

SA as provided in Article 4.3.1.1 shall provide a valid discharge of the amount owed by the respective 

Clearing Members.

Article 4.3.2.3

If LCH SA calls upon one of the Default Funds, it shall use the sums provided to perform its obligations 

under Section 1.3.2 and to cover the repayment of any related loans, expenses, damages, interest 

charges and/or other expenditure.

Article 4.3.2.4

Should there be any surplus after such performance, or profits earned from the performance of its 

obligations, then such amounts shall be repaid by LCH SA to the contributors in proportion to their 

respective contributions either directly, or where applicable, via the central bank.

Section 4.3.3 Refilling of the Default Funds and Service Continuity

A. Refill Contributions to the Default Funds

Article 4.3.3.1

If an Event of Default in relation to a Clearing Member is declared under the Clearing Rules and a call 

has been made on the fixed income Default Fund, the cash and derivatives Default Fund or the Triparty 

Repo Default Fund, as relevant, and LCH SA determines that a certain percentage thereof (to be set out 

in an Instruction) has been used, LCH SA may, by notice in writing, require each non-Defaulting Clearing 

Member contributing to the relevant Default Fund to deposit and maintain with LCH SA an additional 

contribution amount (each a “Refill Contribution”) in accordance with the provisions set out in an 

Instruction (for the avoidance of doubt, Refill Contributions will be considered unfunded as long as LCH 

SA has not issued such a notice).

B. Service Continuity

Article 4.3.3. 2

In relation to losses attributable to the fixed income, the cash and derivatives or the Triparty Repo activity 

of a Defaulting Clearing Member, where, after an Event of Default, LCH SA determines that the losses 

resulting from such Event of Default will exceed the amounts to be applied to it under Article 4.5.2.7 (1) 

to (5) (a), LCH SA may implement the relevant loss distribution process (the “Fixed Income Loss 

Distribution Process”, and the “Cash and Derivatives Loss Distribution Process”, and the “Triparty 

Repo Loss Distribution Process” respectively) to be set-out in an Instruction (the “Fixed Income 

Service Continuity and Service Closure Instruction”,the “Cash and Derivatives Service Continuity 

and Service Closure Instruction”, and the “Triparty Repo Service Continuity and Service Closure 

Instruction” respectively), pursuant to which the non-Defaulting Clearing Members will be required to 

contribute individually to such losses in an amount which may not exceed 100% of each non-Defaulting

Clearing Member’s contribution to the relevant Default Fund immediately prior to the occurrence of such 

Event of Default (the “Service Continuity Contribution”). The Service Continuity Contribution shall be 

in addition to the contributions and Refill Contributions of each non-Defaulting Clearing Member to the 

relevant Default Fund. 

C. Service Closure 

Article 4.3.3.3

Where, following the conclusion of the Fixed Income Loss Distribution Process, the Cash and Derivatives 

Loss Distribution Process, or the Triparty Repo Loss Distribution Process, LCH SA determines that it 

would not in future have sufficient resources to meet its contractual obligations towards non-defaulting 

Clearing Members in connection with the Fixed Income Clearing Service, the Cash and Derivatives

Clearing Service, or the Triparty Repo Clearing Service respectively, LCH SA shall first invite 
Clearing Rule Book 68 / 80 Published on 19th December 2017

non-defaulting Clearing Members to make voluntary payments and, if such voluntary payments are not 

sufficient, may then implement the relevant service closure process set out in the relevant Instruction.

D. Effect on Termination of Clearing Members’ Membership

Article 4.3.3.4

As long as there remains a default management process (as contemplated by Article 4.5.2.6) outstanding 

in relation to any Event of Default and until the expiry of the Cash and Derivatives Default Period of the 

Fixed Income Default Period, or of the Triparty Repo Default Period, as set-out in the above mentioned

relevant Instruction, no resignation or termination of a Clearing Member’s LCH SA membership will 

become effective and all non-Defaulting Clearing Members (including resigning Clearing Members and 

Clearing Members whose Clearing Member status is to be terminated for whatever reason) shall remain 

liable for all the obligations contained in Articles 4.3.3.1 and 4.3.3.2 above and in the relevant Instructions,

in relation to any Event of Default which has occurred in relation to the relevant Product Group before the 

expiry of such Fixed Income Default Period, Cash and Derivatives Default Period, or Triparty Repo Default 

Period, as applicable.

Section 4.3.4 Other Provisions

Article 4.3.4.1

Payment of any amount referred to in this Chapter shall not discharge the Defaulting Clearing Member 

from its obligation to perform properly its obligations and pay compensation for any damage caused by 

its Event of Default.

Article 4.3.4.2

LCH SA will promptly report to the Clearing Members on, and account for, any withdrawals made from 

the Default Funds.

Upon the effective day of termination of the membership, and subject to the relevant Clearing Member 

having fully discharged all its obligations vis-à-vis LCH SA pursuant to the Clearing Rules or the 

Admission Agreement, LCH SA shall repay to such ex-Clearing Member any of its contributions which 

have not been used.
Clearing Rule Book 69 / 80 Published on 19th December 2017

CHAPTER 4 - COLLATERAL

Article 4.4.0.1

When the amount of Collateral deposited by a Clearing Member to cover its Margin and Default Fund 

contribution obligations is more than needed to cover such obligations, LCH SA will deem the surplus of 

assets governed by the same legal provisions as Collateral.

A. Principles

Article 4.4.0.2

A Clearing Member shall provide sufficient Collateral to LCH SA as necessary for the performance of the 

obligations of the Clearing Member. The amount of Collateral is determined by LCH SA.

Article 4.4.0.3

Any Collateral required to be provided by a Clearing Member must be provided not later than the time 

set by LCH SA in an Instruction.

Where the Clearing Member is to provide Collateral in the form of the issuance of a guarantee by a 

central bank, it must fulfil its obligation to provide eligible collateral to the central bank by the time 

stipulated in the relevant guarantee agreement so that the central bank can issue its guarantee to LCH 

SA by not later than the time set by LCH SA in an Instruction.

Article 4.4.0.4

Where Collateral is due to LCH SA, LCH SA reserves the right to exclude certain types of collateral on 

the grounds, inter alia, of illiquidity or insufficient outstandings, and may accept other assets on the 

terms specified by LCH SA in a Notice.

Article 4.4.0.5

Collateral posted with LCH SA in a Client Collateral Account to cover Client Open Positions registered in 

one or several Client Margin Account(s) linked to the said Client Collateral Account shall not be used to 

cover: 

(i) the House Open Positions; or

(ii) any Client Open Positions registered in other Client Account Structures of such Clearing Member.

Article 4.4.0.6

The registration of Collateral in the Clearing Members’ books must be established in such a way as to 

make possible at any moment the distinction between, on the one hand, the assets deposited as a 

guarantee and the movements related to its House Open Positions and, on the other hand, the assets 

deposited as a guarantee and the movements related to the Client Open Positions registered in each of 

its Client Margin Accounts.

The Clearing Member must indicate to LCH SA to which Collateral Account the Collateral must be 

allocated, within the conditions specified in a Notice.

B. Specificities

B.1. Trading & Matching Platforms

Article 4.4.0.7

For Transactions on Trading & Matching Platforms, LCH SA may take Collateral in advance, as provided 

in a Notice, for “value-today Transactions” or for any other Transactions as may be specified in the 

Notice.
Clearing Rule Book 70 / 80 Published on 19th December 2017

CHAPTER 5 - EVENT OF DEFAULT

Section 4.5.1 Notification of an Event of Default

Article 4.5.1.1

The occurrence of an Event of Default shall be notified by any means by LCH SA to the Defaulting 

Clearing Member.

Article 4.5.1.2

If an event or circumstance which would otherwise constitute or give rise to a Contractual Event of 

Default also constitutes an Insolvency Event of Default, it will be treated as an Insolvency Event of 

Default.

Section 4.5.2 Measures in case of an Event of Default 

Article 4.5.2.1

Upon the occurrence of an Event of Default, LCH SA may, in co-ordination with the relevant Competent 

Authority as the case may be, take any measure it deems necessary in order to contain its exposure and 

to mitigate overall market effects, whether or not these measures are set out in the Clearing Rules.

Article 4.5.2.2 

Upon the occurrence of an Event of Default, LCH SA may discretionary take any of the following 

measures or any other measures that it deems necessary or useful taking into account the need to act 

promptly in the manner LCH SA thinks best to contain its exposure and to mitigate resulting effects over 

market participants:

(i) to request the relevant Market Undertaking to suspend any trading activity of the Defaulting 

Clearing Member ;

(ii) to terminate or suspend the Admission Agreement entered into between LCH SA and the 

Defaulting Clearing Member ;

(iii) to obtain any advice or assistance from the Defaulting Clearing Member and/or any third 

party, as LCH SA may deem necessary for any matter arising out of or in connection with an 

Event of Default and at the expense of the Defaulting Clearing Member;

(iv) to impose further Margins requirements and corresponding Collateral deposits to secure the 

performance by the Defaulting Clearing Member of its obligations under the Clearing Rules;

(v) to sell off the Collateral posted by the Defaulting Clearing Member or to call on the Central 

Bank Guarantee, if applicable, to ensure the performance by the Defaulting Clearing 

Member of its obligations under the Clearing Rules ;

(vi) to act in lieu of the Defaulting Clearing Member for performing its payment and/or delivery 

obligations;

(vii) to impose upon the Defaulting Clearing Member a penalty for late delivery or payment, in 

the circumstances and at a rate set out in an Instruction ; and/or

(viii) to claim from the Defaulting Clearing Member damages and costs incurred in relation to the 

occurrence of an Event of Default or the processing of the Event of Default.

For the avoidance of doubt, termination or suspension of the Admission Agreement entered into 

between LCH SA and the Defaulting Clearing Member shall not release the Defaulting Clearing Member 

from any of its obligations under the Clearing Rules.

Article 4.5.2.3

The Defaulting Clearing Member shall respond to any requests as LCH SA may deem necessary for any 

matter arising out of, or in connection with, an Event of Default, and shall cooperate with LCH SA in 

order to process the Event of Default.

Article 4.5.2.4 

If the Clearing Member appears to LCH SA to be unable, or to be likely to become unable, to meet its 

obligations in respect of one or more Transactions or otherwise under the Clearing Rules, LCH SA may, 

within its reasonable judgement, declare such event as a Contractual Event of Default.
Clearing Rule Book 71 / 80 Published on 19th December 2017

LCH SA may take the view that a Contractual Event of Default has happened in light of the occurrence 

of, inter alia, any of the following events:

(i) Failure to pay or deliver any or all balances, Financial Instruments, or assets owed to LCH SA in 

respect of Open Positions registered in the name of the Defaulting Clearing Member with LCH 

SA, within the stipulated deadlines ;

(i) Failure to pay Initial Margin, Variation Margin, Intra-day Margin or any additional Margin amounts

as indicated in Article 4.2.0.4, imposed by LCH SA or failure to make a required contribution to the 

Default Fund, within the stipulated time limits ;

(iii) Non successful settling of Net Fails via a buy in or a sell-out procedure.

Upon the occurrence of a Contractual Event of Default, and without prejudice to the provisions of Article 

4.5.2.2, LCH SA and the Defaulting Clearing Member shall cooperate to try to reach a mutually 

satisfactory agreement in order to resolve the Contractual Event of Default. 

If such an agreement is not reached or the Contractual Event of Default has not been resolved before 

the date and time limit set by LCH SA, LCH SA may, in its sole discretion, if it estimates that such 

measures are necessary as regard to the need to act promptly, LCH SA may, in accordance with French 

law and the provisions of an Instruction :

(i) transfer to another Clearing Member the Client Open Positions registered in the name of the 

Defaulting Clearing Member, and/or

(ii) liquidate the Open Positions registered in the name of the Defaulting Clearing Member.

Article 4.5.2.5

Upon the occurrence of an Insolvency Event of Default, and without prejudice to the provisions of Article 

4.5.2.2, LCH SA may in accordance with French law and the provisions of an Instruction:

(i) transfer to another Clearing Member the Client Open Positions registered in the name of the 

Defaulting Clearing Member ; and/or

(ii) liquidate the Open Positions registered in the name of the Defaulting Clearing Member.

Upon the occurrence of an Insolvency Event of Default, the rights and obligations of the Defaulting 

Clearing Member arising from or in connection with its participation to the clearing system operated by 

LCH SA shall be governed exclusively by French law, and the law of the State where insolvency 

proceedings are initiated against the Defaulting Clearing Member will not interfere in this respect. 

Article 4.5.2.6

The default management process applicable to Transactions executed on, or reported by, Trading & 

Matching Platforms and the MTS Italy Regulated Market shall be set out in a default management 

process Instruction and the default management process applicable to Transactions in Securities and/or 

Derivatives Product Groups shall be set out in a transfer and liquidation Instruction.

Transfer and liquidation of Open Positions, as the case may be, shall be performed under conditions set 

out in an Instruction, taking into account on the one hand the need to act promptly in the manner LCH SA 

thinks best to contain its exposure and to mitigate overall market effects and on the other hand, the 

Account Structure of the Defaulting Clearing Member.

Clearing Members are required to provide their Clients, at the beginning of their relationship, with 

information regarding (i) their Account Structure and (ii) the consequences of such Account Structure in 

case of an Event of Default as described in an Instruction.

Article 4.5.2.7

In order to perform its obligations pursuant to the Clearing Rules, LCH SA will make use of the resources 

available to it in the following order:

(i) (a) any Collateral deposited by the Defaulting Clearing Member to meet its Margin 

requirements, including any additional Margin requirement, in respect of the Clearing Service 
Clearing Rule Book 72 / 80 Published on 19th December 2017

concerned;

(b) any Collateral, transferred or granted by the Defaulting Clearing Member to LCH SA as 

margin cover in connection with (an)other clearing service(s) provided by LCH SA (to the extent 

such Collateral is not applied in the context of such other clearing service(s) in accordance with 

the rules applicable to such other clearing service(s));

provided in each case that in no circumstances will collateral transferred by the Defaulting 

Clearing Member in respect of obligations arising in a Client Account Structure be applied by 

LCH SA pursuant to this stage (i) in respect of any loss attributable to any other Account 

Structure of the Defaulting Clearing Member;

(ii) if applicable any other Collateral or any surplus assets deposited by the Defaulting Clearing 

Member or Letter of Credit issued by, or with regard to, the Defaulting Clearing Member in 

favour of LCH SA. Such surplus assets will be allocated to cover the losses on (a) Transactions 

on Fixed Income Securities, (b) Transactions relating to Securities and/or Derivatives Product 

Groups (excluding MTS Italy), and (c) Triparty Repo Transactions, on a pro rata basis, based on 

the excess losses (losses not covered by (i)(a) and (i)(b) incurred respectively in these Clearing 

Services, provided in each case that in no circumstances will collateral or surplus assets 

transferred by the Defaulting Clearing Member, or Letters of Credit issued by or with regard to 

the Defaulting Clearing Member, in respect of obligations arising in a Client Account Structure 

be applied by LCH SA pursuant to this stage (ii) in respect of any loss attributable to any other 

Account Structure of the Defaulting Clearing Member;

(iii) the individual contribution to the relevant Default Fund of the Defaulting Clearing Member

(where applicable, any excess will be used to cover losses resulting from other clearing 

services, prorata to the amount of the losses resulting respectively from such other clearing 

services), and, if applicable any Collateral transferred or granted by the Defaulting Clearing 

Member to LCH SA as a contribution to the Default Fund relating to (an)other clearing service(s) 

(including for the avoidance of doubt the CDS clearing service) (to the extent such Collateral is 

not applied in the context of such other clearing service(s) in accordance with the rules 

applicable to such other clearing service(s));

(iv) payment from LCH SA’s dedicated own resources in accordance with article 45.4 of EMIR and article 35 

of Commission Delegated Regulation (EU) N° 152/2013 with regard to regulatory technical 

standards on requirements for central counterparties, as determined from time to time in a Notice, of 

an amount up to the amount of such dedicated own resources allocated to the relevant default 

fund (including each of the Default Funds and any other default fund set- up by LCH in relation 

any other clearing activity) in proportion to the size of such default fund (the “Capped Amount”).

In the case of an Event of Default occurring after a previous Event of Default but before LCH SA 

has reinstated such dedicated own resources in accordance with article 35 of Commission 

Delegated Regulation (EU) N° 152/2013, an amount up to the residual amount of such 

dedicated own resources in the relevant Default Fund,

(v) (a) the available contributions to the relevant Default Fund made by the other Clearing 

Members as per Article 4.3.1.1 including any replenishment contributions deposited as per 

Article 4.3.3.1 and any Refill Contributions deposited as per Article 4.3.3.1, prorata to such 

other Clearing Member’s share in the contributions of non-Defaulting Clearing Members to the 

relevant Default Fund immediately prior to the Event of Default;

(b) the Service Continuity Contributions made by non-defaulting Clearing Members in 

respect of the Clearing Service concerned pursuant to Article 4.3.3.2 ; 

(c) any voluntary payments made by non-Defaulting Clearing Members in respect of the 

Clearing Service concerned; and 

(d) the Service Closure Payments to be made in respect of the Clearing Service concerned 

pursuant to Article 4.3.3.3 and to the Instruction mentioned therein (as defined by such 

Instruction);

If some Collateral deposited by other Clearing Members to contribute to the relevant Default Fund is 
Clearing Rule Book 73 / 80 Published on 19th December 2017

used, or if a payment is made pursuant to item 4 above, the amount of this Collateral or payment will 

represent a claim of LCH SA against the Defaulting Clearing Member.

Article 4.5.2.8 

Following the liquidation of Client Open Positions at Margin Account level and of Client Collateral at 

Collateral Account level, as a result of the Event of Default of a Clearing Member, LCH SA shall deduct 

from the proceeds resulting from the liquidation of such Client Collateral any losses realised following 

such liquidation, and shall determine a final net balance in relation to each Client or Client Account 

Structure, as applicable. 

Such Client final net balance shall be deemed positive where LCH SA owes monies to the Defaulting 

Clearing Member and negative where the Defaulting Clearing Member owes monies to LCH SA. 

Any positive Client net balance calculated by LCH SA in accordance with the above provisions shall be 

remitted to the Client if such Client is a KnownClient, is the sole holder of the relevant Position 

Account(s), and if such Position Account(s) is/are the sole Position Account(s) linked to the relevant 

Margin Account and in all other cases, to the Defaulting Clearing Member for the account of such 

Client(s). Any negative Client net balance calculated by LCH SA in accordance with the above 

provisions shall be considered a debt of the Defaulting Clearing Member towards LCH SA and shall be 

discharged using the resources available pursuant to Article 4.5.2.7, in the order mentioned therein.

Following (i) completion of the default management process and (ii) the extinction of any exposures 

relating to the Defaulting Clearing Member, and taking into account:

(a) any monies that may be owed by the Defaulting Clearing Member to LCH SA pursuant 

to the Clearing Rules and the Admission Agreement (including for the avoidance of 

doubt, any losses, costs and expenses of whatsoever nature incurred by LCH SA in 

connection with the Event of Default and any Client negative net balance determined 

pursuant to the provisions above) and

(b) any monies that may be owed by LCH SA to the Defaulting Clearing Member pursuant 

to said Clearing Rules and Admission Agreement (with the exception of any Client 

positive net balance owed by LCH SA to the Defaulting Clearing Member pursuant to 

the provisions above)

LCH SA shall determine a Defaulting Clearing Member final net balance, which shall be deemed positive 

where LCH SA owes monies to the Defaulting Clearing Member and negative where the Defaulting 

Clearing Member owes monies to LCH SA.

If positive, such Defaulting Clearing Member final net balance shall be remitted to the Defaulting 

Clearing Member and, if negative, shall be claimed by LCH SA from the Defaulting Clearing Member 

(subject to the application of any time bar requiring the filing of a provisional claim in the case of an 

Insolvency Event of Default). Any amounts finally recovered by LCH SA following such claim will be 

refunded to the non defaulting Clearing Members prorata to their respective contribution to the losses 

incurred in connection with the default management process, and if there is any surplus following such 

refund, will be applied towards the reimbursement or discharge of any monies paid or costs incurred by 

LCH SA in connection with the Event of Default.

Article 4.5.2.9

In case of an Event of Default, LCH SA is not bound by the buy-in procedure timeframe as set out in an 

Instruction.

Article 4.5.2.10

When the Defaulting Clearing Member is a seller in a Forward Repo transaction, the non-Defaulting

Clearing Member does not receive the Securities, does not pay the related cash amount and only 

receives the payment of the interests amount related to the Forward Repo for which the intended 

Settlement Date of the Return Transaction does not exceed four (4) Clearing Days after the declaration 

of the default. However, LCH SA can extend this timeframe as it deems necessary until the liquidation 

process is settled.
Clearing Rule Book 74 / 80 Published on 19th December 2017

Article 4.5.2.11

Measures taken by LCH SA upon the occurrence of an Event of Default shall be notified by LCH SA to 

the Defaulting Clearing Member and to any appropriate third parties as LCH SA may deem necessary.

Section 4.5.3 Provisions Applicable on Euronext Paris 

Article 4.5.3.1

A Client acting on Derivative Markets fails when it does not pay Initial Margin, debit Variation Margin, or 

premiums within the stipulated deadlines.

In such case, the Clearing Member automatically liquidates all or part of the failing Client's Positions.

Article 4.5.3.2

In the event that a Client fails on deliverable Financial Instruments at settlement, the Clearing Member 

which manages the Client's Positions ensures execution under the guarantee of final settlement under 

the conditions specified in an Instruction.

The Clearing Member shall retain the failing Client's collateral. All expenses incurred by the Clearing 

Member to process the failed Transaction are charged against the failing Client's collateral. The 

remaining balance of the Initial Margin is refunded after the Clearing Member has discharged its 

obligations.

Section 4.5.4 Events of Default of an Allied Clearing House and Consequences on Clearing 

Members 

Article 4.5.4.0

For the purpose of this Section, Allied Clearing House shall mean Cassa di Compensazione e Garanzia.

Article 4.5.4.1

Upon the occurrence of an Event of Default of the Allied Clearing House (an “Allied Clearing House 

Event of Default”), LCH SA will promptly notify the Clearing Members active in fixed income 

Transactions in Italian government securities (“Italian Fixed Income Transactions”) and will, with 

immediate effect, stop accepting from the Allied Clearing House and from any Clearing Member, directly 

or indirectly, and will no longer novate, any new Italian Fixed Income Transactions for clearing or 

registration in its Fixed Income Clearing System, and may, in co-ordination with the relevant Competent 

Authority as the case may be, take any measure it deems necessary concerning the interoperability link 

with the Allied Clearing House in order to contain its exposure and to mitigate overall market effects 

(including selling any Securities purchased from Clearing Members and which cannot be delivered to 

the Allied Clearing House due to the Event of Default), whether or not these measures are set out in the 

Clearing Rules.

Article 4.5.4.2

LCH SA may, in particular, in its sole discretion, take any of the following measures or any other 

measures that it deems necessary or useful taking into account the need to act promptly in the manner 

LCH SA thinks best to contain its exposure and to mitigate resulting effects over market participants:

(i) obtain any advice or assistance from any third party, as LCH SA may deem necessary for any 

matter arising out of or in connection with the Allied Clearing House Event of Default, 

(ii) sell any Securities delivered by Clearing Members to LCH SA in connection with Italian Fixed 

Income Transactions and associated Trade Legs and Open Positions involving the Allied Clearing 

House and which have not been delivered to the Allied Clearing House due to the Allied Clearing 

House Event of Default,

(iii) cancel, to the extent possible, any settlement instructions in relation to Italian Fixed Income 

Transactions and associated Trade Legs and Open Positions which have not yet settled and 

instruct any CSD of Reference or International CSD and securities settlement system, directly or 

indirectly to cancel such pending instructions and to stop issuing any new instructions in relation 

thereto.
Clearing Rule Book 75 / 80 Published on 19th December 2017

Article 4.5.4.3

All outstanding Trade Legs and Open Positions of the Allied Clearing House and Clearing Members 

resulting from Italian Fixed Income Transactions already executed or registered shall be closed out as of 

the date of notification of an Allied Clearing House Event of Default. Neither LCH SA nor any 

non-defaulting Clearing Member shall be obliged to make any further payments or deliveries under any 

Trade Leg or Open Position between them which would, but for this Article 4.5.4.3, have fallen due for 

performance on or after notification of the Allied Clearing House Event of Default, and any obligations to 

make further payments or deliveries which would otherwise have fallen due with respect to such Trade 

Legs or Open Positions, shall be satisfied by settlement (whether by payment, set-off or otherwise) of 

the Clearing Member Positive Amount, or the Clearing Member Negative Amount, as the case may be, 

as set out in Articles 4.5.4.4 and 4.5.4.5 below.

Article 4.5.4.4

On the basis of the close out values established for each outstanding Trade Leg and Open Position 

mentioned in Article 4.5.4.3 above by LCH SA acting in a commercially reasonable manner, an account 

shall be taken at the date of notification of the Allied Clearing House Event of Default of what is due in 

respect of each Clearing Member active in Italian Fixed Income Transactions, from that Clearing 

Member to LCH SA and from LCH SA to that Clearing Member in respect of such Trade Legs and Open 

Positions, and the sums due from the Clearing Member to LCH SA shall be set off against the sums due 

from LCH SA to the Clearing Member in respect such Trade Legs and Open Positions (excluding any 

Initial Margin or additional Margin provided by each Clearing Member) (the result shall be referred to as 

a “Clearing Member Positive Amount” if the sums due by the Clearing Member to LCH SA are higher 

than the sums due by LCH SA to the Clearing Member and a “Clearing Member Negative Amount” if 

the sums due by LCH SA to the Clearing Member are higher than the sums due by the Clearing 

-Member to LCH SA). Any Clearing Member Positive Amount shall be paid immediately to LCH SA by 

the relevant Clearing Members. 

Article 4.5.4.5

LCH SA will determine the amount resulting from (A) the sum of (i) the available Initial Margin and 

additional Margin provided by the Allied Clearing House and (ii) all Clearing Member Positive Amounts, 

less (B) the sum of (i) any losses arising from the sale by LCH SA of any Securities delivered by Clearing 

Members to LCH SA in connection with Italian Fixed Income Transactions involving the Allied Clearing 

House and which have not been delivered to the Allied Clearing House due to the Allied Clearing House 

Event of Default and (ii) any Margin due by the Allied Clearing House which remains unpaid on its due 

date, and (iii) any reasonable costs resulting from the management by LCH SA of the Allied Clearing 

House Event of Default (the result will be the “Allied Clearing House Default Balance Amount”), and

(i) if the Allied Clearing House Default Balance Amount is positive and is sufficient to cover payment 

by LCH SA of the Clearing Member Negative Amounts in full, such payment will be made by LCH 

SA in full,

(ii) if the Allied Clearing House Default Balance Amount is positive but is not sufficient to cover 

payment by LCH SA of the Clearing Member Negative Amounts in full, such payment will be 

made by LCH SA partially only, prorata to the proportion which, for each Clearing Member, (i) the 

Allied Clearing House Default Balance Amount multiplied by the relevant Clearing Member 

Negative Amount bears to (ii) the sum of all Clearing Member Negative Amounts, 

(iii) if the Allied Clearing House Default Balance Amount is negative, no payment of Clearing Member 

Negative Amount will be made by LCH SA, and the remaining loss will be allocated between all 

fixed income Clearing Members, prorata to their respective participation in the fixed income -

Default Fund prior to the occurrence of the Allied Clearing House Event of Default, and such 

amount will be payable immediately by the fixed income Clearing Members to LCH SA. 

Article 4.5.4.6

For the avoidance of doubt, the management by LCH SA of the Allied Clearing House Event of Default 

as set out above shall not impact the continuing operation of the Fixed Income Clearing System 

otherwise than in relation to Italian Fixed Income Transactions.
Clearing Rule Book 76 / 80 Published on 19th December 2017

TITLE V – TRIPARTY REPO CLEARING 

SERVICES
Clearing Rule Book 77 / 80 Published on 19th December 2017

The provisions below set out the specific rules applying to the Clearing Services provided by LCH SA in 

relation to Triparty Repos through the Triparty Repo Clearing System. As a consequence, in the case of 

any discrepancy between those specific provisions and any other provision in the Clearing Rule Book, 

the former will prevail regarding Triparty Repo Transactions. For the avoidance of doubt, provisions of 

this Clearing Rule Book applying specifically to the Securities and Derivatives Product Group shall not 

apply to the Baskets Product Group. 

CHAPTER 1 – GENERAL PROVISIONS AND LEGAL FRAMEWORK 

Article 5.1.1.1

In addition to the obligations set out in Title II, Chapter 2, Section 2.2.3, Clearing Members wishing to 

clear Triparty Repo Transactions are required to comply with the following obligations:

Article 5.1.1.2

Each Clearing Member must:

(i) Identify Euroclear Bank or the relevant ESES CSD as the triparty agent for its Triparty Repos;

(ii) Comply with the LCH SA Minimum Deposit requirement and the Triparty Repo Default Fund 

contribution requirement prior to submitting a Triparty Repo Transaction for clearing, as set out in 

an Instruction;

(iii) Have previously entered into appropriate arrangements with respect to the Euroclear Collateral 

Management System and the relevant Euroclear Interoperability Agreements and comply with 

them at all times.

(iv) Have entered into appropriate arrangements with Euroclear Bank to set up a credit line in order to 

secure Triparty Repo linked payments in the Euroclear Bank securities settlement system and to 

allow self collateralisation;

(v) ave obtained an authorisation to enter into auto-collateralisation operations with the Banque de 

France in order to secure Triparty Repo linked payments in Euroclear France securities 

settlement system ;

(vi) Have granted LCH SA a power of attorney entitling LCH SA to generate collateral management 

instructions in Euroclear Collateral Management System (CMS) on behalf of the Clearing Member

;

(vii) Have expressly authorised in writing Euroclear Bank and/or Euroclear France to inform LCH SA 

of any withdrawal, transfer or assignment by itself in any way whatsoever (as security or 

otherwise) outside the Euroclear Collateral Management System of any Securities which have 

been allocated as collateral to a Triparty Repo.
Clearing Rule Book 78 / 80 Published on 19th December 2017

CHAPTER 2 – CLEARING OPERATIONS 

Section 5.2.1 Registration 

Article 5.2.1.1

Upon registration by LCH SA, Triparty Repo Transactions governed by a national or international master 

agreement become immediately subject to the Clearing Rules, which override the provisions of such 

master agreement.

Article 5.2.1.2

On the basis of the registered Transactions, LCH SA calculates an Open Position per Clearing Member 

per Delivery Account, per Basket and per Settlement Date.

Section 5.2.2 Account Structure 

Article 5.2.2.1.

The Triparty Repo Transactions registered by LCH SA are aggregated into one Net Position Exposure 

per Clearing Member and per Basket, in accordance with the appropriate settlement window (same 

Clearing Day settlement or following Clearing Day settlement).

The Net Position Exposure for same Clearing Day settlement is calculated as follows: 

Triparty Repo Transactions already initiated and not yet returned + Triparty Repo Transactions with 

initiation date S (where S is the current Clearing Day).

The Net Position Exposure for following Clearing Day settlement is calculated as follows: 

Triparty Repo Transactions already initiated and not yet returned + Triparty Repo Transactions with 

initiation date S+1 (where S is the current Clearing Day) – Triparty Repo Transactions with return date 

S+1.

Section 5.2.3 Settlement and Delivery

Article 5.2.3.1

Contrary to the general clearing rules stated in Article 1.3.1.5, LCH does not transmit settlement 

instructions regarding Triparty Repos to the CSD of Reference.

LCH SA sends the Net Position Exposure of each Clearing Member when modified, twice a day, to 

Euroclear Collateral Management System for automatic allocation of collateralising securities.

Article 5.2.3.2

Euroclear Collateral Management System is responsible for sending the appropriate settlement 

Instructions to the CSD of Reference, pursuant to its rules. 

Under no circumstances may LCH SA be held liable for any direct or consequential loss suffered by a

Clearing Member and due to Euroclear Collateral Management System allocation and settlement 

procedures.

Article 5.2.3.3

The provisions of Section 3.4.3 do not apply to Triparty Repos.

In the event that CMS cannot allocate sufficient eligible Securities to settle a Triparty Repo Transaction 

in whole (an “allocation fail”), such Triparty Repo Transaction shall be settled partially only prorata to the 

amount of eligible Securities available in the Collateral Giver’s account. The Collateral Taker’s account 

shall be debited by a cash amount corresponding to the reduced securities amount, but the Collateral 
Clearing Rule Book 79 / 80 Published on 19th December 2017

Giver shall pay interest to the Collateral Giver on the full amount of the Triparty Repo Transaction as 

initially traded, as if the Triparty Repo Transaction had been settled in full.

Article 5.2.3.4

In any of the following events:

(i) the Net Position Exposure of a Clearing Member is such that Securities allocated as collateral to 

Triparty Repo Transactions need to be returned to the Cash Borrower ;

(ii) the value of Securities allocated as collateral to Triparty Repo Transactions has increased such 

that some of these Securities need to be returned to the Cash Borrower ;

(iii) a Cash Borrower wishes to substitute Securities allocated as collateral to Triparty Repo 

Transactions ;

(iv) Euroclear Collateral Management System needs to proceed with a substitution of Securities 

allocated as collateral to Triparty Repo Transactions pursuant to the Clearing Rules (eligibility 

criteria for Triparty Repos); or 

(v) Securities allocated as collateral to Triparty Repo Transactions need to be returned to the Cash 

Borrower at the maturity of a Triparty Repo Transaction ;

if on the the second Clearing Day following the day on which the Securities concerned must be returned 

or substituted, such return or substitution has not taken place due to the fact that the Securities to be so 

returned or substituted are no longer available in the Euroclear Collateral Management System 

environment, LCH SA will apply cash settlement in order to debit the Cash Lender’s account and credit 

the Cash Borrower’s account by an amount calculated on such second Clearing Day :

pursuant to a formula to be set out in a Notice.

Section 5.2.4 Corporate Events

Article 5.2.4.1

Corporate events occurring on the collateralising securities follow Euroclear Collateral Management 

System’s rules and are managed by the CMS accordingly.

Article 5.2.4.2

In the specific case of an Event of Default, corporate events are managed as set out in an Instruction. 
Clearing Rule Book 80 / 80 Published on 19th December 2017

CHAPTER 3 – RISK MANAGEMENT 

Section 5.3.1 Margin Requirements

Article 5.3.1.1

Article 4.2.0.8 shall not apply to Triparty Repos.

Article 5.3.1.2

LCH SA shall calculate and call Triparty Repo Interest Margin on Transactions executed on Trading &

Matching Platforms, and on the Net Position Exposure and collateralising Securities portfolio for other 

Margin obligations, as specified in an Instruction.

Section 5.3.2 Event of Default

Article 5.3.2.1

Where eligible Securities have been allocated as collateral to Triparty Repo Transactions, the 

withdrawal, transfer or assignment by a Clearing Member in any way whatsoever (as security or 

otherwise) of such Securities outside the Euroclear Collateral Management System may, at LCH SA’s 

sole discretion, constitute a Contractual Event of Default in accordance with article 4.5.2.4.