Eurex Clearing AG 

ECAG Rule Certification 088-22 

November 29, 2022 

1. The text of the proposed amendments to the Clearing Conditions (“Clearing Conditions”) of Eurex 

Clearing AG (“Eurex Clearing”) and FCM Default Rules (“FCM Default Rules”) of Eurex Clearing is 

appended as Attachment A. Any additions are underlined and any deletions are struck through. 

2. The amendments to the Clearing Conditions are subject to a consultation process (“Consultation”). The 

Consultation will end on December 28, 2022 (“Consultation Period”). The planned effective date of these 

amendments is February 12, 2023, depending on the outcome of the Consultation, and will be 

communicated in a separate Eurex Clearing circular and filed with the Commodity Futures Trading 

Commission (“CFTC”) pursuant to CFTC Regulation 40.6(a) or (d). 

The date of intended implementation for the amendments to the FCM Default Rules is February 12, 2023. 

3. Attached please find a certification that: (1) these amendments comply with the Commodity Exchange 

Act (the “Act”), and the Commission’s regulations thereunder; and (2) concurrent with the filing of this 

submission, Eurex Clearing is posting a copy of this filing to its website at: https://www.eurex.com/ecen/rules-regs/regulations/cftc-dco-filings. 

4. A concise explanation and analysis of the operation, purpose, and effect of the amended rule appears 

below. 

5. There were no opposing views expressed regarding these amended rules. 

6. Confidential treatment is not requested. 

___________________________________________________________________________________ 

CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND EFFECT OF 

THE PROPOSED RULE AND ITS COMPLIANCE WITH APPLICABLE PROVISIONS OF THE ACT, 

INCLUDING CORE PRINCIPLES AND THE COMMISSION’S REGULATIONS THEREUNDER 

Article 9 (14) of the CCP Recovery & Resolution Regulation in the EU requires Eurex Clearing to 

implement a second layer of pre-funded own resources, called Second Skin in the Game (“SSITG”), which 

will cover default and non-default events. 

Currently, Eurex Clearing contributes to the Default Waterfall at two levels: 

· Immediately after the Contributions of the defaulting Clearing Member and prior to the 

Contributions of the non-Defaulting Clearing Members, Eurex Clearing realizes its “Dedicated 

Amount” (First “Skin in the Game” (“SITG”)) of 200 million euro. 

· Second, when requesting that non-defaulting Clearing Members provide Further Contributions to 

the Default Fund (“Assessments”), Eurex Clearing contributes on a pro-rata basis with its “Further 

Dedicated Amount” (“FDA”) of up to 300 million euro. 
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With the introduction of SSITG, Eurex Clearing is refining its participation to the Default Waterfall. 

Overall, Eurex Clearing’s contribution will remain well above the regulatory requirements. Eurex Clearing 

will redistribute its currently prefunded amount of 200 million euro between the SITG and the SSITG, in 

the same proportion to the regulatory requirements. The “Dedicated Amount” (SITG) will amount to 143 

million euro and the SSITG to 57 million euro. 

Eurex Clearing ́s FDA of up to 300 million euro will remain unchanged. 

SSITG will follow the current segmented structure of the Default Waterfall, as described and shown in the 

graph in Eurex Clearing Circular 088-22, which is appended as Attachment A. SSITG will be split in 

segments proportionally to the Liquidation Group size, similarly to the Default Fund of the Clearing 

Members. Each SSITG segment will be utilized just after the corresponding segment of the non-defaulted 

Clearing Members. The remaining order of priority of other layers in the Default Waterfall remains 

unchanged. 

Further information regarding the operation, purpose, and effect of the proposed amendments is discussed 

in Attachment A. 

Eurex Clearing has identified the following derivatives clearing organization (“DCO”) Core Principle as 

potentially being relevant to the above amendments: 

1. DCO Core Principle G (Default Rules and Procedures): The proposed amendments will comply 

with DCO Core Principle G because the amendments refine Eurex Clearing’s Default Waterfall to 

provide for a SSITG per EU regulations. Eurex Clearing’s Default Waterfall will continue to 

provide for the efficient, fair, and safe management of events in the event of a Clearing Member 

insolvency or default and will continue to ensure that Eurex Clearing may take timely action to 

contain losses and liquidity pressures and continue to meet each of Eurex Clearing’s obligations. 

Eurex Clearing’s Default Waterfall will continue to comply with CFTC Regulation 39.16 and the 

specific requirements of 39.16(c)(2). 
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CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY EXCHANGE ACT, 7 

U.S.C. §7a-2 AND COMMODITY FUTURES TRADING COMMISSION RULE 40.6, 17 C.F.R. §40.6 

I hereby certify that: 

(1) the amendments comply with the Commodity Exchange Act, and the Commission’s 

regulations thereunder; and 

(2) concurrent with the filing of this submission, Eurex Clearing is posting a copy of thisfiling 

to its website at: https://www.eurex.com/ec-en/rules-regs/regulations/cftc-dco-filings. 

/s/ Eric Seinsheimer 

By: Eric Seinsheimer

Title: US CCO, Eurex Clearing AG 

Dated: November 29, 2022