Amendments to the legal framework of Eurex Clearing AG

1. Introduction

This circular contains information with respect to amendments to the Statutes for the EMIR Risk Committee (Statutes) regarding the following topic:

• Amendments to the Statutes of the EMIR Risk Committee (ERC) to provide that the Executive Board will consider whether there has been sufficient EMIR Risk Committee Member rotation prior to the start of each term and implement a process whereby the Executive Board will receive information regarding Member rotation in presentation.

The amendments will become effective as of 1 July 2024. 

2.    Required action

There is no required action.

3.    Details of the initiative

Amendments to the Statutes of the EMIR Risk Committee to provide for Member rotation

On 13 July 2023, the CFTC published new governance rules applicable to Derivatives Clearing Organizations (DCOs) with a compliance date of 12 July 2024. Namely, DCOs must maintain written policies and procedures to make certain that membership of the Risk Committee is rotated on a regular basis. Therefore, the Statutes of the EMIR Risk Committee will be amended to provide that the Executive Board will consider whether there has been sufficient EMIR Risk Committee Member rotation prior to the start of each term.
 

“Prior to the start of a new EMIR Risk Committee Term, the Executive Board will assess the composition of the EMIR Risk Committee to ascertain whether there has been sufficient regular rotation to promote the ability of Clearing Members and Clients from a broad array of market segments to provide their expertise, and to ensure that the EMIR Risk Committee provides Eurex Clearing AG with varied perspectives on risk management matters.”
 

“The Supervisory Board shall in its discretion, taking into account, sufficient regular rotation to have a broad array of market segments provide expertise and promote varied perspectives on risk management matters, and to ensure adequate representation of the Clearing Member Types, select for the relevant EMIR Risk Committee Term, the relevant number of EMIR Risk Committee Members and their respective deputies and shall notify such selection to the Executive Board without undue delay; an EMIR Risk Committee Member and its deputy must have been nominated by the same Authorised Clearing Member.”
 

To reflect these amendments, the following provisions of the Statutes of the EMIR Risk Committee will be amended as outlined in Attachment:

• § 4 Paragraph (3), (4) and (8)

Publication of amendments of the legal framework of Eurex Clearing

As of the effective date, the full versions of the amended legal framework of Eurex Clearing will be available for download on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: 

Rules and Regulations > Eurex Clearing Rules and Regulations

The changes and amendments to the legal framework of Eurex Clearing published by this circular are deemed accepted by each affected contractual party of Eurex Clearing, unless the respective contractual party objects by written notice to Eurex Clearing within the first ten (10) Business Days after the publication. Any ordinary right of Eurex Clearing to terminate the respective contract (including a Clearing Agreement, if applicable) shall remain unaffected.

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing, as applicable.
 

Attachment:

Updated sections of the following rules and regulations:

• Amended sections of § 4 Paragraph (3), (4) and (8) of the Statues of the EMIR Risk Committee
   

Further information