Eurex Clearing has extended its client clearing documentation to include the FOA (Futures and Options Association, which has since changed its name to FIA Europe) Client Clearing Module and the International Swaps and Derivatives Association (ISDA)/FOA Client Clearing Addendum.
These standard agreements serve as templates to help clearinghouse members establish legal clearing contracts with their clients, and they can be used to onboard onto Eurex’s EMIR-compliant omnibus and individual segregation models.
The Addendum provides for OTC clearing, whereas the Module allows for both listed and OTC clearing. Clients using the Module can also benefit from Eurex Clearing’s cross-product margining, since listed and OTC positions will offset each other, thus potentially lowering initial margin requirements by up to 70% for a balanced portfolio, according to Eurex.
“Having the choice between use of the Module and the Addendum provides maximum flexibility to clearing members and their clients when documenting the terms of their OTC client clearing relationship,” says Simon Puleston Jones, CEO of FIA Europe.
Eurex Expands Client Clearing Documentation
Eurex Clearing has extended its client clearing documentation to include the FOA (Futures and Options Association, which has since changed its name to FIA Europe) Client Clearing Module and the International Swaps and Derivatives Association (ISDA)/FOA Client Clearing Addendum.