Eurex Clearing Partnership Program · Eurex’ Partnership Program gains broad market support with...

Eurex Clearing –

Partnership

Programme

October 2020

This industry partnership programme is designed to benefit the broader market

All Eurex Clearing Members and Registered Clients are

eligible to participate in the Partnership Programme

Governance

Representation on Eurex Clearing Supervisory Board

Participation in FIC Board Advisory Committee

+

Revenue Sharing

Attractive Performance Based Sharing

Turning into Perpetual Revenue Share after year 4

Direct rewards to 10 most active participants…Programme designed to deliver benefits for all

Eurex Clearing clients

▪ Price transparency and tight bid-offer spreads for Eurex

cleared swaps

▪ Cross-Margining across listed and OTC optimizes margin

requirements „PRISMA“

▪ Broad eligible collateral spectrum reduces funding costs

and liquidity needs

▪ Innovative direct buy-side access models reduce capital

requirements and improve asset protection “ISA Direct”

4 November 20202

TOP Performers will be represented in the FIC Board Advisory Committee and the Supervisory Board

1Subject to minimum average daily volume during applicable measuring period of €35BN; otherw ise mearing period and

assignment shifted by 12 months for Supervisory Board and extended by 6 months for FIC Board Advisory Committee

Scope Permanent Partnership 2018-2021 Perpetual Phase

Eurex FIC Board

Advisory Commitee

▪ Will consist of 10 members

▪ Advised the Executive Board of

Eurex Clearing on

▪ the general Fixed Income and

Currencies strategy and

▪ product and service expansions in

Fixed Income and Currencies

10 Seats assigned to

TOP performers

▪ TOP 10 performers based

on time-weighted

multiplied undiscounted

gross revenues during

applicable measuring

period

▪ 2 terms of each 2 years

starting June 20181


on time-weighted



Phase 1

Eurex Clearing

Supervisory Board

▪ Currently 12 members

▪ Appoints the Executive Board

▪ Appoints chairman/ -woman

▪ Approves important decisions and

planning

5 Seats assigned to

TOP performers


on time-weighted



applicable measuring

period

▪ 2 terms of each 2 years

starting June 20181


on time-weighted


gross revenues over

Phase 1 receive

nomination right

▪ 5 representatives are

elected

▪ Right to nominate

Chairman/ -woman

4 November 20203

Eurex’ Partnership Programs gains broad market support with 40 participants around the globe

35OTC IRD

Participants

31Repo

Participants

4 November 20204

Approved Platforms at Eurex Clearing for OTC IRS Approved Platforms at Eurex Clearing for Repo

Eurex’ Partnership Programme gains broad market support with platforms around the globe

4 November 20205

OTC IRD Volume Development at Eurex Clearing (I) (1/2)Volumes as of 27 July 2020

Jan 18 Mar 18 May 18 Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19 Jul 19 Sep 19 Nov 19 Jan 20 Mar 20 May-20 Jul-20

FRA OIS IRS Basis Compression cycle

% YoY: ADV Jun ‘20 vs Jun ‘19

% YoY: Notional Outstanding Jun ’20 vs Jun ‘19

Market share source: Eurex LCH Website

Based on ADV and subject to the ECAG Trading Calendar 2019/2020

15.8%EUR Market Share1 as of 27th July 2020

↗ +58%

€ 199bnADVas of 30 June 2020

Average Daily Volume in € bn

OTC IRD Volume Development at Eurex Clearing (I) (2/2)Volumes as of 27 July 2020

Jan 18 Apri 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr-20 Jul-20

FRA OIS IRS Basis

% YoY: ADV Jun ‘20 vs Jun ‘19

% YoY: Notional Outstanding Jun ’20 vs Jun ‘19

Market share source: Eurex LCH Website

X%EUR Market Share1 as of 27th July 2020

↗/↘ +/-X%

€ XbnNotional Outstandingas of 30 June 2020

1) Based on ADV and subject to the ECAG Trading Calendar 2019/2020

Notional Outstanding in € tn

OTC IRD Volume Development at Eurex Clearing (II)Participants and Development

1) Reflects new ly admitted clients since 1 Jan 19, as of 21.07.2020

2) Multiple Clearing relations of the same entity are not counted

+201

87 Clearing Members

+2501

>380 Disclosed Clients2

1Price transparency & competitive

quotes✓

2 Establish significant FRA Market Share ✓

3 Onboard Buy-Side clients ✓

4 CCP switch, Live Run April 2019 ✓

5 Grow open interest in IRS/OIS On track

6 Build Non-EUR Liquidity Started

4 November 20208

Clearing Members Development

LCH-Eurex Basis is flattening for all Tenors (1/3)

-2

-1

0

1

2

3

4

Jan 18 Aug 18 Jul 19 Apr 20

2 Year 5 Year 10 Year 20 Year 30 YearSource: Bloomberg

LCH-Eurex Basis Development

Date 2yr 5yr 10yr 20yr 30yr

As of 21st July 2020 +0.10 +0.15 +0.40 +0.55 +0.65

4 November 20209


-1.00

0.00

1.00

2.00

3.00

4.00

45%

50%

55%

60%

65%

70%

06-11-2017 08-08-2018 04-02-2019 15-11-2019 10-07-2020

Portfolio balance indicator (PBI) Basis

BasisPBI

50% = full balance of payer and receiver flow

4 November 202010

Client DV01 balance vs EUREX-LCH Basis


Date 2yr 5yr 10yr 20yr 30yr

20

19 End of November -0.05 -0.15 -0.30 -0.30 -0.35

End of December -0.05 -0.20 -0.35 -0.35 -0.40

20

20

End of January +0.05 +0.10 +0.20 +0.25 +0.45

End of February +0.05 +0.05 +0.10 +0.10 +0.20

End of March +0.20 +0.50 +0.70 +0.90 +1.20

End of April +0.30 +0.95 +1.45 +1.55 +1.80

End of May +0.15 +0.40 +0.55 +0.65 +0.85

End of June +0.05 +0.20 +0.35 +0.40 +0.55

4 November 202011

LCH-Eurex Basis by Month

Large dealers provide similar liquidity for Eurex Clearing compared to LCH for Euro Swaps(1/2)

Top 10 quotes per tenor as of 01/07/2020

4 November 202012

2yr

Eurex LCH

0.3 0.5

0.4 0.4

0.4 0.4

0.4 0.4

0.5 0.5

0.6 0.6

0.6 0.6

0.6 0.6

0.6 0.4

0.7 0.9

5yr

Eurex LCH

0.3 0.5

0.4 0.5

0.4 0.4

0.4 0.4

0.5 0.5

0.5 0.5

0.6 0.6

0.6 0.6

0.6 0.6

0.6 0.6

10yr

Eurex LCH

0.3 0.5

0.4 0.5

0.4 0.4

0.4 0.4

0.4 0.4

0.4 0.4

0.5 0.5

0.5 0.5

0.6 0.6

0.6 0.6

30yr

Eurex LCH

0.3 0.3

0.4 0.9

0.4 0.7

0.5 0.5

0.7 0.7

0.8 0.8

0.8 0.6

0.9 1.1

0.9 0.9

0.9 0.9

Eurex-LCH Price Comparison

“We offer the same bid-offer spreads and sizes for Eurex and LCH in Euro Swaps

and see no disadvantage in terms of liquidity for clients using Eurex Clearing”*

Large dealers provide similar liquidity for Eurex Clearing compared to LCH for Euro Swaps(2/2)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Total Requests Received Total Requested Responded Total Trades Executed Responded : Received Executed : Responded

*Statement from several trading desks of global dealers

4 November 202013

RFQ MoM Performance

Large dealers provide similar liquidity for Eurex Clearing compared to LCH for Euro Swaps

(D2C) dealer to clients

Hybrid Order Book

combining

voice/Trad-X

Central Limit Order Book (CLOB)

13Banks1

1) Number of banks providing EUR price data for Eurex Clearing

Top 10 quotes per tenor as of 01/07/2020

Requests received, responded and executed up

12%, 2% and 20% respectively from June-19

4 November 202014

23Banks1

5Banks1

Disclosed Streaming (DS) Request for Quote (RfQ)

D2D CLOB

0

2

4

6

8

10

12

0

5

10

15

20

25

30

35

40

Jan2018

Mar May Jul Sep Nov Jan2019


Mar May

# Active firms ADV per firm

# of firmsADV

0%

10%

20%

30%

40%

50%

0

50

100

150

200

250

Jan2018



Mar May

ADV Market Share

ADV inbn EUR

MarketShare

OTC FRA Analytics1

4 November 202015

OTC EUR FRA FRA per firm

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jan2018



Mar May

Notional Outstanding Market Share

Trn EURMarketShare

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

1,000

2,000

3,000

4,000

5,000

6,000

Jan2018



Mar May

Reset Matchbook Market Share*

Bn EURMarketShare

OTC FRA Analytics1

4 November 202016

FRA Notional Outstanding in trillion EUR FRA volumes by platform

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

5

10

15

20

25

30

35

40

45

50

Jan2018



Mar May

ADV Market Share

MarketShare

ADV inbn EUR

0

5

10

15

20

25

30

35

40

45

50

Jan2018



Mar May

Dealer ADV* Client ADV**

ADV inbn EUR

* Dealer = global or local liquidity provider

** Client = traditional buy side client

OTC IRS Analytics1

4 November 202017

OTC EUR IRS EUR IRS ADV by counterparty

0%

2%

4%

6%

8%

10%

12%

14%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jan2018



Mar May


Trn EUR

MarketShare

22 20 20 22 23 21 22 21 21 21 23 20 22 24 27 26 30 31 32 30 33 32 31 31 32 31 32 30 33 32

37 39 43 38 34 38 33 3641

47

55 5963 62

71

62 56

76 7370

7886

79 83

95

82

108

99 89

104

Jan2018



Mar May

# active Dealers* # active Clients**



OTC IRS Analytics1

2

4 November 202018

IRS Notional Outstanding in trillion EUR Activity monitor IRS (volume >25m)

0

1

2

3

4

5

6

7

Jan2018



Mar May

Dealer ADV* Client ADV**

ADV inbn EUR

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

0

1

2

3

4

5

6

7

Jan2018



Mar May

ADV Market Share

MarketShare

ADV inbn EUR



OTC OIS Analytics1

4 November 202019

OTC EUR OIS EUR OIS ADV by counterparty

1311

13 12

15

1210 11 11

1513

11

16 17 17 16

19

16

22

19 20 2022 22 22 21

27

23 2321

9

6

12

7

6

8

5

6 5

10

5

6

128

11

10

17

16

22

15

16

20

22 2119

19

24

19

22

18

Jan2018



Mar May

# active Dealers* # active Clients**

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

100

200

300

400

500

600

700

Jan2018



Mar May


Bn EUR

MarketShare



OTC OIS Analytics1

4 November 202020

OIS Notional Outstanding in trillion EUR Activity monitor OIS (volume >25m)

Thank you!

Disclaimer

© Eurex Frankfurt AG 2020

Deutsche Börse AG (“DBAG”), Clearstream Banking AG (“Clearstream”), Eurex Frankfurt AG (“Eurex”), Eurex

Clearing AG (“Eurex Clearing”), Eurex Securities Transactions Services GmbH (“Eurex STS”) and Eurex Repo

GmbH (“Eurex Repo”) are corporate entities and are registered under German law . Eurex Global Derivatives AG is a

corporate entity and is registered under Sw iss law . Clearstream Banking S.A. is a corporate entity and is registered

under Luxembourg law . Eurex Frankfurt AG is the administrating and operating institution of Eurex Deutschland.

Eurex Deutschland is in the follow ing referred to as the “Eurex Exchange”.

All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof

(other than certain trademarks and service marks listed below ) are ow ned by DBAG or its aff iliates and subsidiaries

or used under authorization by their respective ow ners, including, w ithout limitation, all patent, registered design,

copyright, trademark and service mark rights. While reasonable care has been taken in the preparation of this

publication to provide details that are accurate and not misleading at the time of publication DBAG, Clearstream,

Eurex, Eurex Clearing, Eurex Repo as w ell as the Eurex Exchange and their respective subsidiaries, servants and

agents (a) do not make any representations or w arranties regarding the information contained herein, w hether

express or implied, including w ithout limitation any implied w arranty of merchantability or f itness for a particular

purpose or any w arranty w ith respect to the accuracy, correctness, quality, completeness or timeliness of such

information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein

under any circumstances, including, w ithout limitation, in connection w ith actual trading or otherw ise or for any errors

or omissions contained in this publication.

This publication is published for information purposes only and shall not constitute investment advice respectively

does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in

any other transaction. This publication is not intended for solicitation purposes but only for use as general

information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only.

Eurex and Eurex Clearing offer services directly to members of the Eurex Exchange respectively to clearing

members of Eurex Clearing. Those w ho desire to trade any products available on the Eurex market or w ho desire to

offer and sell any such products to others or w ho desire to possess a clearing license of Eurex Clearing in order to

participate in the clearing process provided by Eurex Clearing, should consider legal and regulatory requirements of

those jurisdictions relevant to them, as w ell as the risks associated w ith such products, before doing so.

Only Eurex derivatives that are CFTC-approved may be traded via direct access in the United States or by United

States persons. A complete, up-to-date list of Eurex derivatives that are CFTC-approved is available at:

https://w ww.eurex.com/ex-en/rules-regs/eurex-derivatives-us.

In addition, Eurex representatives and participants may familiarize U.S. Qualif ied Institutional Buyers (QIBs) and

broker-dealers w ith certain eligible Eurex equity options and equity index options pursuant to the terms of the SEC’s

July 1, 2013 Class No-Action Relief. A complete, up-to-date list of Eurex options that are eligible under the SEC

Class No-Action Relief is available at: https://w ww.eurex.com/ex-en/rules-regs/eurex-derivatives-us/eurex-options-in-

the-us-for-eligible-customers. Lastly, U.S. QIBs and broker-dealers trading on behalf of QIBs may trade certain

single-security futures and narrow -based security index futures subject to terms and conditions of the SEC’s

Exchange Act Release No. 60,194 (June 30, 2009), 74 Fed. Reg. 32,200 (July 7, 2009) and the CFTC’s Division of

Clearing and Intermediary Oversight Advisory Concerning the Offer and Sale of Foreign Security Futures Products to

Customers Located in the United States (June 8, 2010).

Trademarks and Service Marks

Buxl®, DAX®, DivDAX®, eb.rexx®, Eurex®, Eurex Repo®, Eurex Strategy WizardSM, Euro GC Pooling®, FDAX®,

FWB®, GC Pooling®,,GCPI®, MDAX®, ODAX®, SDAX®, TecDAX®, USD GC Pooling®, VDAX®, VDAX-NEW® and

Xetra® are registered trademarks of DBAG or its aff iliates and subsidiaries. All MSCI indexes are service marks and

the exclusive property of MSCI Barra. ATX®, ATX® five, CECE® and RDX® are registered trademarks of Vienna

Stock Exchange AG. IPD® UK Quarterly Indexes are registered trademarks of Investment Property Databank Ltd.

IPD and have been licensed for the use by Eurex for derivatives. SLI®, SMI® and SMIM® are registered trademarks

of SIX Sw iss Exchange AG. The STOXX® indexes, the data included therein and the trademarks used in the index

names are the intellectual property of STOXX Limited and/or its licensors. Eurex derivatives based on the STOXX®

indexes are in no w ay sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor

its licensors shall have any liability w ith respect thereto. PCS® and Property Claim Services® are registered

trademarks of ISO Services, Inc. Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea

Exchange Inc. The names of other companies and third party products may be trademarks or service marks of their

respective ow ners.

Eurex Deutschland qualif ies as manufacturer of packaged retail and insurance-based investment products (PRIIPs)

under Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based

investment products (PRIIPs Regulation), and provides key information documents (KIDs) covering PRIIPs traded on

Eurex Deutschland on its w ebsite under the follow ing link: https://w ww.eurex.com/ex-en/rules-regs/priips-kids.

In addition, according to Art. 14(1) PRIIPs Regulation the person advising on, or selling, a PRIIP shall provide the

KID to retail investors free of charge.

4 November 202022

Eurex Clearing Partnership Program · Eurex’ Partnership Program gains broad market support with...

Documents

Transcript of Eurex Clearing Partnership Program · Eurex’ Partnership Program gains broad market support with...