Interest rates on cash collateral

ECC pays interest on EUR margin assets in the form of cash, contributions to the Default Fund in the form of cash and funds provided for the fulfilment of liable equity capital requirements in the form of cash provided by an Institution Clearing Member, subject to and as long as being accepted as guarantee fund by Deutsche Bundesbank in accordance with the Guideline of the European Central Bank of 5 December 2012 on a Trans-European Automated Real-time Gross settlement Express Transfer system (T2) ECB/2012/27.

ECC will apply for EUR cash collateral the following interest rates:

Interest is calculated on a daily basis ACT/360 and will apply during an interest period for the respective end-of-day cash balances reduced/complemented by a service fee of 15 bps in accordance with the ECC Price List.

Minimum Cash Quota

With effect as of 1 June 2023 a Minimum Cash Quota will apply for Institution Clearing Members. For each Institution Clearing Member, the ratio of all margin assets in the form of EUR cash booked to the internal collateral accounts of such Institution Clearing Member to the overall Margin Requirement of such Institution Clearing Member always needs to stay above 50% (see ECC Clearing Circular 17/2023 “Introduction of a EUR Minimum Cash Quota and adjustment of the Add-on on the service fee for margin assets in the form of securities”).

The EUR Minimum Cash Quota will not apply to contributions to the ECC Default Fund.

Institution Clearing Members can determine and monitor their actual EUR Cash Quota using daily EUREX Reports.

If the EUR Minimum Cash Quota is not fulfilled, ECC will, pursuant to section 3.4.6 (3) of the ECC Clearing Conditions, inform the respective Institution Clearing Member and ask for an increase in cash holdings by the Institution Clearing Member. After the Institution Clearing Member has provided the additional cash collateral necessary to be compliant with the EUR Minimum Cash Quota, ECC will subsequently release other types of collateral provided by the Institution Clearing Member (esp. securities) upon request of such Institution Clearing Member.

In case the Institution Clearing Member does not follow ECC’s notification to ensure compliance with the EUR Minimum Cash Quota, ECC will demand cash by executing a margin call on the Institution Clearing Member´s standard account in order to establish compliance with the EUR Minimum Cash Quota for the respective Institution Clearing Member.

In order to avoid such adjustment process, Institution Clearing Members have the option to define a permanent cash balance.

Any substitution of margin assets in the form of cash with other margin assets will only be possible to the extent that it does not lead to a breach of the EUR Minimum Cash Quota.

Furthermore, if the EUR Cash Quota of an Institution Clearing Member is below the EUR Minimum Cash Quota, ECC may on a non-discriminatory basis charge an Add-on in the amount of 0.075% p.a. on the prevailing service fee for margin assets in the form of securities without any further notification.

The Add-on will be applied on a daily basis and will be invoiced monthly.

The Add-on will only be charged for margin assets in the form of securities provided for margin requirements but not for contributions to the ECC Clearing Fund in the form of securities.

Further details can be found in section 5.1 of the ECC Price List.