Trades on the Frankfurt stock exchange in CCP-eligible instruments must be processed via EUREX Clearing AG as the central counterparty.
The role of EUREX Clearing AG
The purpose of using a central counterparty is to eliminate counterparty risk for market participants. The central counterparty assumes default risks in the case of non-performance of delivery or payment obligations by the seller or buyer. As well, through netting, the number of trades requiring settlement is greatly reduced. For every business day, the CCP calculates a net position per securities category (based on ISIN) and per exchange participant. The net balance is credited or debited to the existing position in the securities account of the customer.
Settle CCP transactions easily through OeKB
OeKB is a General Clearing Member (GCM) of EUREX Clearing AG. For the account of transactions without a clearing licence of their own, OeKB is responsible for the clearing and settlement of the customer. The contracting party displayed in the Custody Clearing Link is thus the central counterparty, not the exchange participant. In its role as GCM, OeKB also acts as the settlement bank.
For equities in collective custody that are traded on the Frankfurt stock exchange´s (FWB) trading floor or on its Xetra system, clearing and settlement are performed within the CCP.
List of CCP-eligible FWB instruments