Account Types

This section describes the account structure in Eurex Clearing AG and its relation with the different types of membership. There are three types of accounts a member can have at the clearing house. These are position, premium and cash/securities accounts.

2.1.3.1 Position Accounts

The options, futures and cash market trades executed by each member are held separately from other members in the clearing house system. A member's trades are further separated into principal, agent and market maker accounts. The accounts of each Non Clearing Member are associated with a single Clearing Member.

For option transactions, each member has two principal accounts and one agent account. Those members who deal in options and are authorized market makers have two principal accounts, one agent account and two market maker accounts. However, in the futures market, each member has two market maker accounts, two principal accounts and one agent account.

Principal Accounts

Principal accounts comprise the current proprietary business of the Exchange Member. These accounts are designated P1 and P2 and are kept gross. This means within the same options series or futures contract, long as well as short positions are maintained. Long positions are open, exercised, or due positions, which have not yet been settled. Short positions are open or assigned positions for which settlement has not yet taken place.

All assigned short positions and all exercised long positions are removed from member accounts in the end-of-day processing of the exercise/assignment day. They are replaced by margined delivery obligations (valid for all agent/principle/market maker accounts).

Market Maker Accounts

Market maker accounts are made up of the deals, entered into a market maker account, resulting from the acceptance by a member of a market maker's quotes in options or futures. Proprietary orders entered by a market maker in the options market can be posted to the market maker accounts or to the principal accounts. These are designated M1 and M2. ‘M’ accounts are not available for Eurex/ISE Link products. Market maker accounts are held net, i.e. the position in an option series or a futures contract is either short or long. Corresponding bought and sold positions in the same options series (or in the same futures contracts) are netted. Market maker accounts can show open and exercised long positions when net-long positions are exercised. They can also contain open and assigned short positions that have not yet been settled.

As above, all assigned short positions and all exercised long positions are removed from member accounts after delivery or payment for exercises and assignments.

Agent Accounts

Agent accounts are available to trading members to hold transactions and positions executed on behalf of clients. As default setup, the agent account A1 is assigned to Trading and Clearing Members. The agent accounts (A2 - A9) are available for Clearing Members who either offer the Net Omnibus Solution to their clients or have specifically requested the assignment of the additional accounts to their Member ID. All agent accounts are kept gross.

Note that the A9 account is designated as a dedicated Net Omnibus segregated account.

As above, all assigned short positions and all exercised long positions are removed from member accounts after delivery or payment for exercises and assignments.

The following processing principles apply to the agent accounts:

 In combination with the A1 account, A2 - A9 accounts allow for the separation of non-segre- gated agent business from segregated and affiliated agent business. For further information about the A2 - A9 accounts, refer to document ‘X4104 System Overview and Information Manual’.

 Any trades entered with account type G1/G2 accounts results in a position in the A1 account until the trade has been taken up.

 For a take up by order or take up by transaction, the take up member is able to select any agent account as long as the selected agent account has been assigned to the member ID. For example, a Clearing Member offering the Net Omnibus solution can accept take ups by order/ transaction for any of the nine agent accounts (A1 - A9) plus two proprietary accounts (P1 + P2).

 Give up by order is only possible for A1 accounts, while give-up by transaction is possible for all agent accounts (A1 - A9).

 For trades where the member type (determining the range of available agent accounts)/prod- uct does not fit to the new agent accounts, the following mapping applies:

Mapping Table for Full Trade Using Additional Agent Accounts

 For EEX products, the value added tax for positions agent accounts is calculated on gross positions as per normal.

Available Agent Accounts for Clearing Members

Product Destination Account

No Agent Accounts Any P1

A1 Any A1

A1 - A9 Options Clearing Corporation

Product

Using Agent Accounts

The usage of the agent accounts depends on the selected Client Asset Protection solution and the internal preferences of the Clearing Member.

As outlined above, independent of the Client Asset Protection solution, Clearing Members can request the assignment of additional agent accounts to their Eurex Derivatives Member ID. The table below provides an overview of how the additional accounts must be used depending on the setup applicable:

General Clearing Member Setup

Description A Account Usage Collateral Pool Coverage

• Clearing Member does not offer Net Omnibus solution to any clients

• Only A1 account • A1 = Non-segregated client business

• Non-segregated collateral pool

• Clearing Member does not offer Net Omnibus solution • Clearing Member has requested assignment of additional agent account to their Eurex derivatives member ID • A1 - A9 accounts are available for Eurex derivatives • Differentiation of different client types possible, e.g. to differentiate affiliated business

• A1 - A9 = Non- segregated client business; accounts can be differentiated as needed by the CM

• Non-segregated collateral pool

• Clearing Member offers Net Omnibus segregation

• A1 - A9 accounts are available for Eurex derivatives • Differentiation of different client types possible, e.g. to differentiate affiliated business A1-A8 = Non- Segregated client business A9 = Net Omnibus segregated client business • Non-Segregated collateral pool • Net Omnibus collateral pool

2.1.3.2 Premium Accounts

The clearing house runs a specific internal premium account for options transactions for all currencies for each member account. It posts the premiums of all option transactions executed on the exchange to the premium account that relates to the relevant position account and the corresponding currency. Premium accounts are settled daily. The clearing house communicates the balance of each premium account to the Non Clearing Member and to the Clearing Member who settles the account via the system.

Clearing members pay and are liable for their own premiums and those of their Non Clearing Members. The total amounts per currency of all the premium accounts belonging to a Clearing Member are posted to the internal cash accounts overnight.

2.1.3.3 Cash/Securities Account

For each Clearing Member, Eurex manages internal cash accounts for all currencies to which premiums, fees, margin requirements, cash settlements as well as other cash obligations resulting from the clearing procedure are posted. The daily balances of the Clearing Member currency accounts in a Eurex currency is cleared by debiting (or crediting) the Clearing Member central bank accounts or the central bank accounts of its correspondent bank. For GBP and USD, the debits or credits are performed using the payment banks in the corresponding countries. For transactions in USD performed in EEX, the corresponding CBF cash accounts are used. However, credit balances are only paid to the CM as described above if the clearing house does not require them as security for the cover of the CMs margin liabilities.

The clearing house also manages multiple internal collateral accounts for each Clearing Member, which mirror the holding of securities in one of the Clearing Member's collateral accounts at the CSD.

EUREX

CM ACCOUNTS NCM ACCOUNTS

POSITIONS PREMIUMS FEES

CASH/ SECURITIES

ACCOUNTS

POSITIONS PREMIUMS FEES

PRINCIPAL CLIENTS MARKET MAKER PRINCIPAL CLIENTS MM PRINCIPAL CLIENTS MM PRINCIPAL CLIENTS MM PRINCIPAL CLIENTS MM PRINCIPAL CLIENTS MM