Collateral Security

    ECC accepts a wide variety of highly liquid bonds as collateral.

    However, ECC only accepts securities that are both

    • ECB eligible and
    • admissible for Eurex.

    Furthermore, bonds need to meet the following requirements to be admissible for ECC:

    • The remaining time to maturity needs to be 15 calendar days or more
    • They need to be non-callable fixed rate or zero rate bonds
    • Non-callable Floating rate bonds or non-callable reverse floating rate bonds with constant structure (i.e. they do not switch between fixed and floating coupons)
    • No optionalities and inflation-linked coupon structure
    • Acceptable risk profile based on the internal risk assessment

    ECC does not accept own issues (wrong-way risk) as well as close link securities as eligible collateral. 

    ECC determines concentration limits for margin and default fund requirements.

    ECC has a collateral policy which establishes concentration limits at the level of:

    • individual issuers
    • country of issuer
    • currency (except EUR).

    If a concentration limit is violated, ECC's Clearing Operations team will contact the clearing member who submitted collateral leading to the breach to initiate a replacement of collateral.

    The collateral policy and procedures are reviewed at least annually and whenever a material change occurs that materially affects the risk exposure.