Eurex Clearing
Definition · Level 14 · Markets & pitch
Keep reading with Tradecraft
Without a subscription, you can read three definitions every 30 days. Tradecraft explains all 988 terms and strategies, with the lessons that teach them, flashcards that come back before you forget, quizzes and a payoff lab.
The central counterparty for Eurex derivatives: it steps between buyer and seller, guarantees each trade and sets members’ margin from a portfolio risk model. The European counterpart of the Options Clearing Corporation (OCC) for US listed options.
Example
A Stoxx option bought on Eurex is guaranteed by it, not by the seller.
Where Tradecraft teaches it
Level 14 · Markets & pitch, in the lesson “European markets on the day: bonds, rates and settlement”: The Bund and the spreads to it, the ECB, €STR and Euribor in one line each, T+2 settlement, and the US rules that never come up in Europe.
Related terms
- OAT–Bund spreadThe yield of France’s 10-year bond (the OAT, Obligation assimilable du Trésor) minus Germany’s, in basis points (bp): the market’s main gauge of…
- T+2 settlementCash and shares change hands two business days after the trade date: the standard for shares on European exchanges.
- “Are you sure?”Often a pressure test rather than a hint that you’re wrong: re-check in one line, then hold a correct answer, or fix a wrong one without fuss.
- Backed upDesk slang for yields rising, so bond prices falling.
- CAC 40The Paris benchmark: 40 large caps listed on Euronext Paris, weighted by capped free-float market cap, base 1,000 at the end of 1987.
- CatalystThe event or date that should make the idea play out soon: results, a data release, a central-bank meeting.