Qualified Clearing Staff / Qualified Back Office Staff

Qualified Clearing Staff / Qualified Back Office Staff Eurex Clearing AG

Eurex Clearing 2015 Deutsche Börse AG (DBAG), Clearstream Banking AG (Clearstream), Eurex Frankfurt AG, Eurex Clearing AG (Eurex Clearing) as well as Eurex Bonds GmbH (Eurex Bonds) and Eurex Repo GmbH (Eurex Repo) are corporate entities and are registered under German law. Eurex Zürich AG is a corporate entity and is registered under Swiss law. Clearstream Banking S.A. is a corporate entity and is registered under Luxembourg law. U.S. Exchange Holdings, Inc. and International Securities Exchange Holdings, Inc. (ISE) are corporate entities and are registered under U.S. American law. Eurex Frankfurt AG (Eurex) is the administrating and operating institution of Eurex Deutschland. Eurex Deutschland and Eurex Zürich AG are in the following referred to as the Eurex Exchanges. All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof (other than certain trademarks and service marks listed below) are owned by DBAG and its affiliates and subsidiaries including, without limitation, all patent, registered design, copyright, trademark and service mark rights. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication DBAG, Clearstream, Eurex, Eurex Clearing, Eurex Bonds, Eurex Repo as well as the Eurex Exchanges and their respective servants and agents (a) do not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication. This publication is published for information purposes only and shall not constitute investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. Eurex and Eurex Clearing offer services directly to members of the Eurex exchanges respectively to clearing members of Eurex Clearing. Those who desire to trade any products available on the Eurex market or who desire to offer and sell any such products to others or who desire to possess a clearing license of Eurex Clearing in order to participate in the clearing process provided by Eurex Clearing, should consider legal and regulatory requirements of those jurisdictions relevant to them, as well as the risks associated with such products, before doing so. Eurex derivatives are currently not available for offer, sale or trading in the United States or by United States persons (other than EURO STOXX 50 Index Futures, EURO STOXX 50 ex Financials Index Futures, EURO STOXX Select Dividend 30 Index Futures, EURO STOXX Index Futures, EURO STOXX Large/Mid/Small Index Futures, STOXX Europe 50 Index Futures, STOXX Europe 600 Index Futures, STOXX Europe 600 Banks/Industrial Goods & Services/Insurance/Media/Travel & Leisure/Utilities Futures, STOXX Europe Large/Mid/Small 200 Index Futures, Dow Jones Global Titans 50 IndexSM Futures (EUR & USD), DAX /MDAX /TecDAX Futures, SMIM Futures, SLI Swiss Leader Index Futures, MSCI World/Europe/ Europe Value/Europe Growth/Emerging Markets/Emerging Markets Latin America/Emerging Markets EMEA/Emerging Markets Asia/China Free/India/Japan/Malaysia/South Africa/Thailand/AC Asia Pacific ex Japan Index Futures, TA-25 Index Futures, Daily Futures on TAIEX VFutures, VSTOXX Futures, Gold and Silver Futures as well as Eurex agriculture, property and interest rate derivatives). Trademarks and Service Marks Buxl, DAX, DivDAX, eb.rexx, Eurex, Eurex Bonds, Eurex Repo, Eurex Strategy WizardSM, Euro GC Pooling, FDAX, FWB, GC Pooling,,GCPI, MDAX, ODAX, SDAX, TecDAX, USD GC Pooling, VDAX, VDAX-NEW and Xetra are registered trademarks of DBAG. All MSCI indexes are service marks and the exclusive property of MSCI Barra. ATX, ATX five, CECE and RDX are registered trademarks of Vienna Stock Exchange AG. IPD UK Annual All Property Index is a registered trademark of Investment Property Databank Ltd. IPD and has been licensed for the use by Eurex for derivatives. SLI, SMI and SMIM are registered trademarks of SIX Swiss Exchange AG. The STOXX indexes, the data included therein and the trademarks used in the index names are the intellectual property of STOXX Limited and/or its licensors Eurex derivatives based on the STOXX indexes are in no way sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor its licensors shall have any liability with respect thereto. Dow Jones, Dow Jones Global Titans 50 IndexSM and Dow Jones Sector Titans IndexesSM are service marks of Dow Jones & Company, Inc. All derivatives based on these indexes are not sponsored, endorsed, sold or promoted by Dow Jones & Company, Inc. Dow Jones & Company, Inc. does not make any representation regarding the advisability of trading or of investing in such products. Bloomberg Commodity IndexSM and any related sub-indexes are service marks of Bloomberg L.P. All references to London Gold and Silver Fixing prices are used with the permission of The London Gold Market Fixing Limited as well as The London Silver Market Fixing Limited, which for the avoidance of doubt has no involvement with and accepts no responsibility whatsoever for the underlying product to which the Fixing prices may be referenced. PCS and Property Claim Services are registered trademarks of ISO Services, Inc. Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc. Taiwan Futures Exchange and TAIFEX are registered trademarks of Taiwan Futures Exchange Corporation. Taiwan Stock Exchange, TWSE and TAIEX are the registered trademarks of Taiwan Stock Exchange Corporation. BSE and SENSEX are trademarks/service marks of Bombay Stock Exchange (BSE) and all rights accruing from the same, statutory or otherwise, wholly vest with BSE. Any violation of the above would constitute an offence under the laws of India and international treaties governing the same. The names of other companies and third party products may be trademarks or service marks of their respective owners.

Table of Contents Page 3 of 102 Table of Contents Table of Contents 3 Abbreviations 6 Product Codes 8 Amendments to 9 1 Introduction 10 1.1 Structure of the Test, Question Types and Evaluation 10 1.2 Contact/Registration 11 2 Product Overview 13 2.1 Equity Options 13 2.2 Equity Index Options 15 2.3 Equity Index Futures 16 2.4 Fixed Income Derivatives 17 2.5 FX Derivatives 18 2.6 Position Limits 19 2.7 Eurex Trade Entry Services (Eurex TES) 19 2.7.1 Eurex Flexible Contracts 20 2.8 Sample Questions 21 3 Clearing Conditions for Eurex Clearing AG 22 3.1 Clearing Licenses 22 3.2 Client Asset Protection (Clearing Models) 24 3.3 Internal Accounts 26 3.4 Transactions Concluded at Eurex Deutschland and Eurex Zürich (Eurex Exchanges) 28 3.4.1 Multiple Clearing Relationships 28 3.4.2 Clearing of Futures Contracts 30 3.4.2.1 Clearing of Fixed Income Futures Contracts 30 3.4.2.2 Clearing of Equity Index Futures Contracts 32 3.4.3 Clearing of Options Contracts 32 3.4.3.1 Clearing of Equity Index Options Contracts 33 3.4.3.2 Clearing of Options Contracts on Fixed Income Futures Contracts 34 3.5 Clearing of Off-Book Transactions (Eurex Trade Entry Services) 35 3.5.1 Clearing of Off-Book Standardized Eurex Contracts 35 3.5.2 Clearing of Off-Book Flexible Eurex Futures Contracts 35

Table of Contents Page 4 of 102 3.5.3 Clearing of Off-Book Flexible Eurex Options Contracts 36 3.6 Sample Questions 37 4 Transaction Management 38 4.1 Trade and Position Management 39 4.1.1 Trade Management 39 4.1.1.1 Trade Separation (Trade Split) 39 4.1.1.2 Account Transfer (Internal Trade Transfer) 40 4.1.1.3 Open/Close Adjustment 40 4.1.1.4 Historical Trade Transfer (HITT) 41 4.1.1.5 Text Adjustment 41 4.1.2 Position Management 41 4.1.2.1 Close out (Position Closing Adjustment) 42 4.1.2.2 Account Transfer (Position Account Transfer within a Member) 44 4.1.2.3 Position Transfer (Member Position Transfer) 45 4.1.2.4 Main Reports 47 4.2 Give-up / Take-up 48 4.2.1 Main Reports 51 4.3 Exercise / Assignment 52 4.3.1 Exercise 52 4.3.2 Assignment 53 4.3.3 Automatic Exercise 54 4.3.4 Main Reports 56 4.4 Notification / Allocation 57 4.4.1 Notification 57 4.4.2 Allocation 58 4.4.3 Main Reports 60 4.5 C7, Eurex Clearing s new clearing architecture 61 4.6 Sample Questions 62 5 Risk Management 65 5.1 Overview 65 5.2 Internal Margin Accounts and Collateral Pools 66 5.3 Risk Based Margining 67 5.3.1 Premium Margin for Options (Traditional Options, Premium-styled Options) 68 5.3.2 Variation Margin (VM) 68 5.3.3 Additional Margin 70 5.3.4 Futures Spread Margin 70 5.3.5 Short Option Adjustment 71

Table of Contents Page 5 of 102 5.3.6 Method for Calculating Future-Style Margin 73 5.3.7 Margin Calculations within Margin Classes and Margin Groups 74 5.4 Prisma 76 5.4.1 General Principles 76 5.4.2 Margin Types 78 5.5 Pre-Trade Risk Controls 80 5.5.1 Advanced Risk Protection 80 5.5.2 Stop Functions 85 5.5.2.1 Stop Button (@X-tract Clearing GUI) 86 5.5.2.2 Panic Cancel and Stop/Release Actions within T7 87 5.5.3 Transaction Size Limits 88 5.5.4 Pre-trade Limits within T7 91 5.6 Post-Trade Controls 92 5.6.1 Trade Confirmation Broadcast 92 5.6.2 Enhanced Risk Solution 92 5.6.3 Reports 93 5.7 Sample Questions 94 6 Collateral Management 95 6.1 Overview 95 6.2 Reports 98 6.3 Specific Equity Collateral Assignment Overview (SECAO) Function 99 6.4 Sample Questions 102

Abbreviations Page 6 of 102 Abbreviations Term ATM BU CASS CBF CCP CM CSD CTD DAX DCM ECM EoD ETC ETF EU exas FCA FSP FWB GCM GU GUI HITT ICM ISIN Description At-the-money Business unit FCA s Clients Assets Sourcebook (requirements relating to holding client assets and client money) Clearstream Banking Frankfurt Central Counterparty Clearing Member Central securities depository Cheapest to deliver Deutscher Aktienindex (German equity index) Direct Clearing Member Elementary Clearing Model End of day Exchange-traded commodity Exchange-traded fund European Union Electronic Exchange Admission Service Financial Conduct Authority (regulator of the financial services industry in the United Kingdom) Final Settlement Price Frankfurter Wertpapierbörse (Frankfurt Stock Exchange) General Clearing Member Give-Up Graphical User Interface Historical Trade Transfer Individual Clearing Model International Securities Identification Number

Abbreviations Page 7 of 102 Term ITM LTD MtM NCM OTC OTM QCS QBO RBM RC RTGS SMI SNB T7 TARGET2 TES TSL Description In-the-money Last trading day Mark-to-market Non-Clearing Member Over the counter (trades negotiated off-exchange) Out-of-the-money Qualified Clearing Staff Qualified Back-office Staff Risk Based Margining Registered Customer Real-time gross settlement Swiss Market Index Swiss National Bank Eurex Exchanges Trading System Trans-European Automated Real-time Gross Settlement Express Transfer System Eurex Trade Entry Services (trades negotiated off-book) Transaction size limit

Product Codes Page 8 of 102 Product Codes In the following table some main product codes are listed. Code ODAX OESX FDAX FESX FGBL FGBM FGBS FGBX OGBL OGBM OGBS Product DAX Options EURO STOXX 50 Index Options DAX Futures EURO STOXX 50 Index Futures Euro-Bund Futures Euro-Bobl Futures Euro-Schatz Futures Euro-Buxl Futures Options on the Euro-Bund Futures Options on the Euro-Bobl Futures Options on the Euro-Schatz Futures

Amendments to Page 9 of 102 Amendments to This list tracks all changes in the preparation material between regular updates. Date Version Chapter Changes 2.0 2 3.1 3.2, 3.3 3.5 4 4.5 5 6.1 Revised and FX derivatives added Changes in minimum requirement of own funds Revised Eurex Trade Entry Services (TES) instead of Eurex OTC Trade Entry Services, Eurex Off book trades instead of OTC transactions New Introduction Updated Revised Changed concentration limit for equities

Introduction Page 10 of 102 1 Introduction The handbook was developed to help you prepare for the Clearer Test. It summarizes the relevant content from different sources covered in this test. It describes the different services of the clearing process and is complemented with sample questions for the test. The sources of information for specific topics as well as the preparation material for the Clearer Test Basic Module are referenced where relevant to provide the reader with access to more detailed information which may be of interest, but is not required for this test. The current version can be downloaded via: www.deutsche-boerse.com/qcs_qbo Please note that there will be regular updates. 1.1 Structure of the Test, Question Types and Evaluation The Clearer Test is carried out using a computer program, which randomly selects 30 questions from a question pool for each examination candidate. The test is offered in German and English. There are three different types of questions: True/False (TF) 2 points Multiple choice (MC) 2 points Multiple response (MR) 4 points MC/MR questions which are not answered will consequently not be assessed (0 points). In case of MR questions, either one or several answers could be correct and must be marked to obtain the maximum score of 4 points. The following evaluation method is used: For marking the correct answer and not marking the wrong answer one point is given For marking the wrong answer and not marking the correct answer one point is subtracted So the result could be 4, 2 or 0 points; a negative score will not be given.

Introduction Page 11 of 102 The following table provides an overview of the number and types of questions to be selected for each topic: Topic TF MC MR No. of questions 1.0 Product Overview 3 2 0 5 2.0 Clearing Conditions 3 1 0 4 3.0 Transaction Management (including Graphical User Interface (GUI)) 8 4 3 15 4.0 Risk Management 0 3 1 4 5.0 Collateral Management 0 1 1 2 Total 14 11 5 30 Participants need 75% of the maximum points to pass the test and have 30 minutes to complete the test. 1.2 Contact/Registration We would like to point out that according to the Clearing Conditions for Eurex Clearing AG ( Clearing Conditions ) each Clearing Member must have at least one Qualified Clearing Staff (QCS). This QCS must have passed the Clearer Test consisting of two modules: the Basic Module and a market module for the particular Clearing License. Additionally each Non-Clearing Member of Eurex Exchanges must have at least one Qualified Back Office Staff (QBO). This QBO must have passed the of the Clearer Test. If all back-office functions are outsourced to its Clearing Member, no QBO shall be required for the Non- Clearing Member. Dates (individual online exam is also possible) and information about the Clearer Test modules can be found under the following link: www.deutsche-boerse.com/qcs_qbo For further information please contact the Capital Markets Academy: Capital Markets Academy of Deutsche Börse Group Phone: +49 69 211 13767 Fax: +49 69 211 13763 Homepage: http:// deutsche-boerse.com/cma E-Mail: academy@deutsche-boerse.com To register as a QCS or QBO please use the Electronic Exchange Admission Service (exas). exas can be found in the member section on the website of Eurex Clearing or under the following link: www.member.eurexclearing.com.

Introduction Page 12 of 102 For questions about access to the Member Section of Eurex Clearing, please contact the Member Section Team at +49-(0) 69-2 11-1 78 88 or by e-mail to member.section@deutsche-boerse.com. For any questions regarding the features of exas, please call the following Member Services & Admission teams: Location Phone E-Mail Zurich +41-(0) 58-8 54-29 42 eurexzuerichag@eurexchange.com Paris +33 (0) 155-27-67 67 paris.admission@deutsche-boerse.com London +44 (0) 207-8 62-71 65 uktraderadmission@deutsche-boerse.com Chicago +1-312-5 44-11 50 customer.support.chicago@deutsche-boerse.com Frankfurt +49 (0) 69-2 11-1 16 40 person.admission@deutsche-boerse.com

Product Overview Page 13 of 102 2 Product Overview A Eurex Derivatives Clearing License authorizes Clearing Members to clear their own and customer business executed on the Eurex Exchanges. The license to clear at Eurex Clearing gives access to some of the world's most liquid benchmark products across a wide range of asset classes. Products from nine asset classes are available for clearing: Interest rate derivatives Equity derivatives Equity index derivatives Dividend derivatives Volatility index derivatives Exchange Traded Funds derivatives Commodity derivatives Property derivatives FX derivatives For these products a wide range of futures and options is offered. Future: A future is a standardized contract between two parties. The parties agree to exchange a defined quantity of an underlying asset at an agreed price at a fixed point of time in the future. Option: An option is a standardized contract between two parties. The buyer of an option purchases against payment of the option price (premium) the right to buy (call) or sell (put) a defined amount of a certain financial product at an agreed price within a certain period of time or on a specific date in the future. In the following selected Eurex products are introduced in more detail. A general survey on all products is available on www.eurexchange.com/products. 2.1 Equity Options Equity options are contracts negotiated between a seller, or option writer, and a buyer, or option holder, based upon the exchange of securities at a given price, called the strike or exercise price. There are two types of equity options: call options and put options. Call options grant the buyer the right to purchase a security at a given time based upon the established strike price. Those who buy call options are hoping that the price of the security will rise by the time they follow through with their purchase. When a contract for a call option is agreed, the buyer can chose to follow through with the purchase at the specified time or opt out, but the seller is obligated to honor the transaction, i.e. make delivery of the security at the agreed price, if the buyer exercises his/her right. Put options grant the buyer the right to sell a security at a given time based upon the established strike price. Those who buy put options are expecting that the price of the security will fall by the time they follow through with their sale. When a contract for a put option is agreed, the buyer can choose to follow through with the sale at the specified time or opt out, but the seller is obligated to honor the transaction, i.e. take delivery of the security at the agreed price, if the buyer exercises his/her right.

Product Overview Page 14 of 102 Settlement Physical delivery of underlying shares takes place two or three business days after the exercise day: Contract Settlement Day Contract Size (Trading Unit) Minimum Price Change (Tick Size) Standard t+2 100* 0.01* Spanish equity options t+3 * Depending on the underlying, contract sizes and tick sizes can differ. Due to corporate actions contract sizes can differ from the standard contract size. Current contract sizes can be found on www.eurexchange.com > Products > Equity Derivatives > Equity Options. Last Trading Day Last Trading Day (LTD) is the third Friday, for Italian equity options the day before the third Friday, of each expiration month, if this is an exchange day; otherwise, the exchange day immediately preceding that day. Daily Settlement Price The Daily Settlement Price is established by Eurex. The Daily Settlement Prices for equity options are determined through the binomial model according to Cox/Ross/Rubinstein. If necessary, dividend expectations, current interest rates or other payments are taken into consideration. Further details are available in the Clearing Conditions. Exercise By default Eurex equity options are American-style which means an option can be exercised until the start of the Post-Trading Restricted Period (20:00 CET) on any trading day during the lifetime of the option. For further information on exercising see chapter 4.3 and for information on the different Post-Trading Period sub-phases introduction of chapter 4. Option Premium The premium, which is the price of the option, is payable in full in the currency of the respective contract on the exchange day following the day of the trade.

Product Overview Page 15 of 102 2.2 Equity Index Options Elements of the contract specifications for the EURO STOXX 50 Index Options (OESX) and DAX Options (ODAX) are described here as examples. Settlement Cash settlement is payable on the first exchange day following the Final Settlement Day. Product ID Close of Trading on LTD Contract Value (Multiplier) in EUR Minimum Price Change Points Value in EUR OESX 12:00 CET 10 0.1 1.00 ODAX 13:00 CET 5 0.1 0.50 Last Trading Day and Final Settlement Day The Last Trading Day is the Final Settlement Day. The Final Settlement Day is the third Friday of each expiration month if this is an exchange day; otherwise the exchange day immediately preceding that day. Daily Settlement Price The Daily Settlement Price is established by Eurex. The Daily Settlement Prices for equity index options (as well as weekly options) are determined through the Black/Scholes 76 model. If necessary, dividend expectations, current interest rates or other payments are taken into consideration. Final Settlement Price (FSP) The Final Settlement Price is established by Eurex on the Final Settlement Day of the contract. The FSP for EURO STOXX 50 Index Options is based on the average of the respective STOXX index values calculated between 11:50 and 12:00 CET. For DAX options it is determined by the value of the respective index, based on Xetra intraday auction (starts at 13:00 CET) prices of the respective index component shares. Exercise European-style; an option can only be exercised on the Final Settlement Day of the respective option series until the end of the Post-Trading Full Period (21:00 CET). For further information on exercising see chapter 4.3 and for information on the different Post-Trading Period sub-phases introduction of chapter 4.

Product Overview Page 16 of 102 Option Premium The premium is the price of the option. As these products are quoted in points, the premium equals the points multiplied with the value of a point and is payable in full in the currency of the respective contract on the exchange day following the day of the trade. 2.3 Equity Index Futures Elements of the contract specifications for the EURO STOXX 50 Index Futures (FESX) and DAX Futures (FDAX) are described here as examples. Settlement Cash settlement is payable on the first exchange day following the Final Settlement Day. Product ID Close of Trading on LTD Contract Value (Multiplier) in EUR Minimum Price Change Points Value in EUR FESX 12:00 CET 10 1 10.00 FDAX 13:00 CET 25 0.5 12.50 Last Trading Day and Final Settlement Day The Last Trading Day is the Final Settlement Day. The Final Settlement Day is the third Friday of each maturity month if this is an exchange day; otherwise the exchange day immediately preceding that day. Daily Settlement Price (related to FESX and FDAX products) The Daily Settlement Prices for the current maturity month are derived from the volume-weighted average of the prices of all transactions during the minute before 17:30 CET, provided that more than five trades transacted within this period. For the remaining maturity months, the Daily Settlement Price for a contract is determined based on the average bid/ask spread of the combination order book. Final Settlement Price The Final Settlement Price (FSP) is established by Eurex on the Final Settlement Day of the contract. The FSP for the FESX is based on the average of the respective STOXX Index values calculated between 11:50 and 12:00 CET. For the FDAX it is determined by the value of the respective index, based on Xetra intraday auction (starts at 13:00 CET) prices of the respective index component shares.

Product Overview Page 17 of 102 2.4 Fixed Income Derivatives Elements of the contract specifications for the Euro-Bund Futures (FGBL), Euro-Bobl Futures (FGBM) and Euro-Schatz Futures (FGBS) are described here as examples. Notional short-, medium- or long-term debt instruments issued by the Federal Republic of Germany with remaining terms and a coupon of: Product ID Close of Trading on LTD Remaining Term (Years) Contract Values (Multiplier) in EUR Coupon (Percent) Minimum Price Change Tick Size Tick Value (Percent) (EUR) FGBL 12:30 CET FGBM 12:30 CET FGBS 12:30 CET 8.5 to 10.5 100,000 6 0.01 10 4.5 to 5.5 100,000 6 0.01 10 1.75 to 2.25 100,000 6 0.005 5 Settlement A delivery obligation arising out of a short position may only be fulfilled by the delivery of certain debt securities issued by the Federal Republic of Germany, with a remaining term on the Delivery Day within the remaining term of the underlying. Debt securities issued by the Federal Republic of Germany must have an original term of no longer than 11 years and must have a minimum issue amount of EUR 5 billion. Delivery Day The tenth calendar day of the respective quarterly month, if this day is an exchange day; otherwise, the exchange day immediately succeeding that day. Notification Clearing Members with open short positions must notify Eurex on the Last Trading Day of the maturing futures which debt instrument they will deliver. Such notification must be given by the end of the Post- Trading Full Period (20:00 CET for FGBL, FGBM and FGBS). For further information on notification please see chapter 4.4. Last Trading Day Two exchange days prior to the Delivery Day of the relevant maturity month. Close of trading in the maturing futures on the Last Trading Day is at 12:30 CET.

Product Overview Page 18 of 102 Daily Settlement Price For German fixed income futures, the Daily Settlement Price for the current maturity month is derived from the volume-weighted average of the prices of all transactions during the minute before 17:15 CET (reference point), provided that more than five trades transacted within this period. For the remaining maturity months the Daily Settlement Price for a contract is determined based on the average bid/ask spread of the combination order book. Final Settlement Price The Final Settlement Price is established by Eurex on the Final Settlement Day at 12:30 CET based on the volume-weighted average price of all trades during the final minute of trading provided that more than ten trades occurred during this minute; otherwise the volume-weighted average price of the last ten trades of the day, provided that these are not older than 30 minutes. If such a price cannot be determined, or does not reasonably reflect the prevailing market conditions, Eurex will establish the Final Settlement Price. For further information please have a look in the Product brochure on www.eurexchange.com > Products or in the contract specifications. 2.5 FX Derivatives Clearing services for FX futures and FX options on six currency pairs (EUR/USD, EUR/CHF, EUR/GBP, GBP/USD, GBP/CHF, USD/CHF) traded on Eurex Exchange are offered. The FX derivatives are physically delivered through the multi-currency settlement system Continuous Linked Settlement (CLS). CLS mitigates settlement risk in FX transactions of its participants by settling two legs of a FX transaction simultaneously. Once a transaction is settled in CLS, it is final and irrevocable. Eurex Clearing requires CMs to have a CLS connectivity in place. This can be achieved either by an own CLS Settlement Membership or through a CLS third-party service provider. As a technical requirement it is necessary to install a so-called RMA service (SWIFT Relation Management Application) and a SWIFT Closed User Group. CMs receive the relevant Eurex Clearing reports and SWIFT messages with the related currency pairs for settlement within the CLS system. FX futures that have not been closed out before expiration and FX options that have been exercised and assigned at expiration date will result in physical settlement of currencies once per month on a payment vs. payment basis in CLS. The delivery and expiration will take place on the third Wednesday of the contract month with settlement on the third Friday, i.e. on T+2 days after the last trading day. Eurex Clearing settles the payment instructions in CLS using a CLS third party service provider. This means Eurex Clearing forwards its instructions via SWIFT message to its third party service provider who, after checking the agreed requirements, will forward the instructions to CLS in the morning of S-1. Simultaneously, Eurex Clearing also sends the corresponding CM instructions to the CM for further processing via Swift message. The CM has to instruct the corresponding instruction into CLS promptly to ensure that Eurex Clearing instructions match with the corresponding CM instructions in CLS by 23:00 CET on S-1. Given only matched instructions can settle in CLS any unmatched instructions will be rejected by 00:00 CET on S-1/S by CLS. Without this infrastructure, CMs and their associated NCMs are not allowed to trade FX products.

Product Overview Page 19 of 102 2.6 Position Limits A position limit is the maximum number of futures or option contracts in a particular product that may be held by one Exchange Participant for one of its customers or for its own account. The Board of Management of Eurex Deutschland or Eurex Zürich may set or alter position limits in order to ensure orderly futures and options trading and to avoid risks for the spot markets. An Exchange Participant may not for its own account or for the account of any customer engage in any transactions at the Eurex Exchanges if there is any indication that, as a consequence of such transactions, such Exchange Participant or its customer, whether alone or jointly with others, would hold or control a total position in excess of the position limits set by the Board of Management of Eurex Deutschland or Eurex Zürich, as the case may be. If a position limit is exceeded pursuant to aforementioned provisions, the Exchange Participant is obligated to immediately reduce the respective position to the limit. The Exchange Participant undertakes to obtain the consent of its customer, in case such consent is necessary. If the Exchange Participant fails to fulfill its obligation to reduce the position within the period of time determined by the Management Board, the Management Boards of the Eurex Exchanges by carrying out the entries in the Eurex trading platform - reduce the respective position to the limit on behalf and for the account of the participant. If the positions kept on the customer position accounts as a whole exceed the position limit, the Exchange Participant has to prove to the Trading Surveillance Office of Eurex Deutschland or to the Eurex Zürich Independent Surveillance, respectively, that none of the beneficiary owner of its customers positions holds a position exceeding the position limit. For further information please see the Exchange Rules for Eurex Deutschland and Eurex Zurich. For the calculation of the position limit all physically settled contracts of the relevant underlying will be taken into consideration, irrespective, of whether these are regular contracts or TES Flexible Contracts. The position limit is not applicable to regular Single Stock Futures and TES Flexible Futures with cash settlement. 2.7 Eurex Trade Entry Services (Eurex TES) Besides trading derivatives products on Eurex Exchange s T7 (Eurex Exchange s Trading System), a broad range of Trade Entry functionalities are also offered. Thus for any product, which can be traded onexchange, a TES transaction can be entered. Eurex Trade Entry Services enable participants to enter off-book trades in the Eurex trading system. With these facilities members benefit from the flexibility of customized trading and the advantages of standardized clearing and settlement. Most facilities are pure trade entry services which facilitate the bilateral agreement of price and quantities. The Multilateral Trade Registration facility supports prenegotiated off-book trading with multiple counterparties. In general, TES functionalities are related to standardized products, which are fully fungible and have the same contract specifications as the products traded on-exchange. TES trades in options and/or futures which deviate from the standard contract specifications are also available for selected products. These products are known as Eurex Flexible Contracts.

Product Overview Page 20 of 102 2.7.1 Eurex Flexible Contracts The flexible contracts facilities support off-book trading of tailor-made futures and options contracts. This allows traders to customize their trades to meet their individual needs. Eurex products across various asset classes are offered via the Eurex Flexible Contracts Services. Market participants can design Flexible Futures trades by selecting: Flexible maturity Participants of a Flexible Futures trade can create their own maturity date for the transaction. Individual maturity dates can be as early as the next exchange day or as far out as the maturity date for the most distant respective standard futures contract. Market participants can design Flexible Options by selecting: Exercise price The selected exercise price can be defined above the highest exercise price of the corresponding regular option series or may be the lowest exercise price of an option (e.g. LEPOs), which can be represented in Eurex Exchange s T7, or an intermediate price. Maximum exercise prices are limited to 2.5-times the highest available standard expiry in the respective product. Expiration date The expiration date can be any exchange day (with some special Eurex defined exceptions) starting from the next exchange day until the longest currently active standard expiration date of the respective product. Exercise style American-style (exercise on any exchange day during the lifetime of the option) or European-style (exercise only on the Last Trading Day of the option) can be specified. Settlement type In trades with equity and ETF options members have the ability to negotiate the terms of settlement at the time of conclusion (cash settlement or physical delivery).

Product Overview Page 21 of 102 2.8 Sample Questions 2-001 Eurex Exchanges offer on-exchange trading for an extensive range of products as well as a service for entering off-book trades. True False Correct answer: True 2-002 How many exchange days prior to the Delivery Day is the Last Trading Day of the Euro-Bund Futures? A: 1 B: 2 C: 3 D: 10 Correct answer: B 2-003 The close of trading for equity index futures on the Last Trading Day is consistent with the close of trading for equity index futures on any other exchange trading day. True False Correct answer: False 2-004 What is the fundamental difference between equity options and equity index options trading at the Eurex Exchanges? A: The choice of exercise price is less important for the equity index option than for the equity option. B: The underlying instrument has less effect on the equity option than on the equity index option. C: Equity index options are exercised European-style, while equity options are mostly exercised american-style. D: Potential profits and losses of equity index options are more calculable than potential profits and losses of equity options. Correct answer: C 2-005 In general the Eurex Trade Entry Services (TES) are related to standardized products, which have the same contract specifications as the products traded on-exchange. True False Correct answer: True

Clearing Conditions for Eurex Clearing AG Page 22 of 102 3 Clearing Conditions for Eurex Clearing AG Four types of memberships define the clearing house account structure: General Clearing Member (GCM): Also referred to as Clearing Members (CMs). Can offer clearing services to company affiliated or non-affiliated Non Clearing Members NCMs and Registered Customers (RCs). Direct Clearing Member (DCM): Also referred to as Clearing Members (CMs). Can offer clearing services to company affiliated NCMs only and RCs. Non-Clearing Member (NCM): NCMs are Trading Participants without a clearing license. Non-Clearing Member trades are cleared by the clearing house through a Clearing Member. Registered Customer (RC): RCs are not Trading Participants of Eurex Clearing cleared markets, but are customers of Trading Participants or Clearing Members. They have an own member ID and are set up as NCMs. Registered Customer trades are cleared by the clearing house through a Clearing Member. CMs can have three types of clients: NCMs RCs Non-disclosed customers without a relationship to Eurex Clearing 3.1 Clearing Licenses A Clearing License is required in order to participate in the clearing of derivatives transactions at the Eurex Exchanges; Eurex Clearing grants such Clearing License upon written application. In this section only the requirements for the amount of own funds and the contribution to the clearing funds are mentioned. For further details regarding the prerequisites for Clearing Licenses please refer to chapter 2.3 of the Basic Module. Own funds 1 Clearing Members must show evidence of a certain minimum level of own funds. The level depends on the status of the CM (GCM or DCM) as well as upon the markets that each member clears. Minimum capital requirements are additive for multiple licenses in different asset classes. Cleared Market General Clearing Member minimum in EUR mn Direct Clearing Member minimum in EUR mn Eurex Exchanges 30 7.5 1 The term own funds was introduced pursuant to the European Capital Requirements Directive 2013/36/EU (CRD IV) and the European Capital Requirements Regulation (EU) No. 575/2013 (CRR). It replaces the term liable equity capital.

Clearing Conditions for Eurex Clearing AG Page 23 of 102 Irrespective of the minimum amounts of own funds specified above, the actual amount of own funds that Eurex Clearing requires their Clearing Members to demonstrate and maintain is equal to the higher amount of: 20 percent of the 30-day average of the Initial 2 Margin requirements or 20 percent of the 250-day average of the Initial Margin requirements The level of own funds is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter. Contributions to the Eurex Clearing Fund Eurex Clearing maintains a Clearing Fund in order to protect market participants in the event of a CM default. Just like the capital requirements the level of contribution to the Clearing Fund depends on the status of the CM (GCM or DCM) as well as upon the markets that each member clears. Dynamic contribution to Clearing Fund in EUR million Market GCM min. (1) DCM min. (2) Maximum of All markets 5 1 7 percent of average initial margin requirement (30 days) 7 percent of average initial margin requirement (250 days) or column (1) or (2), respectively Contributions to the Clearing Fund can be provided in cash and/or in securities accepted by Eurex Clearing. The Clearing Fund is reviewed every quarter to ensure the fund is aligned with current market risk. The total margin requirement includes all products and asset classes cleared by the Clearing Member at Eurex Clearing. The contribution level is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter. Chapter 5 gives an overview on the different margin types. 2 Initial Margin in the Risk-Based Margining system corresponds to Additional Margin plus Futures Spread Margin if applicable.

Clearing Conditions for Eurex Clearing AG Page 24 of 102 3.2 Client Asset Protection (Clearing Models) In the event of a CM default transparency and legal certainty with respect to the treatment of client (nondisclosed customers, NCMs, RCs) positions and margin collateral are important. Portability of positions and collateral are essential for clients of a defaulting CM to continue their trading activities. Clients have different options as to how their positions and margin collateral are held and posted by their CM at Eurex Clearing, depending on each individual client's needs. As a CCP authorized under the European Markets Infrastructure Regulation (EMIR), Eurex Clearing offers both omnibus and individual segregation to Clearing Members and their clients. Omnibus segregated accounts (OSA): Client positions (non-disclosed customers, NCMs and RCs) are isolated from the proprietary positions of the CM and covered by one or more (multiple) collateral pools. Individual segregated accounts (ISA): Positions of each single NCM or RC are isolated from other customer and proprietary positions of the CM and covered by an own individual collateral pool. Eurex Clearing s Clearing Conditions use different naming conventions: Market Standard Terminology Eurex Clearing naming conventions Clearing Conditions Chapter I General Provisions OSA Multiple OSA (MOSA*) Elementary Clearing Model (ECM) Part 2 OSA under CASS (Client Assets Sourcebook) Net Omnibus Model (NOCM) Allows CMs located in the UK to apply the CASS** rules when providing OSA Part 4 ISA Individual Clearing Model (ICM) Part 3 * multiple collateral pools ** UK Financial Conduct Authority's Client Asset Sourcebook (CASS) rules to protect client money and safe custody assets. Currently not every model is available to all markets cleared by Eurex Clearing. Also the availability of a model and its specific features depends on the compliance with the individual rules set out by the respective local jurisdiction of the CM. The Elementary Clearing Model can be used by all CM clients (non-disclosed customers, NCMs, RCs). The Net Omnibus Clearing Model is a segregated solution which is available for all clients and enables a CM in the United Kingdom (UK) to settle NCM/RC transactions under the UK Client Assets Sourcebook (CASS) in the Financial Conduct Authority Handbook. The CM is solely responsible for compliance with the rules of the Client Assets Sourcebook (CASS). The Individual Clearing Model is a segregated solution for NCMs and RCs only.

Clearing Conditions for Eurex Clearing AG Page 25 of 102 Main Features Elementary Clearing Model (ECM) Net Omnibus Clearing Model (NOCM) Individual Clearing Model (ICM) General set-up Client positions are held on separate position accounts and collateral is allocated to proprietary and client positions Value based Pro rata Analogue ECM asset based but for nondisclosed clients positions are hold on the A9 account and on dedicated NCM/RC accounts Dedicated accounts for positions and individual segregated collateral pools Asset based assignment to one collateral pool or to several collateral pools (MOSA) Collateral is held for a group of clients, i.e. cannot be assigned to individual clients Collateral is held for a group of clients, i.e. cannot be assigned to individual clients Securities collateral accounts remain within the account structure of the CM but are clearly labeled to hold collateral for the purpose of the segregated client Legal agreement Offered for all client types Analogue ECM Only for NCMs/RCs Non-disclosed customers conclude agreement on CM level NCM/RC conclude tripartite agreement: Eurex Clearing-CM- NCM/RC NCM/RC conclude tripartite agreement: Eurex Clearing-CM- NCM/RC Legal structure for provision of collateral (cash and non-cash) Title transfer of cash Pledges of non-cash collateral to Eurex Clearing Analogue ECM Double title transfer of cash and non- cash collateral Portability of positions and collateral Available if all clients of a collateral pool agree to be ported and a single alternative CM accepts the transfer Analogue ECM Full portability to a replacement CM or a possibility to become an Interim Participant

Clearing Conditions for Eurex Clearing AG Page 26 of 102 3.3 Internal Accounts Each CM has a certain number of internal transaction accounts (position accounts) for the posting of their transactions. For the members own business (proprietary transactions) two P-transaction accounts (P1, P2) and two M-transaction accounts (M1, M2), which are also used for Market Making, are offered. With respect to customer-related transactions an A-transaction account (A1) for the entire agent business of a CM is available. Further A-accounts from A2 up to A7 and A9 can be provided upon request. Relating to Flexible Accounts in C7 (see chapter 4.5) the A8 account has a specific role. If a NCM/RC wants to use the Flexible Accounts in C7 the A8 account in the Eurex Clearing Classic system (@X-tract) is enabled. It is linked to the transfer account in C7. With regard to the Clearing Models (see chapter 3.2) the A9 account has to be used for the booking of nondisclosed customer positions if the Net Omnibus Clearing Model is offered by the CM. With respect to the delivery management for products with physical delivery (see chapter 4 of the Basic Module) additional A-accounts are not considered. The CCP (central counterparty) system only knows one A-account. Non-Clearing Members have two P- and two M-transaction accounts as well as one A-transaction account (or on request A2-A7, A9 or Flexible Accounts if the CM uses C7 already) available provided that they also conduct customer business. Otherwise they do not have A-transaction accounts. Whereas positions in the relevant customer account (A) and in the own accounts (P) are held on a gross basis, positions in Market Maker accounts (M) are held on a net basis. When entering orders for the transaction accounts held on a gross basis opening (to open a new position) or closing (for closing an existing position) indicator must be entered. In contrast to trading on the M-transaction accounts regardless of which aforementioned indicators are entered, the account nets automatically. For each internal transaction account a fee account and a premium account is held for each currency on a member level. For options transactions, a corresponding internal premium account is kept for each account of each Clearing Member; the premiums for all options transactions that need to be cleared for this Clearing Member are recorded in the premium account for each account. Premium accounts are settled daily. Eurex Clearing makes the balance of any premium account available in the system for the Non-Clearing Member or Registered Customer, respectively, and the Clearing Member responsible for the clearing of such account.

Clearing Conditions for Eurex Clearing AG Page 27 of 102 Figure 3-1: Account Structure Trade/Position Adjustment Own Accounts (P1, P2) on gross basis Customer Accounts (A1 A9) on gross basis Market Maker Accounts (M1, M2) on net basis Open /close adjustment Position Closing Adjustment yes yes Not necessary yes yes Not necessary Trade Separation yes yes No Account Transfer (internal trade transfer) Yes between P and A or within P Yes between A and P or within A Yes but not within M Account Transfer (position transfer within a member) Yes to all internal transaction accounts Yes to all internal transaction accounts yes :

Clearing Conditions for Eurex Clearing AG Page 28 of 102 Such adjustments are permitted only for the purpose of ensuring that transactions are correctly recorded in the relevant customer accounts. A customer position will not be closed with another customer position. Adjustments to opening and closing transactions in the relevant customer account are permitted only to the extent required for the proper maintenance of the account or pursuant to instructions of the customer in accordance with the provisions of the Clearing Conditions. If a transaction or position is specified as a closing transaction (closing trade), without there being sufficient open transactions or positions in the own or customer account, a new transaction will automatically be opened in the own or customer account equivalent to the number of contracts that could not be closed. Trade adjustments can be entered before, during or after the trading period of each trading day, depending on the functions of the Eurex trading platform used. They are permitted with respect to transactions executed on the respective trading day and the both preceding trading days. The timetable for the specific product groups can be found on www.eurexchange.com > Trading > Trading Calendar > Trading Hours. 3.4 Transactions Concluded at Eurex Deutschland and Eurex Zürich (Eurex Exchanges) As part of the admission criteria, Eurex Exchange Participants must participate in the clearing process either by signing an NCM-Clearing Member Agreement with a Clearing Member or by obtaining a Clearing License itself. 3.4.1 Multiple Clearing Relationships Multiple Clearing Relationships (MCR) is an optional offering for the Eurex Exchanges which provides NCMs with more flexibility and choice. With MCR, an NCM may assign the clearing of Eurex transactions to several but not more than three Clearing Members (one primary Member ID and two additional Member IDs) by entering into a separate Clearing Agreement with each such Clearing Member. MCR-Product Groups For each Member ID, the Non-Clearing Member is permitted to clear pre-defined product groups (MCR- Product Groups) with different Clearing Members (max. three). A Clearing Member, in its capacity as a Non-Clearing Member, may also clear a MCR-Product Group not cleared by itself through another Clearing Member.

Clearing Conditions for Eurex Clearing AG Page 29 of 102 Figure 3-2: Multiple Clearing Relationship and MCR-Product Groups The clearing of Eurex transactions of the same MCR-Product Group via different Clearing Members is not permitted. A Non-Clearing Member and a Clearing Member may also agree to enter into a Clearing Agreement without specifying an MCR-Product Group to be cleared. An account at a central bank of the Euro system, TARGET2, and/or Swiss National Bank (SNB) account as well as a Clearstream Banking Frankfurt (CBF) or SIX SIS account for settlement remain mandatory for all Clearing Members and ensure that the MCR-Product Groups Equity & Index and Fixed Income Products can be cleared by all Clearing Members. For further information regarding MCR please refer to Eurex Clearing circular 012/2013 or the Clearing Conditions, Chapter II.

Clearing Conditions for Eurex Clearing AG Page 30 of 102 3.4.2 Clearing of Futures Contracts Eurex Clearing is a contracting party to all payments and physical deliveries arising out of the settlement of Eurex futures contracts. Clearing Members must fulfill their payment obligations in accordance with the instructions of Eurex Clearing. For each futures contract, profits and losses (i.e. Variation Margin) arising out of open positions on any business day will be determined at the end of the Post-Trading Period on the basis of the daily settlement price. Eurex Clearing determines the daily settlement price according to the current market conditions of the respective contract and under consideration of its risk assessment (please refer to Clearing Conditions, Chapter II). 3.4.2.1 Clearing of Fixed Income Futures Contracts All matching payments are settled with physical delivery directly between the Clearing Members and Eurex Clearing on the second Business Day after the Notification Day. The Settlement Claims are settled via a Settlement Location and the payments are settled via the respective account determined by the respective Settlement Location. All Clearing Members and Eurex Clearing must ensure that the transaction can be handled in the Gross Delivery Management (please see also Basic Module, chapter 3) on that Business Day when the delivery notice is given. All Clearing Members must ensure their ability to effect deliveries and payments by having sufficient credit balances in their account at the respective custody institution; on the TARGET2 or eurosic (SNB) account for Euro-denominated fixed income futures contracts. Final Settlement Price The final settlement price is determined by Eurex Clearing on the last Business Day at 12:30 pm CET. The final settlement price corresponds to the volume-weighted average of the prices of all transactions executed during the final trading minute, provided that in such period of time, more than ten transactions were executed. If this is not the case, the settlement price is determined on the basis of the prices of the last ten executed transactions, provided that no more than 30 minutes have passed since these transactions took place. If the calculation of the final settlement price pursuant to the aforementioned regulation is not possible or if the calculated price does not reflect the real market situation, Eurex Clearing determines the final settlement price. Fulfillment, Delivery A delivery obligation arising out of a short position in a Euro-denominated fixed income futures contract may only be performed with debt securities as determined by Eurex Clearing (a detailed list can be found in Chapter 2, Part 2, Number 2.3.4 of the Clearing Conditions). Two Business Days prior to the tenth calendar day of a quarter month (Notification Day), the Clearing Members with open short positions must indicate the type of bonds they will deliver to Eurex Clearing after transaction closing until the end of the Post-Trading Full Period. Existing delivery notifications can be changed until the closing of the Post-Trading Full Period. If a delivery notice is not made in time, Eurex Clearing determines the bonds to be delivered by the Clearing Member. The actual amount of notified debt securities have to be confirmed by Clearing Members vis-à-vis Eurex Clearing one day prior to the Delivery Day.

Clearing Conditions for Eurex Clearing AG Page 31 of 102 After the end of the Post-Trading Period on the Notification Day, Eurex Clearing allocates to the Clearing Members with open long positions the bonds notified for delivery, using a selection procedure that ensures the neutrality of the allocation process. The Clearing Members will be informed on the next Business Day as to which bonds were allocated to them and at what tender (Andienungspreis). For further information regarding notifications and allocations please refer to chapter 4.4 of this document. Failure to deliver In the event that a Clearing Member fails to deliver the bonds to be delivered on the Delivery Day according to the instructions of Eurex Clearing during the delivery times determined for the delivery day is, Eurex Clearing is entitled to take the following measures: Eurex Clearing is entitled to obtain by means of securities lending the notified bonds and deliver them to the Clearing Member which did not receive delivery in time. Eurex Clearing is entitled to designate from the basket of deliverable bonds other than those notified as bonds to be delivered and to deliver such bonds to the Clearing Member which did not receive delivery in time to fulfill the obligations of the Clearing Member which has failed to deliver the bonds designated by Eurex Clearing. Eurex Clearing is entitled to obtain the notified bonds by means of securities lending and deliver them to the Clearing Member which did not receive delivery in time. In the event that the bonds to be delivered are not delivered to Eurex Clearing as part of the standard transfer arrangement of the respective Settlement Location by the fifth Business Day after the Delivery Day, Eurex Clearing is entitled to make a replacement purchase with respect to the undelivered bonds. Eurex Clearing will deliver the bonds acquired through such replacement transaction to the Clearing Member which did not receive delivery in time. In case a CM does not deliver in time interest and penalties will be calculated.

Clearing Conditions for Eurex Clearing AG Page 32 of 102 3.4.2.2 Clearing of Equity Index Futures Contracts All payments are made on the Business Day following the final settlement day. All Clearing Members must ensure their ability to effect payments on the due date thereof by having sufficient credit balances in the TARGET2 account or appropriate similar account. Final Settlement Price The final settlement prices of the index futures contracts are determined by Eurex Clearing (pursuant to Number 1.3.4 of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland and Eurex Zürich Eurex Contract Specifications ) on the final payment day of a contract. For detailed information regarding the different Equity Index Future contracts please check the Eurex Contract Specifications. Fulfillment, Delivery Open positions from the Last Trading Day of a contract are balanced on the final settlement day by means of a net payment credited to or debited from the internal cash account of the Clearing Member. Such payment equals the difference between the final settlement price of such contract and such contract's daily settlement price on the Business Day preceding the Last Trading Day. For positions opened on the Last Trading Day, the booking amount equals the difference between the final settlement price and the traded price. 3.4.3 Clearing of Options Contracts The following provisions apply to the clearing of options contract transactions specified in Number 2 of the Eurex Contract Specifications. General Provisions These general provisions apply for all options contracts unless specific rules deviating from the general provisions apply to the respective options contracts. 1. Eurex Clearing is a contracting party to all deliveries and payments arising out of the exercise and assignment of options contracts. 2. Clearing Members must, in accordance with instructions of Eurex Clearing, make deliveries and payments in respect of exercises and assignments of positions for the clearing of which they are responsible. 3. Eurex Clearing will inform each Clearing Member of the options contracts assigned to it on the morning of the Business Day after exercise. 4. The following provisions apply to the procedures for deliveries and payments: All physical deliveries of securities and payments are concurrently performed between the Clearing Members and Eurex Clearing through Eurex Clearing on the second Business Day after the exercise of the option; this also applies if the exercise is not assigned to the writer until the Business Day following exercise. Physical deliveries of securities are to be made through a Settlement Location, and payments are made through the corresponding account determined by such Settlement Location.

Clearing Conditions for Eurex Clearing AG Page 33 of 102 5. Eurex Clearing determines the daily settlement price according to the true market conditions and under consideration of its risk assessment according to different procedures. For further information regarding these procedures please refer to the individual contract specifications or to the Clearing Conditions. In case the determination of the daily settlement price of a contract according to the individual regulations mentioned in the respective contract specifications is not possible or if the price so determined does not reflect the true market conditions, Eurex Clearing determines the settlement price at its equitable discretion. In case the determined daily settlement price does not reflect the true market conditions at the close of trading, Eurex Clearing may change the daily settlement price. 3.4.3.1 Clearing of Equity Index Options Contracts Payment, Settlement All payments are made on the Business Day following the exercise day; this also applies if the exercise is not assigned to the writer until the Business Day following the exercise day. All Clearing Members must ensure their ability to effect payments on the due date thereof through sufficient credit balances in the TARGET2 account or appropriate similar account. Option Premium The balance of the option premiums (Net Premium) to be paid by the Clearing Members pursuant to the Eurex Contract Specifications and to be reimbursed by Eurex Clearing is payable by the time specified by Eurex Clearing on the Business Day following the conclusion of the transaction, but generally prior to the commencement of trading at Eurex Exchanges on such Business Day. Final Settlement Price The final settlement price is determined by Eurex Clearing on the exercise day of the option series. With respect to the DAX Options contracts, the value of the DAX is based on the auction prices calculated by the electronic trading system (Xetra) of the Frankfurter Wertpapierbörse for those securities included in the DAX of an intraday auction determined by the Management Boards of the Eurex Exchanges. For detailed information regarding the determination of the FSP for the different equity index option contracts please check the Eurex Contract Specifications. Cash Settlement Exercised and assigned options positions are settled by means of a compensating payment credited to or debited from the internal cash account of the Clearing Member. The cash settlement is equal to the difference between the exercise price of the option series and its final settlement price.

Clearing Conditions for Eurex Clearing AG Page 34 of 102 3.4.3.2 Clearing of Options Contracts on Fixed Income Futures Contracts General Regulations The clearing of options contracts is subject to the following rules up to the assignment of the exercised option pursuant to the regulations for the clearing of options contracts, in line with the opening of the futures position pursuant to the regulations for the clearing of futures contracts. Settlement The exercise of an option on fixed income futures results in the creation of a corresponding position in the fixed income futures for the option buyer as well as the seller to whom the exercise is assigned. The position is established after the Post-Trading Full Period of the exercise day, and is based on the agreed exercise price. Option Premium The premium payment is not made through a one-time payment after the purchase of the option; instead it is part of the daily settlement process during the duration of the option position based on a mark-to-market valuation of the position on each exchange day. The valuation is made on the day on which the transaction is entered into on the basis of the difference between the option price and the daily settlement price And thereafter on the basis of the difference between the daily settlement prices of the current exchange day and the preceding exchange day. Daily Settlement prior to Exercise For each contract, profits and losses (Variation Margin) arising out of open positions on any Business Day will be determined at the end of the Post-Trading Period. For open positions from the previous Business Day, the amount to be debited or credited equals the difference between the daily settlement prices of the contract in question on the relevant Business Day and on the previous Business Day. For transactions on the relevant Business Day, the amount to be credited or debited equals the difference between the price at which the transaction was concluded and the daily settlement price of the contract for such Business Day. Procedure for Exercise of Options 1. On behalf of the NCM/CM that exercises a call option, Eurex Clearing opens, subsequent to the Post-Trading Full Period on the exercise day of the respective option, a corresponding long position in the underlying futures contract with the stipulated exercise price. 2. On behalf of the NCM/CM to which the exercise of a call option is assigned, Eurex Clearing opens a corresponding short position in the underlying futures contract with the stipulated exercise price. 3. On behalf of the NCM/CM that exercises a put option, Eurex Clearing opens, subsequent to the Post-Trading Full Period on the exercise day of such option, a corresponding short position in the underlying futures contract with the stipulated exercise price. 4. On behalf of the NCM/CM to which the exercise of a put option is assigned, Eurex Clearing opens a corresponding long position in the underlying futures contract with the stipulated exercise price.

Clearing Conditions for Eurex Clearing AG Page 35 of 102 Cash Settlement Futures Position The difference between the exercise price of the exercised and assigned option and the daily settlement price of the underlying futures contract on the exercise day is settled in cash. The amount of such cash settlement is credited to or debited from the internal cash account of the Clearing Member. 3.5 Clearing of Off-Book Transactions (Eurex Trade Entry Services) Eurex Exchange offers Trade Entry Services for standardized Eurex Contracts and for Flexible Eurex Contracts. 3.5.1 Clearing of Off-Book Standardized Eurex Contracts Transactions whose contract specifications correspond to the specifications of the contracts admitted to trading at Eurex Deutschland and Eurex Zürich ("Off-Book Standardized Eurex Contracts") can be included in clearing. A Eurex off-book trade with a standardized Eurex contract exists if the contracting parties have agreed off-book upon the purchase or sale of a contract whose characteristics correspond to the specifications determined in the Eurex Contracts Specifications and which have been included in the clearing by Eurex Clearing. Furthermore, the Conditions for the Utilization of the Eurex Trade Entry Services of Eurex Clearing in their current version apply to the clearing of Off-Book Standardized Eurex Contracts and the utilization of the Eurex Trade Entry Services. 3.5.2 Clearing of Off-Book Flexible Eurex Futures Contracts Off-Book futures transactions whose contract specifications except the modalities listed in the Clearing Conditions (Chapter II, Part 4) correspond to the specifications of the contracts admitted to trading at Eurex Deutschland and Eurex Zürich ("Flexible Eurex Futures Contracts") can be included in clearing. A Eurex off-book trade with a Flexible Eurex Futures Contract exists if the contracting parties have agreed off-book upon the purchase or sale of a futures contract whose characteristics irrespective of the modalities listed in the Clearing Conditions correspond to the specifications of Eurex futures contracts determined in the Eurex Contracts Specifications and which have been included in clearing by Eurex Clearing. Furthermore, the Conditions for Utilization of the Eurex Trade Entry Services of Eurex Clearing in their current version apply to the clearing of Off-Book Flexible Eurex Futures Contracts and the utilization of the Eurex Trade Entry Services. Please note that clearing of Flexible Futures is only offered for a certain range of Eurex products. Specifications of Flexible Eurex Futures Contracts When conducting Eurex off-book trades of Flexible Eurex Futures Contracts, the contracting parties may in deviation to the current Eurex Contract Specifications for respective Futures Contracts determine the terms, Last Trading Day and final settlement day of Flexible Eurex Futures Contracts individually. Furthermore, the type of fulfillment (cash settlement or physical delivery) can be determined for individual Flexible Eurex Futures Contracts determined by Eurex Clearing.

Clearing Conditions for Eurex Clearing AG Page 36 of 102 The contractual parties may, within the framework of a Eurex Off-Book Trade of Flexible Eurex Futures Contracts, individually determine only certain modalities (for the concrete modalities please refer to Clearing Conditions (Chapter II, Part 4) in deviation to the respectively valid Eurex Contract Specifications). 3.5.3 Clearing of Off-Book Flexible Eurex Options Contracts Options contracts whose contract specifications except the modalities listed in the Clearing Conditions (Chapter II, Part 4) correspond to the specifications of the contracts admitted to trading at Eurex Deutschland and Eurex Zürich ("Flexible Eurex Options Contracts") can be included in clearing. An Off- Book Trade with a Flexible Eurex Options Contract exists if the contracting parties have agreed off-book upon the purchase or sale of an options contract whose characteristics irrespective of the modalities listed in the Clearing Conditions correspond to the specifications of Eurex options contracts determined in the Eurex Contracts Specifications and which have been included in clearing by Eurex Clearing. Furthermore, the Conditions for Utilization of the Eurex Trade Entry Services of Eurex Clearing in their current version apply to the clearing of Off-Book Flexible Eurex Futures Contracts and the utilization of the Eurex Trade Entry Services. Please note that clearing of Flexible Options is only offered for a certain range of Eurex products. Specifications Flexible Eurex Options Contracts When conducting Eurex off-book trades of Flexible Eurex Options Contracts, the contracting parties may in deviation to the current Eurex Contract Specifications for respective options contracts individually determine the terms, Last Trading Day, exercise type (European-style, American-style), exercise price and final settlement day respectively expiry day of Flexible Eurex Options Contracts. Furthermore, the type of fulfillment (cash settlement or physical delivery) can be determined for individual Flexible Eurex Options Contracts by Eurex Clearing.

Clearing Conditions for Eurex Clearing AG Page 37 of 102 3.6 Sample Questions 3-001 Eurex Clearing assigns the German government bonds, which have been notified for delivery to Clearing Members with open long Euro-Bund Futures positions in the following manner: A: First in - First out (FIFO) B: Last in - First out (LIFO) C: Highest in - First out (HIFO) D: by using a selection procedure that ensures the neutrality of the allocation process. Correct answer: D 3-002 All internal transaction accounts are held on a net basis. True False Correct answer: False 3-003 The amount of own funds that has to be demonstrated by a Clearing Member is calculated without dynamic component. True False Correct answer: False 3-004 All contract specifications of Eurex Flexible Contracts are negotiable. True False Correct answer: False

Transaction Management Page 38 of 102 4 Transaction Management Eurex Clearing s Transaction Management service for the derivatives positions is available during the trading hours of Eurex Exchanges. The clearing process is divided into several phases analog to the trading day. The trading day at Eurex Exchanges runs from 07:30 22:30 CET. Figure 4-1: Main Phases of a Trading Day The Post-trading period has different sub-phases: Post-Trading Full Post-Late 1 Post-Late 2 and Post-Trading Restricted. For back-office staff it is important to know, that system related transaction management can be performed throughout the exchange trading day, until the start of Post-Trading Restricted Period with the following exceptions: In the Post-Late1 phase the entry of TES trades (Eurex Trade Entry Services see chapter 2.7) is prevented. All other system features supported in Post-Trading Full Period are available. In the Post-Late 2 phase give-ups and take-ups (see chapter 4.2) cannot be performed any more. This phase applies for American-style equity options on every exchange day, for equity and equity index options with european-style as well as for interest rate options on the last trading day only. Members are able to reverse give-up transactions which are effective immediately, whereas take-up transactions cannot be accepted with the start of the Post-Late 2 phase. Therefore, in this phase, intraday position changes within one member will no longer be possible, so that members can base their exercise decision on a final long position. In the Post-Trading Restricted Period only data inquiries are possible. Exercises of options are only possible until the start of the Post-Trading Restricted Period (unless an earlier deadline is stipulated in the contract specifications) and therefore no longer accepted. Once the batch process begins, data inquiries are no longer available.

Transaction Management Page 39 of 102 4.1 Trade and Position Management CMs are able to inquire their own and their NCMs positions real-time. Each Exchange Participant (CM and NCM) can enter adjustments to the day s trades (trade adjustments) and to positions, which are already in an account (position adjustments). 4.1.1 Trade Management Trade adjustments can be entered for the same day or on the two consecutive business days (T-2) after the transactions were executed. Trade adjustments are possible for on-exchange trades as well as for trades entered via the Eurex Trade Entry Services. CMs can only perform trade adjustments for their own trades, not for those of their NCMs, although they are informed of adjustments made by their NCMs. Members can carry out five types of trade adjustments: Trade separations (Trade split) Account transfers (Internal trade transfer) Open / close adjustments Historical trade transfers (HITT) Text adjustments The system processes trade adjustments in two steps. The first step is the generation of a transaction canceling the booking of the original transaction (a trade reversal). The second step is the rebooking of an adjusted transaction. Pending give-up trades cannot be adjusted. An adjustment can only be made after the give-up designation has been deleted. A "parent adjustment", that is, a record that is itself a reversal or that has already been adjusted, cannot be adjusted. The adjustment/reversal indication (A/R) designates the current status of a record, where A indicates an adjusted record, R indicates a reversal record and N indicates that this record has neither been adjusted nor reversed. Further adjustments can only be made to records with an adjustment/reversal indication of N. In order to perform a trade adjustment on a transaction from the previous two business days (T-1 and T-2), a HITT (historical trade transfer) is mandatory first. An indication that an adjustment is a historical one is displayed in a separate column, ( HIT ) - which appears after performing a historical trade transfer. A H indicates a historical trade, while a blank field indicates a trade from the current day. 4.1.1.1 Trade Separation (Trade Split) Trade separations are used to split a trade into a maximum of twenty smaller transactions. Valid account types are A1-A9, P1 and P2. Via the Trade Separation window, Exchange Participants are permitted to make up to 49,999 transaction adjustments providing a high degree of customization.

Transaction Management Page 40 of 102 Figure 4-2: Trade Separation window @X-tract 4.1.1.2 Account Transfer (Internal Trade Transfer) Once trades are posted to the transaction account, they may be re-allocated to another transaction account using a trade account transfer. These transactions are only possible within the member s own transaction accounts. It is not allowed to transfer trades to one of the M-transaction accounts. The advantage of a trade account transfer compared to the position transfer (see chapter 4.1.2.2) is that the exact trade with all the details (trade price, reference information, fees) will be transferred to the correct internal transaction account. 4.1.1.3 Open/Close Adjustment To change the open/close flag for a specific transaction, NCMs/CMs can perform a trade open/close adjustment, i.e. a member can adjust a closing trade into an opening trade and vice versa. Trade closing errors occur when the number of trades to be closed in a given account (A and P only) exceeds the open position in the specific account. The contracts exceeding the number of open positions (minus pending give-up trades) are converted into a new opening trade, which is shown as a trade closing error.

Transaction Management Page 41 of 102 Closing errors (opening trades that have been highlighted as trade closing errors) can be corrected with this function also. Adjustments that would lead to new errors are rejected by the system, e.g. trying to adjust a position to close for which no open positions exist. In the case that positions have already been closed out, under certain conditions, members can apply to reopen positions. 4.1.1.4 Historical Trade Transfer (HITT) The Eurex Clearing GUI permits the transfer of existing transactions from the last two business days to the current business day. By transferring past transactions to the current trading day, NCMs/CMs gain additional flexibility when performing post trade adjustments. NCMs/CMs can enter a historical trade transfer for their transactions on up to T+2 business days following the transaction trade date. There are no HITTs possible for a product on the first business day after its product holiday. For a HITT to be carried out, the following conditions must be fulfilled: The transaction must have been executed within the last two business days. The transaction must exist in one of the following accounts: A1-A9, P1 or P2. A HITT is not valid for a transaction within M1 or M2. The transaction concerned must not have the give-up status "Undesignated". The transaction concerned must not be the result of a previous HITT. The transaction concerned must not be the result of a previous historical give-up. The transaction must not concern a series or contract that has expired (futures and options). The transaction concerned must be available for further adjustments and not already adjusted. A sufficient number of positions must exist so that the entire existing transaction can be subject to a HITT. 4.1.1.5 Text Adjustment When traders enter orders they have the possibility to fill text fields with client information, reference codes or the like in order to easily allocate orders to the correct customer. In case one or all text fields of a trade are not filled or not filled correctly a text adjustment can be performed. 4.1.2 Position Management In case a trade adjustment cannot be carried out any more because the trade is older than two business days, then members can use the functions for position adjustments. Members (CMs/NCMs) can perform three different types of position adjustments: Close-out (Position closing adjustment) Account transfer (Position account transfer within a member) Position transfers (Member position transfer)

Transaction Management Page 42 of 102 4.1.2.1 Close out (Position Closing Adjustment) Via the Position Overview window an open position can be adjusted for liquidation purposes by using the provided close out functionality. This will equally reduce the long and the short side of the position. A position closing adjustment is possible in any transaction account where positions are held on a gross basis. Figure 4-3: Position Overview window @X-tract

Transaction Management Page 43 of 102 A distinction is made in the Eurex Clearing system between free and fee-liable position closing adjustments. Free position closing adjustments: Close out of option positions (with the exceptions of options on futures) and close out of futures and options on futures within the zero cost quantity range Fee liable position closing adjustments: Futures and future based options exceeding the zero cost quantity Within the Position Adjustment Close out window the current and previous zero cost quantity is shown. If the member needs to close out more contracts than available within the zero cost quantity, an additional window pops up asking for confirmation as this will result in the calculation of late closing fees. Figure 4-4: Position Adjustment Close Out window @X-tract In case several close outs must be performed the Upload function for the Position Overview window allows the upload of a prepared.csv or.xls file to the Position Close Out Bulk Load window.

Transaction Management Page 44 of 102 Zero Cost Quantity (ZCQ) The zero cost quantity is the potential number of contracts that can be closed out without late closing fees being charged. For transactions done on the current trading day (T), the zero cost quantity is valid from 13:30 CET on T until 13:30 CET on T +1. From 13:30 CET until end of day on the trading day it is called current ZCQ and is calculated in the following way: Figure 4-5: Calculation of ZCQ 4.1.2.2 Account Transfer (Position Account Transfer within a Member) Members (CMs/NCMs) can transfer positions between their transaction accounts within the Position Adjustment Account Transfer window. It is the same as the Position Adjustment Close out window, but the account field (Act) is enabled (see Figure 4 3: Position Adjustment Close Out window @X-tract). The transfers can take place between A-transaction accounts, P-transaction accounts and - under certain conditions - M-transaction accounts. The trade price of the position is not transferred thus the price information is 0. Position account transfers are possible throughout the exchange trading day until the Post-Trading Restricted Period starts. Exercised or assigned positions cannot be transferred.

Transaction Management Page 45 of 102 4.1.2.3 Position Transfer (Member Position Transfer) Members (CMs/NCMs) can transfer positions via the real-time position transfer facility (transfer mode R ) or via the classic position transfer (transfer mode C ), where positions are transferred during the state change to Post-Trading Restricted Period. All members concerned, including Clearing Members, must agree to the transfer. Member position transfers are possible using any combination of P1/P2 and A- transaction accounts as the source and destination accounts. Partial position transfers on positions in futures or options products, where the premium is settled futuresstyle, are executed with the previous day s settlement price. This is done, irrespective of whether the transferred positions result from transactions of the previous business day or the current business day. Partial position transfers for series originating on the trade date will be rejected. The NCM/CM will be able to enter a give-up/take-up transaction instead. After entering a real-time position transfer, the number of contracts designated for the transfer will be blocked for any other clearing activity until all involved parties have confirmed. These blocked positions will be visible on the Position Overview window in the columns DsgnOpnLongPosTsf and DsgnOpnShortPosTsf. When entering a position transfer the system issues a transaction number. This transaction number must be communicated to the other parties involved in the transaction to identify the position transfer. Even after all parties have agreed on the transfer, each member still has the opportunity until the end of the Post- Trading Full Period to cancel the request of transfer or its acceptance. This withdrawal is shown to the involved parties in the report CB120 Member Exception Positions on the next day. Position transfers can be entered with or without associated cash amounts. The Eurex Clearing GUI offers an automated cash amount calculation. Individual cash amounts can also be entered. In doing so a positive amount is a debit and a negative amount is a credit for the sending NCM/CM. The cash amounts are in the same currency as the corresponding products.

Transaction Management Page 46 of 102 Figure 4-6: Position Transfer Entry window @X-tract Multiple position transfers can be processed using the bulk upload functionality. Here a.xls or.csv file with the single position transfers can be prepared and then uploaded to the Position Transfer Bulk Load window. The cash amounts debits are booked after the regular Eurex Clearing payments and after the cash amount credits. Cash only transfers are supported provided that they are related to a previous position transfer. Fees will be charged to Clearing Members that use this additional Eurex Clearing service. They are calculated per transfer, and are independent of the number of transferred contracts or the transferred cash amount.

Transaction Management Page 47 of 102 4.1.2.4 Main Reports Report Description Availability CB010 Position Detail CB020 Position Summary CB030 Position Transfer Overview Lists the open positions in the option series and futures contracts, the daily position movements at a transaction level and the current positions in the individual accounts of the NCMs/CMs. For each transaction, the report contains the variation margin payments for futures contracts, the premiums on options calculated in the "traditional" way and the variation margins for "futures-style" settled options. The report displays detailed position data according to account type, currency and product. Premiums, variation margins and fees are added per series of an option class (Call/Put) or a futures contract. Totals are calculated per product and account. Positions resulting from Eurex TES are also marked. This report lists the open positions, the daily movements and the current positions in the option series and futures contracts of the NCM/CM, sorted by account type and currency. It also shows the percent of the current positions quoted on the market as well as data on the premiums, variation margins. The fee amount is always 0.00, because it is not reported here. In this report, the details of the positions are displayed by option series or futures contract. Premiums, variation margins and fees are summed up per single instrument. This report also shows the total per currency. This report lists all of the position transfers of a member. It displays the details of complete position transfers, full to agent account transfers and partial position transfers with or without cash amount. CMs and NCMs CMs and NCMs CMs and NCMs

Transaction Management Page 48 of 102 4.2 Give-up / Take-up The give-up functionality allows members (CMs/NCMs) to transfer transactions to other members (CMs/NCMs). The receiving member and the respective Clearing Member must accept the give-up for it to become valid. Only open transactions originating on the trading day (current give-up) or the previous 2 trading day (T-2) (historical give-up) may be designated for give-up. The acceptance of transferred transactions is called take-up. In general all Eurex Exchange Participants are able to perform give-ups and take-ups. Certain rules apply: Open transactions can be given up from the agent accounts (A1-A9) for all Exchange Participants and additionally from the principal account (P1/P2) for NCMs only. Transactions can be taken up in the agent accounts (A1-A9) and in principal accounts (P1/P2). Give-ups and take-ups may only be performed for transactions executed on the same trading day (current give-up) or the previous 2 trading days (historical give-up). Clearing Members have the possibility to accept or reject the give-ups and take-ups of their NCMs. Depending on the settings in the Member Relationship Overview window acceptance can be performed automatically or manually. Acceptance must take place on the same day as the transaction took place. Clearing Members are enabled to inquire (pending) trades that are designated for give-up or take-up. If a give-up transaction is not accepted by the end of the Post Late 1 phase (Post-Trading Full Period, where Post Late 1 is not applicable), the transaction remains in the agent account (A1 or P1, where no A account exists) of the original member. However, if a give-up transaction is not fully processed at the end of the day and has not reached the state Take-Up Accepted or Rejected (no HITT, no historical give-up) it will automatically be re-allocated as a historical give-up on the next day and the existing give-up information will be retained. There are certain exceptions when an automatic re-allocation isn t possible, e.g. not enough positions left, expiration of the contract and capital adjustment in that product. Deleted or rejected give-up transactions also remain in the agent account of the member. Transactions originating from combination orders can only be transferred as single give-up transactions. Give-up transactions cannot be undertaken for products that are in holiday status. No historical give-up is possible the next business day for products that were in the holiday status the day before. NCMs that have no customer business and thus no A1 account are enabled to allocate trades from their P- transaction accounts to another NCM/CM A-transaction accounts (A1-A9). Only in this constellation the transaction fees will not be transferred which means the originating NCM has to pay them. Eurex Clearing GUI offers two possibilities to give-up trades: either by order or by transaction. When choosing order all partial fills belonging to that specific trade will be shown on the Give-up Maintenance Order window. In contrast the selection transaction causes the display of only the one single transaction selected in the Give-up Maintenance Transaction window. Give-up by order is only possible for A1 accounts, while give-up by transaction is possible for all agent accounts (A1 - A9).

Transaction Management Page 49 of 102 Orders can be entered in the Eurex system with G1 (pre-designated give-up, it is likely that the transaction is given up) or G2 (designated give-up, all necessary information for the give-up are known) to indicate that the transaction should be given up to another NCM/CM. Any trades with G1 org2 will result in a position in the A1 account until the trade has been taken up. After a trade has been given up to another NCM/CM, the status of the transaction will be marked with G if the acceptance of the CM is carried out manually or with M if the acceptance of the CM is carried out automatically. In case of status G the trade will not be transferred until the give-up Clearing Member has accepted the give-up and until both the appointed take-up Exchange Member (NCM) and its Clearing Member take-up or accept the trade. The transaction receives the status T for take-up after both the takeup Exchange Member (NCM) and take-up Clearing Member have accepted the trade. Give-up instructions and reference information can be modified as long as the receiving member has not taken the trade. Status codes: G M N T R U P Designated give up trade (G2) Give up accepted by CM of the give up member (ready for take up) Taken up trade (pending acceptance by CM of the take up member) Completed take up Rejected give up Undesignated give up, give-up instruction deleted Pre designated (G1)

Transaction Management Page 50 of 102 Give-up/Take-up transactions are handled via the Give-up and Take-up Overview window in the Eurex Clearing GUI. The windows are accessed via the Trade Management menu. Figure 4-7: Give up Overview window @X-tract Figure 4-8: Take-up Overview window @X-tract The Give-up/Take-up Maintenance window is accessed via the Give-up/Take-up Overview window by the give-up/take-up Exchange Member. By setting the Transaction/Order button in the window, the NCM/CM can handle the actions either by transaction (window title Give-up/Take-up Maintenance - Transaction) or by order (window title Give-up/Take-up Maintenance - Order).

Transaction Management Page 51 of 102 4.2.1 Main Reports Report Description Availability CB130 Give-up Trades History CB140 Accepted Giveup Trades CB150 Take-up Trades History CB160 Accepted Takeup trades Shows all Give-ups in chronological order. Lists all (pre-) designated and rejected Give ups. Give-up trades accepted by recipient are also listed. Shows detailed information on give-up trade histories (including deleted give-up trades) Shows all accepted give-up trades. Accepted give-up trades are arranged by currency, recipient, product, series, order number and transaction number. The following totals are calculated: - Sum of all accepted give-up trades (take-up) in a series by one recipient; - Sum of all accepted give-up trades (take-up) of a recipient. Shows all take-up trades in chronological order. The take-up trades are listed by currency, take-up account, product, series, order number, transaction number and time. The following totals are calculated: Sum of all take-up trades Sum of all pending trades (give-up) at the end of the day Sum of all rejected give-up trades. Shows all accepted take-up trades. Accepted take-up trades are listed by currency, sender, take-up account, product, series, order number and transaction number. The following totals are calculated: Sum of all accepted take-up trades in a series for a sender Sum of all accepted take-up trades for a sender CMs and NCMs CMs and NCMs CMs and NCMs CMs and NCMs

Transaction Management Page 52 of 102 4.3 Exercise / Assignment 4.3.1 Exercise The following exercise scenarios are possible: When a long call position in equity options is exercised, the holder exercises his or her right to demand the delivery of the underlying against payment. When exercising a long put position, the holder uses his or her right to sell the underlying against payment. When exercising a long call position in options on futures, the holder uses his or her right to open a long position in the corresponding futures contract at the strike price. When exercising a corresponding put position, the holder uses his or her right to open a short position in the underlying futures contract at the agreed strike price. In the case of exercising a long call position or a long put position in index options, the holder uses his right to receive cash. Options must be exercised by the NCM/CM holding the position. CMs can see the open positions of their NCMs but they are not able to perform exercises for them, unless clearing operations are outsourced to the CM. For further information on outsourcing please refer to chapter 2.6 of the Basis Module. NCMs/CMs must inform their clients about upcoming expirations. In the Exercise Overview window all long positions (in-the-money (itm), at-the-money (atm), out-of-the-money (otm)) in options in different expiration months are displayed real-time. NCM/CM can exercise their long positions in an option series completely or partially. Adjustments of exercises on the same day are possible until the Post-Trading Restricted Period starts. A fee is charged for exercises. Equity options and options on futures can be exercised by the buyer on each trading day (American-style) until the end of Post-Trading Full Period (20:00 CET). Options on an index can only be exercised on the Last Trading Day (European-style). There are some exceptions regarding equity options of certain group IDs (e.g. DE14) which are Europeanstyle. In a group ID several equity options which have certain characters, like price source, exercise style and/or country segment in common are grouped. Russian equity options are European-style and can only be exercised on the Last Trading Day until the end of the Post-Trading Full Period (17:40 CET). Exact deadlines are listed in the contract specifications and in the trading calendar on the Eurex Exchange website: www.eurexchange.com > Trading > Trading calendar. Actual exercise is based on the balance of exercise instructions and exercise adjustments at the end of the Post-Trading Full Period, in the Post-Trading Restricted Period. Eurex Clearing undertakes the assignment of exercised contracts against the holders of short options. Physical delivery of exercised options is made upon instruction by Eurex Clearing on a delivery versus payment basis through a central securities depository (CSD) by the CCP system.

Transaction Management Page 53 of 102 Figure 4-9: Exercise Overview window @X-tract 4.3.2 Assignment Once an option is sold, there exists a possibility for the option writer to be assigned to fulfill his or her obligation to buy or sell shares of the underlying equity on any business day. For American-style options where exercise can happen on any trading day, assignment is also possible on any trading day. To ensure a fair distribution of assignments, Eurex Clearing uses a random procedure to assign exercise notices to the accounts maintained by each Clearing Member. In turn, the assigned Clearing Member must use a random allocation method to allocate those notices to individual accounts, which have the short positions on those options. The following assignment scenarios are possible: In the case of equity and exchange-traded fund options, the assignment of a call position obliges the seller of a call option to deliver the underlying against payment. In the case of equity and exchange-traded fund options, the assignment of a put position obliges the seller of a put option to accept delivery of the underlying against payment. In the case of options on futures, the seller of a call option is obliged to take a short position in the corresponding futures contract. In the case of options on futures, the seller of a put option has to take a long position in the corresponding futures contract. In the case of options on an index, the seller of a call option is obliged to settle in cash. The exercised long and open short positions are netted within all P and M accounts per member, i.e. if a member with open short positions in a series has exercised positions also, as many open short positions as possible are assigned internally. If exercised long positions still exist after this internal assignment, they are randomly assigned to the remaining open short positions of the same series.

Transaction Management Page 54 of 102 NCMs/CMs receive assignment information before the batch starts via the Exercise Assignment Overview window. The end of the assignment process per option product is indicated by transmission of a productspecific end-of assignment message to the members. Assignments are binding. Figure 4-10: Exercise Assignment Overview window @X-tract 4.3.3 Automatic Exercise An automatic exercise facility exercising open long option positions (including flexible options) on the Last Trading Day is available to the members. The minimum in-the-money-amount specifies the amount a contract (not the single share) has to be in-themoney to be automatically exercised. As a minimum-in-the-money amount for index options the exercise fee is defined. For all other option products a default minimum in-the-money amount of 0.01 is defined. The minimum in-the-money amount of can be adapted individually per transaction account via the Automatic Exercise Parameter Maintenance window. An absolute value of up to 99.99 or a percentage of the exercise price of up to 9.99% can be set. The Automatic Exercise Parameter Maintenance window also supports setting automatic exercise parameters for product types. These values will be set automatically for all newly introduced products of this type. Members can exclude individual positions from automatic exercise by using the abandon functionality of the Exercise Overview window. If no parameters were defined by the member, Eurex exercises itm-options on the Last Trading Day taking the default parameters into account. Manual exercises are still possible until the end of Post-Trading Period (no position adjustments during Post-Trading Restricted Period!).

Transaction Management Page 55 of 102 Figure 4-11: Automatic Exercise Parameter Maintenance window @X-tract

Transaction Management Page 56 of 102 4.3.4 Main Reports Report Description Availability CE010 In-themoney Advisory CE030 Member Expiration CE070 Exercise and Assign Summary CE071 Option on Future Exercise Assign Summary CB102 Cash Settled Contracts Informs about in-the-money series two weeks before their expiration. It includes information concerning positions abandoned by automatic exercise. It totals by product group (class) and product, the open positions and the in-the-moneyamounts. Shows the current balance of a series in the last days before expiration. It shows positions abandoned by automatic exercise. It is arranged by type of account and gives the details of a series about to expire, the total of open positions and the total in-the-money amount by product group (class), product and by member. Lists exercised long positions and assigned short positions of equity options contracts. It contains information about the daily exercises and assignments in each series, arranged by CM, currency, product type, exchange member and account type. There is also a list of delivery instructions resulting from the exercise process. It shows the settlement account of the contracting party, either of the CCP, or in case of an internal assignment a NCM or the CM. The data is sorted by exchange member and underlying. Cash settlement only contains an amount when the payment is made in cash. Provides information on exercised long positions and assigned short positions of options on futures. It provides information about the daily exercises and assignments in each series, arranged by exchange member, account type and underlying futures contract. Shows the contracts settled in cash on the Delivery Day, detailing the profits and losses produced by these contracts. It shows the previous day net long and net short positions. The previous day cash settlement amount of the net position is calculated by evaluating the daily settlement prices (for futures) or the exercise prices (for exercised options) against the final settlement price. The individual results are added for each currency, per contract, product and account. CMs and NCMs CMs and NCMs CMs and NCMs CMs and NCMs CMs and NCMs

Transaction Management Page 57 of 102 4.4 Notification / Allocation The holder of short positions in fixed income futures contracts specifies which bonds are to be delivered. NCMs, their clients and the clients of a Clearing Member have to notify the respective Clearing Member. The Clearing Member then notifies Eurex Clearing. The Clearing Member is free to notify Eurex Clearing of the securities provided by clients and NCMs, or to choose other securities for delivery from the basket of deliverables bonds announced by Eurex Clearing. Once the delivery notification has been issued, Eurex Clearing assigns the bonds to the holders of long positions in the respective fixed income futures contracts. Deliveries are made versus payment through the CSD. As the CCP, Eurex Clearing is responsible for the delivery and payment of all transactions. Thereby, members are protected from the default of other members. 4.4.1 Notification By issuing the delivery notification, the holder of short positions in fixed income futures contracts fulfills his obligation to nominate bonds for delivery via the CSD. Usually the holder of the short positions notifies the bond which is the cheapest for him to deliver (CTD). The delivery notification is made on the Last Trading Day of the futures contract, n trading days before the Delivery Day (n is the settlement period of the product). Delivery Day is the tenth calendar day of the respective quarter-end month. If this is not a trading day, the delivery is carried out on the next trading day. Eurex Clearing ensures that there is a delivery notification for each open short position. If a Clearing Member does not fulfill its obligation to submit a delivery notification, despite a request by Eurex Clearing, Eurex Clearing will determine the bonds to be delivered. Figure 4-12: Deliverable Bonds Overview window @X-tract During the expiration month of the futures contract until the day of the delivery notification, members can receive the Settling Futures Contract Positions report listing all open long and short positions in the expiring futures contract. During this time, the members still have the option to close out their open positions through position adjustments. The Deliverable Bond report contains all deliverable securities that can be notified for delivery.

Transaction Management Page 58 of 102 Figure 4-13: Notification Overview window @X-tract Trading of the expiring fixed income futures contract closes at 12:30 CET on the Last Trading Day. The Clearing Member submits the delivery notifications into the system on the Notification Detail Overview window after trading has finished. Notification reversals are possible on the same day until the Post- Trading Restricted Period starts. For delivery notification and its adjustment, the Clearing Member has to pay a fee. Figure 4-14: Notification Detail Overview window @X-tract 4.4.2 Allocation The securities nominated in the delivery notification are randomly allocated to the holders of long positions in fixed income futures contracts during the overnight batch processing. Clearing Members must pay a fee for the allocation. Allocations do not depend on the type of membership or on the type of transaction account. The allocation of securities obliges the holder of long positions in fixed income futures contracts to accept the security against payment of the final settlement price.

Transaction Management Page 59 of 102 Clearing Members are informed about the allocations on the following day. The notified and assigned securities are displayed in the Notification/Allocation Summary Overview window. The same information is given in the Notification/Allocation Summary report. This information supports the delivery instructions to the respective CSD and the internal delivery postings. Figure 4-15: Notification Allocation Summary Overview window @X-tract Figure 4-16: Allocation Overview window @X-tract

Transaction Management Page 60 of 102 4.4.3 Main Reports Report Description Availability CB031 Settling Futures Positions CE038 Deliverable Bonds CE075 Notification/ Allocation Summary Contains the open long and short positions of fixed income futures contracts which expire in the current month. This report is produced daily during the delivery month until the day of notification. It contains the open long and short positions. It provides the totals per NCM and CM. Details the calculation of conversion factors and invoice amounts for deliverable bonds of all traded fixed income futures contracts. CMs can select the bonds shown in this report for delivery. Settlement price and invoice amount are only displayed for deliverable securities expiring in the current month. This report is produced when a contract expires and another contract month is listed. Provides information on deliveries resulting from notification or allocation notice (per reference number). The contracting party is listed for internal deliveries (either an NCM or a CM proprietary account). The contracting party is not displayed on the report for external deliveries that are carried out through the CSD. As a complementary report to the delivery list, it supports the CSD concerning the release of deliveries and serves as a basis for internal deliveries to the CSD. CMs and NCMs CMs and NCMs CMs only

Transaction Management Page 61 of 102 4.5 C7, Eurex Clearing s new clearing architecture C7 will be introduced in a stepwise approach, i.e. the Eurex Clearing Classic system (@X-tract) will remain in place serving the existing functionality, until all functionality is migrated to C7. Accordingly, the first two releases of C7 are optional. However, the new functionalities mentioned below will only be supported by C7. Access to the new functionalities is possible through the new Derivatives Clearing GUI or the FIXML interface. The FIXML interface accesses both C7 and the Eurex Clearing classic system. With further releases, C7 will take over more and more functionality from the Eurex Clearing classic system. Since release 1.0 of C7, which was successfully launched on 30 June 2014, Non Clearing Members (NCMs) and Registered Customers (RCs) have the ability to apply for Flexible Accounts via their CM. A practically unlimited number of Flexible Accounts is than available to separate transactions and positions. The positions in these Flexible C7 Accounts will be aggregated under the A8 agent account of the NCM or RC in the Eurex Clearing Classic system. A transfer account (AAA) exists in C7 enabling the transfer of transactions between the existing Eurex Clearing Classic system and C7. C7 allows for a collateral pool to be assigned to one Flexible Account only or alternatively one collateral pool for more than one Flexible Account. Further enhancements to the Flexible Account structure and related reports such as cash and delivery segregation have been made with the introduction of release 2.0 on 24 November 2014. All listed contracts are available for clearing in the Flexible Accounts. With release 2.0 this excludes Flexible contracts, Taifex and KRX products, Variance and FX derivatives. In a third step release 3.0 will migrate all derivatives products admitted to trading at Eurex Exchanges (Listed Derivatives) including Flexible Contract positions to C7 on 9 November 2015. Then all transactions in listed derivatives will be directly booked to C7. C7 release 3.0 will be a mandatory release for Derivatives Clearing Members and Derivatives Non-Clearing Members. The @X-tract Clearing GUI is still required by Clearing Members and Non-Clearing Members for e.g. collateral management and for the purpose of maintaining approval settings for Non-Clearing Members business and entitlement settings. Further information about C7 is included in the C7 - Functional User Guide, which is available on www.eurexclearing.com > Technology > Eurex Clearing s C7 > System documentation > Release 2.

Transaction Management Page 62 of 102 4.6 Sample Questions 4-001 In the Eurex Clearing system all NCMs/CMs can inquire into daily position movements as well as view their current positions in any account. True False Correct answer: True 4-002 Position transfers can be performed as "real-time" or "classic" transfers. True False Correct answer: True 4-003 To split a trade done 1 or 2 days ago it is necessary to... A: just do a trade separation. B: perform a HITT (historical trade transfer) and a trade separation. C: call Eurex Exchanges and ask to reverse the trade and reopen it correctly. D: just amend it in the internal back office system of the Clearing Member. Correct answer: B 4-004 The Give-up Overview window may be used to inquire trades with the following status codes: A: "G" - designated trades not yet taken up B: "T" - trades already taken up C: "D" - deleted designated trades D: "P" - pre-designated trades Correct answer: A B D 4-005 Who bears the transactions fees for an accepted trade given-up from an A-account? A: The NCM/CM performing the trade. B: The NCM/CM taking up the trade. C: The NCM/CM giving up the trade. D: It will be split between the two involved NCMs/CMs. Correct answer: B 4-006

Transaction Management Page 63 of 102 In principle Non-Clearing Members can take-up trades without the acceptance of their Clearing Members. True False Correct answer: False 4-007 The deadline for exercising equity options is identical for the majority of Eurex equity options regardless of their home country. True False Correct answer: True 4-008 In case a member has not defined minimum in-the-money-amounts for certain options, Eurex Clearing will automatically exercise them in line with the default parameters. True False Correct answer: True 4-009 Depending on the selected filter settings, the Exercise Overview window displays the following data: A: All assigned positions. B: Long and short open in-the-money positions for an expiration month. C: Long open in-the-money positions for an expiration month. D: Short open in-the-money positions for an expiration month. Correct answer: C 4-010 Non-Clearing Members are able to carry out notifications and allocations of futures contracts themselves. True False Correct answer: False

Transaction Management Page 64 of 102 4-011 At what time does trading stop in a maturing fixed income futures contract on the Last Trading Day, on which notification must also be made? A: 11.30 CET B: 12.30 CET C: 13.30 CET D: 20.00 CET Correct answer: B 4-012 Which statements regarding notifications are correct? A: Notifications can be performed on the Notification Overview window at any time. B: Notifications can be performed on the Notification Overview window only on the Last Trading Day. C: Notifications can be performed on the Notification Overview window by Non-Clearing Members or Clearing Members. D: Notifications can be performed on the Notification Overview window by Clearing Members only. Correct answer: B D 4-013 Which data is included in the Exercise and Assign Summary report (CE070)? A: Exercises and assignments across all traded products B: Exercises of options on futures C: Exercises of equity option D: Assignments of equity options Correct answer: C D 4-014 In contrast to the Take-Up Trades History report (CB150), the Give-up Trades History report (CB130) shows also deleted give-up trades. True False Correct answer: True 4-015 The Notification/Allocation Summary report (CE075) does not contain futures positions maturing in the current month but provides information on deliveries resulting from notification or allocation notice. True False Correct answer: True

Risk Management Page 65 of 102 5 Risk Management Eurex Clearing stands between buyers and sellers and enables involved parties to make decisions fully independently of each other and mitigate counterparty risk to a single contractual partner. To be more precise, only Clearing Members may be a counterparty of Eurex Clearing in a transaction. As a result, legal relationships are concluded between Eurex Clearing and a given Clearing Member, and in turn between that Clearing Member and the respective NCM/RC. For more information about the general clearing structure please refer to the Preparation Material for Clearer Test Basic Module, chapter 2 and 3. 5.1 Overview Eurex Clearing built on a sound framework of safeguards to protect all customers, the clearing house and the overall marketplace. In order to ensure this high degree of security, Eurex Clearing protects itself against the risk of default by any of its members. In general requirements for clearing membership establish clearly defined conditions with respect to the creditworthiness of members participating in the clearing process. This is a key component of the protection provided by Eurex Clearing. Basically the protection is based on: Capital requirements (own funds) Contributions to the Clearing Fund Margin requirements The requirements for own funds and the contribution to the Clearing Fund are described in chapter 3.1. Margin Requirements The mainstay of Eurex Clearing s security system is margin i.e. cash or securities which must be deposited by Clearing Members as collateral for a given position/exposure. The amount specified for such should not be excessive, but it also may not be set at a level that is too low. Currently Eurex Clearing uses two two different margin methodologies. Reason is the replacement of the existing risk-based margining (RBM) method by the portfolio-based margin approach called Prisma. Eurex Clearing Prisma is introduced in multiple steps. By the end of 2015, RBM will be decommissioned for all exchange-traded-derivatives (ETDs) assigned to a Liquidation Group in Eurex Clearing Prisma and therefore the usage of Eurex Clearing Prisma will become mandatory, In the following both methods (RBM and Prisma) and the margin types that apply for Eurex Exchanges are described.

Risk Management Page 66 of 102 System-based Risk Controls Eurex Clearing offers both the clearing house and its member s powerful, user-friendly tools to help them proactively control risk. This includes a wide range of pre-trade and post-trade risk controls. To a large extend these tools can be based on different margin requirements. All members have access to Eurex Clearing`s data and tools, which enable them to set limits to prevent excessive exposure as well as to respond quickly if an incident occurs. Post-trade controls ensure that members have a clear picture of their overall risk profiles throughout the trading day. The tools used to proactively control the risk are described later in this chapter. 5.2 Internal Margin Accounts and Collateral Pools Margining is conducted on account level. There is no difference concerning the accounts between RBM and Prisma. Eurex Clearing calculates margin requirements on a daily basis per member ID. CMs are responsible for the margin payments for themselves and their clients (non-disclosed customers, NCMs and RCs). On the basis of the CM internal positions accounts (see chapter 3.3) margin requirements are always calculated for each account separately. An exception for margining purposes is that the P-and M-accounts of a member are taken together (indicated in the Eurex Clearing System as PP). Depending on the Clearing Model under which the position is cleared margin requirements are covered by one or more omnibus collateral pools (Elementary Clearing Model or Net Omnibus Clearing Model, figure below shows one collateral pool) or by one dedicated collateral pool (Individual Clearing Model). Figure 5-1: Segregation at a Glance

Risk Management Page 67 of 102 In case of a margin shortfall a margin call is initiated by Eurex Clearing. Margin calls are always called against the CM however margin calls arising from shortfalls on client pools are calculated and instructed separately. More details are provided in chapter 6.5 of the Basic Module. 5.3 Risk Based Margining The Eurex Clearing Risk Based Margining (RBM) methodology uses scenario matrix simulations to calculate margin requirements based on underlying price and volatility combinations. In order to cover the risk of extreme price fluctuations, margin parameters are determined based on an assessment of volatility and various current market estimates. Products within a portfolio that carries similar risks, are grouped together into so-called margin classes For example, all DAX options and DAX futures are based on the DAX and comprise the DAX margin class. If two or more margin classes whose underlying instruments are correlated with respect to their risk structure are combined, a margin group results. Within margin classes and margin groups, cross margining is possible. Margin requirements will be reduced. There are different types of margins for derivatives. Premium and variation margin cover the liquidation risk at the current point of time. Additional and Futures Spread margins cover the potential liquidation risk for the future. Margins are calculated on an intraday basis and the clearing house reserves the right to debit Clearing Members directly (intraday margin call). Products Time frame: Yesterday to today Time frame: Forward looking Premium Margin Variation Margin Additional Margin Futures Spread Margin Traditional Options Futures For Non-Spreads For Spreads Options on Futures All margin types are described in greater detail in the Basic Module (chapter 5.1.2). This chapter provides information about some more specific features of RBM or focuses on details or calculation examples especially for options and futures that are not explained within the Preparation Material for the Clearer Test Basic Module. The calculation of margin requirements for more complex portfolios within margin classes or margin groups is briefly described the next sub chapter.

Risk Management Page 68 of 102 5.3.1 Premium Margin for Options (Traditional Options, Premium-styled Options) Premium margin must be deposited by the seller of an option, if the transaction results in an open position. It covers the potential loss that could be incurred if the seller was forced to liquidate the position today. The premium margin is continuously adjusted, i.e., if prices fluctuate so that the potential loss upon liquidation increases, the seller will be obliged to deposit additional premium margin. 5.3.2 Variation Margin (VM) Variation margin is calculated for futures and future-styled options. On a mark-to-market basis, Eurex Clearing settles the trading day s profits and losses of all open positions held in a position account in cash. VM reflects the change in value of a portfolio, i.e. quantifies the daily and intraday mark-to-market fluctuations (MtM). VM is at any time a component that is taken into account for Margin Call calculations and can be covered by cash or securities collateral. EoD the daily profits and losses based on the daily settlement prices have to be settled in cash. This difference to other margin types is based on the principle that here it is not a matter of depositing collateral, but rather one of offsetting in cash the daily profits and losses in an account. Eurex Clearing calculates the profits and losses for every position account for all products in product currency. The bookings (debits and credits) are done on the next morning on the accounts of the respective clearing members. Variation margins are also booked for all segregated collateral pools. All respective amounts are shown on report CD010 (Daily Cash Account CM). In case a clearing member has positions in all product currencies, daily debits or credits on all different currency accounts are executed. Eurex Clearing debits the losses in all different product currencies on the accounts of all CMs with negative market values and credits the amounts on the accounts of all CMs with positive market values (passthrough payments) The EoD VM which is payable to Clearing Members will always be exactly equal to the VM receivable from Clearing Members (since Eurex Clearing will always be flat). Details: The owner of a long position that was purchased at a lower price than the daily closing price (settlement price) is credited with the difference between the two prices, whereas the owner of the related short position must pay that difference. When the variation margin for futures-styled options is determined, calculation of the appropriate credits and debits depends on how the value of a call or put position changed during the trading day. The variation margin procedure ensures that each position is revalued at the daily settlement price. The difference between today s and the previous day s closing price is offset by daily compensating payments. Thus, all that has to be done on the final settlement day is to value all open positions at their respective final settlement prices. In the case of futures-styled options, the final valuation is made at the settlement price on either the expiration date of the option or the day on which it is exercised.

Risk Management Page 69 of 102 Sample Calculation of Variation Margin for DAX Futures (FDAX) Contract FDAX March 14 Tick size 0.5 Points Tick value EUR 12.50 Position Long 10 contracts Bought at 10,676.5 points Day 1 Day 2 Day 3 Daily Settlement Price 10,783.5 points 10,710.0 points 10,765.5 points Day 1 Bought at 10,676.5 Daily Settlement price Day 1 10,783.5 Tick difference 214 Tick difference 214 Ticks x Tick value EUR 12.50/Tick x 10 contracts = Variation Margin EUR 26,750 Day 2 Daily Settlement price Day 1 10,783.5 Daily Settlement price Day 2 10,710.0 Tick difference -147 Tick difference -147 Ticks x Tick value EUR 12.50/Tick x 10 contracts = Variation Margin EUR -18,375 Day 3 Daily Settlement price Day 2 10,710.0 Daily Settlement price Day 3 10,765.5 Tick difference 111 Tick difference 111 Ticks x Tick value EUR 12.50/Tick x 10 contracts = Variation Margin EUR 13,875

Risk Management Page 70 of 102 5.3.3 Additional Margin Additional margin (AM) serves to cover any potential additional costs that could arise if the positions had to be liquidated in the future. These possible close-out costs would arise if, based on the current prices of contracts / securities held in an account, the worst case loss would occur during the subsequent two trading days. Additional margin is imposed on options, options on futures and non-spread futures positions. Sample for Additional Margin for Futures Simplified: There are only two long futures positions March 15 in the margin class DAX of the Clearing Member in its proprietary account. Margin class DAX for Clearing Member X (proprietary account) Traded product: DAX Futures (FDAX) Assumed additional margin parameter: 500 points Index multiplier FDAX: EUR 25/point DAX: 10,500 points Product Maturity Number of Contracts FDAX March 14 2 Long The risk for the clearing house is on the downside. In case of a default of the Clearing Member, the maximum loss (worst case) occurs if the DAX moves down to 10,000 on the next day: 2 contracts x 500 points x EUR 25/point = 25,000 margin requirement. (If the DAX increases to 11,000 a negative margin would result for the 2 long contracts in the DAX Futures which would mean that a margin credit is calculated.) Margin Interval 10,000 10,500 11,000 Additional Margin 25,000 0-25,000 5.3.4 Futures Spread Margin If an account holds a number of futures positions that are based on the same underlying instrument, then the long and short positions can be offset against each other as long as they have the same maturity (netting of positions). In such a case, the price risks are equal and opposite. Only those long or short positions remain which have expiration dates that are not identical. These positions can also be offset against each other (spreading) because, generally speaking, the associated risks roughly, but not to the extent of 100%, offset each other, e.g. a long Euro-Bund Futures (FGBL) Sept. versus a short FGBL Dec. Counterbalanced positions of this kind are called spreads, and those which are not are referred to as non-spreads. However, a latent risk still exists, one arising from the fact that contracts with differing expiration dates do not demonstrate a perfect price correlation. The purpose of futures spread margin is to cover this risk in the future. Spread Margin parameters are considerably lower than Additional Margin parameter. Therefore the consideration of spreads in margining leads to noticeable lower margin requirements.

Risk Management Page 71 of 102 In calculating the spread margin, a differentiation is made between spot-month spread margin and backmonth spread margin. The expiration month closest to the current date is called the spot month, and the associated contract is the front contract. All other expiration months are considered back months. In case a front contract is one leg of the futures spread and the future contract is physically deliverable (e.g. Euro-Bund-Futures) an increased so called spot month spread margin may be applied when delivery is short to come. The reason here is that shortly before delivery the volatility of the front contract may increase and the correlation between the involved futures contracts may be reduced. In all other cases the lower back month spread margin will be applied. A differentiation between spot-month and back-month spread margin rate is made only for those products where the risk is really higher close to expiration e.g. because traders roll their positions. This holds true, for example, for interest rate futures. Spread margin parameters are published daily on Eurex Exchange and Eurex Clearing website: www.eurexchange.com > Market data > Clearing data > Risk parameters www.eurexclearing.com > Risk management > Risk parameters 5.3.5 Short Option Adjustment Theoretical options prices are calculated with the help of various options pricing models. In the case of options which are considerably out-of-the-money, the risk exists that the prices determined in this manner are too low, because large price fluctuations in the underlying security tend to cause exaggerated reactions in these options 3. Open short positions are therefore subject to an additional short option adjustment calculation which is used on out-of-the-money options when all theoretical prices within the interval are lower than the short option adjustment. It is intended as a protection against abruptly increasing volatility, and at times can lie considerably above prices calculated using the options pricing model. One component of the short option adjustment calculation is the so-called out-of-the-money minimum, which is determined by Eurex Clearing and used as a system parameter. 3 Eurex Clearing takes so called volatility shifts into account when calculating the margin requirements. All different calculations are compared to the short option adjustment.

Risk Management Page 72 of 102 Sample Short Option Adjustment Contract C ALV JUN 13 130.00 Margin parameter 10% Out-of-the-money minimum 25% Closing price EUR 103 Daily settlement price of option EUR 0.16 Short option adjustment (EUR 103 x 0.10) x 0.25 + EUR 0.16 = EUR 2.735 If the short option adjustment for the call option (put option) is higher than the theoretical option price at the upper (lower) range of the margin interval and the risk of this option is not covered by other positions, then the theoretical option price will be replaced by the short option adjustment. The Eurex Margin Calculator shows how the margin is adjusted on the upside. The margin requirement for a contract size of 100 shares is 2.735 x 100 shares = 273.50 4. For some products Eurex Clearing applies an absolute margin parameter. For these products the short option adjustment is calculated in another slightly different way. The Eurex Margin Calculator is available on Eurex Clearing website: www.eurexclearing.com > Risk management > Tools Figure 5-2: Sample Calculation of Margin for options on Allianz shares with the Eurex Margin Calculator 4 Margin calculated on January 24 2013.

Risk Management Page 73 of 102 5.3.6 Method for Calculating Future-Style Margin The premium margin associated with traditional options does not apply to options on futures. It can be ignored because a premium debit or credit for existing losses /profits takes place as a result of the daily settlement of unrealised profits and losses via the mark-to-market procedure, i.e. variation margin. Also, additional margin covers potential losses Eurex Clearing could incur in a worst-case situation until the next trading day. Sample of Future-Style Margin: Option on Euro-Bund Future Multiplier: 1,000 EUR/point Day Price in Points Difference Variation Margin Buyer Variation Margin Seller Day 1 Trade price 1.20 Day 1 Settlement price 1.10 0.10-100 +100 Day 2 Settlement price 1.35 0.25 +250-250 Options on futures are subject to futures-style premium posting. This means that upon exercise or expiration of a contract, the remaining unpaid balance of a portion of the premium is due in addition to the daily settlement of profits and losses. The advantage of this method is that the unrealized profits and losses on positions that result from marking-to-market are credited or debited on a daily basis. In applying this daily settlement of profits and losses, the calculation of credits and debits depends on how the value of a call or put position has changed. In order to finally arrive at the originally agreed upon options price when exercise or expiration of the contract occurs, the buyer must make one more premium settlement payment in the amount of the settlement price on the day of the exercise or, as it were, the final settlement price upon expiration. Again with this method of settlement, the maximum risk assumed by the buyer is limited to the amount of the options premium. The purchaser enjoys a clear advantage from a liquidity point of view because the markto-market process means that he does not have to pay the full amount of the options premium upon purchase of the option. Instead, additional margin is due, which can be deposited in the form of securities or cash. The writer, of course, does not receive the full amount of the options premium, but he also does not have to pay premium margin, rather only the variation margin plus additional margin which he, too, may deposit in the form of securities or cash. As a result, only a small amount of the writer s liquidity is tied up. This creates a strong argument for the futures-style margin procedure, in which both sides benefit from the low level of liquid capital that must be committed.

Risk Management Page 74 of 102 Summary of Margin Requirements Position Variation Margin Additional Margin Writer Yes Yes Purchaser Yes Yes Both, buyer and seller have to pay variation margin and deposit additional margin. The margin requirement for the buyer is limited to the options price (premium) agreed upon purchase of the option. 5.3.7 Margin Calculations within Margin Classes and Margin Groups As mentioned before within margin classes and margin groups, cross margining is possible. Margin requirements may be reduced significantly. This holds true especially for options and futures where two or more derivative products may be included in one margin class or different margin classes may form one margin group. Cross margining within a margin class The basis for margin calculations within a margin class is the assumed maximum price fluctuation that could take place in the underlying instrument (the margin parameter). By adding the margin parameter to and subtracting it from the current market price, the margin interval can be established, and with that, the maximum and minimum price the underlying instrument could potentially reach in the future. These projected prices are then used to identify which of all the exercise prices of active options series are contained within the interval. On the basis of these exercise prices, the theoretical prices of the associated options can be calculated 5. Afterwards, these theoretical prices are used to calculate the potential liquidation costs for all exercise prices within the margin interval (projected values). If the liquidation costs of all contracts (futures and options) in a given margin class are added together, the sum reflects the potential liquidation costs that could arise for the entire portfolio if the underlying instrument were to move by the full amount of the margin parameter 6. Within this process unrealized profits and losses on products within the same margin class are offset against each other. 5 Whereas the risk of futures is symmetrical, based on the volatility of the underlying, option prices are also influenced by other factors, namely their implied volatility. This is why for options not only underlying price changes are taken into account (margin intervals) but in addition changes in the implied volatility (vola shifts). 6 Again, in all cases options positions are included in the margin class different volatility scenarios are calculated. The overall margin requirement will be based on the volatility scenario that leads to highest margin requirement for the margin class.

Risk Management Page 75 of 102 A good example is the margin class DAX which includes DAX Futures and DAX Options. Assuming an account that includes 5 short calls at-the-money June 2013 DAX Options (ODAX) and 1 long June 2013 DAX Future (FDAX) position Assumed Margin parameter: DAX settlement price: 609.30 points, 8,000 points. Figure 5-3: Margin Calculation for Margin Class DAX As can be seen the margin calculation for the options and futures is not separated. The red (bold) graph illustrates the overall close-out costs within the margin class. The highest liquidation costs within the margin class DAX occur in case of falling prices (DAX level 7,390.70: EUR 16,135.76). For this example the close-out costs at the daily settlement price will be charged as premium margin (EUR 5,000), and the worst-case liquidation costs, less the premium margin, will be charged as additional margin (EUR 11,135.76). Without cross margining the margin requirement for the DAX future would have been 609.3 points x contract multiplier for DAX futures 25 Euro/point = EUR 15,232.50. The risk here is on the downside. The requirement for the 5 options contracts would have been EUR 16,096.65. This requirement is calculated in case of a move to the upside (using the volatility scenario that leads to the highest close-out costs). If both requirements are simply added the margin requirement would have been 31,329.15. This would be too high because the underlying DAX for both products may not move up and down at the same time in the future.

Risk Management Page 76 of 102 Cross Margining for a Margin Group If two or more margin classes whose underlying instruments are correlated with respect to their risk structure are combined, a margin group results. Within a given margin group, cross margining is possible, i.e. the offsetting of opposite risks. For example it makes sense to group together into a single margin group the FGBL margin class (which includes Euro-Bund Futures and the respective Options), the FGBM class (Euro-Bobl Futures and the respective Options), the FGBS class (Euro-Schatz Futures and the respective Options) as well as the margin class for German government bonds and jumbo mortgage bonds (Jumbo Pfandbriefe), because the underlying instruments of each margin class are exposed to exactly the same risks. 5.4 Prisma 5.4.1 General Principles The margin methodology Prisma and the Default Management Process (DMP 7 ) are closely aligned. More precisely, the default management process is the basis of the portfolio-based margining method. Risk Based Margining is based on net positions of products and contracts within margin classes and margin groups. Correlation effects are taken into account to reduce margin requirements (cross margining) only within these classes and groups. The margin requirement for a CMs account is (simplified) the sum of all margin requirements for the different margin classes and margin groups. Within Prisma the margin requirement is calculated for a small number of liquidation groups in which offsetting effects can be taken into account to a much greater extend. A Liquidation Group combines all cleared products across all markets cleared by Eurex Clearing that share similar risk profiles. Liquidation Groups serve as a cornerstone of the Eurex Clearing Prisma portfoliobased risk management method. Liquidation Groups are pre-defined (they exist irrespective of a Clearing Member default). Portfolio risk margin offsets are only granted within these pre-defined Liquidation Groups. Each Liquidation Group has a fixed holding period that reflects the time estimated to analyze, hedge and liquidate the respective products. An expected holding period can be between two to five days, depending on the Liquidation Group and the products therein, and is at the same time the basis for margin calculation. The total margin requirement is the sum of the margin requirements for the different liquidation groups. Whereas RBM is based on a two-day risk, the risk calculation within Prisma depends on the liquidation group and the number of days corresponds to the holding period assumed in the default management process. Prisma does not use any margin parameters that are based on historical volatility of the different (underlying) products. The risk evaluation concept is not based on single products (margin classes and groups). The risk is calculated using historical simulations. 7 The DMP is explained more detailed within chapter 7 of the Basic Module.

Risk Management Page 77 of 102 Currently available Liquidation Groups: Liquidation Group CCY HP* Equity Derivatives (EQ) Equitiy Derivatives (Single Stocks) Equity Index Derivatives Fixed Income Derivatives (FI) Listed Fixed Income and Money Market Derivatives (Eurex Exchange) OTC Interest Rate Swaps (EurexOTC Clear IRS) EUR, CHF USD, GBP EUR, CHF GBP, USD JPY 4 2/5 *HP = Holding period days; 2 days for listed Fixed Income Derivatives that are not used for cross margining within the Fixed Income Liquidation Group. Within each of these Liquidation Groups, positions can further be divided into so-called Liquidation Group splits that are liquidated separately from each other. Further Liquidations Groups are in preparation and will be gradually migrated to Eurex Clearing Prisma. Cross Margining within Liquidation Group fixed income derivatives The Liquidation Group fixed income derivatives contains products from two markets: IRS positions (EurexOTC IRS Clear Service) across all currencies (EUR, CHF, USD, GBP and JPY) and the allocated EUR and CHF fixed income/money market derivatives. Since May 2014 cross margining is possible between both markets. Eurex Clearing uses a Margin Optimizer process before calculating the individual margin components within the fixed income derivatives Liquidation Group. With this process the ideal portfolio structure of combined listed derivatives positions and swap positions is determined and, thereby enabling cross margining. Fixed income derivatives (e.g. Euro-Bund Futures) and money market derivatives (e.g. EURIBOR Futures) which hedge the interest rate risk of the IRS swap positions, are allocated to the IRS + FI Liquidation Group split which is correspondingly also called IRS+FI split. This allocation aims to reduce the interest rate sensitivities of the IRS portfolio as far as possible, so that the margin requirement will be reduced.

Risk Management Page 78 of 102 Not allocated fixed income derivatives and money market derivatives stay within the Liquidation Group split FI with a holding period of 2 days. Figure 5-4: Liquidation Group fixed income derivatives Splits The offset is calculated for different maturity buckets. At each step, initial margin is calculated for both the IRS+FI and FI-only splits, before and after allocating the fixed income and money market derivatives to the IRS+FI split. If the total initial margin of both splits is not reduced at this step, then the allocation is rejected and the algorithm continues with the next step. 5.4.2 Margin Types When determining appropriate margin requirements and risk offsets, Eurex Clearing considers mark-tomarket margin backward looking margin components and initial margin forward looking margin components. Figure 5-5: Prisma Components

Risk Management Page 79 of 102 Backward-looking components Current liquidating margin is calculated for bonds, repos, shares and securities lending transactions only. Premium margin, variation margin and initial margin apply for Eurex Exchanges listed derivatives products. The backward looking margins from RBM will remain the same within Prisma. They have been described in chapter 5.3. The forward looking additional margin and futures spread margin will be replaced by initial margin. Forward-looking components - Initial Margin (for all products) The Eurex Clearing Prisma margin methodology is based on a complete view of each Clearing Member s portfolio and takes advantage of cross-correlation effects and accounts for hedging. In this way, it determines the initial margin requirement on a portfolio level as opposed to a product-by-product view. The Eurex Clearing Prisma initial margin calculation is the result of a simulation based, value-at-risk (VaR) methodology that uses: Filtered historical scenarios Stress period scenarios Adjustments for simplifying model assumptions As the initial margin is a forward-looking margin component, it quantifies an estimate of future potential losses over the holding period of all Clearing Members Liquidation Groups at a predefined and appropriate confidence level. The initial margin is calculated by taking into account potential correlation and netting effects for positions within a Liquidation Group. Figure 5-6: Prisma Methodology Overview

Risk Management Page 80 of 102 The initial margin consists of the two main subcomponents market risk and liquidity risk. They are calculated using profit and loss distributions for the Liquidation Group based on a set of different scenario prices for the underlying instruments. 5.5 Pre-Trade Risk Controls Pre-trade risk control functions are offered to Clearing Members and their Non-Clearing Members via different GUIs. Some of them can be used via the T7 trading system (Trader and/or Admin GUI) and some via the @X-tract Clearing GUI. Figure 5-7:Pre-trade risk controls Furthermore a Clearing Member can subscribe to Non-Clearing Member order confirmation broadcasts in order to get a complete overview of its own as well as its clients orders (also possible for trade confirmation broadcast, see chapter 5.6.1). 5.5.1 Advanced Risk Protection Eurex Clearing`s pre-trade risk controls are closely tied to the growing trend of direct market access and the potential risk arising from algorithmic trading tools. The tools offer members flexibility in setting intelligent limits that reflect their risk profiles. Eurex Clearing offers a pre-trade risk management service for Eurex Exchanges business including Eurex Trade Entry services that enable Clearing Members to define individual risk limits for themselves or their associated NCMs. In addition, any member can define its own risk limits, down to the trader subgroup level, for added control. However, when both a CM and an NCM set limits, the more restrictive limits will apply. The limits are based on actual calculations and result in various pre-trade actions without latency impact. Limits are evaluated against corresponding risk figures conveyed in real-time via the Enhanced Risk Solution (see also section 5.6.2) and any breach of a set limit can result in the restriction of further trading activity, as pre-defined by the Clearing Member or their associated NCMs. The Advanced Risk Protection functionality is also supported within Eurex Exchange s T7 and can warn, slow or stop a participant if a pre-defined risk limit is exceeded, but the data setting (entry of all limits) has to be done in the Risk Monitoring Maintenance window of the @X-tract Clearing GUI.

Risk Management Page 81 of 102 Defining Limits All members can select from four pre-defined measures (metrics). Each represents a different aggregate of risk values, described below: Name Abbreviation Based on Total exposure TMR Total margin requirement Profit and loss CULI Premium margin + current liquidating margin 8 + variation margin + option premium Cash flow CASH Variation margin + option premium Market risk NDM Additional margin + futures spread margin Available Actions This functionality encourages members to set risk limits in advance to proactively safeguard trading activities. Members specify which of three actions will be implemented when a breach of each level or risk limits occurs. Level 1 (Alert only limit) Level 2 (Slow down limit) Level 3 (Full stop limit) An alert message is broadcast to both the NCM and its respective CM The system automatically slows down a member s order/quote entry and order/quote modification by enforcing a minimum delay of between 250 and 5,000 milliseconds (member configurable) between non-delete transactions in any single product. (Slow down limit) The member s trading state is set to Halt which means all open orders and quotes are deleted and all further trading and clearing functions are prevented. 8 Current liquidating margin is not calculated for derivatives but in case a CM holds clearing licenses for different markets, current liquidating margin is calculated for bonds, equities, repos and securities lending transactions and will be calculated for this CM and is automatically included in the aggregate risk value CULI.

Risk Management Page 82 of 102 The following graphic shows an example for the three levels: Figure 5-8: Advanced Risk Protection Levels Changing limits and timelines for settings in the Advanced Risk Protection service are based on the same data that is distributed via the Enhanced Risk Interface. This enables members to implement additional risk monitoring metrics that are more complex as well as tailor-made based on the same data source. Members can set risk limits using the @X-tract Clearing GUI. When members use the GUI to enter and/or change risk limits, the new limits become valid as of the next business day. Changes to other parameters (delay; Order/Quote Delete) are effective immediately.

Risk Management Page 83 of 102 Limits may be set using the Risk Monitoring Maintenance window. Figure 5-9: Risk Monitoring Maintenance window - @X-tract Only users of the Enhanced Risk Solution (see chapter 5.6.2) can make intraday changes to their risk limits. Changes initiated via this interface are effective only for the current day and will be overwritten with limits defined in the @X-tract Clearing GUI valid as of the next business day. If this override is not desired, the respective limit change must also be done via the @X-tract Clearing GUI.

Risk Management Page 84 of 102 Release of a Member The release process is strictly manual and can only be carried out by the member which set the respective limit. It requires four-eye principle confirmation. If several action levels are triggered for one limit type, releasing a trigger causes the automatic release of all action level limits of the same type. Releases may also be executed using the Risk Monitoring Maintenance window (see Figure 5-9: Risk Monitoring Maintenance window). Step 1 Selection of triggered limit Step 2 Release Step 3 Confirmation The maintenance member may select any triggered limit Press the Release button Confirmation that all limits of the selected type be released During the release process, the following points should be kept in mind: Release of individual limits of one type is not possible. Both the Clearing Member s and the Non-Clearing Member s currently triggered limits must be released separately by the respective limit owner. A member set to HALT for exceeding a level 3 limit can only be re-activated through the release process using the Limit Maintenance tab of the Risk Monitoring Maintenance window. An attempt to reactivate a member through any other window is rejected with an error message. Furthermore, release processing is triggered automatically following the deletion of a triggered limit. If the release is not successful, the limit is not deleted.

Risk Management Page 85 of 102 5.5.2 Stop Functions Figure 5-10: Overview Panic Cancel and Stop/ Release Actions Panic Cancel and Stop/Release actions only affect the trading functionality in the order book of the affected users in T7. Eurex Trade Entry services are not affected - if a trader using the Eurex Trade Entry services must be stopped from trading, this is done via the Stop Button in the @X-tract Clearing GUI. 9 Risk control functions are available in T7 for trading members to stop a user or an entire business unit from trading. Clearing Members may stop one of their NCMs only via the @X-tract Clearing GUI, which will be automatically synchronized with T7. Stopped users can continue to view trading activity, but are not able to enter new orders or quotes. 9 T7 Trader and Admin GUIs currently do not differentiate between markets when performing Panic Cancel and Stop/Release functions for a user or business unit. If a user or business unit is cancelled or stopped, it is cancelled or stopped for all products the user might be allowed to trade in any market of T7. This limitation is valid for the start of T7.

Risk Management Page 86 of 102 5.5.2.1 Stop Button (@X-tract Clearing GUI) Although Eurex Clearing has robust pre-trade risk tools in place, emergency situations can occur. In this case it is important for members to be able to take immediate actions to prevent further exposure. Eurex Clearing provides all members with a stop button that they can use to Halt further trading on a member or more granular level, including specific trader IDs. Once a Stop is triggered, further trading and clearing activities are prohibited, the usage of Eurex Trade Entry services are also prohibited open orders and quotes are deleted until the member or trader ID in question is manually reset. For Stops and Releases, the Risk Monitoring Maintenance window within the @X-tract Clearing GUI is used. Figure 5-11: Risk Monitoring Maintenance window - @X-tract To perform a Stop, Stop Trader or Release action, the user selects the row in the table of the window with the details of the Exchange Participant for which the action should be performed. Depending on the member status, either the Stop Trader and Stop button only or the Stop Trader, Stop and Release buttons are enabled. For all Stops, Stop Traders and Releases the four-eye principle applies. A second user has to confirm the Stop/Release action. The Release button cannot be used to release a stop triggered automatically by a level 3 limit breach (see chapter 5.5.1). In order to release an automatic stop, the user needs to release the triggered limit on the Limit Maintenance tab.

Risk Management Page 87 of 102 Members are informed immediately about the stop or release action by messages in English and German in the Eurex system. The short form of the messages are displayed in the Message Log window and highlighted in red. When a Trading Member is stopped, the corresponding trading business unit in T7 is automatically stopped, and all orders and quotes within the business unit are deleted. If the stopped business unit is subsequently released, all users may resume trading activities. Previously deleted orders are not restored. 5.5.2.2 Panic Cancel and Stop/Release Actions within T7 There are two risk control functions within T7: The Panic Cancel actions, which results in the deletion of orders and/or quotes, can be accessed via the Risk Controls window) in the T7 GUIs (Trader and Admin GUI). The Stop/Release actions will not only delete orders and quotes but will prevent a single or group of traders/machines from further entry of quotes and orders. There are two different Stop/Release actions. The Stop Trading and Release Trading functionality is included in the T7 Admin GUI only. Panic Cancel Panic Cancel enables users with an assigned emergency trading stop role to quickly delete all orders and/or quotes in all markets in one go. The Panic Cancel function is available in T7 Trader and T7 Admin GUIs. Panic Cancel is effectively a delete all instruction with a pre-defined filter. The filter criteria include ownership of orders or quotes, i.e. business unit, session, user and affected products, for all products belonging to a particular market. Affected users are notified about the Panic Cancel action. Stop/Release Action Stop Trading and Release Trading actions are effective for an entire BU or selected users in a particular market and can be performed by a user of T7 with the emergency trading stop role and supervisor user level assigned. The Stop Trading action effectively prevents a user or BU from the further entry of orders and quotes. In order to prevent any existing orders and quotes of the affected user or BU from matching, Stop Trading also triggers the Panic Cancel function.

Risk Management Page 88 of 102 5.5.3 Transaction Size Limits Clearing Members may pre-define per Non-Clearing Member on a product level the limits a given member may have in a specific product. The maximum quantity is defined per order. In case the Clearing Member assigns a quantity of zero for a specific product, the Non-Clearing Member is not permitted to enter orders for that product. Figure 5-12: Product Assignment Maintenance window @X-tract The Product Assignment Maintenance window is used to assign product groups and individual products and to define the maximum order quantity for members. It supports the change of maximum order quantity as well as the assignment and de-assignment of product groups and products. The Product Assignment Maintenance window may also be used to determine Maximum Wholesale Quantities (also possible on user level). The Maximum Wholesale Quantity defines the maximum number of contracts (per product and per transaction) that can be entered via the Eurex Trade Entry Services.

Risk Management Page 89 of 102 T7 will synchronize with these entries and create corresponding transaction size limits at the trading business unit level on a per product basis. Figure 5-13: Synchronization between Architectures In addition transaction size limits for a specific user and product will be maintained by trading participants themselves in T7 (within the User Maintenance of the T7 Admin GUI), and the following values can be configured: Maximum order quantity Maximum calendar spread quantity

Risk Management Page 90 of 102 If the values entered exceed the limits established for the trading business unit, the lower limits will apply: Figure 5-14: Transaction Size Limits Note that the maximum number of contracts for Eurex Trade Entry services will continue to be maintained via the @X-tract Clearing GUI and is not included in T7.

Risk Management Page 91 of 102 5.5.4 Pre-trade Limits within T7 A pre-trade limit is a feature to handle trading risks for high volume products selected by the exchange. Pre-trade limits are functional limits on the number of open orders and quote sides stored in the order book and allowed for a business unit and session, thus enabling a pre-trade limit. In cooperation with Clearing Members, Trading Participants are able to specify the maximum number of open orders and quote sides on trading business unit level for all futures, all options and/or selected products. In addition, Trading Participants are able to specify the maximum number of open orders and quote sides on session level. The trading business unit limit is initially set by Eurex Exchange to 10,000 for each trading business unit and the session limit is initially set to 5,000 for each session. A Trading Participant may choose to reduce these default limits for all futures, all options or selected products by setting the new pre-trade limits. CMs and Trading Participants should be aware that the default limits set by Eurex Exchange greatly exceed the total number of open orders in the market today. This should be taken into consideration when a member considers which limits are appropriate. Once a pre-trade limit has been reached, subsequent orders will be rejected, until the number of open orders in the order book has been reduced to 70% of the defined limit. Changes to pre-trade limits become effective on the next business day. If a Trading Participant chooses to set pre-trade limits valid for the following business day, it should consider setting the limits to two or three times higher than the normally expected number of open orders or quote sides stored in the order book. Please note that the motivation to introduce the pre-trade limits is to provide a method to protect Trading Participants from erroneously submitting an excessive number of orders or quote sides via an order routing or algorithmic trading system, a situation which is commonly characterized by a low risk probability, but a high financial risk impact. The sum of the limits set for all sessions per product may exceed the limit specified for the business unit for the same product. However, the session and product limits are applied independently. For example, if 400 orders are open in FESX from session 1, up to a maximum of 600 open orders in FESX will be allowed via session 2 (Business unit limit of 1,000 will be allowed in total from session 1 and session 2 combined).

Risk Management Page 92 of 102 Using the T7 Admin GUI, Trading Participant users with the service administrator role entitlement are able to maintain pre-trade limits for all options, all futures, and/or selected products on trading business unit level and on session level. Descriptions of the entitlement concept and roles can be found in the document Participant and User Maintenance Manual available on the Eurex website: www.eurexchange.com > Technology > Eurex Exchange s T7 > System documentation > Release 2.5 > Eurex GUI Solutions. 5.6 Post-Trade Controls Figure 5-15: Overview of Post-Trade Controls 5.6.1 Trade Confirmation Broadcast In addition to giving Clearing Members the possibility to view order activity in real-time, Eurex Clearing also permits CMs to view confirmed trade history in real-time. Clearing Members can also subscribe to Non- Clearing Member trade confirmation broadcasts in order to get a complete overview of its own as well as its clients positions. 5.6.2 Enhanced Risk Solution In addition to the basic risk management services, Eurex Clearing offers members the choice to subscribe to an optional interface called Enhanced Risk Solution. Through this interface, Eurex Clearing distributes real-time risk and position data for all exchanges and trading venues for which the clearing house offers it s clearing services. Provision of real-time data allows members to monitor developments in risk and positions at the moment they happen, promoting more proactive risk management. It also facilitates the efficient use of collateral as the data enables risk managers to monitor margin surpluses and shortfalls as they occur, providing indications of potential intraday margin calls.

Risk Management Page 93 of 102 5.6.3 Reports Eurex Clearing provides Clearing Members with intraday and end of day reports. In general all relevant margin and collateral reports are described in the Basic Module. These reports are out of the scope for the Eurex Exchange market module, but nevertheless the reports are important and various reports are available for Clearing Members and NCMs/RCs as well. A full description of all reports may be found in the Eurex XML Report Reference Manual on the Eurex Clearing website: www.eurexclearing.com > Technology > Eurex Clearing classic system > System documentation > Eurex Reports. Overview of Main Margin Reports Report Description Availability CC050 Daily Margin CC060 Daily Margin Requirements, at pool ID level This report deals with the daily margin requirements (or margin credit) for each exchange member. In addition to the margin components calculated within RBM, the premium and initial margin calculated within Eurex Clearing Prisma is included in this report. The Eurex Clearing Prisma figures are reported in separate margin classes, whereby each liquidation group will be reported in one margin class. The margin requirement is calculated based on the premium/current liquidating margin, futures spread margin and additional/initial margin. All margin components are listed in this report. This report shows the daily margin requirement for all exchange and clearing members. The margin requirement is listed by account and totaled for each exchange and clearing member. CMs and NCMs/RCs CMs and NCMs/RCs

Risk Management Page 94 of 102 5.7 Sample Questions 5-001 A Clearing Member has non-spread and spread positions within a margin class (RBM). Which of the following statements is true? A: Because of spread positions the margin requirement will be higher (compared to a position without spreads). B: Because of spread positions the margin requirement will be lower (compared to a position without spreads). C: The spreads have no influence on the margining. D: For spreads the Clearing Member does not have to pledge any collateral. Correct answer: B 5-002 The forward-looking margin type within Prisma is called... A: Variation Margin B: Initial Margin C: Current Liquidating Margin D: Premium Margin Correct answer: B 5-003 The Level 2 action within the Advanced Risk Protection is A: an alert message. B: that the member's trading state is set to "Halt". C: a slowdown of a members order/quote entry. D: a deletion of all orders and quotes. Correct answer: C 5-004 For the Stop Button (@X-tract Clearing GUI); what happens in case a Stop action is triggered? A: Open orders and quotes are deleted. B: Open quotes are deleted. C: Further trading and clearing activities are prohibited. D: Eurex Trade Entry Services (TES) are still available. Correct answer: A C

Collateral Management Page 95 of 102 6 Collateral Management 6.1 Overview In general the Clearing Member is responsible for delivering the appropriate amount of eligible margin assets in a timely manner for itself, its NCMs/RCs and clients to Eurex Clearing. A Clearing Member has flexibility and can satisfy margin and Clearing Fund requirements by depositing cash in different currencies, securities or commodities. Accepted securities and commodities are valued on a daily basis. The management of collateral is performed in the @X-tract Clearing GUI, for example in the Collateral Transaction Overview window or the Collateral Status Overview window. The collateral management process is described in more detail in the Preparation Material for the Clearer Test Basic Module as it is largely the responsibility of the Clearing Member. Nonetheless also Non-Clearing Members should be aware of admissible collateral, applicable limits on collateral, haircuts applied to collateral and security collateral fees. Figure 6-1: Eligible Collateral Eligibility criteria and limitations for collateral set by Eurex Clearing are developed to comply with regulatory requirements. Eurex Clearing has developed rules for eligible collateral defining exceptions and certain concentrations limits.

Collateral Management Page 96 of 102 Eligibility Criteria Collateral needs to fulfill security, liquidity and accessibility criteria Collateral is composed of highly liquid securities collateral as well as of central bank or commercial bank cash collateral A wide range and different types of fixed income securities denominated in EUR are accepted, e.g. European Central Bank eligible marketable assets. Acceptable fixed income securities denominated in CHF are also accepted, e.g. SNB repo eligible securities. Government bonds in selected other currencies (USD, GBP, DKK, NOK, SEK, AUD, CAD, JPY) are also accepted. Acceptable equities in EUR denominated are DAX, Euro Stoxx 50 constituents. Other stocks as announced by Eurex Clearing. In CHF denominated SMI constituents or other stocks as announced by Eurex Clearing are accepted. Other equities like US shares are not accepted. The full list of eligible collateral can be found on the Eurex Clearing website: www.eurexclearing.com > Collateral management > Securities collateral. Limitations In principle own issues (i.e. securities issued by the collateral provider) and close link securities (i.e. securities issued by companies affiliated with the collateral provider) are not accepted. Exceptions are defined in Eurex Clearing circular 126/14. Debt securities that have a remaining term of 15 calendar days All financial instruments that are issued by Deutsche Börse Group (e.g. Deutsche Börse AG shares and bonds, Xetra-Gold) are not accepted in order to eliminate potential macro-economic wrong way risk effects. Concentration Limits - At clearing house level: - For bonds the admissible proportion of the issued capital is 25% - For equities the admissible proportion of the daily free float is 1 % - At Clearing Member level: Stock ratio in the collateral pool must not exceed a ratio of more than 30% as a threshold Further limits and thresholds are described within chapter 6.1 of the Preparation Material for Clearer Test Basic Module. Haircuts Haircuts are a percentage that is subtracted from the market value of an asset provided as collateral to account for the perceived price risk associated with holding that asset. The higher the haircut, the higher the perceived risk of the asset and the lower the value applied for that asset as collateral. Eurex Clearing applies dynamic and minimum haircuts to bonds and equity collateral in order to account for asset specific risk. Current haircuts are published on Eurex Clearing website: www.eurexclearing.com > Risk management > Risk parameters.

Collateral Management Page 97 of 102 Security Collateral Fee The fee applies to margin collateral only and will not be charged for securities collateral delivered for the Clearing Fund or own funds substitution purposes. The security collateral fee is charged on a collateral pool level and is applied to all collateral pool types (Elementary, Net Omnibus or Individual Clearing Model). The security collateral fee is only charged on utilized security collateral. Any over-collateralization in the corresponding pool will not be charged. The fee will be calculated daily and invoiced monthly.

Collateral Management Page 98 of 102 6.2 Reports Overview of Main Collateral Reports Report Description Availability CD010 Daily Cash Account CD031 Daily Collateral Valuation CD033 Collateral Composition CD042 Daily Settlement Statement Contains the details of balances and transaction amounts of the cash account. Contains data about the market value of the collateral in the different security deposit accounts, and the amount of cover value that is attributed to the collateral. The amount of cash deposited as collateral for the collection of interest is also shown under a separate ISIN for the accepted currencies. Shows the difference between the evaluated and limited collateral security value and the margin requirement. This report describes the daily settlements. It lists the necessary margin requirements, pledged cash and security balances and the cover credits and debits incl. the Permanent Cash Balance values. The "over/under" cover values by currency are converted into the member's clearing currency and summed to calculate the net margin profit or deficit. CMs only CMs and NCMs/RCs CMs and NCMs/RCs For NCMs/RCs under the Individual Clearing Model this report will contain data. For NCMs/RCs under the Net Omnibus Clearing Model and the Elementary Clearing Model this report will always be empty. CMs and NCMs/RCs For NCMs/RCs under the Individual Clearing Model this report will contain data. For NCMs/RCs under the Net Omnibus Clearing Model and the Elementary Clearing Model this report will always be empty.

Collateral Management Page 99 of 102 6.3 Specific Equity Collateral Assignment Overview (SECAO) Function SECAO is designed to make the most efficient use of equity collateral linked to delivery obligations arising from derivatives positions. It is an improvement of the Short Call Coverage within RBM 10, whereby the writer of a call option would pledge the underlying in an amount equal to the contract size multiplied by the number of contracts to cover his margins. With SECAO, the margin requirement calculations remain the same, and thus the moneyness of the derivatives position is taken into account, bringing about a reduction in the number of underlyings required as collateral. Thus, while SECAO does not decrease margin requirements for the derivatives position, it does serve to make more efficient use of equity collateral. SECAO is designed for equity derivatives with upside risk. Derivatives Position Short Call Equity Option Short Single Stock Future Risk is on the Upside Upside Thus, this function does not apply to equity index derivatives, i.e. the DAX margin class, because these are cash settled. The function does also not apply to long single stock futures and short put equity options, because the risk is on the downside here. For a short call equity option or short single stock futures (SSF) position within RBM, the writer of a call would have to cover his margin requirement by posting collateral. Should the member choose to cover the margin requirements with collateral other than the underlying, a haircut, as stated on the Eurex Clearing website would be taken to guard against market moves (in case of equities minimum haircut: 20%). With SECAO, since the deliverable of the derivative position is assigned as collateral, no haircut is applied, and the number of shares required is simply the total margin requirement divided by the settlement price of the stock. No haircut is applied, because with rising share prices the risk of the seller in general is increasing but in parallel the price of the pledged collateral is also rising. In the following example, the position consists out of a short SAP call with strike price of 60. The underlying is trading at 58, pricing the call option at roughly EUR 1.80. For this position, the total margin requirement is EUR 515. If this position should be covered with the corresponding underlying, at least EUR 515/EUR 58 SAP shares are needed. Thus, 9 shares suffice to cover the position. Note that the deeper in-the-money an option is, the greater the price of the underlying, and thus a greater number is required to cover the margin requirements. This is natural, given that deep in-the-money positions are likely to be exercised. Conversely, a deep out-the-money position would have a much lower total margin to share price ratio, up until the short option adjustment (see chapter 5.3.5). 10 Within Prisma (Release 1) SECAO will not be available.

Collateral Management Page 100 of 102 Position Short 1 Contract Contract SAP JUN13 call Margin Parameter 10.00% Volatility 17.5% Option Price Strike/ Exercise Price 1.80 60.00 Underlying Price 58.00 Contract Size 100 Premium Margin 11 180.00 Additional Margin 335.00 Total Margin 515.00 Total Margin Requirement / Share Price 515.00/58.00 # Shares to cover margin 8.87 9 Shares Without SECAO and equity collateral with a haircut of 20% used to cover the margin requirement approximately 12 shares are needed 12. SECAO equity collateral in excess of the number needed to cover the margin requirements for derivative positions on the share will not be taken as margin credit. Instead, it will be allocated to the standard collateral pool of the member, where a haircut, as stated on the Eurex Clearing website (www.eurexclearing.com > Risk management > Risk parameters) is applied. The Specific Equity Collateral Assignment Overview window is used to assign/de-assign specific equity collateral for a given trading member to the pledged account at a specific CSD. The SECAO functionality is available in the @X-tract Clearing GUI for Clearing Members: Main Menu -> Collateral -> Specific Equity Collateral Assignment Overview window. 11 The premium margin covers the current close out costs and corresponds to the option price (1.80 EUR per share x 100 shares = EUR 180). The additional margin of EUR 335 covers the additional costs that would occur in case of a rising share price (share price EUR 58 + 10% = 63.80) assuming a higher option price of EUR 5.15. The total margin is calculated as the sum of premium and additional margin. 12 To cover the margin requirement of EUR 515, the CM would need to deposit SAP shares worth EUR 515. With a minimum haircut of 20% shares worth EUR 643.75 would have to be deposited, i.e. EUR 643.75/EUR 58 = 11.09 12 shares.

Collateral Management Page 101 of 102 Figure 6-2: Specific Equity Collateral Assignment Overview window - @Xtract The Specific Equity Collateral report (CC051) shows per Clearing Member, exchange member, currency, account and margin class, the unadjusted margin requirement, information about specific equity collateral used to cover this margin requirement and the remaining effective unadjusted margin requirement. The information about used specific equity collateral comprises the equity ISIN, the price at which this collateral was evaluated, the assigned quantity, the value of the assigned quantity at the given price and how much of the value has been used to cover the margin requirement. When no specific equity collateral is disposable, then no information on the equity ISIN, the price at which this collateral was evaluated, the assigned quantity, the value of the assigned quantity at the given price is contained and the value of the used specific equity collateral will be zero.

Collateral Management Page 102 of 102 6.4 Sample Questions 6-001 What kinds of securities are not accepted in general by Eurex Clearing as collateral? A: Own issues B: Close link securities C: Bonds D: Equities Correct answer: A B 6-002 For what kind of derivative(s) position(s) does SECAO apply? A: Long Call Equity Option B. Short Call Equity Option C: Long Put Equity Option D: Short DAX Future Correct answer: B