GERMANY: Eurex Introduces Future Cross-Margining between Repos and Derivatives

Thursday June 18 2026

On 12^th June 2026, Eurex announced the introduction of bond portfolio margining for the first time by extending its established PRISMA risk model, providing a new opportunity for dealers to reduce costs for cleared products and setting the scene for a future cross-margining between repos and derivatives.

The execution of cross-margining, one-pot margining or cross-product margining has been live for years in various forms. Various fixed income derivatives such as futures and swaps, and equity index futures and options, can be analyzed together in risk models to reduce the amount of collateral that dealers need to post to central counterparties (CCPs) on behalf of proprietary and client trading. Dealers can conduct more business if they need to post less margin, resulting in larger revenues. Every active trading firm is aware of their margin requirements with CCPs either real-time or end of day; reducing this cost creates direct front-office opportunities.

The ability of a CCP to run a well-calibrated risk model is a central tenet of financial market infrastructures; it is one of the most important things that CCPs do and is a primary focus of regulatory oversight. The CPSS/IOSCO Principles for Financial Market Infrastructures state that “A CCP should adopt initial margin models and parameters that are risk-based and generate margin requirements sufficient to cover its potential future exposure to participants in the interval between the last margin collection and the close out of positions following a participant default.” Getting the risk model right is the first order of business for a CCP.

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