Introduction of C7 Release 8.1: Next Generation ETD Contracts (NextGen)

1.   Introduction

With this circular, Eurex Clearing announces the production launch of C7 Release 8.1, which is scheduled for Monday, 27 June 2022. The simulation environment will be available with limited scope from 6 December 2021 and full scope as of 27 January 2022.

With C7 Release 8.1, the only item in scope is the introduction of Next Generation ETD Contracts.

Eurex Clearing provides a description of the changes that are introduced with C7 Release 8.1 in the Release Notes on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Support > Initiatives & Releases > C7 Releases > C7 Release 8.1 > System Documentation > Overview & Functionality

Simulation start:  6 December 2021
Production start:  27 June 2022

Learn more about C7 Release 8.1 on our dedicated initiative page under the following link: Support > Initiatives & Releases > C7 Releases > C7 Release 8.1. System documentation, circulars, timeline and much more information will be available there for you.

2.   Required action

New fields will be introduced; therefore clearing participants are required to adjust their systems. Clearing Members and vendors will be impacted on C7 Clearing GUI, FIXML and reporting changes, even if they will not use the new contract identification approach directly. 

Please prepare for the Release and make sure that all your Release Contacts have subscribed for Eurex Clearing Circulars and Newsflashes on the Eurex Clearing website under the following link:

Find > Subscriptions

We recommend clients to participate in the simulation phase. Clearing Members are requested to submit their Readiness Statement by Friday, 17 June 2022.

3.   Details of the initiative

Eurex aims to enable a more flexible set-up of Exchange Traded Derivatives (ETD) products and will therefore implement an enhanced ETD Contract identification concept to allow more than one expiration per month on product level (sub-monthly contracts).

The product scope will be enhanced to support more than one expiration per month, which applies across the trading, clearing and risk management area. Consequently, several sub-monthly expiring contracts referring to the same underlying will be summarized by the same product. 

The old contract identification concept containing month and year information (MMYYYY) will be replaced by a new concept containing day, month and year information (YYYYMMDD).

On the FIXML side, NextGen will introduce new contract attributes that will be added to the instrument component. By changing the contract key, key fields which make a contract unique will be adapted. There will also be changes to several clearing reports as well as changes to C7 Clearing GUI windows.

The technical changes will become effective on 27 June 2022. Even if all contracts still have a month/year description at this point in time, it is strongly recommended for Trading Participants and Clearing Members to switch to the new contract identification approach by this date to be prepared for the upcoming business initiatives (currently planned for July 2022). 

For clearing participants who are not at that point ready for the new contract identification concept, a grace period with parallel support of the current and new contract identification concepts will be offered until November 2022. During the grace period, clearing participants will still be able to continue their business with the old contract identification concept. Nevertheless, they will be excluded from participating in the new business initiatives including the already existing weekly options instruments.

Detailed information can be found in the Release Notes and supporting documentation on the Eurex Clearing website under the following path:

Support > Initiatives & Releases > C7 Releases > C7 Release 8.1 > System Documentation

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.

Further information