Securities Clearing: Introduction of C7 Securities Clearing Service (C7 SCS) Release 3.5

1.   Introduction

With this circular, Eurex Clearing announces the production launch of optional Release 3.5 of “C7 Securities Clearing Service” (C7 SCS) on 10 June 2024.

With C7 SCS Release 3.5, Eurex Clearing will introduce the possibility for Eurex Clearing Members who clear Eurex Repo Transactions to provide a CBF (Clearstream Banking AG, Frankfurt) account for settlement of Special Repo and GC Repo Transactions in French, Italian and Spanish bonds that are T2S eligible.

Furthermore, a new report Monthly Fine Statement (CB227) as new instance of the currently provided Monthly Fee Statement (CB350) will be introduced, providing fine-related details.

Simulation start: 22 April 2024
Production start: 10 June 2024

Distribution start of new report Monthly Fine Statement (CB227) in production environment: 2 July 2024

Learn now more about C7 SCS Release 3.5 on our dedicated initiative page on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 3.5. 

System documentation, circulars, timeline and much more information will be available there for you.

2.   Required action

A.  Special Repo and GC Repo Transactions executed in French, Italian or Spanish bonds which currently can be settled in (i)CSDs (CBL, CBF-i, Euroclear Bank) only, can be settled in future also in T2S/CBF. Clients willing to use the enhancement will need to request the amendment of their settlement account setup for Eurex Repo accordingly. No action is required for Members who wish to continue with their existing settlement location.

B.  The new Monthly Fine Statement (CB227) report will provide two types of information - fine components that are only charged on a monthly basis and aggregated information of fine components that are charged on a daily basis. This report can be ordered via form “SCS report selection for Clearing Member/Settlement Institution consolidated”, available on the Eurex Clearing website under the link: Find > Forms.

Please check whether you have registered and/or updated your Release Contacts for C7 SCS via the Member Section of Deutsche Börse Group under tab “Company Contacts”.

In parallel, please subscribe to Eurex Clearing Circulars and Newsflashes on the Eurex Clearing website under the following link: Find > Circulars & Readiness Newsflashes Subscription. 

Any communication regarding C7 SCS will only be distributed via Eurex Clearing Circulars and Newsflashes.

3.   Details of the initiative

A.  Today, the settlement of Special Repo and GC Repo transactions executed in Non-DE bonds is possible via (i)CSDs CBL, CBF-i and Euroclear Bank. With C7 SCS Release 3.5, Eurex Clearing will introduce the possibility for Clearing Members to settle their Special Repo and GC Repo transactions executed in French, Italian and Spanish bonds via T2S/CBF. 

Based on client’s preference, Special Repo and GC Repo transactions executed in French, Italian or Spanish bonds can be either settled in (i)CSDs or T2S/CBF. In order to make use of the new settlement process, Clearing Members need to request the amendment of their settlement account setup accordingly and provide Eurex Clearing with the respective CBF account. Especially the taxation status for Italian Bonds must be aligned before the CBF account will be activated in C7 SCS. 

This enhancement is applicable for Special Repo and GC Repo transactions only and does not affect GC Pooling Repo transactions.

B.  The new Monthly Fine Statement (CB227) report provides two types of information - fine components that are only charged on a monthly basis and aggregated information of fine components that are charged on a daily basis.

The report information is currently a part of the CB350 report and will be shown separately in CB227. The fine information will not be shown anymore in the monthly CB350 report by the start of generation of report CB227 (monthly report generation for June 2024). Details of the report CB227 can be found in the “C7 Report Reference Manual” for C7 Release 10.0 following the link: Support > Initiatives & Releases > C7 Releases > C7 Release 10.0 > Reports.

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.

Attachment:

• C7 SCS Release 3.5 Member Communication Calendar

Further information