In case a Buy-in is identified as not possible, or after the last failed Buy-in attempt, Eurex Clearing will apply a cash compensation, same day after the auction.
Yes, following CSDR Buy-in Extension periods, Eurex Clearing will perform sell-out in case the delivery CCP-to-CM fails because of cash.
Eurex Clearing is process already mandatory buy-ins under the EU SSR, so the buy-in process itself won’t change (the scope of mandatory buy-ins is nevertheless extended) under CSDR and Eurex Clearing doesn’t plan to introduce any new or specific buy-in reporting for CSDR.
Reporting for (pending) trades that are part of a Buy-in process is provided in reports like "Pending Delivery" and "Settled Delivery" (after buy-in settled). The report description is part of the Report Reference Manuals (RRM), which are different for Securities CCP (Repo market) and C7 SCS (cash market and Eurex physical deliveries):
ETF extension period will be based on whether the underlying classification is Share or Unit. Clarification on Share/Unit ongoing with ESMA. Eurex Clearing will rely on CSDs related penalty instrument classification in MT537 PENA message.
When the buy-in initiation notification is sent out no member delivery to Eurex Clearing is possible any more (blocked trades, instructions on hold). The Buy-in auction at BIA is Eurex Clearing internal process without member participation.
In case a CM wants to act as network partner at the Buy-in agent itself, that needs to follow processes defined by the Buy-in agent, please contact the BIA for this.
Eurex Clearing will always use the BIA, for CSDR related and non-CSDR relevant Buy-ins.
Following EACH agreement (5.2.1 Notification timing), we intend to send out the buy-in initiation notification not before 8:30 on the day following the expiry of the extension period (auction day).
The Buy-in auction at BIA is Eurex Clearing internal process without member participation.
In case a CM wants to act as network partner at the Buy-in agent itself, that needs to follow processes defined by the Buy-in agent, please contact the BIA for this.
Eurex Clearing internal auctions and network partner participation is not offered with launch of BIA. In case a CM wants to act as network partner at the Buy-in agent itself, that needs to follow processes defined by the Buy-in agent, please contact the BIA for this.
BIA delivery after an auction is 'same day delivery', not T+2.
Eurex Clearing will follow CSDR schedules with defined mandatory extension periods before Buy-in. But Eurex Clearing reserves the right to protect own operational integrity with shorter periods. Please refer to the Eurex Clearing CSDR Release Notes for further details.
Yes, in line with CSDR, e.g. in case of a same time Corporate Action or holiday processing.
No, Eurex Clearing will delay the start of a buy-in in case of a same time CA (as today). CA processing itself is topic of CSDs with TDN (C7 SCS).
That is current process and not changed with CSDR, No specific CA list exists. General rule is, a Buy-in attempt is postponed to the next day, if the current day of Buy-in auction coincides with the entitlement day (ex-day -1 or record day) of a pending corporate action for a corresponding security.
Yes, disclosure processing would apply, no change to todays process.
The Buy in is postponed after the CA is processed.
Following ECSDA Framework, Corporate actions on stock (ISO transaction code equals ‘CORP’) are out of scope for CSDR penalties and therefore not eligible for CSDR regulated Buy-in.
In case of any questions or your require further information, please contact us at client.services@eurex.com.
