With the C7 SCS Release 3.7, Eurex Clearing will be introducing the following initiatives:
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With the announced changes Eurex Clearing as CCP will no longer be involved in the regular monthly penalty booking process with its current Art.19 obligation for a breakdown on Clearing Member level, therefore the CSDR penalty reporting obligations and penalty re-distribution for cleared business will be discontinued by Eurex Clearing after amended CSDR RTS Art. 19 will come to effect.
Following CSDR related reports are due to be decommissioned after the CSDR penalty calculation and re-distribution process has been accomplished for August 2024 (including daily reporting on amendments on August 2024 penalties and monthly report generated in September 2024): Monthly CSDR Penalties (CB226), Daily CSDR Penalties (CE840) and Monthly CSDR Penalties (CE845).
With RTS Art. 19 amendment, (I)CSDs will directly book CSDR net cash penalties on Eurex Clearing’s cash accounts. As Eurex Clearing cannot apply anymore pro-rata corrections for penalty imbalances already before booking as today via the own billing process, a monthly net penalty gap in view of Eurex Clearing can occur. To avoid own losses, CCPs are permitted by the amended RTS Art. 19 to allocate any remaining net cash amount of penalties after booking by the (I)CSDs to their Clearing Members. Eurex Clearing intends to apply the RTS Art. 19 permission and will claim the right for imbalance compensation.
Currently Clearstream’s Triparty Collateral Management Service (CmaX) processes the exposure adjustments in sequential manner and processes the next exposure adjustment only after the previously requested exposure updates have been fully covered by CmaX. In future, CmaX will immediately consider the next exposure adjustment(s) for processing in case the change is in the same direction. The processing on C7 SCS side will be adapted to support the parallel processing accordingly. C7 SCS reports are not impacted by this change. This enhancement aims to particularly speed up the settlement processing for the same-day trades in the same direction.
Eurex Clearing will extend the choice of eligible settlement locations for clients and enables them to directly transfer equity-style securities between their settlement account at ESES and Eurex Clearing’s settlement account at CBF by applying cross-CSD settlement via T2S. Thereby, the re-alignment between ESES CSDs and CBF will not be required any longer.
Eurex Clearing will establish a connection to the ESES CSDs, i.e. Euroclear Belgium, Euroclear France and Euroclear Nederland.
Clients need to provide the ESES settlement account identifier in T2S format for the settlement accounts they want to use at ESES. Moreover, clients need to provide the T2S Party BIC (of the account owner at ESES) for each ESES settlement account, grant Power of Attorney (POA) to Eurex Clearing and notify ESES about the PoA.
The information on which ISINs are eligible for Home Market Settlement will be provided via the "CCP eligible instrument list", which is available for download already today on the Eurex Clearing homepage and which contains all CCP eligible instruments. The list will be extended by additional information on which instrument can alternatively settle on the Home Market CSD.
The HMS service will be an optional service, i.e. no mandatory migration to the Home CSD is required. Clearing Members can still remain settling at CBF for all their instruments.
Release Items/Participants Requirements
Features/Enhancements | Details | Action Item |
Eurex Clearing processing with regards to CSDR RTS Art. 19 amendments | The CCP obligation for a reporting on Clearing Member level and processing of penalty bookings will be fully combined with the CSD process of non-cleared business. | Eurex Clearing's CSDR penalty re-distribution on Clearing Member level and related penalty reporting (CE840, CE845 and CB226) will be decommissioned. Customer must adapt their internal processing to receive and evaluate the CSD reports (MT537 PENA) as of 02 September 2024 also for cleared business. |
Enhancements to GC Pooling processing | The improvements in processing with CmaX will increase overall settlement performance of the system. | The changes do not require any changes on clients’ side. |
Home Market Settlement (HMS) at ESES CSDs for Eurex physical deliveries in equities | Optional: Improvement of settlement processes for equities held at the ESES markets (Euroclear Belgium (CIK), Euroclear France (SIC) and Euroclear Nederland (NEC)). | Customer have to provide the settlement account information to Eurex Clearing and the Power of Attorney for the respective ESES settlement account needs to be in place at ESES. Furthermore, the internal settlement flow must be analyzed and adapted. |
Are you looking for information on a previous initiative? We have stored information about our previous initiatives in our Archive for you!
Contacts
Eurex Frankfurt AG
Customer Technical Support / Technical Helpdesk
Service times from Monday 01:00 – Friday 22:00 CET
(no service on Saturday and Sunday)
T +49-69-211-VIP / +49-69-211-1 08 88 (all)
Eurex Frankfurt AG
Key Account Management
Service times from 09:00 - 18:00 CET
