Eurex Clearing Readiness Newsflash | C7 SCS Release 3.0 Simulation: Preparatory information for testing with Euroclear UK & International

Dear Client, 

With this newsflash, Eurex Clearing wants to draw your attention to information related to simulation setup and testing of deliveries for Euroclear UK & International (EUI) in the context of C7 SCS Release 3.0.

The C7 SCS simulation covers the Eurex Clearing processing of Clients' business based on parameters given by Clients regarding account setup and netting model. The C7 SCS system calculates the Client's settlement obligations and monitors the outcome of the settlement process, providing such information in the form of C7 SCS client reports. The CSD settlement feedback is usually emulated because CSDs as external actors are not connected to Eurex Clearing for testing purposes.

Testing setup

In the course of the C7 SCS Release 3.0 simulation, in addition to the standard processing, Eurex Clearing also offers the possibility of End-to-End (E2E) simulation with EUI/CREST.

As stated in the C7 SCS 3.0 Member Simulation Guide, between 30 October 2023 and 10 November 2023, Clients have the possibility to test the entire process for four dedicated Eurex products (HSBC, IGLN, SCB and BIR), starting with the exercise of the Eurex position in the C7 system and ending with the processing of EUI/CREST settlement reporting.

Please note that testing has now been limited by EUI to only seven participants per C7 SCS business day.

As a result of this limitation, only Clients that send back a dedicated form to EUI latest by 6 October 2023 will be considered on a first come first serve basis. Interested Clients should contact EUI via e-mail to eui-client-testing@euroclear.com as soon as possible to request such form and to clarify directly with EUI any potential questions they may have on the technical connection, reporting subscription etc. 

Additionally, please note that due to the functional settlement period of two business days, 30 October 2023 will not provide full testing capabilities (the earliest settlement day in EUI is 31 October 2023).

The standard Eurex Clearing testing without E2E is possible during the whole simulation period between 4 October 2023 and 18 November 2023 with products with physical settlement allocated to EUI/CREST.

C7 SCS Account setup for EUI deliveries

The EUI/CREST accounts currently active in the Securities CCP system in production will be migrated to the C7 SCS simulation environment and will be used for testing purposes, whereby Eurex Clearing processing and reporting are covered.

Clients who wish to perform E2E will have to approach “Member support EUI/CREST” as given in the C7 SCS 3.0 Member Simulation Guide, Chapter 5.2, and request the simulation account and reporting setup in the EUI/CREST system. Setup in the EUI/CREST system is in the Client’s responsibility and must be accomplished before 20 October 2023.

Differences in time schedule between C7 SCS and EUI/CREST test environments

• The CREST business day finalizes before finalization of the Eurex trading day and C7 SCS can send new trade information only on the next business day to CREST. Therefore, Clients will be able to see the new C7 SCS trades (out of exercised Option positions) on T+1 in the CREST system, e.g. Option positions exercised on 1 November 2023 will be visible in CREST on 2 November 2023
• C7 SCS will send new trade information in the morning only on simulation batch days, no trade information will be sent on online days, e.g. trades out of Option positions exercised on 2 November 2023 will be sent to CREST on 7 November 2023
• The EUI/CREST testing environment is available until 17:00 CET (16:00 GMT). In order to maintain Eurex Clearing's simulation timeline, Clients need to finalize any manual action in CREST latest by 15:30 CET (14:30 GMT)
• The detailed simulation schedule for the C7 SCS simulation environment is available in the C7 SCS 3.0 Member Simulation Guide.

Test execution

Clients who wish to test the C7 SCS processing can already start to build test positions in Eurex Option products with physical delivery and exercise those positions in the C7 system in the course of the simulation. Option positions will be processed in the simulation environment of C7 SCS and either acknowledged as settled via settlement simulator or, in case of E2E instruments, based on EUI/CREST feedback.

Please be aware that positions in HSBC, IGLN, SCB and BIR products shall be exercised between 26 October 2023 and 8 November 2023 to be a part of E2E processing. Products exercised outside of that time period will be processed and reported in the C7 SCS system only.

For more details, please refer to the C7 SCS 3.0 Member Simulation Guide from 28 July 2023 published on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Support > C7 SCS Releases > C7 SCS Release 3.0 > System Documentation > Overview and Functionality

Learn more about C7 SCS Release 3.0 on our dedicated initiative page C7 SCS Release 3.0, where system documentation, circulars, timeline and much more information is available for you.

Kind regards,

Your Client Services Team

Meet the new clearing admission service C7 CAS (Client Administration Service)!