Securities CCP: Implementation of CSDR requirements and roadmap update for the migration of securities clearing to the C7® clearing architecture

1.   Introduction

Eurex Clearing will implement the regulatory requirements resulting from the Central Securities Depositories Regulation (CSDR) in Eurex Clearing’s current Securities CCP with a dedicated CCP Release in Q4 2020.

In contrast to the timeline for the migration of equity and repo clearing to the C7 Securities Clearing Service (C7 SCS), announced in Eurex Clearing circular 033/19, Eurex Clearing decided that there will be no migration steps in the year 2020. The migration of equity clearing to Eurex Clearing’s C7 SCS is planned for the second quarter of 2021, the migration of repo clearing is envisaged for 2022. Eurex Clearing decided to review the migration timelines in light of the European-wide regulation-driven implementation effort across all markets that needs to be accomplished in 2020.

Members and clients should be aware that, at this point in time, Eurex Clearing can only publish initial information. More details will be provided via release publications. In response to customer requests, we are planning to provide initial release notes for C7 SCS well in advance of the migration. This will enable Members and clients to analyse their impact in detail and start their migration planning as early as possible.

Planned migration time for equity clearing to C7 SCS: Second quarter of 2021

Planned migration time for repo clearing to C7 SCS: 2022

2. Required action

In order to remain updated regarding the migration, please check if you have registered and/or updated your Release Contacts for Eurex Clearing’s C7 SCS (Releases: Eurex Clearing/CCP) via the Member Section on the Eurex Clearing website www.eurexclearing.com:

Eurex Clearing Member Section > Contacts > Release Contacts

Please subscribe to circulars and readiness newsflashes - CCP/Cash Equity Clearing - Releases & Technology - on our subscription website. The path on the Eurex Clearing website is:

Resources > Circular & Newsletter Subscription

3. Details of the initiative

3.1 Implementation of CSDR requirements in Eurex Clearing’s current Securities CCP

Eurex Clearing will implement the regulatory requirements of the Central Securities Depositories Regulation (CSDR) Settlement Discipline Regime (SDR) in Eurex Clearing’s current Securities CCP system with a dedicated CCP Release in Q4 2020.

This will affect transactions with securities settlement from Eurex Exchange and Frankfurt Stock Exchange as well as repo and securities lending transactions. Eurex Clearing intends to minimise the impact on clients. Currently, the following areas of Eurex Clearing’s current Securities CCP and upcoming C7 SCS have been identified as affected from a clearing house perspective:

The above adjustments, required due to the buy-in and penalty regimes, will also be transferred to C7 SCS. Eurex Clearing has currently not identified any specific customer impacts as a result of this migration.

3.2 Migraton of equity and repo clearing to the C7 architecture

In Eurex Clearing circular 033/19, the introduction of Eurex Clearing’s C7 SCS with focus on equity and repo clearing was announced for 2020/2021. 

Eurex Clearing has now decided that no migration steps towards C7 SCS will be conducted in 2020. Eurex Clearing would like to give its Members and clients sufficient lead time for their preparation, design and readiness, also taking into consideration that CSDR requires a regulation-driven implementation across Europe and its markets in 2020 (details see 3.1).

The migration of equity clearing to Eurex Clearing’s C7 SCS is planned for the second quarter of 2021, the migration of repo clearing is envisaged for 2022. In response to customer requests, the publication of initial release notes for C7 SCS is envisaged well in advance of the migration, enabling customers to analyse their impact in detail and start their migration planning as early as possible.

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.
 

Further information