C7 Securities Clearing Service (C7 SCS) Release 2.0: Production launch announcement

1.  Introduction   

With this circular, Eurex Clearing announces the production launch of C7 Securities Clearing Service (C7 SCS) Release 2.0 on Monday, 24 October 2022. 

Learn now more about the C7 SCS Release 2.0 on our dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 2.0. Circulars, timeline and much more information are available there for you.

Production start: 24 October 2022

2.  Required action

C7 SCS introduces changes across the full clearing and settlement process chain in terms of new netting model, creation of delivery positions, availability of settlement instructions at the (I)CSD, delivery management and reporting for Eurex Repo business. For all these areas, clients have to ensure their readiness for the launch on 24 October 2022.

The Securities CCP system will still be available for clearing of physical deliveries resulting out of exercise and assignments of Eurex UK and Irish derivatives settled at Euroclear UK (CREST), for which clients will continue to use the existing processing, i.e. Securities CCP reports, Securities clearing GUI. 

Please note, migration from Securities CCP to C7 SCS will be performed for transactions concluded at Eurex Repo cleared via Eurex Clearing AG. 

Collateral provided towards ECAG via Collateral Management System (CBF) Xemac, either as Margin collateral, Clearing Fund contribution or Company capital will be migrated to Collateral Management System (CBL) CmaX.  

3.  Details of the initiative

As announced in Eurex Clearing Circular 036/21, Eurex Clearing  will migrate the clearing of transactions concluded at Eurex Repo from Securities CCP system to C7 SCS.

With the introduction of C7 SCS 2.0, Eurex Clearing will apply Settlement Date Netting (SDN) for Special Repo and Settlement Date Exposure Netting (SDEN) for GC Pooling as netting models for Repo business in C7 SCS 2.0. The current netting model Actual Settlement Day Netting (ASDN) for cleared transactions will not be available in C7 SCS 2.0.

Furthermore, contents of Clearing Daily reports CD01x (CD010, CD011, CD012 and CD015) currently used for tracking of cash deliveries out of CCP repo settlement activities will be moved to CD71x (CD710, CD711, CD712 and CD715) reports along with the activation of C7 SCS 2.0.

Please refer to Eurex Clearing Circulars 036/21, 066/21, 029/22, 053/22 and to the related Release Notes for further details on the introduction of C7 SCS Release 2.0.

4.  Migration week: 20-24 October 2022

Starting on 20 October 2022, the functionality related to Eurex Repo business will be stepwise deactivated on Securities CCP system, to enable the functional migration to C7 SCS system. 

Also, on 20 October 2022, the collateral managed by Collateral Management System (CBF) Xemac will be migrated to (CBL) CmaX.

Please consider the information on tasks which will be performed before and during the migration in the following documents:

• C7 SCS 2.0 – Migration Strategy Paper Eurex
• C7 SCS 2.0 – Important Deadlines

Please especially check the following events in the course of the migration week for Friday, 21 October 2022:

• Exceptional Settlement Holiday for GC Pooling 
• Regular settlement day for Special repo, with no adjustments of settlement deadlines 
• All late Special repo trades will be adjusted for Gross processing
• Eurex Clearing Clearer using Xemac as collateral engine for ECAG's margining purposes can receive margin call in cash during the migration weekend

The C7 SCS Release 2.0 project description can be found on the Eurex Clearing website on the dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 2.0.

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.

Further information