C7 Release 10.0 Update: Required additional information on “Position transfer with Cash”

1.    Introduction

Further to the C7 Release 10.0 announcement in Eurex Clearing Circular 037/23, Eurex Clearing AG would like to inform Clearing Members about a requirement to add new mandatory information in C7 for “Position Transfer with Cash” and/or “Cash Only Transfer” transactions in order to comply with the Clearing Conditions of Eurex Clearing AG. 

Learn more about C7 Release 10.0 on our dedicated initiative page on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Support > Initiatives & Releases > C7 Releases > C7 Release 10.0

System documentation, circulars, timeline and much more information is available there for you.

C7 Release 10.0 will be launched in simulation on 12 September 2023 and in production on 20 November 2023. The effective dates of the change communicated in this circular are:  

Simulation start: 24 November 2023
Production start: 4 December 2023

2.    Required action

Clearing Members are required to make the necessary changes to their procedures to adhere to the new process. Clearing Members will be impacted on C7 GUI. FIXML is not impacted since “Position Transfer with Cash” and “Cash Only Transfer” can only be performed via GUI and not via FIXML. Report changes will be introduced with a later Release. 

The functionality “Cash Only” transfer is planned to be decommissioned in a future Release (C7 Release 10.1 in May 2024).  

3.    Details of the initiative

The Clearing Conditions of Eurex Clearing AG (Clearing Conditions), Chapter II Part 1 Number 1.3.3 (1), set out that “The ‘position transfer with cash transfer’ functionality may only be selected by entering a reference to the relevant original Eurex Transaction(s) as determined by the system of Eurex Deutschland.”  

In order to ensure compliance with the Clearing Conditions, the following mandatory information must be provided by the Clearing Member or DC Market Participant when entering a Position Transfer with Cash or Cash Only Transfer in the C7 Clearing GUI “Position Transfer entry” window:

• “Original trade date from”
• “Original trade date to”

Eurex Clearing will monitor the entry of the mandatory information.

Whenever position transfers with cash are entered via C7 GUI bulk upload on the “External Position Transfer Upload” window, the upload file template will need to include these two new fields (positioned after column “Cash Adjustment Price”). If no position transfers with cash are entered, then the current upload template (without adding these two new fields) remains valid.

The addition of the two new fields is explained in the updated “C7 Derivatives Clearing Functional Reference Guide”, “Release Notes” and “C7 Clearing GUI – User Manual” (the latter to be published in September 2023), on the Eurex Clearing website under the following path:

Support > Initiatives & Releases > C7 Releases > C7 Release 10.0 > System Documentation

The new fields will be added to Report CB730 (Position Transfer summary) with the next Release C7 Release 10.1 in 2024, which will be announced in due time.

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