Securities Clearing: Introduction of C7 Securities Clearing Service (C7 SCS) Release 4.0

1.    Introduction

With this circular, Eurex Clearing announces the production launch of optional Release 4.0 of “C7 Securities Clearing Service” (C7 SCS), on 18 November 2024.

With C7 SCS Release 4.0, Eurex Clearing will introduce the possibility for Clearing Members who clear Eurex Repo Transactions to provide a CBF (Clearstream Banking Frankfurt AG) account for settlement of Special Repo and GC Repo Transactions in bonds with prefixes BE (Belgian), EU (Eurobonds), NL (Dutch) and XS (Eurobonds) that are T2S eligible.

Furthermore, new values will be available in C7 SCS Reports indicating Pair-Off request results. 

Eurex Repo related reports Repo Intraday Settled Trade Report (CI87X), Repo Trade Confirmation Report (TC80X) and Repo Contracts Report (TC85X) will be enhanced by adding a new optional field and a new daily Report “GC Pooling Collateral Allocation Report” (CE88X) containing allocated collateral information for open exposure at Clearing Member, Currency, GCP Basket ISIN and Account level will be introduced.

Simulation start: 30 September 2024
Production start: 18 November 2024

Learn now more about C7 SCS Release 4.0 on our dedicated initiative page on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 4.0.

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

2.    Required action

A.    Special Repo and GC Repo Transactions executed in T2S eligible bonds with prefixes BE (Belgian), EU (Eurobonds), NL (Dutch) and XS (Eurobonds) which currently can be settled in (i)CSDs (CBL, CBF-i, Euroclear Bank) only, can be settled in future also in T2S/CBF. Clients willing to use the enhancement will need to request the amendment of their settlement account setup for Eurex Repo accordingly. No action is required for Members who wish to continue with their existing settlement location.

B.    With the C7 SCS Release 4.0 Report information will be enhanced by:

a.    new values in C7 SCS reports CD85X and CE87X in context of the Pair-Off service. The report format will not change due to this enhancement, only new values will be introduced. Customers will have to analyze the changes and be able to process the new values.
b.    For Eurex Repo business a new optional field with information about fund will be added, resulting in change of report structure. The fund related information is only relevant for Repo Asset Manager model and more details for the same will be published with business go-live of the Repo Asset Manager model. Therefore, Eurex Repo customers must adapt their internal processing to be able to technically digest the updated report structure. 

C.    The new daily report “GC Pooling Collateral Allocation Report” (CE88X) will be made per default available to all GC Pooling members as Clearing Member and Settlement Institute version. Trading Member version is optional and requires active subscription request via Clearing Data. This report can be ordered via form “SCS report selection for Clearing Member/Settlement Institution consolidated”, available on the Eurex Clearing website under the link: Find > Forms.

Please check whether you have registered and/or updated your Release Contacts for C7 SCS via the Member Section under tab “Company Contacts”. 

In parallel, please subscribe to Eurex Clearing Circulars and Newsflashes under the following link: Find > Circulars & Readiness Newsflashes Subscription.

Please note that any communication regarding C7 SCS will only be distributed via Eurex Clearing Circulars and Newsflashes.

3.    Details of the initiative

A.    Special Repo and GC Repo Transactions executed in T2S eligible bonds with prefixes BE (Belgian), EU (Eurobonds), NL (Dutch) and XS (Eurobonds) which currently can be settled in (i)CSDs (CBL, CBF-i, Euroclear Bank) only, bonds which currently can be settled in (i)CSDs (CBL, CBF-i, Euroclear Bank) only, can be settled in future also in T2S/CBF. Clients willing to use the enhancement will need to request the amendment of their settlement account setup for Eurex Repo accordingly. No action is required for Members who wish to continue with their existing settlement location.

B.    With the C7 SCS Release 4.0 report information will be enhanced containing:

a.    Information resulting from Pair-Off request, which will be included in C7 SCS reports (CD85X and CE87X) indicating settlements closed and cash payment executed upon the procedure. The report format will not change due to this enhancement, only new values will be introduced.

b.    For Eurex Repo business reporting, a new optional field with information about fund will be added resulting in change of report structure in Repo Intraday Settled Trade Report, Repo Trade Confirmation Report and Repo Contracts Report. The fund related information is only relevant for Repo Asset Manager model and more details for the same will be published with business go-live of the Repo Asset Manager model. Therefore, Eurex Repo customers must adapt their internal processing to be able to technically digest the updated report structure.

C.    The new daily report “GC Pooling Collateral Allocation Report” (CE88X) will provide information about allocated single collaterals to each open exposure at Clearing Member, Currency, GCP Basket ISIN, Account level, further the report is listing the GC Pooling trades that contribute to the open exposure. Only the XML version is provided. The Clearing Member and Settlement Institution version will be made per default available to all GC Pooling Members.

The Trading Member version is optional and requires active subscription request via Clearing Data. This report can be ordered via the form “SCS report selection for Clearing Member/Settlement Institution consolidated”, available on the Eurex Clearing website under the link: Find > Forms.

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.

Attachment:

• C7 SCS Release 4.0 Member Communication Calendar

Further information