Securities Clearing: Introduction of C7 Securities Clearing Service (C7 SCS) Release 4.5

1.  Introduction

With this circular, Eurex Clearing announces the production launch of optional Release 4.5 of the “C7 Securities Clearing Service” (C7 SCS), on 16 June 2025.

With C7 SCS Release 4.5, Eurex Clearing will introduce an enhancement to the handling of delivery positions after Pair-Off service (HOLD/RELEASED status), enable new values in C7 SCS reports indicating Pair-Off request results and provide enhancements to reporting in case of late delivery over dividend.

Furthermore, a new daily report “Repo Pending Delivery Netting Report” (CE865/6/7) containing pending deliveries after Settlement Date Netting for repo transactions and further functionalities for the Eurex Repo market will be provided.

Simulation start: 14 April 2025
Production start: 16 June 2025

Learn now more about C7 SCS Release 4.5 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 4.5.

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

2.  Required action

A. Enhancements to the handling of delivery positions after execution of Pair-Off service and reporting

Customers may adapt their internal processing based on the additional information provided via reports and enhance their post Pair-Off processing for affected positions.

B. Enhanced calculation of Late Delivery Fines

Customers will have to check closely the Daily Eurex Fines (CB225) report to get the information on changes due to event modification or partial settlement.

C. New Eurex Repo-related content

Eurex Repo clients will have the possibility to gain information about the new delivery instructions shortly after Eurex Clearing’s netting. The new report “Repo Pending Delivery Netting Report” (CE865/6/7) will be made available per default to all Eurex Repo Participants as Clearing Member and Settlement Institution version.

Customers willing to include the report information into their internal processing have to consider the dedicated xml-schema files (.xsd), which will be provided together with the C7 SCS 4.5 Report Reference Manual and Modification Notes.

Furthermore, clients have to consider the change to the re-rate modification request for Special and GC Repo as all re-rates will be applied on T+1 in future and include the new solution to pay out the Repo Interest Amount at regular periods which will be implemented for Fixed repos and Variable Repo trades with a term greater than 12 months between front-leg and term-leg.

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. Enhancements to the handling of delivery positions after execution of Pair-Off service and reporting 

The following enhancements related to transactions coming from trading venues Xetra and Börse Frankfurt (XETR, XFRA) and physical deliveries from Eurex Derivative (XEUR) are: 

The Release Method indicator of the delivery position “HOLD/RELEASED” will be set depending on the default Release Method status in combination with the last release status of the pending position before execution of the Pair-Off service.

• New values in C7 SCS reports indicating Pair-Off request results will be available in the Settled Delivery Report and Settled Cash Transactions Report. 

B. Enhanced calculation of Late Delivery Fines

Calculation for late delivery over dividend amount and related reporting in daily fines report CB225 has been enhanced by considering partial settlements concluded over more than one day.

C. New Eurex Repo-related content

With C7 SCS Release 4.5, the following new Eurex Repo content will be available:

• The new report “Repo Pending Delivery Netting Report” (CE865/6/7) will be made available per default to all Eurex Repo Participants as Clearing Member and Settlement Institution version. The Trading Participant version is optional and requires an active subscription request via the form specified below. This new report has the same structure as the existing “Pending delivery report” and will be also published via CRE in the CCP directory.
  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.

• The Re-rate modification request for Special and GC Repo has been changed and will be made effective already on T+1, instead of currently T+2. The Re-rate modification for a GC pooling trade is currently effective on T+1 and this will not change. Please note that Re-rate is allowed only for open repo transactions and Buyer and Seller must bilaterally agree via the trading venue to change the repo rate.

• A new solution to pay out the Repo Interest Amount at regular periods will be implemented for Fixed repos and Variable Repo trades with a term greater than 12 months between the front-leg and term-leg. The new process applies if the duration between Front Leg Settlement Day and Term Leg Settlement Day – 1 Business Day is greater than or equal to 12 months and for all other cases there is no change. The cash payout for repo interest amount for Special and GC Repo and GC Pooling Repo will be done at regular interval of 12 months with a possible first short stub (with a period less than 12 months).

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 4.5 Member Communication Calendar

Further information