Extending T2S Eligibility by CBF for Securities Settlement and Securities Collateral - Initial Announcement

1.    Introduction

With this circular, Eurex Clearing AG (Eurex Clearing) would like to draw your attention to an initiative driven by Clearstream Banking AG (CBF) announced in ”CBF extending its service offering by making further markets T2S eligible (D25005)”, which has an impact on Eurex Clearing and its Members.  
 

As part of the initiative, CBF-i (6-series) accounts which are currently used primarily for settlement of non-T2S securities (NCSC) in EUR as well as non-EUR cash payments, will be closed. The closure of the CBF-i accounts is currently envisaged for the end of 2026/beginning 2027.  
 

Securities on CBF-i accounts will be made T2S eligible (to the highest extent possible) in several market specific waves to enable settlement in T2S via CBF (4-digit) accounts/T2S accounts. With each market activation wave, transactions in the impacted instruments will settle in CBF/T2S instead of CBF-i. The first market activation wave is planned for December 2025 with two pilot markets Australia and Norway. Additional market activation waves will follow throughout 2026.  
 

Non-EUR cash payments and non-T2S eligible securities proceeds from corporate action events on flow will continue settling in CBF-i until the final market activation wave after which they will settle in Clearstream Banking S.A., Luxembourg (CBL). Therefore, the impacted Eurex Clearing Members will be required to have an account with CBL set up in advance of the final market activation wave. After the final wave, and once all markets in scope of the initiative are migrated/activated for T2S, CBF-i accounts will be closed.  
 

The precise timeline and scope of each market wave will be communicated by CBF at a later stage.

2.    Required action
 

This circular is intended to request that Eurex Clearing Members who utilize CBF-i accounts begin evaluating their usage of these accounts within the context of Eurex Clearing's systems and services. This evaluation should particularly focus on the following aspects: 
 

• Usage as settlement accounts for NCSC instruments or choice-of-settlement location;  
• Usage as collateral accounts for provision of securities collateral to fulfil margin and Default Fund requirements;
• Usage as cash offset payment location for cash from netting of Eurex physical deliveries;
• Usage as cash accounts for non-EUR income from corporate actions. 

Usage as cash accounts to satisfy requirements from margin and buy-in processes. 

3.    Details of the initiative

Eurex Clearing will follow the market-specific migration waves towards T2S for Frankfurt Stock Exchange transactions and physical deliveries from Eurex options and futures and it will change the settlement location to CBF/T2S whenever an instrument is made T2S eligible. 
 

Eurex Clearing also offers the settlement of German, French, Belgian, Dutch, Spanish, Italian XS and EU ISINs of the Eurex Repo Special and GC Repo segment via CBF accounts, in addition to CBL and Euroclear Bank as eligible settlement locations. A further extension to other Non-DE markets for settlement via CBF accounts until the end of 2026/beginning of 2027 needs to be analyzed. For all other non-DE markets, Repo Members can continue to use the currently eligible settlement locations for the Repo market. 
 

With this initiative, CBF plans to extend its service offering by making further markets T2S eligible paving the way for T+1 settlement while enabling clients to move their current settlement activity from CBF-i accounts to CBF accounts. The service extension will lead to further consolidation of securities and EUR-cash settlement in T2S. For further information please refer to the Clearstream announcement: “CBF extending its service offering by making further markets T2S eligible (D25005)”. 
 

Clearstream will be communicating the details of its upcoming activities on a dedicated website, which will be made available in Q1 2025. Additionally, Members can direct their inquiries and questions related to Clearstream to UNO@clearstream.com, and those related to Eurex Clearing to client.services@eurex.com. Eurex Clearing, in close cooperation with Clearstream, will continue to inform its Members about the topics related to its clearing services and systems according to the progress of CBF’s initiative. 

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