Central Securities Depositories Regulation FAQ

Yes, the settlement instructions contains the Place of Settlement (PSET).

Eurex Clearing will use the MIC codes: XETR, XFRA, XERE, XEUR, BTAM, Eurex Clearing, ECGS

Without cross-venue netting (not SME): MIC code XETR, XFRA, XEUR, XERE, BTAM
With cross-venue netting (not SME): Currently, Eurex Clearing sends net transactions to (I)CSDs with a place of trading value of own MIC ‘Eurex Clearing’. This will be continued with CSDR for cross-venue net transactions from all markets beside SME related ones, where the new MIC ‘ECGS’ will be used (ESMA registered SME BIC for Eurex Clearing)
SME: For instructions of SME related trades, Eurex Clearing will always use the new MIC ‘ECGS’ (ESMA registered SME BIC for Eurex Clearing), with and without netting (only C7 SCS related)

Option 2 will be implemented, usage of generic SME MIC code (ECGS).

Eurex Clearing's BICs depending on market: EUXCDEFFXXX, EUXCDEFFBON, EUXCDEFFCCP.

MT537 penalty messages will only be sent by the CSDs, as only CSDs are responsible for the penalty calculation process. CSDs will populate field 22H with "PENA". Eurex Clearing will not send own MT537 penalty messages.
For the filling of other settlement related SWIFT messages please refer to the Release Notes (3.1.1 Population of delivery instructions).

In general, Eurex Clearing will ensure timely matching of instructions or will use a special indicator in the delivery instruction to avoid LMFP at the CSDs (e.g. reinstruct after partial Buy-in). There are some rare cases where the usage of the indicator is still in clarification with ESMA. LMFP will always charged to Eurex Clearing as sender (last modifier) of the message.

This is not expected to occure at Eurex Clearing due to technical preventions imposed.

SME netting with non-SME is technically prevented at Eurex Clearing but not possible in current Eurex Clearing market setup.

Yes for future setups, but not the case in current Eurex Clearing market setup.

A new SME specific code 'ECGS' (registered at ESMA for SME) will be used for SME netting.

No, that is not expected.

Bilateral cancellation of instructions could only be required when Eurex Clearing sends instructions without Power of Attorney (PoA). As Eurex Clearing has PoA for all CSDR relevant (I)CSDs), that is not applicable.

TDN is supported since the launch of C7 SCS in September 2021. For the Repo market on Securities CCP (ASDN) the creation of instruction is seen as TD, as described in EACH framework (3.1.2 Netting based on settlement date).

Central Securities Depositories Regulation FAQ

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Delivery management, Filling of SWIFT messages

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Central Securities Depositories Regulation FAQ

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Delivery management, Filling of SWIFT messages

1. Will your settlement instructions and the client information file (CIF) contain the new PSET?

2. Which place code will you use for Place of Trading?

3. Per 3.4.2 of the EACH Settlement Discipline Framework, what solution will you implement for the netting arrangements for transactions executed on SME Growth Markets?

4. What is the value of the field place of Clearing for you?

5. What values will you populate in field 22H ([statement] indicator) of the swift MT537 message for penalties. We understand 22H should be populated with “PENA” for penalties. We would also like to know what other values you enter in field 22H for other transaction/instruction types?

6. Can you confirm that we will not have LMFP type of penalties as both leg are always input by Eurex Clearing on the market?

7. How will you apply penalties in the event that an SME grows market trades settles again a non-SME grows market trade?

8. AS per the EACH framework, we understand that you will create separate netted instructions for SME growth markets can you confirm?

9. SME related trades: Where we are a direct member with you, will you continue to send us you daily nets in the same mechanism that you do today and will the only difference be that there will be an additional net included in the messaging?

10. SME related trades: Where there is a product traded on multiple SME venues, will you net these together (as long as the SME venues have the same extension period)?

11. SME related trades: Which MIC will you use on dual SME nets?

12. SME related trades: Where we are in indirect member, is your expectation that we need to split out our instructions to you between SME and non-SME nets?

13. Will you bilaterally cancel our transaction, do you require CM to send a cancellation request, or will you automatically cancel, regardless of our relationship with you (direct or indirect)?

14. If you won't bilaterally cancel our transaction, what mechanism do you expect CM to use to bilaterally cancel original transactions? For non-CCP transactions, CM will bilaterally cancel via CSD directly. For CCP cleared transactions do you expect CM to do the same?

15. Will you support trade date netting (TDN) or settlement date netting (SDN)? Where SDN how do you derive the trade date (TD)?

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