C7 SCS Release 2.0

Special/GC Repo Market: Processing method 

For the processing method Clearing Members have the following settings: Netting (default) and Gross Processing.  

Clearing Members are requested to provide the Processing Method for settlement accounts, which shall not be processed with the default “net” parameter.  

Special/GC Repo Market:  
Settlement Day Netting 

Settlement Date Netting is offered, a trade is considered for netting only once. Late failed trades are not cancelled and stay pending at (I)CSD. 

Please check the delivery instructions on the (I)CSD (Central Securities Depository) side. 

Special/GC Repo Market:  
Delivery instructions  

Delivery instructions can be sent out as released (default) or on hold on the same level of netting parameters.  

Clearing Members are requested to provide the processing set-up for settlement accounts, which shall not be processed with the default “released” parameter. 

Special/GC Repo Market:  
Changes to Gross Delivery Management Interface 

Instead of today’s Gross Delivery Management on single trades, Members can modify the hold/release status on delivery instructions at the (I)CSD. T2S members can use partial release at CBF/T2S.  

Please check the possibilities to modify the hold/ release status of delivery instructions directly at the (I)CSD.  

Special/GC Repo Market: 
Routing Service 

Eurex Clearing will not offer a routing service for change of hold/release status and partial release of pending delivery instructions resulting out of repo transactions.  
Eurex Clearing will not reflect the updates to delivery instructions received from the (I)CSD due to Hold/Release status changes in the Pending Delivery Report. 

Please check the possibilities to execute Hold/Release actions directly at the (I)CSD.  

Special/GC Repo Market: 
Corporate Actions 

Manufactured coupon payments will be compensated by debiting the Repo buyer and crediting the Repo seller based on in-house Clearstream CA service. 

No action required. 

GC Pooling Market:  
Collateral Mobility Project 

Clearstream will migrate the Collateral Management for GC Pooling from Xemac to CmaX and the timeline is aligned with C7 SCS Release 2.0. 
The settlement flow for GC Pooling between Eurex Clearing and CmaX will be adapted. After migration, Xemac will not be available for GC Pooling Collateral Management. 

Setup of new collateral accounts for GC Pooling transactions for Repo business is needed.  

GC Pooling Re-use
Collateral Mobility Project 

Collateral Management will be supported by Clearstream Banking Luxembourg’s system CmaX, while underlying accounts with Clearstream Banking Luxembourg and/or Clearstream Banking Frankfurt can be used.

Please ensure the required account set-up for CmaX. 

Provision of margin and Default Fund contributions 

Collateral Mobility Project 

Collateral Management will be supported by Clearstream Banking Luxembourg’s system CmaX, while underlying accounts with both Clearstream Banking Luxembourg and/or Clearstream Banking can be used.

Please ensure there is required account set-up for CmaX.   

GC Pooling Market:
Settlement Date Exposure Netting 

Settlement Date Exposure Netting (SDEN) is a new mechanism offered with C7 SCS for GC Pooling trades. All trades are considered for Settlement Date Exposure Netting. Exposure adjustment instructions are always sent out as released. 

No action required. 

GC Pooling Market:   
Collateral
Management 
Corporate Actions 

Corporate actions are handled by Triparty Collateral agent. If necessary, either automatic substitutions of allocated securities are performed prior to a mandatory corporate action or securities stay allocated and the proceeds are compensated back to the original collateral provider. 

Please check for subscriptions for relevant reporting by CmaX. 

Special/GC Repo and GC Pooling Market: 
Reports 

Most C7 SCS reports will be provided at the end of each business day for repo transactions. No intraday Pending Delivery and Settled Delivery reports will be offered. All reports are offered in xml-based format. 

Please adapt your internal systems to process the new layout of the reports. 

Special/GC Repo and GC Pooling Market: 
Technical Connection 

No specific Member GUI for C7 SCS will be provided to Clearing Members. The Securities Clearing GUI will be decommissioned for repo transaction. 

Please adapt your internal operational processes accordingly.