Eurex Clearing Readiness Newsflash | C7 SCS Release 1.0 Simulation: Additional information on simulation services, usage of CBF service upgrade on MT530 for C7 SCS

Dear Clearing Member,

With this Newsflash, Eurex Clearing informs you about updates regarding the C7 SCS Release 1.0 Simulation.

Learn now more about C7 SCS Release 1.0 on our dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 1.0. System documentation, circulars, timeline and much more information will be available there for you

...and on the go via the personalized Eurex App.

1. Additional information about simulation services

Thank you for your participation in the first phase of the C7 SCS Release 1.0 Simulation. Thursday, 22 April 2021, was the last batch day before the second phase of the simulation will start with the connected (I)CSDs on 17 May 2021. For further details on the second phase, please have a look at the Simulation Guide and the Simulation Calendar.

Please be aware that while last week all systems were down due to the T7 conversion to T7 Release 9.1 for the following days: 4 May, 6 May, 10 May and 11 May 2021, you may receive C7 SCS reports related to trades out of T7 and C7 simulation. However, please note that the C7 SCS Simulation environment as such will be out of service until the start of the second phase.

2. Extended Clearstream Banking AG, Frankfurt service offering for the message type “MT530 Transaction Processing Command” related to the modification of a settlement instruction and its usage in the context of C7 SCS

CBF service upgrade on MT530 - Transaction Processing Command

Clearstream Banking AG, Frankfurt informed their customers in Announcement D21021 on 23 April 2021 about the extended service offering for the message type related to the modification of a settlement instruction in the SWIFT standard ISO 15022 effective 27 September 2021. The CBF service offering will be supplemented for instructions with the flag "already matched".

Currently, modifications for “already matched” settlement instructions can only be provided by using the CASCADE instruction number ("KP reference") to uniquely identify the dedicated leg, i.e. the Delivery or Receive instruction, that should be subject to modification. With the announced service upgrade, CBF will additionally allow to use the T2S Actor Reference to refer to an "already matched" settlement instruction and to specify the leg(s) to be modified by an indicator.

For details on the new CBF functionality and on the message layout of the MT530 message please refer to the Clearstream Announcement D21021.

Usage of CBF service upgrade on MT530 in the context of C7 SCS

C7 SCS sends settlement instructions with the flag "already matched" to CBF for CBF internal settlement via T2S. Therefore, Clearing Members and their Settlement Institutions, respectively, will benefit from the supplemented CBF service offering. Customers will be enabled to use C7 SCS’s Delivery Reference in a modification request towards CBF in order to set a pending Delivery Instruction to “on hold” or to (partially) release a Delivery Instruction (services “Party Hold” and “Partial Release Request”).

Customers who want to use the supplemented CBF service can fill the required fields in the MT530 message as follows:

• The T2S Actor Reference corresponds to C7 SCS’s Delivery Reference, e.g. SAM0902M00044003. 
• It can be taken from Eurex Clearing’s Net Clearing Reports (CE890/1/2 or CE895/6/7, respectively), the Pending Delivery Report (CE860/1/2) or CBF’s MT548 message – Settlement Status and Processing Advice.
• The Reference Owner BIC corresponds to the Eurex Clearing BIC, e.g. EUXCDEFFCCP, that C7 SCS sends in the "already matched" settlement instruction to CBF. It can be taken either from CBF’s MT548 message – Settlement Status and Processing Advice – or be derived from information provided in the Net Clearing Reports (CE890/1/2 or CE895/6/7, respectively) or the Pending Delivery Report (CE860/1/2). For details, see next paragraph ‘Derivation of Eurex Clearing BIC’.
• The Indicator of the related instruction has to be filled with value “DELI” to refer only to the Delivery Instruction. Rationale: Modification of hold/release status is just allowed for the customer’s leg of a Delivery Instruction (“sell transaction”) from customer perspective. According to Clearing Conditions of Eurex Clearing it will not be allowed to set a Receive Instruction (“buy transaction”) that is related to C7 SCS to “on-hold” in order ensure a settlement efficiency.

Please note that as alternative (existing service) to the supplemented service, customers can still use the existing CBF service offering for MT530 with the CASCADE reference (“KP number”) as reported in CBF’s “MT548 Settlement Status and Processing Advice” and in Eurex Clearing’s Pending Delivery Report (CE860/1/2) as CSD reference (field csdRef). For details on the current message layout for sending MT530 message to CBF please refer to the CBF Connectivity Handbook Part 2. Besides, CBF offers modification of settlement instructions via CASCADE Online Functionality (HOST/PC).

Derivation of Eurex Clearing BIC

The Eurex Clearing BIC is not reported explicitly in the C7 SCS reports. Customers can derive the Eurex Clearing BIC from information provided either in the Net Clearing Reports (CE890 and CE895) or in the Pending Delivery Report (CE860) considering the mapping as illustrated in the Attachment.

Availability of service upgrade for C7 SCS go-live in Production and C7 SCS Member Simulation

CBF announced the service upgrade to come into effect on 27 September 2021 in the Production environment, so that it will be available for Clearing Members with the C7 SCS go-live.

In respect to the Member Simulation, Clearstream announced the service upgrade to be available for testing in the CBF customer simulation from Monday, 5 July 2021. This means that the supplemented CBF service for MT530 will not yet be available at the start of C7 SCS Member Simulation Phase II on 17 May 2021.

In the meantime, customers can use CBF’s existing service offering to modify settlement instructions, e.g. via MT530 with CASCADE reference or via CASCADE Online Functionality (HOST/PC). From 5 July 2021 onwards, customers will have the choice if they want to make use of the service upgrade with T2S Actor Reference or continue present modification requests via MT530 Transaction Processing Command.

If you have any further questions or comments, please send an e-mail to: client.services@eurex.com.

Kind regards,
Your Client Services Team
 

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