29 Jan 2021

Eurex Clearing

Eurex Clearing Readiness Newsflash | C7 Securities Clearing Service (SCS): Simulation start and update of publications

Eurex Clearing Readiness Newsflash | C7 Securities Clearing Service (SCS): Simulation start and update of publications


Dear Clearing Member,

We would like to draw your attention to the following items with respect to C7 SCS Release 1.0:

  • Start of simulation on 29 March 2021 
  • Documentation updates published on 28 January 2021.

1.  Simulation

A. C7 SCS simulation migration approach

All Members which are taking part in the Securities CCP simulation are also able to participate in the parallel run of the Securities CCP and the C7 SCS simulation. The setup of current Members’ settlement accounts used in Securities CCP will be migrated to the C7 SCS simulation environment with new specific clearing settings.

The major difference between Securities Clearing CCP and C7 SCS is the C7 SCS default setup for settlement and position account combination, where, for each Exchange Participant, the default values Processing Model = “Netting” and Release Method = “released” will be set.

Therefore, customers, which want to use Processing Model = “Netting” and Release Method = “released” in the C7 SCS system, do not need to provide the "C7 SCS Application for Settlement Account Setup" sheet.

Cash clearing clients expecting a more precise position management (block/release) and exact allocation of partial deliveries, using today’s “Full Service”, can change their processing model to aggregation.

Participants willing to change their clearing setup to “Aggregation” or “Gross” with the start of C7 SCS simulation on 29 March 2021 have to provide the desired amendments via the "C7 SCS Application for Settlement Account Setup/Change/Delete – Simulation" sheet to their Clearing Key Account Managers.

Furthermore, the number of eligible instruments available in the C7 SCS system will increase over the simulation period, as it is planned to shift the instruments from securities clearing in the Securities CCP system to securities clearing in the new C7 SCS system. Please refer to section 2. below where documents providing dedicated information are announced.

B. Italian, French and Spanish Bonds – migration of place of settlement in C7 SCS simulation

As C7 SCS will settle the Collective Safe Custody (CSC) instruments via CBF/T2S, this will also affect the deliveries for Italian, French and Spanish Bonds.

The allocations of currently in T7 Eurex derivative tradable products for Italian, French and Spanish bonds will be settled as other deliveries in CSC instruments via the CBF/T2S settlement account currently used already for German bonds. 

C. Deadline for submission of the "C7 SCS Application for Settlement Account Setup/Change/Delete – Simulation" sheet

Participants, who want change the default clearing setups provided after the migration of simulation data form CCP to C7 SCS to its preferred clearing settings already with the start of the C7 SCS simulation environment, have to provide the changes by 22 February 2021 at the latest by using the "C7 SCS Application for Settlement Account Setup/Change/Delete – Simulation" sheet. Changes provided after this deadline will be set up after the customer simulation has started.

2.  Documentation update

The following C7 SCS Release 1.0 documents have been published on the Eurex Clearing website www.eurex.com/ec-en/:

  • Eurex Clearing - C7 SCS - Member Simulation Guide incl. Focus Days
  • Simulation Calendar C7 SCS Release 1.0
  • Member SWIFT Interface with C7 SCS – updated
  • Eurex Clearing - C7 SCS XML Reports – Modification Notes
  • Eurex Clearing - C7 SCS XML Reports – Reference Manual – updated
  • Eurex Clearing - C7 SCS XML Reports – XML Schema Files

The documents can be found under the following link:

Clear > Tech > C7 SCS > Release 1.0

All information about the C7 SCS Release 1.0 project is available on our dedicated initiative page under:

Clear > Find > Initiatives > Eurex Clearing's C7 SCS

Please also check whether you have registered and/or updated your Release Contacts for C7 SCS via the Member Section on the Eurex Clearing website, under Release Contacts.

In parallel, please subscribe to Eurex Clearing circulars and newsflashes on our subscription website using the following link:

Clear > Find > Subscriptions > Circulars & Newsletter Subscriptions

For C7 SCS, kindly subscribe at least to the category "Derivatives Clearing – Releases & Technology".

Kind regards,
Your Client Services Team
 

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Recipients:

All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors

Target groups:

Front Office/Trading, Middle + Backoffice, IT/System Administration, Treasury

Contact:

client.services@eurex.com

Web:

Eurex Clearing’s C7 SCS initiative page