With this circular, Eurex Clearing announces the introduction of the new Securities Clearing platform “C7 Securities Clearing Service” (C7 SCS), Release 1.0, on 28 June 2021.
As a part of Eurex Clearing’s strategic roadmap, Eurex Clearing proceeds with the migration of Equity and Bonds Clearing to the C7 architecture. The new securities clearing system C7 SCS will be introduced for all transactions involving CCP-eligible instruments concluded at the Frankfurt Stock Exchange (MICs: XETR and XFRA) and for all transactions concluded at Eurex Deutschland (MIC: XEUR) that result in securities transactions.
With this migration, Eurex Clearing will apply Trade Date Netting (TDN) as the main supported netting model in C7 SCS. The current netting model Actual Settlement Day Netting (ASDN) for cleared transactions will not be available in C7 SCS.
The Eurex Repo market will be part of the next stage of the C7 SCS migration, which is planned to come into effect in 2022. Therefore, currently existing netting and settlement processes for this market are still in place, remain in the existing CCP system and will not be amended with the introduction of C7 SCS Release 1.0.
The timeline for the new platform C7 SCS, Release 1.0, is as follows:
Start of simulation: February 2021
Start of production: 28 June 2021
2. Required action
As the new release introduces changes across the full clearing and settlement process chain in terms of new netting model, creation of delivery positions, availability of settlement instructions at the (I)CSD, delivery management and reporting, clients have to ensure that those areas are analysed by the appropriate teams on the clients’ side.
In case of cooperation with back-office vendors, Clearing Members should contact their third-party providers as soon as possible to ensure that the necessary adjustments for the introduction of C7 SCS Release 1.0 can be made.
Please check whether you have registered and/or updated your Release Contacts for C7 SCS via the Member Section on the Eurex Clearing website www.eurexclearing.com, under "Release Contacts".
In parallel, please subscribe to Eurex Clearing circulars and newsflashes on our new subscription website under the following link:
Resources > Circular & Newsletter Subscription
Please note that any communication regarding C7 SCS will only be distributed via Eurex Clearing circulars and newsflashes.
|Publication of Preliminary Release Notes||May 2020|
|Update of Release Notes||July 2020|
|Publication of Member Simulation Guide||October 2020|
|C7 SCS available in Simulation||February 2021|
|Publication of Final Release Notes||May 2021|
|C7 SCS launch in Production||28 June 2021|
A detailed Communication Calendar is attached to this circular and is also made available on the Eurex Clearing website under the following link:
Technology > Eurex Clearing's C7 SCS > System documentation
B. Overview of functional changes
The following list provides a functional overview of the features given to the participants with the new C7 SCS:
D. Technical connection
The delivery management functionality can either be performed via Routing Service offered by C7 SCS or directly at the (I)CSD. Routing Service can be used via SWIFT, as no specific Member GUI for C7 SCS will be provided to our Members.
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.
|Recipients:||All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors, all FCM Clearing Members and other affected contractual parties|
|Target groups:||Front Office/Trading, Middle + Back Office, IT/System Administration, Auditing/Security Coordination|
|Web:||Eurex Clearing's C7 SCS initiatives page|
|Authorised by:||Heike Eckert|