With this circular, Eurex Clearing announces the migration of the repo clearing service as part of Securities Clearing platform “C7 Securities Clearing Service” (C7 SCS), Release 2.0, on 24 October 2022.
As part of Eurex Clearing’s strategic roadmap, Eurex Clearing proceeds with the migration of Repo Clearing to the C7 architecture. The new securities clearing system C7 SCS will be introduced with Release 1.0 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 C7 SCS Release 2.0, all transactions that are concluded at Eurex Repo (MIC: XERE) and Brokertec (MIC: BTAM) and accepted by Eurex Clearing via either open offer or novation, will be migrated.
The timeline for the C7 SCS, Release 2.0, is as follows:
Simulation start: June 2022
Production start: 24 October 2022
Documentation, circulars, timeline and much more about C7 SCS Release 2.0 is available on our dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases
and on the go via the personalized Eurex App.
2. Required action
As the new release introduces changes to the entire clearing and settlement process chain in terms of new netting model, availability of settlement instructions at the (I)CSD, delivery management and reporting, Clearing Members have to ensure that impact on these areas is analyzed and changes are implemented for the introduction of C7 SCS Release 2.0. With planned migration of GC Pooling Collateral Management from Xemac to CmaX, a new account structure is required to be delivered to proceed with GC Pooling trading. Clearstream plans to publish high level requirements for Clearing Members to be prepared for these changes towards end of Q2 2021. Eurex Clearing's information update will follow Clearstream's communication.
Eurex Clearing will not maintain the existing clearing and settlement system for any transitional period after 24 October 2022. Therefore, Clearing Members must have amended their infrastructure prior to 24 October 2022 for all pending repo transactions on or after 24 October 2022.
In case of cooperation with back-office vendors, Clearing Members should contact their third-party providers as soon as possible to ensure the necessary adjustments can be made for the introduction of C7 SCS Release 2.0.
Please check whether you have registered and/or updated your Release Contacts for Eurex Repo 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 page under the following link: Support > Information Channels > Circulars & Newsflashes > Subscription page
Please note that any communication regarding C7 SCS will only be distributed via Eurex Clearing circulars and newsflashes.
3. Details of the initiative
Publication of Preliminary Release Notes
Update of Release Notes
|Update of Release Notes (if required)|
Publication of Member Simulation Guide
C7 SCS 2.0 available in Simulation
Publication of Final Release Notes
C7 SCS 2.0 launch in Production
24 October 2022
B. Overview of functional changes
The following list provides a functional overview of the features offered to the participants for Special repo and GC repo market with C7 SCS Release 2.0:
The following list provides a functional overview of the features offered to the participants for GC Pooling market with the C7 SCS Release 2.0:
D. Technical connection
The delivery management functionality can be performed directly at the (I)CSD. Routing Service will not be offered for repo transactions. No specific Member GUI for C7 SCS will be provided to our Clearing Members. The Securities Clearing GUI will be decommissioned for repo transactions.
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.
All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors, all FCM Clearing Members and other affected contractual parties
Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination