This circular contains information with respect to the service offering of Eurex Clearing AG (Eurex Clearing) and introduces the Pair-Off Request Form and the Pair-Off Processing Manual.
The Pair-Off Service will become effective as of 4 October 2021.
2. Required action
There is no required action.
A. Introduction of Pair-Off-Service for C7 Securities Clearing Service (C7 SCS)
In response to feedback from market participants in the context of the introduction of C7 Securities Clearing Service (C7 SCS), Eurex Clearing is introducing a Pair-Off Service to provide Clearing Members with an opportunity to resolve opposing late securities transactions relating to the same securities and currency and pending at the settlement location (CBF, CBF(i), SIS) on the same settlement account.
In scenarios where settlement instructions with opposing delivery obligations between the Clearing Member and Eurex Clearing stay unsettled at the settlement location for several days, a risk arises that Eurex Clearing initiates a buy-in process in accordance with the Clearing Conditions. The Pair-Off Service allows Clearing Members to set-off such opposing delivery obligations so that sell transactions and buy transactions get cash-settled to avoid the buy-in.
B. Pair-Off Request Form
The Pair-Off is initiated by submitting the Pair-Off-Request Form on the Pair-Off Date, which is the Business Day on which a buy-in process for a late sell transaction would be initiated after settlement cut-off time for the first time. For shares falling under the ESMA Short Selling Regulation (SSR) this is the fourth Business Day after the Contractual Settlement Date, for other securities it is the fifth Business Day after the Contractual Settlement Date.
Please find the “Pair-Off Request Form” attached to this circular and on the Eurex Clearing website under this link:
C. Pair-Off Processing Manual
The Pair-Off Processing Manual contains necessary information in chapters:
Please find the “Pair-Off Procedures Manual” attached to this circular and on the Eurex Clearing website under:
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 and Disclosed Direct Clients of Eurex Clearing AG, vendors and other affected contractual parties
Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination
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