C7 SCS Release 2.1: Introduction of Optimized Trade Day Netting Service (OTDN)

1.  Introduction   

With this circular, Eurex Clearing announces the production launch of C7 SCS Release 2.1 and the activation of additional C7 SCS netting service: Optimized Trade Day Netting (OTDN) for Deutsche Börse Cash Markets business.

With the introduction of C7 SCS Release 2.1, minor enhancements to the C7 SCS system will be implemented.

Two additional optional fields introduced in C7 SCS Release 1.2 for the Net Clearing Report - XEUR (CE890/1/2) and the Net Clearing Report - XETR and XFRA (CE895/6/7) are enabled for Optimized Trade Date Netting on the start day of the service.

Learn now more about C7 SCS 2.1 on our dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 2.1. System documentation, circulars, timeline and much more information will be available there for you.

2.  Required action

The OTDN service is optional. For Clearing Members willing to use OTDN please provide the dedicated form, which can be requested from the Clearing KAM by end of September 2022.

For Member opting for OTDN, please check und adjust your report processing for the changes by assessing the impact of these changes provided on the respective Initiative page under the following path: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 1.2 > System Documentation > Reports: 

• C7 SCS XML Reports – Modification Notes,
• C7 SCS XML Reports – Reference Manual,
• C7 SCS XML Reports – XML Schema Files.

3.  Details of the initiative

Activation of OTDN and introduction of two additional optional fields

With C7 SCS Release 1.0, Netting of single trades is performed on Netting Unit which includes also the Clearing Member and the Trading Member IDs. This means that single trades belonging to the same Clearing Member, but different Trading Members are netted separately resulting in separate Net Position trades and settlement instructions for the Clearing Member. 

The OTDN service for Deutsche Börse Cash Markets (Xetra and Börse Frankfurt) enables General Clearing Members (GCMs) to net across several DC Market Participants and therefore to significantly reduce the overall amount of settlement instructions resulting from all trading activity under the respective GCM.

The two additional optional fields introduced in scope of C7 SCS Release 1.2 in Net Clearing Reports are the following: 

• Original Member ID (field tag: membTrdngIdCodOrig): This field is filled if the Trading Member is considered for Optimized Trade Date Netting. It contains the Trading Member ID under which the original Trading Member is known in the Clearing House. This field is only filled for Single Trades. 
• Original Account Type (field tag: acctTypOrig): This field contains the original account type as provided by trading location XETR or XFRA if Trading Member is considered for Optimized Trade Date Netting. This field is only filled for Single Trades.

The new fields will always be omitted until the OTDN service is launched and unless a client opts for it.

The C7 SCS 2.1 Communication Calendar is also published under the C7 SCS Release 2.1 Initiative page.

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.

Further information