C7 SCS Releases

C7 SCS Release 2.0

Eurex Clearing will migrate the repo clearing service to the Securities Clearing platform as part of C7 Securities Clearing Service C7 SCS Release 2.0. With this release, all transactions that are concluded at Eurex Repo (MIC: XERE) and accepted by Eurex Clearing via either open offer or novation, will be migrated to the C7 SCS platform. 
The migration of Xemac will also impact any Xemac user that provides margin collateral and/or Default Fund contributions in favor of Eurex Clearing via this channel. All holdings will be migrated by Clearstream to CmaX provided the relevant legal documentation is duly executed, and new accounts are set up and enabled for CmaX in due time. 

Simulation start: 20 June 2022
Production start: 24 October 2022

SCS 2.0

 








System Documentation


Circulars

Circulars

Newsflash

FAQ

No. As Trade Date Netting is not applied for repo market, the Net Clearing report is not applicable. 

Yes. The Settlement Date Netting (SDN) replaces the current Actual Settlement Day Netting (ASDN). The pending delivery instructions will not be cancelled by Eurex Clearing and will not be considered again for netting. The delivery instructions will stay pending at the (I)CSD until settlement is fulfilled. 

The difference is with regards to how the cash only obligation out of the offset block is handled by C7 SCS. For SIN model, the cash only obligation out of the offset block is included in the DvP/RvP delivery instruction or in the exposure adjustment from the surplus and is not instructed separately. For DIN model, the cash only obligation out of the offset block is always instructed separately by C7 SCS.  

Services

Values

Comment

Processing Method 

Netting (DEFAULT) 

Gross 

Gross: not applicable for GC Pooling 

Netting Method 

Single Instruction Netting (DEFAULT) 

Dual Instruction Netting 

Default Hold/Release 

Released (DEFAULT) 

On-Hold 

On-Hold: not applicable for GC Pooling 


The settlement accounts and related cash accounts will be migrated from the current CCP system to C7 SCS with default settings. 

The Clearstream requires a new account structure for all GC Pooling participants in CmaX for GC Pooling settlement.  The clearing of GC Pooling trades can be ensured only after the relevant legal documentation is duly executed and new accounts are set up and enabled for CmaX. Clearstream has already published the preliminary release notes to enable customers to be prepared for these changes and are available at the following links: 



The settlement instructions can be released directly at the respective (I)CSD. It is recommended that the details about Hold/Release service should be checked directly at the respective (I)CSD. 

All C7 SCS Reports will be provided in XML format via the Common Reporting Engine (CRE). Moreover, the participants can opt for some reports in text version. Most C7 SCS reports will be provided at the end of each business day for repo transactions. No intraday Pending Delivery and Settled Delivery reports will be offered. The field level details as well as more detailed information will be made available in the updated C7 SCS Report Reference Manual. 

The current report selection will be migrated from the current CCP system to C7 SCS if applicable. Any change to the existing report selection can be instructed via a dedicated C7 SCS Order Form for C7 SCS Settlement Report Selection. These forms can be found on the Eurex Clearing website www.eurex.com/ec-en/ under the following link: Eurex Clearing > Find > Forms 

The complete open repo trade book will be migrated to C7 SCS at once. 

Readiness Videos

Release Items/Participants Requirements

Features/Enhancements

Details

Action Item

Special/GC Repo and GC Pooling Market:
Netting Level 

Netting takes place at level:  

•    ISIN
•    Currency
•    Clearing Member
•    Trading Member
•    Settlement account
•    Account type
 

No action required.

Special/GC Repo Market: Processing method 

For the processing method Clearing Members have the following settings: Netting (default) and Gross Processing.  

Clearing Members are requested to provide the Processing Method for settlement accounts, which shall not be processed with the default “net” parameter.  

Special/GC Repo Market:  
Settlement Day Netting 

Settlement Date Netting is offered, a trade is considered for netting only once. Late failed trades are not cancelled and stay pending at (I)CSD. 

Please check the delivery instructions on the (I)CSD (Central Securities Depository) side. 

Special/GC Repo Market:  
Delivery instructions  

Delivery instructions can be sent out as released (default) or on hold on the same level of netting parameters.  

 Clearing Members are requested to provide the processing set-up for settlement accounts, which shall not be processed with the default “released” parameter. 

Special/GC Repo Market:  
Changes to Gross Delivery Management Interface 

Instead of today’s Gross Delivery Management on single trades, Members can modify the hold/release status on delivery instructions at the (I)CSD. T2S members can use partial release at CBF/T2S.  

Please check the possibilities to modify the hold/ release status of delivery instructions directly at the (I)CSD.  

Special/GC Repo Market: 
Routing Service 

Eurex Clearing will not offer a routing service for change of hold/release status and partial release of pending delivery instructions resulting out of repo transactions.  
Eurex Clearing will not reflect the updates to delivery instructions received from the (I)CSD due to Hold/Release status changes in the Pending Delivery Report. 

Please check the possibilities to execute Hold/Release actions directly at the (I)CSD.  

Special/GC Repo Market: 
Corporate Actions 

Manufactured coupon payments will be compensated by debiting the Repo buyer and crediting the Repo seller based on in-house Clearstream CA service. 

No action required. 

GC Pooling Market:  
Collateral Mobility Project 

Clearstream will migrate the Collateral Management for GC Pooling from Xemac to CmaX and the timeline is aligned with C7 SCS Release 2.0. 
The settlement flow for GC Pooling between Eurex Clearing and CmaX will be adapted. After migration, Xemac will not be available for GC Pooling Collateral Management. 

Setup of new collateral accounts for GC Pooling transactions for Repo business is needed.  

GC Pooling Re-use
Collateral Mobility Project 

Collateral Management will be supported by Clearstream Banking Luxembourg’s system CmaX, while underlying accounts with Clearstream Banking Luxembourg and/or Clearstream Banking Frankfurt can be used.

Please ensure the required account set-up for CmaX. 

Provision of margin and Default Fund contributions 

Collateral Mobility Project 

Collateral Management will be supported by Clearstream Banking Luxembourg’s system CmaX, while underlying accounts with both Clearstream Banking Luxembourg and/or Clearstream Banking can be used.

Please ensure there is required account set-up for CmaX.   

GC Pooling Market:
Settlement Date Exposure Netting 

Settlement Date Exposure Netting (SDEN) is a new mechanism offered with C7 SCS for GC Pooling trades. All trades are considered for Settlement Date Exposure Netting. Exposure adjustment instructions are always sent out as released. 

No action required. 

GC Pooling Market:   
Collateral
Management 
Corporate Actions 

Corporate actions are handled by Triparty Collateral agent. If necessary, either automatic substitutions of allocated securities are performed prior to a mandatory corporate action or securities stay allocated and the proceeds are compensated back to the original collateral provider. 

Please check for subscriptions for relevant reporting by CmaX. 

Special/GC Repo and GC Pooling Market: 
Reports 

Most C7 SCS reports will be provided at the end of each business day for repo transactions. No intraday Pending Delivery and Settled Delivery reports will be offered. All reports are offered in xml-based format. 

Please adapt your internal systems to process the new layout of the reports. 

Special/GC Repo and GC Pooling Market: 
Technical Connection 

No specific Member GUI for C7 SCS will be provided to Clearing Members. The Securities Clearing GUI will be decommissioned for repo transaction. 

Please adapt your internal operational processes accordingly. 

Eurex Repo

Eurex Repo is the leading european marketplace for international secured funding and financing. Visit now the dedicated website to learn more about Eurex Repo and it´s offerings!
Find out more!

GC Pooling

GC Pooling is a highly liquid market for secured funding in EUR, USD, CHF and GBP. Participants benefit from anonymous electronic trading through a central counterparty
Find out more!

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