Readiness for projects
Overview of content
Shortening of Settlement Cycle to T+1
Eurex Clearing will enhance its services to align with the European financial industry's transition from a two-day (T+2) to a faster, one-day (T+1) settlement cycle. The transition to a T+1 settlement cycle is expected to deliver several key advantages, including:
- reduced counterparty exposure and risk.
- lower margin requirements for clearing members.
- increased overall efficiency and liquidity in the market.
.png)
Supporting Documents
Circulars
Circulars
- Eurex Clearing Circular 018/26: Announcement on shortening of settlement cycle (T+1)
Participants Requirements
Feature/Enhancement | Details | Action Item |
Decommissioning of Linking Before Aggregation | To prevent delays and streamline our clearing process, the "Linking Before Aggregation" service in our C7 Securities Clearing system will be discontinued. This change will lead to a faster and more efficient netting workflow. | If you currently use the "Linking Before Aggregation" service, please review and update your internal workflows to remove this dependency. |
Earlier exercise and notification deadlines | To ensure timely settlement, the exercise deadline for equity derivatives and fixed income futures notifications will be moved 30 minutes earlier to 19:30 CET. This harmonization supports Eurex Clearing to generate and send settlement instructions earlier to the CSDs. | Adjust your internal processes to meet the new 19:30 CET deadline and prepare for earlier processing on the trade date (T). |
Accelerated Netting and Delivery Instruction Generation | We will continue to run a single, comprehensive netting cycle. Settlement instructions will be generated and sent to Central Securities Depositories (CSDs) earlier, allowing for faster integration and processing within the settlement environment. | Ensure your systems are prepared to receive and process netting reports and settlement instructions earlier than before. |
Adaptation of UK CREST Settlement Flows | For settlements eligible for CREST, we will now send instructions on the trade date (T) itself. This aligns with the operating hours of Euroclear UK & International and recommendations from the UK's Accelerated Settlement Taskforce. | Review and align your internal and custodian processes to accommodate the same-day (T) instruction flow for CREST settlements. |
Eurex Initiatives Lifecycle
From the announcement till the rollout, all phases of the Eurex initiatives outlined on one page! Get an overview here and find other useful resources.
Are you looking for information on a previous initiative? We have stored information about our previous initiatives in our Archive for you!
Contacts
Eurex Frankfurt AG
Key Account Management
Service times from 09:00 - 18:00 CET