The Buy-in Agent Service offered by Eurex Securities Transactions Services GmbH (Eurex STS) is a solution for the regulatory obligation to trigger Buy-ins according to the Central Securities Depository Regulation (CSDR).
Eurex STS collects Buy-in requests from its Clients and purchases the securities from registered Network Partners in an auction, thereby protecting the interest of the Failing Counterparty as well as the buyer. Following a successful auction, the purchased securities will be delivered by Eurex STS to the Client.
All messages, cash- and securities flows related to Buy-in requests are triggered and exchanged automatically, supported by state-of-the-art technology. Depending on the different member roles, the Buy-in Agent system allows for different functional setups.
Eurex STS provides market participants with an innovative solution to enable them to fulfill their regulatory obligations from the Settlement Discipline Regime under CSDR. The service will be offered to eligible counterparties (as defined by MiFID II) only.
If the settlement of a transaction fails, the receiving party of the transaction is obligated to appoint a Buy-in Agent to execute a Buy-in. In this process, the Buy-in Agent is a neutral third party and bound to act in the best interest of both the Client and the Failing Counterparty.
Clients of the Buy-in Agent can submit Buy-in requests to the system via a GUI or an API. The Buy-in Agent will conduct scheduled, automated auctions to source the securities from Network Partners and deliver the securities to the Client who initiated the Buy-in request.
In line with CSDR, service fees charged by the Buy-in Agent as well as potential price differences shall be borne by the Failing Counterparty in the original transaction.
Network Partners are registered with Eurex STS to provide liquidity during the scheduled auctions.
We will offer the following Optional Services for the service launch in February 2022:
Institutions wishing to connect with Eurex STS may elect to participate directly as a Client. It will also be possible to access the Buy-in Agent as Principal Party through an intermediary. Additionally, all Clients may apply for the Network Partner role to participate in auctions and sell securities.
Eurex Securities Transactions Services GmbH allows membership in the Buy-in Agent service under the following conditions: