C7 Securities Clearing Service (C7 SCS) Release 1.0: Production launch announcement

1.    Introduction

With this circular, Eurex Clearing announces the production launch of C7 Securities Clearing Service (C7 SCS) Release 1.0 on Monday, 27 September 2021. 

Learn now more about the C7 SCS Release 1.0 on our dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 1.0. Circulars, timeline and much more information are available there for you.

Production start: 27 September 2021

2.  Required action

C7 SCS introduces changes across the full clearing and settlement process chain in terms of new netting model, creation of delivery positions, availability of settlement instructions at the (I)CSD, delivery management and reporting for T7 Xetra/T7 Börse Frankfurt and Eurex Derivatives business. For all these areas, clients have to ensure their readiness for the launch on 27 September 2021.

The Securities CCP system will still be available for clearing of Eurex Repo busines as well as for the part of Eurex Derivative delivery positions resulting from Euroclear UK and Ireland business (CREST), for which clients will continue to use the current processing, i.e. Securities CCP reports, Securities clearing GUI and Member settlement instruction file interface.

Please note that as there is no migration of T7 Xetra/T7 Börse Frankfurt or Eurex Derivatives business from Securities CCP to C7 SCS, the processing of trades and position deliveries until 24 September 2021 will stay with the current Securities CCP system, until the resulting settlement obligations are fulfilled. 

3.  Details

As announced in Eurex Clearing Circular 034/20, Eurex Clearing decided to introduce the new securities clearing platform C7 SCS, which will be introduced for all transactions involving CCP-eligible instruments concluded at the Frankfurt Stock Exchange (MICs: XETR and XFRA), and for all transactions concluded at Eurex Deutschland (MIC: XEUR) that result in securities transactions.

With the introduction of C7 SCS, Eurex Clearing will apply Trade Date Netting (TDN) as the main supported netting model in C7 SCS. The current netting model Actual Settlement Day Netting (ASDN) for cleared transactions will not be available in C7 SCS.

The Securities CCP fee reports CB225, CB315, CB320 and CB325 were amended for C7 SCS. Due to technical reasons, they will be delayed for the day of the C7 SCS Release and will be available then on the morning of 28 September 2021 in the usual way.

The Eurex Repo market will be part of the next stage of the C7 SCS migration, which is planned to come into effect in October 2022. Therefore, currently existing netting and settlement processes for this market are still in place, remain in the existing Securities CCP system and will not be amended with the introduction of C7 SCS Release 1.0.

Please refer to Eurex Clearing Circulars 034/20, 084/20, 036/21, 037/21, 040/21, 066/21 and to the related Release Notes for further details on the introduction of C7 SCS Release 1.0. Further information and documents regarding the introduction of C7 SCS Release 1.0 can be found on the Eurex Clearing website on the dedicated initiative page under the following link: Support > Initiatives & Releases > C7 SCS Releases > C7 SCS Release 1.0.

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