consultation version 19 October 2018
Euronext Q&A – EuroCCP Reporting
Euronext has announced that it will make the CCP Identifier available in its real-time trade report execution message.
In Euronext’s system update, the CCP Identifier will be available in the original execution message, allowing clients to receive immediate information on the CCP clearing the trade under the “User Choice” model. Euronext plans to implement the CCP Identifier in its External User Acceptance (EUA) test platform in September 2018, which should be included in the production environment in October 2018.
An additional “post-trade trade confirmation” message, including the identifier, will be available on request. This additional “post-trade trade confirmation” message will be issued immediately after the distribution of the real-time trade report execution message.
Further information can be found at Euronext website under Resources > IT Documentation > Order Entry.
There is no impact on EuroCCP’s reporting.
Euronext trades are included in the existing EuroCCP reporting (real time trade feed, intra-day and end-of-day trade files).
Euronext trades appear in EuroCCP’s reporting under the relevant Market Identifier Code (TAG 58 in the FIX messages and TAG 8 in the Client Information File (CIF).
TCS trades are flagged in EuroCCP’s real-time FIX message in TAG 150 with a value of ’3’ instead of ‘2” and the “ETR” are shown in field 150 “transaction type” of EuroCCP’s Client Information File (CIF).
EuroCCP’s reporting specifications for the Client Information File (CIF) and Real-time confirmation message are available on EuroCCP’s website under the technology documentation section in Participants’ Centre.
For further information on EuroCCP’s reporting, please contact EuroCCP’s Client Services team at firstname.lastname@example.org.
The real-time trade report execution message provided by Euronext will contain a CCP identifier for CCP cleared transactions. The CCP identifier for EuroCCP will be “6”.
Further information can be found at Euronext website under Technology Solutions > Optiq > Optiq Documentation and the Info-Flash regarding CCP identifier real-time availability in trade reports.
Euronext Q&A – “User Choice” model & Interoperability
In the absence of interoperability arrangements between LCH SA and EuroCCP, only those Euronext transactions where both sides of the transaction are undertaken by a member having selected EuroCCP as its “preferred CCP” will be cleared by EuroCCP. This model is called the “User Choice” model.
These Euronext trades can be netted against the activity executed on other platforms supported by EuroCCP for settlement purposes.
Non-guaranteed Euronext transactions will not be cleared nor processed by EuroCCP and these instructions will continue to be settled bilaterally.
Trading members and clearing participants will enhance their commercial efficiency. The User Choice model is an initial means toward gaining substantial commercial benefits. Once there is full interoperability, EuroCCP will be able to maximise the operational and commercial benefits for trading and clearing participants, as all trades of those firms that have selected EuroCCP as their CCP of choice will be fully netted into only one net-settlement per ISIN per day.
As the “User Choice” model is implemented, we anticipate ongoing phases of client participation. Substantial savings can be expected from the adoption of the User Choice model as soon as the first wave of clearing participants take advantage of this service. An assessment of potential savings is available on request from EuroCCP’s Relationship Management team.
The service will be fully interoperable once all CCPs to which Euronext has granted a trade feed interoperate with each other. The exact timing will depend on Euronext and each CCP‘s readiness to interoperate, subject to all relevant parties obtaining the required regulatory approvals.