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EuroCCP H1 2021 Highlights

EuroCCP continues to strengthen its position as a leading pan-European clearing house with the help of our valued clients and partners. We are excited to see further growth in the second half of 2021 with the addition of new venues, services and further enhancements to facilitate ETF clearing. Regulatory approval has been received to clear equity derivatives, ready for Cboe Europe Derivatives launching on 6 September, 2021.

Updated Regulations effective 9 December

Dear Clearing Participant,

Following the October 2021 review cycle, selected regulations have been updated.  Please see the below summary of changes:

  • Regulation Collateral / Regulation Cash Collateral Account: the legibility of Regulation Collateral has been improved and relevant content of Regulation Cash Collateral Account has been merged with Regulation Collateral. Regulation Cash Collateral Account will no longer be used. As a consequence, the references to Regulation Cash Collateral Account in the Clearing Rule Book have been removed.
  • Regulation Clearing Hours: the Clearing Hours have been changed from 07:30-20:30 CET to 07:30-19:30 CET, to align with the hours that EuroCCP is operational, and superfluous operational detail has been removed.
  • Regulation Clearing Days: the Clearing Days have been updated for 2022. Settlement during bank holidays of CSD’s has been addressed.
  • Regulation Portability: the requirement to have a legal opinion on file or to have the written consent of the insolvency practitioner appointed for the defaulting Clearing Participant will not apply to the porting of Derivatives Contracts of Clearing Participants located in the Netherlands.
  • Regulation Settlement: the legibility of the regulation has been improved and updated where necessary. This regulation is likely to change in the near future to the coming into effect of settlement discipline rules under CSDR.
  • Regulation Corporate Actions, Regulation Buy in Procedures, Regulation Complaints: small improvements have been made.
  • Regulation Collateral: the words “issuer criteria” have been removed.

In accordance with article 3.3 of the Clearing Rule Book, with this newsflash, Clearing Participants are given 30 days’ notice of the above changes. The changes will apply as of 9 December 2021, except for the changes to Regulation Clearing Days, which will apply as of 1 January 2022.

Should you have any questions relating to these changes please contact our relationship management team.

CSDR Settlement Discipline Framework Update

EuroCCP has updated its CSDR Settlement Discipline Framework document.

The CSDR Settlement Discipline Framework provides updates on the upcoming CSDR changes and the impact for EuroCCP clients and includes a Q&A of the key impacts and changes.

This document is now available to download via EuroCCP’s dedicated CSDR webpage www.euroccp.com/csdr along with the specifications for EuroCCPs Daily Fail fee and Monthly Fail Fee reporting.

For any questions regarding the above update please contact the Relationship Management team.

Updated Clearing Rule Book

Dear Clearing Participant,

On 11 May 2021 EuroCCP published an updated version of its Clearing Rule Book (“CRB”) on its website for consultation. The amendments relate to the introduction of a clearing service for certain types of equity derivative instruments. The changes to the CRB were open for consultation for a 30 calendar day consultation period. This period ended on 10 June 2021.

Following the Clearing Rule Book consultation and regulatory review, EuroCCP has taken note of questions and suggested improvements of the Clearing Rules and has made final changes.

EuroCCP is pleased to announce that an updated version of its Clearing Rule Book is now available on its website, along with a memo and updated versions of the Regulations.

The new Clearing Rules will become effective as of the launch of the equity derivative clearing service. Clearing Participants will be informed of the effective date via a Newsflash.

Should you have questions relating to these changes, please contact the EuroCCP Legal and Compliance Department at compliance@euroccp.com.

Should you have any further queries, please do not hesitate to contact us.

 

 

 

Dedicated Own EuroCCP Resources July 2021

As required under EMIR, article 8.4.2 of EuroCCP’s Clearing Rule Book confirms that EuroCCP will apply its own dedicated financial resources – “skin-in-the-game” – in the event of a member default, prior to the use of clearing fund contributions of non-defaulting clearing participants.

Regulation – Dedicated Own EuroCCP Resources, confirms that EuroCCP must determine the value of its financial resources amounting to 25% of the minimum required capital in the month following the month in which the annual report for prior year is approved.

The minimum capital requirement for determining “skin in the game / dedicated own resources” is the minimum capital required by EuroCCP pursuant to the regulatory technical standards for central counterparties (Regulation EU 152/2013). For the purposes of July 2021 calculation, EuroCCP’s unaudited balance sheet as at 30 June 2021 has been used and the level of dedicated own resources amounts to EUR 6.823.757,36. This amount will apply until a new amount is fixed in accordance with the aforementioned Regulation.

For questions on the above, please contact the Relationship Management team.

EuroCCP Relationship Management
T.   +44 20 7392 7480
rm@euroccp.com|euroccp.com

EuroCCP Receives Regulatory Approval for Equity Derivatives      

EuroCCP is delighted to inform its members that it has received regulatory approval to clear Equity Derivatives. Full details can be found in the press release.

This approval will enable EuroCCP to provide clearing services for Cboe Europe Derivatives, a new Amsterdam-based index futures and options exchange which is launching on 6th September.

The introduction of derivatives clearing diversifies EuroCCP’s product line, whilst strengthening its core franchise in cash equities, continuing its journey to become a  multi-asset clearing house.

For queries on the new Derivatives service, please contact the Relationship Management team.

EuroCCP Relationship Management
T.   +44 20 7392 7480
rm@euroccp.com|euroccp.com

Clearing Rule Book Consultation – May 2021 – Now Closed

On 11 May 2021 EuroCCP published an updated version of its Clearing Rule Book (“CRB”) on its website for consultation.

The changes to the CRB were open for consultation for a 30 calendar day consultation period. This period ended on 10 June 2021.

The purpose of the changes is to facilitate the clearing of certain types of equity derivative instruments as traded on the Cboe Europe Derivatives trading venue. As announced on 29 April 2021, Cboe has confirmed a go-live date of 6 September 2021 for Cboe Europe Derivatives, its new Amsterdam-based equity derivatives exchange, subject to regulatory approval.

We have received valuable comments which we will now further assess. A final version of the updated CRB is expected to be published on EuroCCP’s website in the next few weeks. EuroCCP expects the changes to apply as of Monday 6 September 2021.

Clearing Participants will be notified by Newsflash upon the new CRB being available on EuroCCP’s website.

Should you have any further queries, please do not hesitate to contact us.

EuroCCP to extend clearing to Euronext Oslo Growth Market

EuroCCP will be extending its clearing services to the Euronext Growth Oslo Market (previously known as MERKUR), with the target launch 28 June 2021.  The extension of clearing for the Norwegian growth stocks is subject to regulatory approval.

Euronext issued a market notice 20th May of the new cleared service including testing arrangements.

EuroCCP will support member testing from 2 June 2021.  Trades executed on the segment and cleared by EuroCCP will be reported with the MIC “MERK” in the daily CIF files.

Please note for those members already active on Oslo Bors and using EuroCCP, no additional setup is required and your existing connectivity will include the clearing of the Growth Market when the service goes live.

Please do not hesitate to contact the EuroCCP Relationship Management team

EuroCCP Relationship Management
T.   +44 207 131 3430
rm@euroccp.com|euroccp.com