Updated Regulation Fees and Penalties – Effective 1 January 2020

EuroCCP is committed to providing its members with a competitive and valuable service. Most recently, EuroCCP has enabled access to Deutsche Borse and members can now benefit from access to 39 trade venues. EuroCCP continues to invest in its infrastructure with new products and services including plans for primary and secondary market clearing for ETFs, a new risk platform and service enhancements in preparation of CSDR.

In order to consolidate its position as Europe’s leading cash equities CCP,  EuroCCP has performed a review of its pricing. Effective from 1 January 2020 EuroCCP’s Regulations Fees and Penalties will be updated as described below.

EuroCCP will introduce a banded fee structure for clearing fees. The new fee structure will charge clearing members a set clearing fee per trade based on the number of active markets cleared and average daily cleared volume.

Additionally the new fee schedule provides clients with the ability to achieve greater savings through the use of Preferred Clearing.

EuroCCP already has a separate fee schedule for off order book trades and this will be updated as a response to changes in trading behaviours and the growing use of off order book trading platforms. Off order book trades will be charged on the same banded fee structure as per on order book clearing; however in addition, trades received over €50K (or equivalent) will incur a basis point charge, capped at €1mn.

Acknowledging the different risk profile of intercompany trades, trades between two entities of the same member will be charged a flat rate fee.

Following the successful implementation of trade feed access to Oslo Bors, Euronext and Borsa Italiana, the clearing fee supplements to facilitate access to these platforms will be removed. The proposed clearing fee supplement for Deutsche Börse will be reduced as a result of the fee charged from the trading venue.

Should you wish to discuss the above changes, please contact EuroCCP’s Relationship Management team.

A copy of the new fee schedule can be found below.

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Regulation Fees and Penalties

Version 01 January 2020

Deutsche Börse go-live 11 November 2019

EuroCCP is pleased to announce that regulatory approval was received to provide clearing services for trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange. The service is planned to go-live from trade date 11 November 2019 on a Preferred CCP basis for shares and exchange traded funds on Xetra© (MIC: XETR).

To clear trades executed on Xetra© with EuroCCP, participants are required to:-

1 . Advise Deutsche Börse Key Account Manager (KAM) of your implementation plans

Trading firms admitted for trading at Deutsche Börse and wishing to adopt the “Preferred CCP” Model should contact Deutsche Börse Key Account Manager and complete the appropriate forms.

2 . Advise EuroCCP of your implementation plans

Trading firms wishing to benefit from the “Preferred CCP” Model should liaise with their Clearing Participant, who will contact EuroCCP’s Relationship Management department at RM@euroccp.com to agree implementation plans and intended go-live date. EuroCCP will coordinate internally and make the necessary arrangements.

The following documentation should be completed and returned to: clientservices@euroccp.com

Upon receipt of the forms and supporting information, EuroCCP will liaise with Deutsche Börse to ensure both Deutsche Börse and EuroCCP systems are configured accordingly.

3 . Complete testing with Deutsche Börse and EuroCCP

Clearing Participants must undertake testing prior to go-live.

Deutsche Börse and EuroCCP’s test environments are available for your testing requirements from  today.

A list of ISIN codes will be agreed bilaterally with each client for testing purposes, to ensure a smooth and successful test.

4 . Go live into the Production environment

After successful testing, clients can commence clearing with EuroCCP on the agreed go live date.

5 . Reporting changes

A new platform MIC XETR will be reported to all clients in the daily CIF file.

6 . Regulation changes

Currently, the following regulations have been updated for the purpose of clearing Deutsche Börse traded executed on Xetra using the “Preferred CCP” model.

7 . Direct Debit

In order to clear  Deutsche Börse trades, Clearing Participants will need to have  a direct debit authorisation in place.

There are two options available and they are as follows:

  1. Direct debit authorisation which allows EuroCCP to withdraw funds from the respective clearing participants’ Target account or;
  2. Direct debit authorisation which allows EuroCCP to withdraw funds from the respective clearing participants’ commercial bank account under the condition that the commercial bank account has an overdraft possibility.

8 . End of day timing

Upon the first clients going live, the end of day timing will move from 19:30 CET to approx. 20:30 CET. This will mean that the daily CIF will be issued to clients later than is currently in place.

For details on cost saving, please contact EuroCCP’s Relationship Management team to provide an assessment of the savings resulting from the consolidation of Deutsche Börse activity with EuroCCP.

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

EuroCCP extends platform coverage to include Deutsche Börse

EuroCCP is pleased to announce that regulatory approval has been received to provide clearing services for trades executed on Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange. The service will go-live from trade date 11 November 2019 on a Preferred CCP basis for shares and exchange traded funds on Xetra© (MIC: XETR).

Onboarding requirements including testing, documentation and notification of changes to Regulations will be communicated in an additional member notice.

Access to the Frankfurt Stock Exchange has enabled EuroCCP to connect over 95% of European Equities traded on venues and continues to position EuroCCP as Europe’s leading Equity CCP.

Please contact Relationship Management for further information.

Euroclear Finland – postponement to implementation of Partial Settlement

Further to the Newsflash published on 19 July 2019, Euroclear Finland’s proposed implementation date of partial settlement on trade date 30 September has been postponed to 7 October 2019. EuroCCP will therefore mandate the use of PARQ for this market in keeping with its Regulation Settlement. Trades with trade date 4 October 2019 will not be sent to the market and will be released in the morning of 7 October 2019.

The main changes impacting EuroCCP’s services incorporate:

  • Partial settlement functionality.
  • Settlement agent Power of Attorney.

Partial Settlement

The partial settlement windows for settlement instructions against payment are scheduled at 11:00, 13:00 and 16:30 EET.

Clearing Participants need to ensure that the settlement instructions submitted into the settlement system include the PARQ indicator. This is a mandatory requirement and Clearing Participants are responsible for informing any trading members that they must update their settlement instructions to reflect the PARQ indicator on 7 October 2019.

Settlement Agent Power of Attorney

Settlement instructions sent to the Clearing Participant’s settlement agent under the Settlement Agent Power of Attorney (PoA), will be enriched to include the partial indicator PARQ and the status of the PoA settlement instruction will be “released” (NEWM).

Should you have any further questions please do not hesitate to contact EuroCCPs Relationship Management Team.

 

EuroCCP to provide clearing and settlement services to TradeWeb for European ETFs

EuroCCP, Europe’s leading equities clearinghouse, today announces its collaboration with TradeWeb, a global operator of electronic marketplaces for multiple products including Rates, Credit, Equities, ETFs and Money Markets.

The press release associated to this announcement can be found here.

The new clearing link will enable its members and their clients to streamline the settlement process of ETFs in Europe, whilst providing important counterparty protection in the event of a default.

The settlement of ETFs today can be impacted by high costs associated with OTC settlements and subsequent fails. With CSDR settlement discipline measures on the horizon, the introduction of CCP services for TradeWeb in ETFs can mitigate against such issues, whilst being able to cross net ETFs traded and cleared on other trading venues.

The clearing link between TradeWeb & EuroCCP is expected to be available to its clients in Q4 2019, subject to regulatory approvals.

Please contact the Relationship Management & Client Services team at EuroCCP for further information.

ETF Buy-In Extension Period

Dear Clearing Participant,

EuroCCP is pleased to announce an extension to the buy-in period for ETF securities from ISD+4 to ISD+7. This extension has been made in close cooperation with the ETF community and to align the buy-in period for ETFs with local market practices. The changes become effective per settlement date 12 Aug 2019.

EuroCCP’s Regulation Buy-in Procedure has been updated accordingly and can be found here, which includes the normal timeline below, as well as the new ETF timelines.

The changed timeline for ETFs only will be:

Please note this will not impact the market maker buy-in timeframes and will also be  applicable across all markets.

Should you have any further queries, please do not hesitate to contact your Relationship Manager.

EuroCCP Annual Client Review 2019

EuroCCP is shortly to undertake its annual Clearing Participant review which will require all Clearing Participants to provide the following information:

  1. Certificate of Incorporation and current Articles of Association,
    Excerpt from Chamber of Commerce or Company Register and
    Organisation chart
  2. Current Authorised Signatory list
  3. Proof of regulated status: Credit institution, Bank or Investment firm established in a FATF country (If a bank, evidence of banking license)
  4. Copy of your Annual Report (English Version) and Disclosure Report
  5. Current contact list for all teams within your organisation, including escalation contacts
  6. LEI Number
  7. Contact Details of the Security Team and SOC (telephone number, email address, escalation 24X7 telephone number)
  8. Ultimate Beneficial Ownership (UBO) greater than 25%

EuroCCP is a central counterparty authorised pursuant to the EU Regulation on OTC derivatives, central counterparties and trade repositories (Regulation 648/2012 “EMIR”) and is required to conduct a comprehensive review of its Clearing Participants.

The deadline for completion of this review is 19th August 2019 and EuroCCP’s Client Services Team will be contacting all Clearing Participants by email from 27th July 2019

We look forward to the return of this information before that date however, should you have any further queries please do not hesitate to contact us.

Euroclear Finland – Partial settlements and EuroCCP to mandate PARQ indicator

Please be aware that Euroclear Finland has confirmed the introduction of partial settlement on trade date 30 September 2019. EuroCCP will therefore mandate the use of PARQ for this market in keeping with its Regulation Settlement.

The main changes impacting EuroCCP’s services incorporate:

  • Partial settlement functionality.
  • Settlement agent Power of Attorney.

Partial Settlement

The partial settlement windows for settlement instructions against payment are scheduled at 11:00, 13:00 and 16:30 EET.

Clearing Participants need to ensure that the settlement instructions submitted into the settlement system include the PARQ indicator. This is a mandatory requirement and Clearing Participants are responsible for informing any trading members that they must update their settlement instructions to reflect the PARQ indicator on 30 September 2019.

Settlement Agent Power of Attorney

Settlement instructions sent to the Clearing Participant’s settlement agent under the Settlement Agent Power of Attorney (PoA), will be enriched to include the partial indicator PARQ and the status of the PoA settlement instruction will be “released” (NEWM).

Testing

Clients are encouraged to test the new functionality to ensure a smooth migration and that the enriched settlement agent POA instructions flow STP in participants post trade systems.

EuroCCP will support testing from 5 August 2019 until 9 September 2019 and clients can contact EuroCCP’s testing team at: clienttesting@euroccp.com to arrange support.

Should you have any further questions please do not hesitate to contact EuroCCPs Relationship Management Team.

 

Swiss Equivalence

The Swiss Federal Department of Finance (FDF) published a notice on 24 June 2019 that in the event that the EU equivalence decision for Swiss trading venues is not extended beyond its current expiration date of 30 June 2019, it will remove the recognition that allows EU trading venues to offer trading in certain Swiss equity securities.

Due to this measure, the relevant EU trading venues have announced to delist certain equities securities of companies with a Swiss registered office and listed on a Swiss exchange in the event that Switzerland is not granted equivalence from the EU by Sunday 30th June 2019.

EuroCCP will continue to be authorized to offer clearing services both in the EU as well as in Switzerland and will continue to clear Swiss market securities.

The measure taken by the FDF will impact EU trading venues ability to admit to trading securities of companies with a Swiss registered office and listed on a Swiss exchange with effect from the start of trading on Monday 1st July 2019.

Clearing participants are advised to speak to the individual trading venues for further information.

EuroCCP’s clearing services remain unaffected.

Reporting on Capital Requirement Regulation

The Capital Requirement Regulation (EU 575/2013-CRR) requires EuroCCP to disclose information to allow a Clearing Participant to determine its own funds requirement for its exposure on EuroCCP.

Accordingly, please find the information for 31 March 2019

in pdf format,

or

in Excel format.