EuroCCP – 2016 Clearing House of the Year Winner

We are delighted to announce that EuroCCP won the “Clearing House of the Year” award at last night’s Financial News Awards for Excellence in Trading and Technology.

A panel of 150 industry leaders and experts were invited by Financial News to rate five CCPs nominated for the Clearing House of the Year award.  EuroCCP received the highest score from the panel among the nominated CCPs.

Financial News confirmed that the past 12 months has been a landmark period in many ways, helping to cement EuroCCP’s position as Europe’s largest equities clearing house.

On receiving the award, Diana Chan, Chief Executive Officer, said “We are honoured and grateful for the industry support.  It does not stop here, we will continue to make a difference.”

We would like to take this opportunity to thank all our clients for their commitment and ongoing support.

Direct Link for Norwegian market

We are pleased to announce EuroCCP’s new arrangements in the Norwegian market. From Trade Date Thursday 3 November 2016, EuroCCP will activate its direct link to the Norwegian Central Securities Depository (VPS) and the Norwegian Central Bank (Norges Bank).

The implementation of direct connectivity to the Norwegian post trade infrastructure demonstrates EuroCCP’s commitment to providing its clients with the most efficient access to local markets, which improves settlement efficiency and reduces costs. EuroCCP will continue to support direct access to  local markets.

EuroCCP will operate its own securities account with VPS and cash account with Norges Bank as from Trade Date 3 November 2016. The implementation of the direct link to the Norwegian market is scheduled as follows:-

Wednesday 2 November 2016

Last Trade Date for transactions that settle through the account with EuroCCP’s Settlement Agent. At close of business, EuroCCP will forward settlement instructions to its Settlement Agent for Intended Settlement Date 4 November 2016.

Thursday 3 November 2016

First Trade Date for trades that settle through EuroCCP’s new VPS and Norges Bank account.  At close of business, EuroCCP will forward settlement instructions to VPS for Intended Settlement Date 7 November 2016.

Friday 4 November 2016

Last Intended Settlement Date for settlement instructions that settle through EuroCCP’s Settlement Agent.

Monday 7 November 2016

First Intended Settlement Date for settlement instructions that settle through EuroCCP’s new accounts at VPS and Norges Bank.

From Trade Date Thursday 3 November 2016, with Intended Settlement Date Monday 7 November 2016 and thereafter, the following EuroCCP Standard Settlement Instructions will apply for securities and cash for Norwegian Kroner (NOK):-

EuroCCP Standard Settlement Instructions – securities:-

Delivery / Receiving party VPS ID (DEAG / REAG) 45650
Delivery / Receiving party safe  456504900006
CSD of Delivering / Receiving party (PSET) VPSNNOKK
Client of Delivering / Receiving participant (SELL / BUYR) EMCFNL2A

EuroCCP cash payment details with Norges Bank – NOK:-

Receiver field in header MT202 message EMCFNL2AXXX
Tag 58 (Credit bank) EMCFNL2AXXX
Tag 103 (Service identifier) NBO

Pending Settlement instructions with Trade Date prior 3 November 2016

Settlement instructions with a Trade Date prior to Thursday 3 November 2016 will settle through the account at EuroCCP’s Settlement Agent.  Clearing Participants and their Settlement Agents should be aware that settlement instructions with Trade Date prior 3 November 2016 must be matched against the current Standard Settlement Instructions for securities and cash for NOK.

Power of Attorney

EuroCCP will continue to support Settlement Agent PoA services, where settlement instructions are delivered to the Settlement Agent on behalf of a Clearing Participant. These settlement instructions will contain EuroCCP’s new SSI’s which will apply as from Trade Date 3 November 2016.

Reporting (CIF)

The Client Information File (CIF) will remain unchanged and will not reflect any changes due to the activation of EuroCCP’s direct link to the Norwegian market.

T2S Migration Wave 3

Following EuroCCP’s Newsflash dated 26 August 2016 regarding the migration of Euroclear Belgium, France and Nederland to Target 2 Securities (T2S), we would like to remind our Clearing Participants and their Settlement Agents of the forthcoming changes to EuroCCP’s settlement arrangements in the Belgium, French and Dutch market.

The migration of Euroclear Belgium, France and Nederland to the T2S platform is scheduled for the weekend of 10-11 September, with an initial settlement date of 12 September 2016.  With the Wave 3 migration to the T2S platform Clearing Participants are reminded that EuroCCPs, settlement arrangements and SSIs will change.

The new EuroCCP SSIs will apply to those settlement instructions with Trade Date Monday 12 September 2016 and thereafter:-

EuroCCP SSIs Euroclear:
Delivery / Receiving party BIC (DEAG / REAG) EMCFNL2AXXX
CSD of Delivering / Receiving party (PSET) BIC11 local CSD*
Client of Delivering / Receiving party (Seller / Buyer) EMCFNL2AXXX
*Euroclear Belgium: CIKBBEBBXXX, Euroclear France: SICVFRPPXXX, Euroclear Nederland: NECINL2AXXX
Please note that these SSIs include settlement in French registered securities (BRN).

Wave 3 Migration

The migration of Wave 3 is scheduled as follows:-

  • Friday 9 September 2016
  • Last settlement date in Euroclear’s legacy settlement system
  • Last trade date for trades that will settle through the account with EuroCCP’s settlement agent.
  • Friday 9 September to Sunday 11 September 2016
  • Migration Weekend
  • Monday 12 September 2016
  • First T2S settlement date
  • Settlement Agent EuroCCP will send settlement instructions with trade date 9 September to the T2S platform.
  • At close of business, EuroCCP will send the first settlement instructions to the T2S platform with Trade Date 12 September 2016.
  • Tuesday 13 September 2016
  • Last Intended Settlement Date for settlement instructions that settle through EuroCCP’s Settlement Agent.
  • Wednesday 14 September
  • First Intended Settlement Date for settlement instructions that settle through EuroCCP’s new account in T2S.

Pending settlement instructions will be migrated as follows:-

  • Matched settlements – will be migrated by Euroclear
  • Unmatched settlements – will be migrated by Euroclear
  • Pre-matched settlements  – will be migrated by Euroclear
  • Market claims & transformations – will NOT be migrated by Euroclear

In order to ensure the successful migration of all settlement instructions to the T2S platform, Clearing Participants must ensure that they fully release all trades to the CSD, with Trade Date prior to 12 September 2016, on the actual trade date.

Migrated pre-matched settlement instructions will be put on hold by Euroclear with “matched” status in the T2S platform.  Only the instruction leg of the party that used the pre-matched functionality prior to migration will be put on hold.  EuroCCP strongly advises its Clearing Participants and their Settlement Agents to release the migrated pre-matched settlement instructions shortly after migration.

Migrated unmatched settlement instructions must be matched in T2S.

Market claims and transformation instructions that have not settled in Euroclear’s legacy settlement system by close of business on Friday 9 September, will not be migrated to the T2S platform.
Once the migration is complete and, if required, EuroCCP and the impacted Clearing Participants will process market claims or transformations on a bilateral basis.

Clearing Participants and their Settlement Agents should be aware that the following EuroCCP SSI’s will apply to the migrated unmatched settlement instructions, bilaterally re-processed market claims and transformations:-

The following SSIs will only apply for settlement instructions with a Trade Date prior Monday 12 September:-

EuroCCP SSIs Euroclear
Delivery / Receiving party BIC (DEAG / REAG) ABNCNL2AECP
CSD of Delivering / Receiving party (PSET) BIC11 local CSD*
Client of Delivering / Receiving party (Seller / Buyer) EMCFNL2AXXX
*Euroclear Belgium: CIKBBEBBXXX, Euroclear France: SICVFRPPXXX, Euroclear Nederland: NECINL2AXXX

EuroCCP’s settlement instructions with Trade Date 9 September 2016 will be instructed in the T2S platform on Monday 12 September 2016.

Fall-back scenario

If the point of no return is not reached during the Migration Weekend, Euroclear will restore pre-migration processes and remove T2S specific processes. Settlement instructions that were removed by Euroclear will be re-instructed by EuroCCP’s settlement agent.

The settlement arrangements, static data and Standard Settlement Instructions (SSIs) that were originally in place in EuroCCP’s records, will remain unchanged.

Updates to Regulation Settlement, Corporate Actions and Buy-in Procedures

Following EuroCCP’s Newsflash dated 26 August 2016 regarding the migration of Euroclear Belgium, France and Nederland to Target 2 Securities (T2S), we are pleased to inform Clearing Participants of the forthcoming changes to EuroCCP’s Regulation Corporate Actions, Regulation Settlement and Regulation Buy-in Procedure. The regulations can be found in the Documentation Regulations section of the web site.

The revised Regulation Corporate Actions makes reference to the French withholding tax. EuroCCP has entered into an agreement with the French tax authorities which allows EuroCCP to collect French withholding tax (WHT) by deducting the WHT from distributed income and to declare and pay this WHT to the French Tax Authorities. For further details, we would refer you to Section 10.3 of the updated Regulation.

The Regulations Buy-in Procedure and Settlement reflect the new Standard Settlement Instructions and revised Partial Settlement Schedule.

Changes to SSIs for the Norwegian market

EuroCCP is pleased to advise that the standard settlement instruction (SSI) for the Norwegian market will change as of trade date 27 July 2015.

This change will enable EuroCCP to benefit from the auto-partialling functionality available to other CCPs.

<--break->The following regulations, that can be found in the Documentation Regulations section, will be amended:

  • Regulation Buy-in procedures
  • Regulation Settlements

Clearing Participants are requested to amend their settlement instructions by the above date as follows:

Rec / Del agent: EMCFNL2A (456004900068)
Buyer / Seller: EMCFNL2A
Place of settlement: VPSNNOKK

Information Disclosure on Capital Requirement Regulation (CRR)

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, we are pleased to confirm that, as from 1 July 2014, EuroCCP will provide its Clearing Participants with the required information on a monthly basis.

Further details can be found in the memo Implementation of the Capital Requirement Regulation.

We would be grateful if you could advise us by return of the appropriate point of contact for the provision of this monthly information and look forward to hearing from you in due course.

The CRR is part of the CRD IV framework which transposes the new global standards on bank capital (commonly known as Basel III) in Europe.

CCP Services & Enhanced SDRT Assessment Services from EUI

Following previous announcements, EuroCCP is pleased to confirm that its “Stamp Data Provider” (SDP) ID in CREST is EMCFNLKE.

Participants (or their settlement agents) should ensure that they nominate EuroCCP as SDP in CREST between 23 June and 27 June and are reminded that the latest version of the CREST GUI must be installed.  Given these changes, the updated version of EuroCCP’s Settlements and Corporate Actions Regulations are available in the Documentation Regulations section.

In addition, EuroCCP’s CREST Participant ID will change from EMCFX to ECCP on trade date 30 June.  As ECCP is a CCP participant in CREST, a “dummy” CREST clearing member ID of ZEUIC will be allocated to EuroCCP participants, as required by EUI, which will not be used for reporting purposes.

Participants are encouraged to consult EuroCCP’s Q&A section on the Enhanced SDRT Assessment service initiative.

 

T+2 settlement cycle announcement

The CSDR Regulation will come into effect in 2015 and, as part of this mandate, a shorter T+2 settlement cycle will be introduced.

Consequently, securities transactions will settle two business days after trade date rather than the current three day period. Given that EuroCCP already undertakes T+2 settlement in Germany, there are minimal changes to be made  from this European harmonisation.

The chart below details the implementation date of the forthcoming changes:

Country Segment Central Securities Depositary (CSD) Date to move to T+2
Austria OEKD 6th October 2014
Belgium Euroclear Belgium 6th October 2014
Czech Republic CSD Prague 6th October 2014
Denmark VP Securities 6th October 2014
France Euroclear France 6th October 2014
Finland Euroclear Finland 6th October 2014
Germany Clearstream Frankfurt Already T+2
Hungary KELER Ltd 6th October 2014
Ireland Euroclear UK & I 6th October 2014
Italy Monti Titoli 6th October 2014
Netherlands Euroclear Nederland 6th October 2014
Norway VPS 6th October 2014
Portugal Interbolsa 6th October 2014
Spain Iberclear Q4 2015 (Equities)
Sweden Euroclear Sweden 6th October 2014
Switzerland SIX SIS 6th October 2014
United Kingdom Euroclear UK & Ireland 6th October 2014
Depositary Receipts Euroclear Bank 6th October 2014
US Euroclear Bank Remains T+3 out of scope
Impact to EuroCCP Participants

EuroCCP’s client reporting will not be impacted by this market change.  Following client consultation, the “Trade Date” netting model will be retained over this period.

As a consequence, trading undertaken on Friday 3 October will settle on a T+3 basis whereas trading undertaken on Monday 6 October will settle on a T+2 basis.  This will result in two net trades created with settlement date 8 October for those markets which migrate on 6 October.

Testing

Although there are no technical changes or modifications to EuroCCP’s reporting, clients may wish to undertake testing prior to this change. EuroCCP will be pleased to provide testing facilities to its clients during July and any testing related queries should be forwarded to clienttesting@euroccp.com.

Offering Clearing Services for US Securities

As of trade date Monday 24 February 2014, EuroCCP will be offering a clearing service for US securities traded on the Turquoise platform, using Euroclear Bank as the place of settlement..

We would confirm that this service is available to all EuroCCP clients utilising a non-US settlement agent in Euroclear Bank. Bridge settlements between Euroclear and Clearstream are not allowed for this segment.

Any clients wishing to go live with this service on the launch date should ensure that the required documentation – Statement of Authority and SSI documentation – are completed and returned to EuroCCP no later than close of business 20th February.

As a result of this change, the following Regulations are available in the Documentation Regulations section:

  • Regulation Buy-in procedures
  • Regulation Fees and Penalties
  • Regulation Settlements

Clearing Participants are requested to use the following settlement instructions:

Euroclear Bank

  • Rec/Del agent: DEUTNL2A
  • Buyer/Seller: EMCFNL2A
  • Beneficiary account: 15083
  • Place of settlement: MGTCBEBE

New account operator in Italy

As of trade date Wednesday 5 February 2014, EuroCCP will use Citi Milan as account operator in Italy, subject to regulatory approval.

As a result of this change, the following updated Regulations are available in the Documentation Regulations section:

  • Regulation Buy-in procedures
  • Regulation Settlements

Clearing Participants are kindly requested to change their settlement instructions per above date as follows:

Segregated account Monte Titoli: 88102
Broker code: 88102
X-TRM code: 2989
Buyer/Seller: EMCFNL2A

Beneficiary account at Citi Milan: 1258279
Place of settlement: MOTIITMM