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 here the required information for 31 January 2019 in pdf format, or here for Excel format.

Introduction of third settlement cycle for Norway

As part of its CSDR project the Norwegian CSD, VPS, will introduce additional functionality to its settlement system this year.

From Friday 15 March 2019 a third settlement cycle will be introduced which will result in the following operational timelines in VPS’ settlement system:-

Settlement cycle Time CET
First (S-1) 20:00 – (S) 06:00
Second (S) 12:00 – (S) approx. 12:10
Third (S) 14:30 – (S) approx. 14:40

Partial settlement

The auto-partial functionality offered by VPS continues to be available for participants that have set up a broker account. EuroCCP strongly encourages the use of broker accounts to assist settlement efficiency. However, Clearing Participants that have a different account set-up in place can send a split request to EuroCCP during the following timelines to allow settlement during the next available settlement cycle:-

Settlement cycle EuroCCP deadline to submit split request (CET)
Second 09:00 – 11:00
Third 12:30 – 13:45

Should you need any further information please do not hesitate to contact us.

New EU based venues – client readiness

Following EuroCCP’s Newsflash dated 20 December 2018 regarding the establishment of new EU-based venues in advance of the UK’s proposed exit from the European Union, we would like to remind clients of key steps to ensure readiness for the anticipated go-live 1 April 2019.

Through their EU entities, Aquis Exchange, Cboe Equities Europe and Turquoise will enable participants to continue trading in EU-listed ISINs following Brexit, and will continue to operate their UK based trading venues for trading of UK and Swiss-listed ISINs.

In order to ensure a smooth transition, EuroCCP is seeking to have all new Clearing memberships ready to go live no less than four weeks prior the agreed live date. Clearing Participants are encouraged to have the following completed as soon as possible:-

  • Statement of Authority signed
  • Netting set up agreed
  • Standard Settlement Instructions (SSIs) confirmed
  • Successful testing undertaken

The final outcome of Brexit and details of the transition arrangements are currently uncertain, which may impact the anticipated go-live date of 1 April 2019.

Further information on membership applications, client testing and transition arrangements can be found at EuroCCP’s EU based Venues at Brexit webpage.

Euronext Dublin go-live 4th February 2019

EuroCCP is pleased to announce that Euronext Dublin has received regulatory approval to go live with EuroCCP as their Sole CCP for transactions executed on Euronext Dublin. Go-live is planned for trade date 4 February 2019.

Existing clients active on the Irish Stock Exchange, as well as new clients have successfully completed the documentation and mandatory testing in preparation for the go live.

In the Irish market, the post-trade process provides for reporting transactions as ‘Agency’ or ‘Principal’ capacity.  Please note that by default EuroCCP will convert all transactions executed with the AOTC-capacity as ‘Agency’. It is possible to amend the static data set-up to convert the transactions in an AOTC-capacity to ‘Principal’ if required. In order to change the default set-up option, please contact EuroCCP’s Client Services team.

If you would like more information on becoming active on Euronext Dublin please see our latest Newsflash distributed on 4 January 2019.

Euronext Dublin – Client Readiness & Go-live

Following previous Newsflashes regarding preparation for EuroCCP clearing Euronext Dublin as sole CCP, EuroCCP, EUI and Euronext would like to inform clients that they must complete the following actions by the deadline 18 January 2019, or risk not being activated for live date 4 February 2019.

  1. Complete the EuroCCP Crest Static Data Form, and pay particular attention to Appendix 2 which requires clients to populate their respective SAT participant information. The venue MIC codes will change as part of this project and as a result, the following segment MIC codes will be used: XATL, XESM, and XMSM.  
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    Crest Static Data Form

    Version January 2019

  2. Fully Complete the EuroCCP SoA for Euronext Dublin.
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    Euronext SoA - Ireland only

    Version December 2018

Testing with Euronext Dublin, EuroCCP and EUI CSD

EuroCCP would also like to remind clients that “End-to-End” testing will be available to clients between 7 – 18 January 2019.

EuroCCP has agreed with EUI that testing will be limited to the following Security ISIN codes.

IE00BF0L3536                                                                                                    IE0001827041                                                                                                    IE00BYTBXV33                                                                                                        IE00B010DT83                                                                                                          IE00BBR67J55                                                                                                IE00B1RR8406                                                                                                IE0000020408                                                                                                  IE00B1FR8863                                                                                              GB00B9275X97                                                                                              IE0000730808                                                                                                GB0001500809                                                                                              GB0002374006                                                                                            GB0008847096                                                                                            GB00B9275X97                                                                                            GB00BDD1LS57                                                                                              GB00BY7QYJ50                                                                                            GB00BYYN4225                                                                                              GB0031477770                                                                                                GB00BGCC6189                                                                                                IE00BJYS1G50

To arrange testing, we would request that clients:-

  • Complete and return the EUI Testing form as soon as possible to ensure a suitable test slot is allocated – this can be found on EuroCCP’s website on the Euronext Dublin page, and from EUI.
  • Ensure that the testing request clearly states “Euronext Dublin testing” in the form, as this period is available only for Euronext Dublin.
  • Clearing Participants should contact Euronext’s CTSG team, EuroCCP’s Client Services team and EUI’s Client Testing Team to advise of their testing requirements.
  • Clearing Participants should advise Euronext Dublin of the trading participant ID which they wish to test AND provide EuroCCP with a completed “EuroCCP testing form”.
  • Once all test details have been received, EuroCCP will liaise with Euronext Dublin and EUI to ensure test environments are configured accordingly.
  • EuroCCP‘s testing environment is available each business day on a free of charge basis between 9:00-17:00 CET, with reporting available thereafter.

Further details on EuroCCP’s clearing services for Euronext Dublin can be found at EuroCCP’s Euronext Dublin webpage.

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

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 here the required information for 31 December 2018 in pdf format, or here for Excel format.

Euronext Dublin Client Testing

EuroCCP is pleased to advise that, as part of the preparation for clearing Euronext Dublin, “End-to-End” testing will be available to clients between 7 – 18 January 2019.

Euroclear UK & Ireland (EUI), as CSD, has waived the GBP 500 per day testing fee and clients will be required to complete the EUI Testing form prior to 24 December in order to ensure that a suitable test slot is available during the above dates. 

Testing with Euronext Dublin, EuroCCP and EUI CSD

To arrange testing, we would request that clients:-

  • Complete and return the EUI Testing form no later than 24 December 2018 to ensure a suitable test slot is allocated – this can be found on EuroCCP’s website on the Euronext Dublin page, and from EUI.
  • Ensure that the testing request clearly states “Euronext Dublin testing” in the form, as this period is available only for Euronext Dublin.  
  • Clearing Participants should contact Euronext’s CTSG team, EuroCCP’s Client Services team and EUI’s Client Testing Team to advise of their testing requirements.
  • Clearing Participants should advise Euronext Dublin of the trading participant ID which they wish to test AND provide EuroCCP with a completed “EuroCCP testing form”.
  • Once all test details have been received, EuroCCP will liaise with Euronext Dublin and EUI to ensure test environments are configured accordingly.
  • EuroCCP‘s testing environment is available each business day on a free of charge basis between 9:00-17:00 CET, with reporting available thereafter.

Updated Regulation EuroCCP Investment Policy

EuroCCP is pleased to announce that it has updated its Regulation EuroCCP Investment Policy (REIP).

The changes have been approved in accordance with the requirements of the Regulation and relate to the following:

  • A haircut will be taken in line with perceived risks when collateral in the form of securities is received
  • Clarification that, for the purposes of obtaining liquidity, EuroCCP may obtain short term financing from defined Credit Institutions or Central Banks. For this purpose, EuroCCP may use collateral provided by the Clearing Participants as collateral with these liquidity providers.
  • Clarification that EuroCCP may use cash provided by Clearing Participants as collateral for the purposes of making payments, in accordance with the provisions of EMIR.
  • EuroCCP shall hold cash overnight with Credit Institutions and shall ensure that such holdings are collateralised for not less than 95 percent, calculated over an average period of one calendar month (rather than collateralising by 102% on a daily basis), to align with EMIR requirements.

A track changes version of the Regulation is available.

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Regulation EuroCCP Investment Policy

Tracked changes - version November 2018

End of year timings 2018

EuroCCP is pleased to confirm the timelines for the distribution of Client reporting between 24 December and 2 January, as follows:-

24 December 2018

EuroCCP will distribute end-of-day CIF & CHC files at the usual time.  These reports will form the basis for the margin calls issued in the morning of Thursday 27 December 2018.  Clearing Participants may wish to deposit additional collateral on Monday 24 December in order to avoid a margin call on 27 December.

25  and 26 December 2018

EuroCCP will be closed and no CIF & CHC files will be distributed.  No margin calls will be made.

27 December 2018

EuroCCP will be open and CIF & CHC files will be distributed at the usual time.  Margin calls will be made at the usual times.

31 December 2018

EuroCCP will distribute end of day CIF & CHC files at the usual time.  Clearing Participants may wish to deposit additional collateral on Monday 31 December in order to avoid a margin call on 2 January.

2 January 2019

EuroCCP will be open and CIF & CHC files distributed at the usual time.  Margin calls will be made at the usual times.

 

Updated Collateral Standard Settlement Instructions

We are pleased to inform you that the SSIs for EuroCCP’s mandatory Collateral account and Clearing Fund contributions for fixed income (bonds) will change as from 1 January 2019.

In addition, we would confirm that EuroCCP’s Regulation Collateral has been reviewed and, pursuant to clause 6.2.2 of the Clearing Rule Book, EuroCCP has amended the percentage of collateral required to be held by EuroCCP from 70% to 100%.

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Regulation Collateral

Version November 2018

Should you have any further queries, please do not hesitate to contact EuroCCP Client Services: clientservices@euroccp.com or Relationship Management: rm@euroccp.com.