Deutsche Börse

About

Deutsche Börse Group operates on-exchange markets for cash equities, exchange-traded products (ETPs) and numerous other products via several trading platforms. EuroCCP is pleased to offer clearing, settlement and risk management services for cash equity and ETF trades executed on the Frankfurter Wertpapierbörse (FWB, The Frankfurt Stock Exchange).

FWB will introduce EuroCCP as an additional CCP for cash equity and ETF trades executed on the regulated market Xetra© (MIC: XETR), on a “Preferred CCP” basis.

 “Preferred CCP” enables a trading participant to designate EuroCCP as its preferred CCP.  Should both parties to a trade designate EuroCCP as the preferred CCP, the trade will be cleared by EuroCCP – otherwise, the trade will be cleared by the incumbent CCP.  The Preferred CCP model does not require the incumbent CCP to interoperate with EuroCCP.

EuroCCP follows the same routing logic as today. Accordingly, instruments in Collective Safe Custody (CSC) will be settled via Clearstream Banking Frankfurt (CBF) and instruments in Non-Collective Safe Custody (NCSC) will be settled either via Clearstream Banking Frankfurt (CBF), if the instrument is labelled as NCSC-T (Non-Collective Safe Custody via T2S), and via Clearstream Banking Luxembourg (CBF(i)) otherwise. The settlement solution for Collective Safe Custody and Non-Collective Safe Custody classified instruments will be supported by EuroCCP through its direct link with Clearstream Banking Frankfurt and Clearstream Banking Frankfurt international.

The anticipated go-live date is 11 November 2019.

EuroCCP maximises the operational and commercial benefits for trading and clearing participants as all trades cleared by EuroCCP are fully netted into one net settlement per ISIN per day. EuroCCP’s features includes:-

  • Preferred CCP clearing model
  • Cross platform netting will deliver substantial settlement savings
  • Direct Participant in Monte Titoli
  • Trades will be incorporated in EuroCCP’s existing reporting
  • Existing margin methodology may reduce margin requirements significantly

EuroCCP’s Relationship Management team can provide an assessment of the savings resulting from the consolidation of Borsa Italiana activity with EuroCCP, and can be contacted at rm@euroccp.com

Next Steps

Testing

As from 11 November 2019, EuroCCP’s client test environment will be available for testing of trades in Deutsche Börse test environment. To clear Deutsche Börse trades testing is mandatory.

  • Clearing participants wishing to start testing clearing of trades executed on Xetra© (MIC: XETR) via EuroCCP should contact their respective trading participant admitted for trading at Deutsche Börse. The trading participant can request the respective setup form from its Key Account Manager (KAM). The setup form needs to be signed by the trading participant, the clearing participant and EuroCCP. The setup form will be available for the test and production environment.
  • Clearing participants should provide EuroCCP with a completed “EuroCCP testing form”.
  • Once all test details have been received, EuroCCP will liaise with Deutsche Börse to ensure Deutsche Börse and EuroCCP’s test environments are configured accordingly.
  • EuroCCP‘s test environment is available on business days on a free of charge basis between 09:00-17:00 CET, with reporting available thereafter.
Application

To clear trades executed on Deutsche Börse with EuroCCP, a clearing participant should:-

  • contact their trading participants admitted for trading at Deutsche Börse
  • the trading participant can request all necessary documents from its Deutsche Börse Key Account Manager (KAM)
  • Advise EuroCCP’s Relationship Management team of its implementation plan and intended go-live date, so that the necessary arrangements can be made.
  • Complete the Statement of Authority and return to clientservices@euroccp.com.

Once the above documents and supporting information have been received, EuroCCP will liaise with Deutsche Börse to ensure that Deutsche Börse and EuroCCP’s production systems are configured accordingly.

Collective Custody

The settlement solution for Collective Safe Custody and Non-Collective Safe Custody classified instruments will be supported by EuroCCP through its direct link with Clearstream Banking Frankfurt and Clearstream Banking Frankfurt International. The below table shows the settlement solution of  the instruments with Collective Safe Custody and their currency (Euro/non-Euro). In general all Collective Safe Custody instruments are settled in CBF via T2S. As T2S currently does not support any currency apart from Euro, the non-Euro cash will be settled separately in CBFi.

In addition, the below table shows the Safekeeping ID of EuroCCP, where securities which settle in T2S have the Safekeeping ID “DE” and securities which settle in CBFi will have Safekeeping ID “DI”. These IDs will be reported in the CIF file (add tag).

Note that for the different settlement solutions different settlement fees apply. For the Collective Safe Custody securities denominated in a non-euro currency, the settlement fees are based on the settlement costs charged by CBF and CBFi.

Safekeeping ID

Custody Type

Currency

Settlement System

DE

Collective Safe Custody

Euro

T2S

DE

Non Collective Safe Custody

Euro

T2S

DE

Collective Safe Custody

Non-Euro

Securities in T2S & Cash in CBFi

DI

Non Collective Safe Custody

All

 

Deutsche Börse reporting 

Deutsche Börse informs its participants about the status of an order in two phases, 1) a non-legally binding execution report is created for each matching step, and 2) a legally binding trade report confirming the execution of the complete order. This information is communicated through the T7 FIX or the Enhanced Trading Interface (ETI) protocol.
The legally binding messages (ETI Trade Notification and FIX Trade Capture Report) contain details about the CCP and allow participants to define which CCP will clear the order under the “Preferred CCP” model. EuroCCP’s details are reported as follows:

ETI (Trade Notification)

Tag

Field Description

 EuroCCP Details

22417

RootPartyContraFirm

EUCCP

25115

RootPartyContraFirmKVNumber

4208

FIX (Trade Capture Report)
  

TAG

Description

EuroCCP details

<Side1>

  

Side 1 information

 

 

<Parties>

 

Party information

 

 

 

trc clearing organization

Clearing House Short name

EUCCP

 

 

trc executing firm kvno

Executing firm information (Kassanverein number)

4208

<Side2>

  

Counterparty information

 

 

<Parties>

 

Party information

 

 

 

trc executing firm

Executing firm information

EUCCP

 

 

trc executing firm kvno

Executing firm information (Kassanverein number)

7050

Further information can be found on xetra.com > Technology > T7 trading architecture

 

EuroCCP Reporting 

Once trades executed on XETRA are cleared by EuroCCP, EuroCCP’s real time, intraday and end of day files will include the Xetra© activity.  

The Xetra© trades will appear in EuroCCP’s reporting under the relevant Market Identifier Code ‘XETR’ (TAG 58 in the FIX messages and TAG 8 in the Client Information File (CIF).

Reference Identification

In record 409 and 410 of the CIF Xetra© trades are uniquely identified by the following tags:

  • EuroCCP Reference, combination of the Transaction Date (TAG 34) and Unsettled Reference (TAG 36).
  • Deutsche Börse Reference, combination of the Transaction Date (TAG 34), Exchange Code Trade (TAG 8), External Transaction ID Exchange (TAG 25) and Symbole (TAG 9)

The Deutsche Börse reference, which is reported in the ETI Trade Notification and FIX Trade Capture Report, is also reported in EuroCCP’s CIF as follows:

ETI Trade Notification

EuroCCP CIF, record 409 and 410

TAG 1506, SideTradeID

TAG 25, External Transaction ID ExchangeExec ID

FIX Trade Capture Report

 

TAG 1506, SideTradeID

TAG 25, External Transaction ID ExchangeExec ID

Trade cancellation

In the event EuroCCP receive a trade cancellation from Deutsche Börse, a reverse trade will be created by EuroCCP which contains the External Transaction ID Exchange of the original trade starting with “1” and the “Buy/Sell” code which is part of the External Transaction ID Exchange will also reverse. For example:

 

External Transaction ID Exchange

New Sell trade

S1234567890

Cancelled/ reversed trade

1B1234567890

During testing, files will be generated and distributed from EuroCCP’s client test environment.


Contacts

Contacts with EuroCCP are:

Department

Contact details

Responsibilities

 

Relationship Management

rm@euroccp.com

+44 20 7392 7480

·         EuroCCP services

·         EuroCCP pricing

·         Main point of contact

·          

Client Services

clientservices@euroccp.com

+44 20 7392 7490

·         Paperwork

·         Static data

·         Connectivity

·         Reporting

·          

Client Testing

clienttesting@euroccp.com

+44 20 7392 7490

·         Testing

·          

Risk Management

riskmanagement@euroccp.com

+31 20 5703 371

·         Risk related queries

·          

Contacts with Deutsche Börse:

The trading participant admitted for trading at Deutsche Börse can request all necessary documents from its Key Account Manager (KAM).