T2S Denmark – Danish Kroner reminder

As the migration of Danish Kroner denominated settlement activity to the TARGET2 Securities platform is approaching, EuroCCP would like to remind Clearing Participants of the forthcoming changes to EuroCCP’s Standard Settlement Instructions (SSIs), Client testing requirements, Business Day testing and the EuroCCP T2S migration plan.

Standard Settlement Instructions Danish market

With the migration of Danish Kroner denominated securities, settlement arrangements and SSIs for Clearing Participants and EuroCCP will change. EuroCCP will contact those Clearing Participants that are active on the Danish market to obtain new SSIs for the production environment via the EuroCCP Denmark Information Form, which should be completed, signed and returned to EuroCCP as soon as possible.

EuroCCP’s new SSIs, detailed below, will apply from settlement date Monday 29 October 2018 following the successful migration weekend:-

EuroCCP SSIs VP Securities:

Delivery / Receiving party BIC (DEAG / REAG) EMCFNL2AXXX
Securities Account VPDK17501175001
CSD of Delivering / Receiving party (PSET) VPDKDKKKXXX

All settlement instructions to which EuroCCP is a counterparty will settle on the T2S platform. Clearing Participants must therefore have undertaken all necessary actions to ensure that the correct account structure is arranged with VP Securities, to enable them to settle the CCP related activity within a T2S securities account.

Client testing T2S mode for Danish market

EuroCCP’s client test environment is currently in T2S mode for the Danish market and available for end-to-end testing including trades received from the platforms UAT environment.

Nasdaq Copenhagen has set up the following ISIN codes for testing with VP securities and T2S:-

  • DK0017207409
  • DK0017207672
  • DK0017208563
  • DK0017209025
  • DK0017209108
  • DK0017209371
  • DK0017210544
  • DK0017210627
  • DK0017210700

Clearing Participants and their settlement agents are advised to undertake testing in accordance with VP Securities’ T2S requirements. Clearing Participants using the settlement agent PoA process should instruct their settlement agent to process the SWIFT MT54X messages received.

Between Monday 17 September and Friday 12 October 2018 – full Business Day testing is scheduled by VP Securities. During these days, test cases can be executed in accordance with the production processing timelines.

Should you have any further queries, please do not hesitate to contact EuroCCP Client testing

EuroCCP’s T2S Migration plan – Danish Kroner

Between Friday 26 and Sunday 28 October 2018, Danish Kroner denominated static data, securities positions and pending settlement instructions will be migrated from VP Securities’ legacy settlement system to T2S.

EuroCCP has published its T2S migration plan for Danish Kroner denominated activity on its website, which outlines migration of pending instructions, corporate action handling, EuroCCP reporting and client readiness, and can be found at EuroCCP T2S migration plan – Danish Kroner.

Further details on the changes to certain elements of EuroCCP’s services for the Danish market, can be found on EuroCCP’s website at Service Description Denmark T2S – Danish Kroner.

Direct member of Euroclear Bank

Following the recent newsflash dated 3 Sept 2018, EuroCCP is pleased to announce that with effect from settlement date 7 September 2018, it will become a direct member of Euroclear Bank.

Clients may be required to update the format of their settlement instructions for Euroclear Bank and this SSI change has been reflected in EuroCCP’s regulations which can be found at:-

Regulation Settlement

Version - 7 September 2018

Regulation Buy-in Procedure

Version 24 September 2018

Any clients using Settlement Agent POA are not required to take any action

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 August 2018 in pdf format, or here for Excel format.

Auto partial in Euroclear Bank

EuroCCP is pleased to announce that it will be updating its Regulation Settlements and Regulation Buy-In documents with effect from 7 September 2018 to reflect the auto-partial settlement cycles in Euroclear Bank for depository receipts and International ETFs.

Regulation Settlement

Version - 7 September 2018

Regulation Buy-in Procedure

Version 24 September 2018

Partial settlement will be processed as follows:

  • receipts from EuroCCP – 06:00, 13:00 and 15:30
  • deliveries to EuroCCP – 06:00, 13:00 and 15:30

Euronext Dublin Client Testing

Following EuroCCP’s newsflash dated 10 July 2018 regarding EuroCCP’s appointment as sole CCP for Euronext Dublin, we are pleased to confirm further details regarding client testing.

Following the successful connection and testing between Euronext Dublin and EuroCCP, we can confirm that, as from Friday 24 August 2018, EuroCCP’s client test environment will be available for clients to test trades executed in the test environment of Euronext Dublin.

Testing with Euronext Dublin and EuroCCP

To begin testing, the following steps must be arranged:-

  • Clearing participants wishing to test should contact the Euronext CTSG team and EuroCCP’s Client Services team to discuss their testing requirements.
  • Clearing Participants should advise Euronext Dublin of the trading participant ID with 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 to ensure Euronext Dublin and EuroCCP’s test environments are configured accordingly.
  • EuroCCP‘s testing environment is available each business day on a free of charge basis, from 09:00-17:00 CET, with reporting available thereafter.

Further details on EuroCCP’s clearing services for Euronext Dublin can be found in the Euronext Dublin page within Participants’ Centre.

T2S Migration Denmark – Kronos2 Go-live

In preparation of the introduction of Danish Kroner as settlement currency in the TARGET2-Securities platform (T2S), Danmarks Nationalbank will implement the second release of the Kronos system (Kronos2) between Friday 17 August 2018 afternoon 16.30 CET and Saturday 18 August 2018 12:00 CET.

With the migration to Kronos2, Danmarks Nationalbank will introduce T2S functionality to its RTGS system which will be available from Monday 20 August 2018. As direct participant with the Danish Central Bank, EuroCCP will participate in this migration and upgrade its current link to Kronos2.

As the payment details and deadlines for Danish Kroner remain unchanged, there will be no impact to EuroCCP’s settlement services for the Danish market and no further actions are required from Clearing Participants or their settlement agents.

VP Securities, the Danish CSD, will perform a temporary adjustment to the settlement batches for settlement date 20 August 2018. Batches 10 and 20 would have been executed during the period after Kronos has been shut down but before the migration to Kronos2 has been completed. These batches will therefore be executed in the CSD without settlement.  All settlement will be transferred to the remaining DKK settlement batches 30 at 07:00 CET, 40 at 09:45 CET and 60 at 11:45 CET settling on Monday 20 August 2018. Batch 14, used for the exercise of rights, will be executed without subscription on Friday 17 August 2018.

EuroCCP Appoints Cécile Nagel as CEO

EuroCCP, Europe’s leading equities clearinghouse, today announces the appointment of Cécile Nagel as Chief Executive Officer.  Ms Nagel joins from the London Stock Exchange Group (LSEG) where she was most recently Head of LSE Markets Global Product Development and LSE Exchange Traded Products.

Ms Nagel joined LSEG in 2009 and has worked in a number of senior roles across the organisation including Head of Strategic Planning for the Group and Global Head of Equities and Commodities at LCH Group, LSEG’s multi-asset clearinghouse.  Prior to LSEG, she worked at Oliver Wyman and the Financial Services Authority.

In November 2017, EuroCCP confirmed that Diana Chan, Ms Nagel’s predecessor, would hand over the management of the firm in the following year.

Jan Bart de Boer, chairman of EuroCCP’s supervisory board said: “We are delighted to have Cécile join as EuroCCP’s CEO.  She is one of Europe’s leading market structure experts and is ideally placed to lead the business at a time when the equities market is expected to continue to transform as a result of regulatory change and the application of new technology.”

She joins a firm, created only 10 years ago, that has become one of the pre-eminent  pan-European equities CCPs, with access to 26 venues including CBOE Europe, Euronext, the London Stock Exchange, Nasdaq and SIX Swiss Exchange.”

Cécile Nagel said: “I am honoured to have been asked to lead EuroCCP.  It is a major market infrastructure in Europe with a strong equities footprint and significant opportunities for growth.  I look forward to working with my new colleagues to deliver the next stage of its development for the benefits of clearing members, trading venues and all stakeholders.”

Ms Nagel will start her role in September 2018.

EuroCCP signs with Deutsche Börse

Deutsche Börse AG and European Central Counterparty NV (EuroCCP) have signed an agreement, which will govern the project for EuroCCP to gain access to the Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange.

This solution provides self-clearing exchange members and clearing agents with a choice of CCP for cash equities traded on FWB.  FWB will introduce EuroCCP as an additional CCP for cash equity and ETF trades executed on XETRA©, on a preferred CCP basis.  It is anticipated that the go-live date will be in Q1 2019, subject to regulatory approval.  Further details regarding client testing and go-live date will be provided in due course.

With the introduction of competition in the market, clearing services will become more efficient due to a reduction in clearing fees, cross-venue netting opportunities and the optimisation of operational processes.

Since its inception, EuroCCP has been an advocate of open access for the benefit of clearing and trading participants alike. Albert-Jan Huizing, CTO at EuroCCP said: “We have led the way in introducing multi-CCP clearing on the same trading platform. Arrangements based on interoperability or preferred-CCP-model have significantly reduced the all-in cost of trading and have been an essential driver of post-trade simplicity and efficiency”.

In addition, further requests for trade feed access have been submitted to other exchanges.  Currently, Oslo Børs is under implementation with a go-live date anticipated during Q3 2018, and Borsa Italiana and Euronext Dublin will follow during Q4 2018.  Once these arrangements are in place, it is expected that there will be a choice of CCP for 95% of cash equity trades in Europe.

EuroCCP to clear Euronext Dublin trades

We are pleased to announce that EuroCCP has been appointed as the sole CCP for Euronext Dublin as from November 2018.

Euronext undertook a detailed post trade analysis in order to determine the optimal post trade model for its clients. Given EuroCCP’s existing pan-European footprint, its access to 19 European markets, 26 trading venues and successful decade long presence in the cash equities clearing market, Euronext chose to appoint EuroCCP as the sole CCP for Euronext Dublin. EuroCCP’s clients will be able to cross-platform net all Irish trades executed on any of the platforms currently serviced by EuroCCP.

The Euronext Dublin segment is scheduled to be migrated to Euronext’s central order book in November 2018, with EuroCCP providing clearing services from that date. Further details can be found on EuroCCP’s website. We also refer you to Euronext’s communication, which can be found here.

EuroCCP and Euronext will be jointly working on further detailed documentation, including migration planning, which will be provided in due course.