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Clearing Rule Book changes (consulation 20 March 2019)

EuroCCP has published an updated version of its Clearing Rule Book (“CRB”) on its website.

The changes primarily relate to a number of recovery tools which are included in EuroCCP’s recovery plan and which require the involvement of the Clearing Participants.

A memorandum outlining the changes to the CRB also been posted on EuroCCP’s website.

The changes to the CRB are open for consultation pursuant to article 3.7.3 of the CRB. The 30 calendar day consultation period ends on 18 April 2019.

The relevant provisions are expected to apply shortly after the end of the consultation period. Clearing Participants will be advised of the outcome of the consultation by newsflash following the consultation period.

All changes are subject to regulatory review and approval (if required).

Should you wish to take part in the consultation process or have questions relating to these changes, please contact the Legal and Compliance Department at compliance@euroccp.com.

Aquis Exchange Europe go live preparations

Aquis Exchange Europe has announced its plan for a soft go-live in order to ensure a smooth transition. From Wednesday 20 March 2019, trading will be available in the following twelve selected securities:-

ISIN Currency Operating MIC
NL0000440584 EUR AQEU
IT0003697080 EUR AQEU
ES0105128005 EUR AQEU
BE0003853703 EUR AQEU
FR0004024222 EUR AQEU
PTSNC0AM0006 EUR AQEU
DE0005493092 EUR AQEU
JE00B3DCF752 EUR AQEU
BMG0451H1170 NOK AQEU
SE0000191827 SEK AQEU
BSP951331318 DKK AQEU
FI4000197934 EUR AQEU

Clearing Participants wishing to start trading on the new platform need to ensure that the following is completed:-

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

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

EuroCCP and Brexit

Following EuroCCP’s Newsflash dated 28 January 2019 regarding the establishment of new EU-based venues in advance of the UK’s proposed exit from the European Union, EuroCCP is very pleased to inform you that it has obtained the necessary regulatory approvals to provide post-trade services to the EU-based entities of Aquis, Cboe Equities and Turquoise.

EuroCCP and the three trading venues have been working together to put in place measures to allow customers to continue their trading and clearing activity post Brexit.  Specifically, it is expected that the EU-based entities of Aquis Exchange, Cboe Equities Europe and Turquoise will offer market participants the ability to trade in EU-listed ISINs following Brexit, while continuing to operate their UK based trading venues for trading of UK and Swiss-listed ISINs.  EuroCCP will activate the clearing arrangements in EU-listed ISINs as soon as the new EU-based venues are ready to go live.

In order to ensure a smooth go-live, EuroCCP is seeking to have all new clearing memberships in place prior to the agreed go 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

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

 

EuroCCP and Deutsche Börse AG  

Separately, the anticipated go-live date for EuroCCP’s access to Deutsche Börse is being postponed from 29 March to 27 May 2019 at the earliest.   EuroCCP’s resources have been focused on changes related to Brexit as clearing members and trading venues have increasingly started to execute their Brexit contingency arrangements.  Additional time is required to finalise the work required prior to go live, including ensuring technical readiness and obtaining required regulatory approvals and EuroCCP is now actively working on this.

EuroCCP to Provide Post-Trade Services to EU-Based Entities of Aquis Exchange, Cboe Europe Equities and Turquoise

Amsterdam and London, 18 March 2019 – EuroCCP, Europe’s leading equities clearinghouse, today confirms that it has obtained the necessary regulatory approvals to provide post-trade services to the EU-based entities of Aquis Exchange, Cboe Europe Equities and Turquoise.

Working together, Aquis Exchange, Cboe Europe Equities, Turquoise and EuroCCP have developed a facility that will enable customers to continue with their trading and clearing activity post-Brexit. Specifically, it is expected that the EU-based entities of the three trading venues will offer market participants the ability to trade in EU-listed securities following Brexit, while continuing to operate their UK-based trading venues for the trading of UK and Swiss-listed securities. EuroCCP will activate the clearing arrangements in EU-listed securities as soon as the new EU-based venues are ready to go live.

While the uncertainty continues and despite the increasing likelihood that there may be a delay to Brexit, we are still focused on our preparations in case the UK leaves the EU on 29th March,” said Cécile Nagel, Chief Executive Officer of EuroCCP.

She continued: “In addition to today’s announcement, we have also successfully on-boarded six new EU-based entities acting as clearing members, together with more than 10 new EU-based trading members. Our work with all market participants has intensified in recent weeks as we set up and operate the new memberships, to secure frictionless pre- and post-trading activity in EU-based and UK-based products after Brexit.”

In order to ensure a smooth go-live, EuroCCP is seeking to have all new clearing memberships in place prior to the go live date agreed with the new venues, which currently remains as 1st April 2019.

As of end 2018, EuroCCP was able to access close to 90% of European equities markets and achieved a share of over 30% of clearing in this competitive environment.

EuroCCP clears Morgan Stanley MTF

EuroCCP is very pleased to announce that it now clears the transactions executed on Morgan Stanley MTF.

EuroCCP’s clearing and trading  participants will benefit from EuroCCP offering the largest range of cross-platform netting opportunities in Europe. Transactions executed on 34 different exchanges, MTFs and OTC trade sources can be cross platform netted into one settlement instruction per ISIN code.

Morgan Stanley MTF is operated by Morgan Stanley France SA, which is authorised and regulated by the French Authority Financial Markets (AMF) and the French Prudential Supervision and Resolution Authority (ACPR).

Morgan Stanley MTF will operate during Primary Market hours of continuous trading and offer trading in cash equities and equity-like instruments on an interoperable basis with LCH in Austrian, Belgian, Danish, Dutch, Finnish, French, German, Irish, Italian, Norwegian, Portuguese, Spanish, Swedish, Swiss and UK markets.

Further details regarding client testing and the on boarding Statement of Authority can be found on EuroCCP’s website and we would also refer you to Morgan Stanley MTF’s website  which provides further information regarding the platform.

Should you require and further information please do not hesitate to contact us.

EuroCCP to continue providing clearing services in the EU and UK following Brexit

On the 29 March 2019, the United Kingdom (UK) is scheduled to leave the European Union (EU). Following the UK’s departure from the EU, as a European entity, EuroCCP will be able to continue to operate in the (EU) under the European Market Infrastructure Regulation (EMIR). EuroCCP will also continue to provide services in the United Kingdom (UK) under the Transition Recognition Regime (TRR) approved by the UK parliament in November 2018, which ensures continuity of services from non-UK central counterparty clearing houses (CCPs) for three years from 29 March 2019. EuroCCP is pursuing its application – submitted to the Bank of England in 2018 – in order to obtain permanent recognition as a qualified CCP under UK domestic law in due course after UK’s departure from the EU.

EuroCCP is actively working with UK based clearing members and venues to help them execute their Brexit contingency plans – including onboarding new EU entities and connecting to new EU platforms – to ensure firms can continue to operate as normal following the UK’s departure from the EU.

If you have any questions about how the UK’s departure from the EU may affect the clearing services provided by EuroCCP, please do not hesitate to contact your relationship manager.

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.