Stock Exchange and Eurex central counterparty (CCP) trades

03.02.2021

Stock exchange (SE) trades coming from the Frankfurt Stock Exchange via Xetra are transferred through the Eurex CCP-System into CASCADE LION (Lieferfreigabe online) and forwarded to T2S for settlement. Stock exchange trades (non-CCP) in collective safe custody (CSC) and non-collective safe custody (NCSC) securities from German Regional Stock Exchanges are routed via XontroTrade to CASCADE LION and forwarded to T2S.

Currently Eurex only forwards CCP instructions (delivery surplus and gross trades) in CSC securities to CASCADE. These instructions are forwarded to T2S for settlement of securities and cash in EUR.

The figure below illustrates the current settlement processing flow for non-CCP SE and Eurex CCP trades.

Clearstream Banking AG (CBF) will change the processing of SE trades. The main objective of the Stock Exchange Transactions GO OTC (SET-GO) project is to use the standard OTC functionality also for non-cleared stock exchange instructions, instead of keeping today's settlement functionality LION (Lieferfreigabe Online for non-cleared stock exchange trades).

Currently, CBF is investigating possible implementation options together with its customers.

All options include the availability of a partial release functionality in CASCADE/T2S as well as in Creation as this has been requested as a pre-requisite for a business go live of SET-GO by the customers.

After the final decision, CBF will publish an updated version of the SET-GO Implementation Note.