Stock Exchange and Eurex central counterparty (CCP) trades
Since implementation of the project Stock Exchange Transactions Go OTC (Phase 1) on 22 November 2021, non-cleared stock exchange instructions (non-CCP SE) from German Stock Exchanges are processed based on the securities custody type:
- Instructions in collective safe custody (CSC) or T2S eligible non-collective safe custody (NCSC-T) are transferred to LION (Lieferfreigabe online) and forwarded to T2S for settlement.
- Instructions in non-collective safe custody (NCSC) are routed to the Stock Exchange Transaction Interface (SETI) and forwarded to Creation for settlement.
Eurex Clearing AG 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 settlement process for non-CCP SE and Eurex Clearing CCP trades:
The main objective of the project “Stock Exchange Transactions Go OTC (SET-GO)” is to use the standard OTC functionality for non-cleared stock exchange trades. The current Lieferfreigabe Online (LION) functionality will be removed from production.
With the launch of SET-GO CSD Migration (Phase 2) scheduled on 4 July 2022, instruction and lifecycle management for Stock Exchange instructions in CSC / NCSC-T securities will be executed and reported via CASCADE / T2S. For further details, please refer to the Stock Exchange Transactions Go OTC - Introduction Note (April 2022) attached below.
From May 2022, customers being a member of a German Stock Exchange can verify the updated settlement procedures during two simulation stages. The scope of the simulation can be found in the related guideline. Due to changes in the T2S deployment timeline for UTEST, customers participating in the migration testing need to consider that the preparation for migration test “Run 1” will start on 25 April 2022. The remaining timeline for migration activities announced in the Customer Simulation Guideline for the CBF July Release 2022 remain unchanged.
CBF will offer dedicated migration reports for the CSD migration in July 2022. Customers interested in such reports are requested to submit the attached order form by 29 April 2022. Allowing a timely preparation of the migration weekend, the Customer Migration Guide has been attached. The document provides information concerning the migration activities that are surrounding the deployment of the SET-GO project. This includes an overview of the migration timeline and describes the related tasks to be considered by customers. A list of SETI error codes that can be assigned to instructions during migration that cannot be recreated is attached. These error codes will be displayed in SET-GO Migration Report 3.
As a part of the preparation for the launch of SET-GO CSD Migration (Phase 2) on 4 July 2022, customers are requested to sign the attached "Stock Exchange Transactions Go OTC (SET-GO) CSD Migration (Phase 2) - Customer Readiness Statement" by 24 June 2022 at the latest.