Stock Exchange and Eurex central counterparty (CCP) trades

15.12.2020

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.

In 2021, 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).

The introduction of the SET-GO project follows the below phased approach. All SET-GO components facing customers will be introduced in 2021.

Phase 1: Regulation Phase - 14 June 2021

  • Instruction and lifecycle management for SE trades in NCSC securities to be executed and reported via Creation;
  • “OTC-like” processing using automated ClearstreamXact connectivity channels (ISO 15022) and Xact Web Portal (GUI).

Phase 2: Activation Phase - 22 November 2021

  • Instruction and lifecycle management for SE trades in CSC/NCSC-T securities to be executed and reported via CASCADE/T2S;
  • “OTC-like” processing using automated ICP and DCP connectivity channels and Xact Web Portal.