Deutsche Börse
About
Deutsche Börse Group operates on-exchange markets for cash equities, exchange-traded products (ETPs) and numerous other products via several trading platforms. Cboe Clear Europe is pleased to offer clearing, settlement and risk management services for cash equity and ETF trades executed on the Frankfurter Wertpapierbörse (FWB, The Frankfurt Stock Exchange).
As Cboe Clear Europe clears the same segments on MTFs, Deutsche Börse trades can be netted with existing positions and not incur any additional settlement fees.
Cboe Clear Europe follows the same routing logic as today. Accordingly, instruments in Collective Safe Custody (CSC) will be settled via Clearstream Banking Frankfurt (CBF) and instruments in Non-Collective Safe Custody (NCSC) will be settled either via Clearstream Banking Frankfurt (CBF), if the instrument is labelled as NCSC-T (Non-Collective Safe Custody via T2S), and via Clearstream Banking Luxembourg (CBF(i)) otherwise. The settlement solution for Collective Safe Custody and Non-Collective Safe Custody classified instruments will be supported by Cboe Clear Europe through its direct link with Clearstream Banking Frankfurt and Clearstream Banking Frankfurt international.
Cboe Clear Europe maximises the operational and commercial benefits for trading and clearing participants as all trades cleared by Cboe Clear Europe are fully netted into one net settlement per ISIN per day. Cboe Clear Europe’s features includes:
- Preferred CCP clearing model
- Cross platform netting will deliver substantial settlement savings
- Trades will be incorporated in Cboe Clear Europe’s existing reporting
- Existing margin methodology may reduce margin requirements significantly
To take advantage of the benefits of preferred clearing with Deutsche Börse contact the Cboe Clear Europe Relationship Management team who can provide an assessment of the savings resulting from the consolidation of Deutsche Borse activity with Cboe Clear Europe. Contact us at [email protected]
Deutsche Börse reporting
Deutsche Börse informs its participants about the status of an order in two phases, 1) a non-legally binding execution report is created for each matching step, and 2) a legally binding trade report confirming the execution of the complete order. This information is communicated through the T7 FIX or the Enhanced Trading Interface (ETI) protocol.
The legally binding messages (ETI Trade Notification and FIX Trade Capture Report) contain details about the CCP and allow participants to define which CCP will clear the order under the "Preferred CCP" model. Cboe Clear Europe’s details are reported as follows:
ETI (Trade Notification)
| Tag | Field Description | Cboe Clear Europe Details |
|---|---|---|
| 22417 | RootPartyContraFirm | EUCCP |
| 25115 | RootPartyContraFirmKVNumber | 4208 |
FIX (Trade Capture Report)
| Tag | Field Description | Cboe Clear Europe Details |
|---|---|---|
| Side 1 information | ||
| Party information | ||
| trc clearing organization | Clearing House Short name | EUCCP |
| trc executing firm kvno | Executing firm information (Kassanverein number) | 4208 |
| Counterparty information | ||
| Party information | ||
| trc executing firm | Executing firm information | EUCCP |
| trc executing firm kvno | Executing firm information (Kassanverein number) | 7050 |
Further information can be found on xetra.com > Technology > T7 trading architecture
Cboe Clear Europe Reporting
Once trades executed on XETRA are cleared by Cboe Clear Europe, Cboe Clear Europe’s real time, intraday and end of day files will include the Xetra© activity.
The Xetra© trades will appear in Cboe Clear Europe’s reporting under the relevant Market Identifier Code ‘XETR’ (TAG 58 in the FIX messages and TAG 8 in the Client Information File (CIF).
Reference Identification
In record 409 and 410 of the CIF Xetra© trades are uniquely identified by the following tags:
- Cboe Clear Europe Reference, combination of the Transaction Date (TAG 34) and Unsettled Reference (TAG 36).
- Deutsche Börse Reference, combination of the Transaction Date (TAG 34), Exchange Code Trade (TAG 8), External Transaction ID Exchange (TAG 25) and Symbole (TAG 9)
The Deutsche Börse reference, which is reported in the ETI Trade Notification and FIX Trade Capture Report, is also reported in Cboe Clear Europe’s CIF as follows:
| ETI Trade Notification | Cboe Clear Europe CIF, record 409 and 410 |
|---|---|
| TAG 1506, SideTradeID | TAG 25, External Transaction ID ExchangeExec ID |
| FIX Trade Capture Report | Cboe Clear Europe CIF, record 409 and 410 |
| TAG 1506, SideTradeID | TAG 25, External Transaction ID ExchangeExec ID |
Trade Cancellation
In the event Cboe Clear Europe receive a trade cancellation from Deutsche Börse, a reverse trade will be created by Cboe Clear Europe which contains the External Transaction ID Exchange of the original trade starting with "1" and the "Buy/Sell" code which is part of the External Transaction ID Exchange will also reverse. For example:
Collective Custody
The settlement solution for Collective Safe Custody and Non-Collective Safe Custody classified instruments will be supported by Cboe Clear Europe through its direct link with Clearstream Banking Frankfurt and Clearstream Banking Frankfurt International. The below table shows the settlement solution of the instruments with Collective Safe Custody and their currency (Euro/non-Euro). In general all Collective Safe Custody instruments are settled in CBF via T2S. As T2S currently does not support any currency apart from Euro, the non-Euro cash will be settled separately in CBFi.
In addition, the below table shows the Safekeeping ID of Cboe Clear Europe, where securities which settle in T2S have the Safekeeping ID "DE" and securities which settle in CBFi will have Safekeeping ID "DI". These IDs will be reported in the CIF file (add tag).
Note that for the different settlement solutions different settlement fees apply. For the Collective Safe Custody securities denominated in a non-euro currency, the settlement fees are based on the settlement costs charged by CBF and CBFi.
| Safekeeping ID | Custody Type | Currency | Settlement System |
|---|---|---|---|
| DE | Collective Safe Custody | Euro | T2S |
| DE | Non Collective Safe Custody | Euro | T2S |
| DE | Collective Safe Custody | Non-Euro | Securities in T2S & Cash in CBFi |
| DI | Non Collective Safe Custody | All |