Treatment of late trades on ETCMS

Background and operational changes

LCH.Clearnet SA could receive trades from Clearing members routed via ETCMS (Euroclear Trade Capture Matching System) after the LCH.Clearnet SA official cut off times (see table below). Today, these trades are stored in a queue, integrated the next clearing day and guaranteed upon registration. 

Reminder of the official cut off times for Bonds and Repos:

From Monday 30 August, these trades will be automatically rejected by the clearing system. As a consequence of this rejection, LCH.Clearnet SA will send an alert to ETCMS which will inform its clients of the rejection. Trading participants have to reinstruct these trades the next clearing day.

From a clearing perspective, LCH.Clearnet SA’s members will be informed via the report “Real Time Trade” (XXPRYYYYMMDDTRAD.NET) available on the web OTC and the push/pull solution. In the event of trade rejection, field 3 of the report will contain the value “RJ” (Rejected).

LCH.Clearnet SA would like to remind members that ETCMS routes matched trades to the clearing system on a real time basis during the day. As a result Clearing members are strongly encouraged to ensure that trades are executed within LCH.Clearnet SA cut-off times. 

Scope

The following ETCMS matched transactions from the French debt market:

• Same day repos (trade date = settlement date) received after cut off time;

• Matched trades with settlement date = trade date +1 received after cut off time.

Out of Scope

• Other matching/trading platforms (no change);
• Transactions from the Italian debt market;
• Matched trades with SD = TD+2 and more, even if received after cut off time. These trades will be managed as today i.e. queued and followed by a registration/novation the next clearing day (without reinstruction).

For further information, please contact your LCH.Clearnet SA Product Implementation manager:

Dorothée Fresneau: +33 (0) 1 70 37 66 05 – [email protected]
Or
Mykael Lemosle: +33 (0) 1 70 37 65 27 – [email protected]

Or your Account manager: +33 (0) 1 70 37 65 55 – [email protected]

Attachments

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