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C7 – conversion of ECC’s clearing system creates further synergies

11 Sep 2019

C7 – conversion of ECC’s clearing system creates further synergiesRoadmap 2020 insights

Deutsche Börse Group is well on track with its growth strategy “Roadmap 2020”. We now want to take the opportunity to look back at our growth agenda and successes of the past 18 months: in our series “Roadmap 2020 insights” we showcase exciting contributions and developments from our business areas.

European Commodity Clearing AG (ECC), clearing house of EEX Group, successfully converted its position and transaction management system to C7® in August. The introduction is an important step in realising further synergies within the trading and clearing platforms.
C7 is one of the world’s leading clearing systems established in the financial markets and part of the 7 Market Technology® series, a new generation of technology solutions developed by Deutsche Börse. The series is designed to set new global standards for partnerships through a new level of system flexibility and broad licensing opportunities and will be continually expanded. Currently, five systems are available in the 7 Market Technology series:

T7

T7® – Deutsche Börse's trading architecture - already in use at other international exchanges - is characterised by high speed, high performance, outstanding efficiency, large capacity and throughput as well as exceptional reliability and availability.

C7

C7® – Eurex Clearing's clearing architecture is designed to help clearing houses quickly respond to emerging opportunities through new products such as derivatives, securities and energy, while meeting high volume demand and complex regulatory requirements.

N7

N7® – the global networking solution offers extremely high reliability and lowest latency, global reach and high-quality 24-hour service. N7 connects market participants with key players in the financial services industry in Europe, North America and Asia.

M7

M7®– a one-stop-shop trading system used by exchanges and wholesale brokers to operate intraday futures, forwards, clearing and over-the-counter (OTC) markets. M7 can be used for multiple products and markets and combines supply and demand from utilities, banks and funds.

F7

F7® – the Eurex Repo® trading system is based on the experience of Deutsche Börse Group. It enables web-based access and leased line connection via Deutsche Börse's N7 network.

 

Step-by-step migration from C7 at ECC

This migration represents an important milestone for ECC, as the planned expansion of the infrastructure around position and transaction management marks the next important strategic stage and completes the offering for the clearing house’s customers. Prior to this, ECC had already transferred the management of collateral for its clearing members to the C7 architecture at the end of 2017, the management of payment transactions by mid-2018 and parts of post-trading risk management by the end of 2018 in well thought-out steps.

New possibilities

With C7, ECC takes the step from a very robust and reliable system (EUREX Classic) to its native successor with the same requirements as high availability and acceptance on the market but expanded by new technological refinements. The direct advantages for the customers of ECC are the modern and intuitive user interface of the system. The functionalities anchored in the system, open new development possibilities for the ECC, both in product design and in extended market availability. Based on these features, ECC will be able to tailor its clearing services even better to the needs of its customers in the future, which will be the actual advantage for customers.

Sebastian Weinreich, Head of Clearing Operations at ECC, explains what this project means for ECC:

“For me, the challenge of the project was the sheer size and potential extent to which it affects our customers –  you don’t just change a clearing system. It is the core system of a central counterparty and every process builds on it. That’s why I’m so proud of what we’ve accomplished as a team over the past days, weeks and months.”

 

What is the role of ECC as part of EEX Group?

ECC is the leading clearing house for energy and commodity products in Europe. It assumes the counterparty risk and guarantees the physical and financial settlement of transactions. It thus offers its customers security and cross-margining advantages. As part of EEX Group, ECC provides clearing services for EEX, EEX Asia, EPEX SPOT, Powernext and Power Exchange Central Europe (PXE) as well as for the partner exchanges HUPX, HUDEX, NOREXECO, SEEPEX and SEMOpx.

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Trust is essential for functioning markets and sustainable economies. At Deutsche Börse, we provide fair and transparent, reliable and stable infrastructures that ensure safe and efficient markets around the globe. By making markets work, we foster growth and contribute to the prosperity of future generations. In short: our purpose is to create trust in the markets of today and tomorrow.

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