1. finance
2. bank
3. bank account

REGULATION
pursuant to article 3.7.1, 9.3.1, 10.4.4 of the Clearing Rule Book
BUY-IN PROCEDURE
Capitalized terms used in this Regulation, and not otherwise defined, shall have the meaning as set
out in the Clearing Rule Book.
st
This Regulation comes into force on the 1 April 2015
1
General
The general purpose and principle of a buy-in for EuroCCP as the formal counterparty to all
transactions, is to as much as practically possible, honour the original rights or entitlements resulting
from Trades done on an Exchange and cleared by EuroCCP, when one of the parties involved fails to
meet its settlement obligations. EuroCCP has chosen to follow local market practice as closely as
possible, while aiming for a harmonised pan European process. The rules are set up in a standard
structure to create transparency and efficiency in processing. Buy-ins will be triggered for non
delivery of Securities by the Clearing Participant or in case of non-delivery of Securities by EuroCCP
towards the Clearing Participant. The latter could result in a so called “Early Buy-in”. EuroCCP
reserves the right to postpone the start of a buy-in procedure at its own discretion. Clearing
Participants however, do not have a possibility to initiate a buy-in against EuroCCP.
If the buy-in auction should be performed on a Settlement Date which is not a Trade Date (see
Regulation Clearing Days), the buy-in auction will take place on the next Trade Date.
2
Buy-in notification
One Clearing Day before the buy-in will be started, the failing delivering participant will receive via email a buy-in notification from EuroCCP. The notification will be sent before 09:00 AM CET and gives
an overview of all relevant information. All transactions not settled at 08:45 CET will be marked for
notification.
3
Early buy-in
An early buy-in will be started when EuroCCP has onward deliveries which are on the buy-in date but
has no receipt instructions which are on the buy-in date. An early buy-in can be started from ISD+1.
The oldest pending transaction will be selected for an early buy-in. If there are multiple transactions
with the same date, one will be randomly chosen.
A delivering Clearing Participant selected for an early buy-in will receive an early buy-in
announcement via e-mail on the buy-in date before 09:00AM CET.
Due to the aberrant schedule , no early buy in’s will be executed against registered market makers.
4
Buy-in publication
On buy-in date EuroCCP will publish all non delivered Securities before 9:30 AM CET on the website,
all Clearing Participants now have the possibility to offer these Securities to EuroCCP until 11:00AM
CET. The maximum offer price varies per market. See paragraph 16 for more details.
5
Buy-in extension
The failing delivering Clearing Participant may request an extension by sending a fax or e-mail to
EuroCCP before 11:00AM CET.
If an extension request has been received, no offers will be accepted and the failing delivering
Clearing Participant has until market close to deliver the Securities. If the Securities are not received at
market close, a cash settlement will be started.
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6
Acceptance of offers
EuroCCP will check for received offers if the failing transaction still did not settle at 11:00AM CET and
no extension request has been received. EuroCCP will give priority to the offer with the lowest price.
When multiple offers have been received against the same price, the first offer received will be
chosen. The failing delivering Clearing Participant will receive a mail with the consideration difference
(offered amount minus original settlement amount) which needs to be paid same day. If the offered
amount minus original settlement amount is negative, no consideration difference will be paid or
charged.
7
Buy-in account
A failing delivering Clearing Participant will be required to cancel his original transaction and reinstruct
against a dedicated EuroCCP buy-in account in case EuroCCP has old failing onward deliveries.
EuroCCP may send this request as early as S+1 in case of an early buy-in or on notification day in
case of a regular buy-in. When Securities have been received on the buy-in account, a receiving
Clearing Participant will be requested to cancel his original receipt instruction and reinstruct against
the buy-in account. Both Clearing Participants are obligated to instruct within 1 hour.
8
Buy-in execution
The failing delivering Clearing Participant has until 11:00AM CET on the buy-in date to deliver the
Securities, this can be on the main settlement account or if requested by EuroCCP on the dedicated
buy-in account.
If the Securities have not been delivered and the Clearing Participant has not requested an extension
the transaction will be cancelled by EuroCCP. The Clearing Participant is obligated to cancel the
transaction within 15 minutes.
9
Inter CCP Transactions
A CCP cannot initiate a buy in on a selling CCP, since each CCP will follow their own buy in schedule
this may result in a delayed delivery.
10
Market Maker Schedule
The standard buy in execution date of ISD+5 will in case of market makers be ISD+11. The aberrant
period only applies to market makers and isins registered by the LSE.
EuroCCP may employ a broker from ISD+12 till ISD+20 or offer the position for tender to the Clearing
Participants on its own discretion.
If the bought in transaction cannot be executed before ISD + 20, a cash settlement will take place in
accordance with paragraph 12. Cash settlement will be against the last available closing price.
11
Instruction of chosen offers
EuroCCP will inform a Clearing Participant by mail/phone before 12:30AM CET when his offer has
been accepted and if the Securities need to be delivered to the main account or the dedicated buy-in
account. The Securities need to be delivered as a DVP instruction (or FOP with separate payment in
exceptional cases) for settlement same day unless specifically mentioned otherwise for any particular
market.
Participants will not be informed when their offer has not been accepted.
12
Cash settlement / Broker option
If there is no valid offer for a buy-in or if there is only a valid offer for a part of the requested buy-in
quantity has been received or if a buy-in is impossible for any other reason, the outstanding or
remaining obligation to deliver may be settled in cash or by use of a broker selected by EuroCCP.
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Cash settlement is processed by cancelling the original settlement and replacing it with a cash
payment.
The basis for a cash settlement will be the closing price of the most recent business day prior to the
buy-in or the last trade price adjusted for a corporate event of the relevant Securities. The cash
settlement percentage (see table under paragraph 15) will be applied to this price to establish the cash
settlement price.In the case of cash settlement, the following actions will be taken:
13
-
the receiving Clearing Participant of the original failed settlement will be credited for the
difference between the original price of the failed settlement and the cash settlement price, if the
cash settlement price is higher than the original price of the failed settlement.
-
the delivering Clearing Participant of the original failed settlement will be debited for the
difference between the original price of the failed settlement and the cash settlement price, if the
cash settlement price is higher than the original price of the failed settlement.
-
the failing delivering Clearing Participant will receive a mail with the total cash amount which
needs to be paid the same day.
-
In case of an early buy-in, the failing receiving Clearing Participant will be requested to cancel
his transaction and will receive a cash compensation instead (as described under 3).
Sell out
If a settlement instruction is still failing due to lack of cash or incorrect instructions by the receiving
participant on S+5, EuroCCP will start the Sell-Out procedure.
EuroCCP may employ a broker for the sell out process or offer the position for tender (as reverse of
the buy-in) to the Clearing Participants on its own discretion.
The failing participant will on the processing date be informed about the Sell-out and will receive an
overview after the execution detailing all additional costs. The participant is obliged to pay these costs
within 2 business days.
14
Corporate actions
If the position that is bought in is entitled to a corporate action, EuroCCP will handle the corporate
action in the buy-in procedure as well. This means that the delivering participant will still have to
compensate EuroCCP for the proceeds if a trade has been bought in. In case of an optional event, the
delivering participant is obliged to deliver the choice of the failing receiving participant.
15
Rights
EuroCCP will in general not start the buy in process on S+4 for rights but will have the possibility to do
so at its own discretion.
16
Closing
Whenever the last available closing price is at least 20% lower then the original settlement price,
EuroCCP will in case of a cash settlement cancel both instructions involved in the buy in process. No
cash compensations or penalties will be transferred.
17
Norway
As the last settlement batch ends at 11:30 AM CET, there will not be sufficient time to accept offers in
case of a buy-in process and settle these offers the same day. EuroCCP will therefore use the existing
offering period until 11:00 AM CET, however settlement will take place on S+6.
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Spain
Spanish recycled transactions that fail to settle or match by the Title V timeframes will be subject to a
buy-In process taking place or immediate settlement OTC. The below table details the Buy In
procedures in Spain: will immediately be bought in. For buy-in announcements and transactions in
Spain, the following table will apply:
Please note that a buy-in notification will only be sent once on the Clearing Day following the day a
transaction was recycled, regardless of the reason for recycling (unmatched or unsettled).
EuroCCP will initiate buy-in transactions in Spain to be executed by a local broker. If the buy-in
transaction price is higher than the original trade price, the failing Clearing Participant will pay for the
difference and any transaction and settlement costs directly related to the buy-in transaction. If a buyin is unsuccessful, a cash compensation will take place in accordance with paragraph 12.
Buy-in
announcement
or notification
Buy-in
trans-action
procedure
before COB
Settlement
buy-in
transaction
T+3
(ISD)
If a
transactio
n is
recycled
on T+2
because it
was still
unmatche
d
T+4
(ISD+1)
If a
transacti
on is
recycled
on T+3
because
it was
unsettle
d
If
recycled
transacti
on from
T+2 is
again
rejected
due to
unmatch
T+5
(ISD+2)
Recycled
trade fails
to
match
on T+2 at
15:00 CET
T+6
(ISD+3)
Recycled
trade fails
to settle
after the
last cycle
at 15:00
CET
If recycled
transaction
from T+2 is
again
rejected
due to nonsettlement
Or:
If recycled
transaction
from T+3 is
again
rejected
due to
unmatch
If
recycled
transactio
n from
T+3 is
again
rejected
due to
nonsettlemen
t
OTC
settlemen
t can take
place by
prior
agreeme
nt
with
EuroCCP
.
T+7
(ISD+4)
T+8
(ISD+5
T+9
(ISD+6)
Settlem
ent buyin
transacti
on of
T+4
Settlem
ent buyin
transacti
on of
T+5
Settlem
ent buyin
transacti
on of
T+6
OTC Settlement can take place prior to a buy-in broker executing a trade by prior agreement with EuroCCP’s
Client Services team. The CP must deliver immediately in the registration of EuroCCP’s name. If a buy-in
transaction can not be executed within the limit of the maximum buy-in offer percentage as specified in table
under paragraph 15, a cash settlement will take place in accordance with paragraph 12.
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19
Buy-in specifics per market
Market
Austria
Belgium
Czech Republic
Denmark
The Netherlands
Finland
France
OeKB
Euroclear BE
SCP
VP
Euroclear NL
Euroclear Finland
Euroclear FR
Trade Date+2
Trade Date+2
Trade Date+2
Trade Date+2
Trade Date+2
Trade Date+2
Trade Date+2
ISD+3
ISD+4
ISD+4
ISD+4
ISD+4
ISD+4
ISD+4
ISD+4
ISD+5
ISD+5
ISD+5
ISD+5
ISD+5
ISD+5
Max. buy-in
Offer
Percentage/
1
fixed fee.
120%
120%
120%
150%
120%
150%
120%
Germany
Trade Date+2
ISD+4
ISD+5
200%
120%
Hungary
Clearstream BK
Frankfurt
KELER
Trade Date+2
ISD+2
ISD+3
120%
120%
IDRs
Euroclear Bank
Trade Date+2
ISD+4
ISD+5
120%
120%
Ireland
Euroclear UK&I
Trade Date+2
ISD+4
ISD+5
120%
120%
Italy
Monte Titoli
Trade Date+2
ISD+4
ISD+5
120%
120%
Luxembourg
Euroclear Bank
Trade Date+2
ISD+4
ISD+5
120%
120%
Norway
VPS
Trade Date+2
ISD+4
ISD+5
150%
120%
Portugal
Interbolsa
Trade Date+2
ISD+4
ISD+5
120%
120%
120%
120%
Spain
CSD
Settlement
cycle
Notification
of buy-in
Buy-in
execution
4
120%
120%
120%
120%
120%
120%
120%
Iberclear
Trade Date +3
Sweden
Euroclear Sweden
Trade Date+2
150%
120%
Switzerland
United Kingdom
SegaInterSettle (SIS)
Euroclear UK&I
Trade Date+2
Trade Date+2
ISD+4
ISD+4
ISD+5
ISD+5
120%
120%
120%
120%
US
Euroclear Bank
Trade Date+3
ISD+4
ISD+5
120%
120%
1
2
3
4
ISD,
ISD+1, +2 or +3
3
ISD+1 ISD+2 ISD+2 or ISD+3
or r ISD+3
ISD+4
ISD+5
Cash
settlement
2
percentage
The percentage is calculated over the most recent closing price, adjusted for corporate events if appropriate
Id.
see table under 14
A buy-in can be initiated as of ISD + 6
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EuroCCP CSD instructions for Buy–ins:
Austrian Stocks
Belgium Stocks
Czech Republic Stocks
Danish Stocks
Dutch Stocks
Finnish Stocks
French Stocks
German Stocks
Hungarian Stocks
International Depository
Receipts
Italian Stocks
Agent
BIC
Account
Buyer/Seller
Account number
Agent
EGSP
Buyer/Seller
Account number
Agent
BIC
Buyer/Seller
Account
Agent
BIC
Buyer/Seller
Account
Agent
EGSP
Buyer/Seller
Account number
CSD
BIC
Account
Attention
Agent
EGSP
Buyer/Seller
Account number
Agent
KV
Buyer/Seller
Account
Agent
BIC
Buyer/seller
Account
Agent
BIC
Buyer/Seller
Account number
Agent
Bic
Segregated account
Buyer/Seller (95P)
BIC
Beneficiary account
Abn Amro Bank N.V.
OEKOATWW
211500
ABNCNL2A
24.60.59.494
Abn Amro Bank N.V.
29108
EMCFNL2A
24.60.59.494
Deutsche Bank AG, filiale Prag
DEUTCZPX
EMCFNL2A
5013400001
SEB Copenhagen
ESSEDKKK
ABNCNL2A
0529 502 1766
Abn Amro Bank N.V.
29108
EMCFNL2A
24.60.59.494
Euroclear Finland
APKEFIHH
31 0003 00000 3003 0273
EuroCCP Buy-in account
Abn Amro Bank N.V.
29108
EMCFNL2A
24.60.59.494
CitiGroup Global Markets AG
7372
EMCFNL2A
21682401
Deutsche Bank ZRt, Budapest
DEUTHU2B
EMCFNL2A
1213002086
Deutsche Bank
DEUTNL2A
EMCFNL2A
265150140
Citi Bank Milan
CITIITMX
60440
XTRM code 2989
EMCFNL2A
1258319
(In order to facilitate pre matching we recommend
our participants to quote our account number
1258319 at Citi Milan in field 97A::SAFE// of the
Subsequence E1 Settlement Parties)
Luxembourg Depository
Receipts
Norwegian Stocks
Agent
BIC
Buyer/seller
Account
Agent
BIC
Buyer/seller
Account
Deutsche Bank
DEUTNL2A
EMCFNL2A
265150140
SEB Oslo
ESSENOKX
EMCFNL2A
09750 0034356
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Portuguese Stocks
Agent
BIC
Buyer/seller
Account
BNP Paribas Securities Services S.A.
PARBFRPPXX
EMCFNL2A
62768Q
Swedish Stocks
CSD
BIC
Buyer/Seller
Account
BIC
CSD
SCOM
Buyer/Seller
Account
Agent
BIC
Crest participant id:
Account
Euroclear Sweden
VPCSSESS
EMCFNL2A
0001 5069 5594
EMCFNL2A
Sega interSettle
NL100386
EMCFNL2A
20 326’639
HSBC PLC
MIDLGB22
BH01
942436
Agent
Bic
Buyer/Seller
Account
Deutsche Bank
DEUTNL2A
EMCFNL2A
265150140
Swiss Stocks
UK Stocks
US Stocks
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