The European Challenge Cup in rugby union, known as the Parker Pen Shield from 2001 to 2003 and Parker Pen Challenge Cup from 2003 to 2005, is the sister competition to the Heineken Cup. It is competed for by teams from England, France, Wales, Ireland, Scotland, Italy, Romania, and on some occasions, Spain and Portugal, on a pool, and then knock-out, basis. The current holders are French club Clermont, who defeated Bath 22-16 in 2007.

History
European club rugby began with the launch of the Heineken Cup in the summer of 1995
The Challenge Cup began as the 'European Conference' (later renamed the European Shield) in 1996 with twenty-four teams from England, France, Italy, Romania, Scotland and Wales divided into four groups of six. All seven of the French teams made it to the quarter-finals with English club Northampton Saints filling the other berth. Predictably, the final was an all-French affair with Bourgoin beating Castres Olympique 18-9 to win the shield.
The following year's competition had an increased entry with eight groups of four teams. Colomiers continued the French dominance of the European Shield, defeating Agen 43-5 in the final.
The absence of English and Scottish clubs in 1998/99 saw the competition reduced to twenty-one teams divided into three groups of seven teams with the Spanish and Portuguese national teams taking part. Once again, a French team was triumphant, with Montferrand beating holders Bourgoin 35-16 in the final held in Lyon.
With English and Scottish clubs back in the competition in 1999, there were 28 teams split in seven groups of four and London Irish and Bristol reached the semi-finals of the competition, but couldn't prevent another all-French final with Pau crowned champions after a 34-21 defeat of Castres.

A new era 2000-onwards
England, France, Wales, Ireland, and Scotland set their own criteria for qualification for the Heineken Cup. All the clubs that do not qualify for the Heineken Cup enter the European Challenge Cup. Italy enters 4 clubs: those finishing 3rd and 4th in the Super 10, and the winners of play-offs between 5th and 8th, and 6th and 7th. Romania is represented by Bucureşti Rugby who are specially formed for this competition.
There are five pools of four teams who play each other home and away matches. The winners of each pool and the three best runners up will qualify for the quarter-finals. The semi-finals will be one-off matches played at home venues and the final at a neutral venue.

Draw
Pool 1 – Bayonne, Bristol, Bucureşti, Newport Gwent Dragons
Pool 2 – G.R.A.N. Parma, Glasgow Warriors, Narbonne, Saracens
Pool 3 – Brive, Montauban, Newcastle Falcons, Petrarca Padova
Pool 4 – Bath, Connacht, Montpellier, Harlequins
Pool 5 – Albi, Clermont Auvergne, Viadana, Worcester Warriors,

2006-07 teams
The Quarter finals will be played on the weekend of 30 / 31 March and 1 April:
The Semi finals will be played on the weekend of 21/22 April:

Match A Clermont Auvergne vs Newcastle Falcons
Match B Saracens vs Glasgow Warriors
Match C Bath vs Bristol
Match D Newport Gwent Dragons vs Brive 2006/7 Quarter final & Semi final qualifiers

Final

By total wins

Parker Pen Cup and Shield History
History from the official site