There is not enough scratch space allocated. You will need to increase the scratch track allocation. To do this, you will need to add/change the SWFTRK value on the DAIO statement in the CA 7 init file. You should specify SWFTRK=255 which is the recommended value.
Example of the DAIO statement:
To view your CA 7 init file online, you can issue CA 7 top line command:
Look for the DAIO statement.