Change requestsChange requests

T2S Advisory GroupT2S Advisory GroupBucharest, 30 June 2011 – 1 July 2011

T2S Programme Office European Central Bank

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BackgroundBackground

The URM SG assessed whether each request for changes are needed for the start of T2S

The URM SG recommended the Advisory Group (AG) to

1. implement 13 requests that are needed for the start of T2S

2. consider remaining ones potentially in a later release of T2S

The AG is invited to consider the change requests and recommendations of the URM SG

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Change requestsChange requests

0276_URD Unmatched status pushed after first unsuccessful matching attempt 0299_URD Remove inconsistencies in chapter 13 to clarify that the unmatched

status will not be pushed after first unsuccessful matching attempt

Reason for CR:Ø Explicit notification of a first unsuccessful matching attempt after successful

validation of a settlement instruction

Consequence of not implementing the change request:Ø Some markets that still consider the implicit notification of the unmatched status

as insufficient in the new T2S context will have to bear some additional costs to

adjust their systems/market practice

URM-SG recommendation:Rejection 0276_URD and approval of 0299_URD

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Change requestsChange requests

0277_URD Securities CSD links for same day creation, not only as of future

date

0294_SYS Security CSD links maintenance in A2A

0295_SYS Maintenance of restriction type rules in A2A

Reason for CR:Ø Mainly for the set-up of short term commercial papers issued intra day

Consequence of not implementing the change request:Ø The set-up of these securities will not be possible. Use of GUI as alternative not

viable due to high volume

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0278_URD Limit utilisation report to be pushed by T2S

Reason for CR:Get an automatic report from T2S about the current limit utilisations

for a particular client of a payment bank

Consequence of not implementing the change

request:Payment bank will have to use queries to get the information

URM-SG recommendation:Rejection and Consider it potentially in a later release of T2S

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Change requestsChange requests

0279_URD Removal of allegement removal for a cancellation instruction

and allegement cancellation for a cancellation instruction

Reason for CR:Ø Deletion of notifications that will not be covered in T2S as no standard market

practices have been identified by SGMS

Consequence of not implementing the change request:Ø Cost impact due to the need to add new T2S specifications to cover those

notifications

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0282_URD Introduction of T2S securities account as an optional matching field

Reason for CR:Ø Further minimise the risk of cross matching in countries where currently matching is

based on CSD account numbers

Consequence of not implementing the change request:Ø Reopening of the discussion on matching fields to revert back to an option with no

impact to the URD and specifications

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0283_URD Disallow partial settlement of blocking instruction

Reason for CR:Ø Only allow blocking if the full amount of securities/cash are available (and

recycle the blocking instruction otherwise)

Consequence of not implementing the change

request:Ø CSDs will not be able to handle voluntary elections

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0284_URD T2S Central board function for Security Maintaining Entity

Reason for CR:Support the communication of information regarding securities reference

data between the investor CSDs and the Security Maintaining Entity CSD in

T2S

Consequence of not implementing the change request:A channel of communication might need to be established by CSDs outside

T2S

URM-SG recommendation:Rejection and Consider it potentially in a later release of T2S

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Change requestsChange requests

0285_URD New attribute at securities account level to identify account

allocation instructions

Reason for CR:Ø Recognise securities accounts attributed to account allocation operations,

for billing purposes (direct holding market’s “all-in model”)

Consequence of not implementing the change

request:Ø Reopening of the discussion on direct holding market’s all-in model to find

an option with no impact to the URD and specifications

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0288_URD Technical acknowledgements at infrastructure level

Reason for CR:Ø Move the responsibility for creating the technical acknowledgements

within the T2S Platform

Consequence of not implementing the change

request:Ø It would increase the number of messages created by the T2S

application

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0290_URD Mandatory bundling of messages into files during night-time

period

Reason for CR:Ø Align the reporting by bundling settlement related messages into files

during night-time period to be consistent with the settlement process,

which is carried out in sequences

Consequence of not implementing the change

request:Ø Increase of message traffic and costs attached to it

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0291_SYS Enhance cash side-reporting and new attribute in message

subscription service.

Reason for CR:Ø Enhancement end of day statement of accounts and debit/credit

notifications to better recognise cash related postings

Consequence of not implementing the change

request:Ø Complexity for reconciliation of cash movements resulting from settlement

instructions

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0292_SYS Link securities account to DCA via A2A

Reason for CR:Ø Provide A2A messages for linking a securities account to a dedicated

cash account in T2S

Consequence of not implementing the change

request:Ø Initial set-up and maintenance via U2A. Initial set-up (migration) will

entail high volume usage.

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0293_SYS Inclusion of the already matched flag criteria in the message

subscription

Reason for CR:Ø It will reduce the message traffic and costs attached to it

Consequence of not implementing the change request:Ø CCP, Stock Exchanges and Trading Platforms that will most likely send T2S an

already matched settlement instruction will have to adapt their systems to

receive two notifications instead of one from T2S for each instruction they send

T2S

URM-SG recommendation:Ø Approval

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Change requestsChange requests

0296_SYS Maintenance of roles and privileges in A2A.

0297_SYS Message subscription rule maintenance in A2A

Reason for CR:Provide A2A messages for maintaining roles & privileges and the message

subscription

Consequence of implementing the change request:The request would create more development costs for CSDs (to replicate the

T2S roles and privileges in their own systems, to build a U2A function in their

system for manual input of these roles and privileges and to feed T2S using the

A2A messages) and T2S (create new messages) without obvious efficiency gain

URM-SG recommendation:ØRejection and Consider them potentially in a later release of T2S

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Change requestsChange requests

0298_SYS Close links and eligible securities deletion in A2A.

Reason for CR:Provide A2A messages for close links and eligible securities deletion

Consequence of not implementing the change

request:Deletion of close links and eligible securities is to be performed via U2A in

T2S and also in the collateral management system. May be limited

operational risk

URM-SG recommendation:Rejection and Consider it potentially in a later release of T2S

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