Global Securities Financing: Implementation of Principal Matching Tolerance and MT558 Allegement report
3 April 2017
Clearstream Banking1 will introduce two new functionalities to enhance customers’ operational efficiency through:
- Principal Matching Tolerance; and
- MT558 Allegement reports.
The introduction of these complementary features shall enable our customers to benefit from high accuracy of triparty instruction matching based on pre-agreed tolerances and be informed on any outstanding instructions against them, within the triparty collateral management environment.
Principal Matching Tolerance
Clearstream Banking customers leveraging Triparty Collateral Management Services (TCMS) will be able to define, within the collateral basket, a fixed amount (plus currency) or percentage to be applied when matching principal amount. The new feature is applicable to specific triparty instruction lifecycle events: initiation (new exposure) and change of principal (increase or decrease).
The configuration of the Principal Matching Tolerance can be completed via Appendix A and applicable at contract level.
MT558 Allegement report
The MT558 Allegement report will be sent by Clearstream Banking, to assist both Collateral Givers and Collateral Receivers, with regards to reconciliation of their triparty instructions against their counterparty’s instruction. The new report is part of the current standard MT558 reporting package and customers can subscribe to the MT558 Allegement report:
- Unilaterally, at contract level;
- Receive through SWIFT if they already have a CreationOnline MT558 subscription; or
- View through CmaX Online.
For existing customers wishing to receive MT558 Allegement reports, subscription can be activated through an authenticated message, such as MT599.
If you are interested in further information about any of our Global Securities Financing solutions, please contact our dedicated GSF team:
|Contact||Global Securities Financing services|
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.