T2S Release 2.0 – Deployment activities

04.05.2018

In Announcement D18012, Clearstream Banking AG, Frankfurtinformed customers about the content of the releases that will be introduced in May and June 2018.

The TARGET2-Securities (T2S) Release 2.0 will be deployed on

the weekend 9 and 10 June 2018
for business day Monday, 11 June 2018

This Announcement

  • presents the latest status on  T2S Change Requests (CRs) outlined in the T2S Service Transition Plan for T2S Release 2.0;
  • informs customers about additional T2S Problem Tickets (PBIs) that have received priority by the T2S Settlement Managers and are scheduled for the implementation with T2S Release 2.0;
  • shows the intended timeline and modifications in the T2S Operational Day between Friday 8 and Monday, 11 June 2018 for the deployment of T2S Release 2.0

T2S Change Requests and T2S Problem Tickets

In order to show the latest status of T2S Change Requests and PBIs that will be introduced with T2S Release 2.0 the lists attached to Annoucement D18012 have been updated. Please note that the list of PBIs contains only items that might have impact on CBF customers acting in ICP and/or DCP mode.

The T2S Change Request “T2S-0674-SYS: Common Reference Data Mangement for TIPS” has been added as a potential item. The latest T2S Service Transition Plan defines that this change request is not yet officially in the scope. This enhancement serves for the T2-T2S Consolidation project and has at this stage no customer impact.

Additionally, three PBIs with impact on CBF customers received priority.

The following PBIs are authorised for the deployment with T2S Release 2.0:

  • 202801 – Systems abend the processing when a security with an undefined matured date is deleted;
  • 202832 – Update of Party BIC is not triggered,

whereas the PBI

  • 202737 – Pooled settlement restrictions settled with zero position

has been defined as “Hot Fix”. The resolution of this problem is a prerequisite for the introduction of the "CBF T2S Auto-Coll on Main Account" functionality.

Impacts on the CBF Business Day for the T2S Release 2.0 Deployment Weekend

Due to the “T2S Release Weekend Schedule” the timeline of the operational day and respective reporting during the T2S deployment weekend is changed. Currently this schedule is being defined and requires the agreement of the involved Central Securities Depositories (CSDs) and National Central Banks (NCBs). With this Announcement, CBF customers receive an initial schedule that highlights the processing during the deployment weekend. This schedule is based on the latest test results after the software deployment of the T2S Release 2.0 on 27 April 2018 in the T2S Pre-Production Environment (UTEST).

In the next step, mid of May 2018, once T2S has published a playbook for the deployment weekend, CBF will finalise its transition plan. According to the ECB planning, CBF can provide an updated version of the indicative timeline beginning of June 2018. However, the following assumptions for the deployment weekend can be taken into account as they are based on the results of previous release weekends:

  • Customers acting in ICP mode need to consider that any instruction transmitted between Friday, 8 June 2018, 19:45, and Sunday, 10 June 2018, at around 05:00, until the implementation phase in CBF is finalised, will be queued in the CBF backend. Only customers transmitting instructions via SWIFT will receive an acknowledgement upon receipt of the instruction and the existing message subscription.
  • The opening hours for the CASCADE Online functionality are modified. The HOST / PC frontend will be available until Friday, 8 June 2018, 19:45. Afterwards the system is shut down and will be opened in the course of Sunday, 10 June 2018. Please note that during this time window information can only be retrieved. That means, that instructions can be neither entered, modified nor cancelled.
  • Customers acting in ICP mode and using an automated connectivity channel (SWIFT, MQSeries or File Transfer) to receive the CBF settlement reporting are requested to check the updated reporting times where applicable. CBF will provide the files according to the existing message subscription.
    Depending on the T2S Release 2.0 timeline, files might be empty and will be transmitted only if empty reports are ordered. In addition, customers are requested to accept and store files that will be made available at the customer’s technical infrastructure. Otherwise, the information / data will be lost. CBF recommends accepting files at any time during the T2S Release Weekend.
  • Customers acting in DCP mode should be prepared to use the updated XML scheme (XSD) once T2S Release 2.0 has been successfully implemented. Also, they should consider, that during this deployment weekend the SWIFT Alliance Gateway (SAG) interface will be updated for T2S Release 2.0. More information is available on the SWIFT website.

    On Friday, 8 June 2018, 20:00, T2S will close the online functionality (T2S GUI, U2A) and the “Straight Through Processing” channels (STP, A2A). After Point of No Return (PoNR), instructions can be transmitted.

    During the T2S Release Weekend there will be a short “DCP Window” is planned for Saturday, 9 June 2018, and will last 30 minutes.

    On Sunday, 10 June 2018, 10:00, T2S will start its maintenance window, that is, the connectivity channels (A2A) will be available. Incoming instructions are queued and will be processed on Monday, 11 June 2018 from 05:00 in line with the T2S Operational Day.
  • Customers acting in DCP mode and using the “YCON” procedure to receive real-time settlement reporting via CBF need to consider that these messages will be transmitted on Sunday, 10 June 2018, when CBF will start to provide the settlement results in ICP mode.
  • For the processing via KADI and OneClearstream the following processing applies:
    Settlement instructions resulting from corporate actions processing will be created on Friday, 8 June 2018, in line with the regular business day and presented to T2S before the system will be closed for the deployment activities. As usual, customers will receive the Corporate Action Notifications (MT564). As soon as T2S starts processing settlement instructions for business day Monday, 11 June 2018, Corporate Action Confirmations (MT566) can be transmitted to customers. The associated reporting that is generated by
    • OneClearstream will be sent in real-time mode on Saturday, 9 June 2018 after the Point of No Return (PoNR) has been achieved and T2S has opened the connectivity channels;
    • KADI will be provided on Monday, 11 June 2018, starting at 06:00.
  • In general, the processing at Clearstream Banking S.A. Luxembourg (CBL) is not impacted by the T2S Release Weekend procedure. However, the settlement activities with Euroclear Bank S.A. using the bridge functionality will run in a “slow motion mode” on Saturday, 9 June 2018 until 12:30.

    The CBL procedures related to CBF or executed for CBF will run in the existing business as usual mode. However, the securities settlement of instructions that shall settle against a foreign currency is affected. The cash management will be conducted at CBL according to the CBL timeline and the cash settlement result will be presented to CBF. CBF will queue these results. The settlement of the securities leg will be possible once CBF will transmit the release instruction for the “CoSD Hold” to T2S. Hence, the reporting of the cash settlement and securities settlement will be provided at different times.
  • CBF’s processing with the T2S Out-CSDs DTCC and SIX-SIS will remain unchanged. Customers’ settlement instructions will be forwarded to these CSDs in accordance with the market deadlines. Settlement results and feedback for pending instructions from these CSDs will be transmitted to T2S once CBF releases the queued instructions for the T2S Real-time Settlement (RTS) cycle scheduled for Sunday, 10 June 2018.

CBF Indicative Timeline for the T2S Release 2.0 Deployment Weekend

The attached timeline indicates the changes in the CBF operational schedule during the T2S Release Weekend. It covers the period from Friday, 8 June 2018, 18:45, to Monday, 11 June 2018, 06:00. Events and processes before and after this specific period can be considered as unchanged. In order to indicate the changes, the column “Revision” is available.

It shows:

CBF Customer Communication on the T2S Release 2.0 Deployment Weekend

Before and during the T2S deployment weekend “Operational News” will be published on the Clearstream website, which CBF customers can subscribe to be informed about the progress of the implementation of T2S Release 2.0. The following table provides an overview of the planned "Operational News" and respective "Alerts". Customers who would like to be informed constantly on the progress can set up the subscription of "Alerts" for "Operational News" in the MyClearstream section under Subscriptions / Real-time alerts. CBF recommends customers this setup, which can be adjusted at any time, by Wednesday, 30 May 2018 at the latest.

Envisaged Customer Communication „T2S Release 2.0 Deployment Weekend“

Alert

Milestone

Due Date / Time (CEST)

#1

T2S Release Weekend Schedule –
Latest status for planning

Friday, 1 June 2018, 18:00

#2

Completion of CBF End of Day Processing Friday, 8 June 2018

Friday, 8 June 2018, 19:00

#3

Green Light for
T2S Software Deployment

Friday, 8 June 2018, 20:00

#4

Point of No Return for
T2S Release 2.0

Saturday, 9 June 2018,
the time is not defined yet

#5

Start of Transmission of
CBF Settlement Messages / Reports

Sunday, 10 June 2018,
starting after 05:00

#6

Green Light for
T2S Maintenance Window

Sunday, 10 June 2018, 10:00

Once an above-mentioned milestone has been achieved, CBF will promptly publish the “Operational News” and send the respective “Alert”.

Contact

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Particular questions related to this Annoucement will be routed to the experts of the T2S Settlement Functionality team.

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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.