Xact Web Portal: Penalties, Inefficiencies and Buy-in Volumes (PIBIV) dashboards - Update

20.09.2021

Note: This announcement, originally published on 19 April 2021, has been updated to provide customers with information on changes to ICSD and CBF CSD settlement and cash penalties timeframes. Customers can also find updates to the "PIBIV dashboards - Known issues and limitations" and "PIBIV dashboards - Tutorial" attached below and an added "Change Log". Changes have been highlighted.

Clearstream Banking1 informs customers that effective

19 April 2021

it will be possible for subscribed customers to view Penalties, Inefficiencies and Buy-in Volumes (PIBIV) dashboards In Xact Web Portal.

Background

On 1 February 2022, the Central Securities Depositories Regulation’s (CSDR) technical rules on settlement discipline will come into effect. These rules include measures to address settlement fails, such as cash penalties, the mandatory buy-in process and reporting of institutions that “consistently and systematically” fail to deliver.

Impact on customers

The purpose of PIBIV dashboards is to show customers that settle through the ICSD and Clearstream Banking AG (CBF) CSD what penalties, buy-in volumes, and settlement efficiency they would have had if CSDR settlement discipline regime rules were retroactively applied to ICSD and CBF CSD settlements during the 2019 to mid-July 2021 period. By scaling these data using their expected settlement activity in 2022, ICSD and CBF CSD customers can obtain a rough estimate of the financial impact of CSDR once it comes into effect. In addition, PIBIV data may already highlight some potential issues in customer settlement operations, thus helping them address these issues before the regulation takes effect.

In summary, the PIBIV dashboards provides:

  • Cash penalties calculated from 2019 to mid-July 2021 late/cancelled settlements.
  • Buy-in volumes calculated from late/cancelled settlements that would have entered the buy-in regime from 2019 to mid-July 2021, if CSDR settlement discipline rules were in effect.
  • Interactive examination, aggregation and filtering of cash penalties and buy-in volumes per institution, settlement account and instruction level (that is, drill-down and zoom-out capability. Please see the PIBIV “drill-down”  and tutorial videos below:

PIBIV drill-down video

PIBIV tutorial video

  • Calculation of a maximum buy-in volume that an institution/account could have potentially avoided if they had been subscribed to Automated Securities Lending (ASL) (for the ICSD) or Automated Securities Lending principal (ASLp) (for the CBF CSD).
  • Daily explanations as to why an instruction did not settle (for example, lack of security, late matching, counterparty late matching, etc.).
  • The ability to visualise and examine long-term (2008 to mid-July 2021) settlement efficiency for the whole institution or a settlement account.
  • Exporting of penalty and buy-in data in tabular comma-separated values (CSV) format for offline analysis (Please see attached Penalties Table 2019 and Penalties Reasons 2019. The corresponding files for buy-ins have a similar format).

How to subscribe

This service has a one-time activation cost of EUR 1000 per signed-up Xact Organisational Unit (OU) and per dashboard (for ICSD or CBF CSD, customers should refer to the fee schedule). There is no per user fee. Customers should take note that the user accessing PIBIV will be able to see PIBIV data for all accounts that belong to the legal entity (that is, OU) for which the service is requested. To activate the service, the customer must send an MT599 via SWIFT message or a fax with two authenticated signatures, confirming:

  • Xact Web Portal OU name.
  • PIBIV dashboard(s) they wish to sign up for (ICSD, CBF or both).
  • Acknowledgment of the one-off onboarding fee (EUR 1000 if signing up for one dashboard, EUR 2000 if signing up for both dashboards).
  • Acknowledgement of having read and accepted the attached PIBIV dashboards - Disclaimer and PIBIV dashboards - Known issues and limitations documents.

Further information

The PIBIV dashboards - Tutorial is attached below.

For further information, customers may contact the Clearstream Banking Connectivity Helpdesk or their Relationship Officer.

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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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.