Australia: Austraclear - Mandatory repurchase format requirements
Clearstream Banking1 would like to inform customers that further to Announcement A21109 and effective
11 July 2022
customers who perform repurchase agreement (repo) transactions in the Australian market must use the repo SWIFT block (Block D) to provide repo information in the first leg (opening leg) and second leg (closing leg) instructions.
Impact on customers
Customers who have instructed first leg transactions by populating the settlement narrative (:70E:) as outlined in Announcement A21109 prior to this announcement, should continue to instruct in the same format for the second legs.
Going forward, customers are required to instruct two separate instructions corresponding to the first leg and the second leg for Market Repo transactions, using the repo SWIFT block (Block D) to confirm the repo details. The automatic unwind functionality will not apply in this process.
For trade classifications under a repurchase repo, customers must instruct REPU for the first leg and RVPO for the second leg. For a reverse repurchase repo, customers must instruct RVPO for the first leg and REPU for the second leg.
Customers are required to use a unique repo reference indicated in field :20C:://SECO under the repo section, and to ensure the same reference is used for the first and second legs of the instructions. Clearstream Banking has to validate both legs are related to the same repo contract based on the unique repo reference, along with other conditions – for example, trade classification (REPU to match against RVPO, and vice versa), security code must be identical.
For the second leg instruction, customers must use the PREV qualifier to indicate the Sender Reference of the first leg instruction. Upon receipt of the second leg repo instruction, Clearstream Banking will search for the first leg instruction using the Sender Reference indicated under the PREV qualifier, upon successful validation of the repo contract, the instruction will be released to the market.
Customers should refer to the following requirements for more details:
Repo requirements for Xact via SWIFT and Xact File Transfer
Fields to be used
Settlement Transaction Indicator
Termination Transaction Amount
Overview of repo requirements for Xact Web Portal
Fields to be used
Sec. transaction type
Select “REPU – Repurchase Repo”
“RVPO – Reverse Repurchase Repo”
Select either “TERM” or “OPEN”
Select “Repurchase Rate”
Repo Amounts Table - Type
Select “Termination Transaction Amount”
If the above-mentioned repo requirements are not respected, Clearstream Banking cannot guarantee the timely settlement of customers’ instructions.
Settlement deadlines remain unchanged. Please refer to the Market Link Guide – Australia for further details
Bilateral repo transactions that are settled internally within the Clearstream Banking platform are not impacted by this change.
Repo rollover will not be applicable for the repo service.
Repo section (Block D) will not be available in the settlement related reports until further notice.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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 AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.