DTCC – Migration activities

08.02.2019

In Announcement D18053, Clearstream Banking AG, Frankfurt informed customers that Depository Trust & Clearing Cooperation, New York (DTCC) will renew their existing connectivity channel and restructure the usage of the accounts held by CBF.

The migration will be executed in two steps:

  • Monday, 11 February 2019:
    Preparation of the transition of the connectivity channel with DTCC
  • Friday, 15 February 2019:
    Reorganisation of DTCC account 6200

In the following CBF describes the changes that will become effective for CBF customers and their counterparties at DTCC on 11 or 15 February 2019.

Preparation the transition of the connectivity channel with DTCC

The following changes will be effective Monday, 11 February 2019.

CBF’s OTC Reinstruction service

With the CBF November Release 2018, the OTC Reinstruction service was enhanced. This service combines a recycling process with a reinstruction procedure. Instructions initially rejected due to missing securities static data at T2S, can be resend if certain predefined error codes are transmitted by T2S. More details about the “OTC Reinstruction Procedure” are available in Announcement D18053.

During the implementation phase for the changes outlined by DTCC, CBF recognised that newly issued DTCC securities could rejected by T2S in some rare cases. T2S advises such rejections with two dedicated error codes.

In order to avoid rejections from CBF customers in ICP mode, these two error codes are added to the table of T2S error codes applicable for the reinstruction procedure that was previously published in Announcement D18053.

T2S Error CodeT2S Error Code Description
MVCV205The ISIN code indicated in a Settlement Instruction must exist in T2S.
MVIC305The ISIN Code of a delivering Settlement Instruction must be eligible for settlement in the delivering CSD on the Intended Settlement Date and additionally on the current Business Day if the Intended Settlement Day is in the past.
MVIC315The ISIN Code of the receiving Settlement Instruction must be eligible for settlement in the receiving CSD on the Intended Settlement Date and additionally on the current Business Day if the Intended Settlement Day is in the past.
MVIC316The ISIN Code of the already matched Settlement Instruction must be eligible for settlement in the delivering or receiving CSD on the Intended Settlement Date and additionally on the current Business Day if the Intended Settlement Day is in the past.
MVCV298If the Delivering Depository specified in a receiving Settlement Instruction is defined by different parent CSDs as an external CSD, the Security CSD Links must allow to identify the relevant external CSD for the ISIN of the instruction.
MVCV299If the Receiving Depository specified in a delivering Settlement Instruction is defined by different parent CSDs as an external CSD, the Security CSD Links must allow to identify the relevant external CSD for the ISIN of the instruction.


New description of CBF error code “KV0810F”

With the update of the CBF software for the migration of the DTCC link setup, the existing error codes used for the processing with DTCC were checked. In general, the error code “KV0810F” is used for the message flow with DTCC to inform DTCC customers about the message handling at CBF.

After 11 February 2019, the text „Mangels Kundenbestand abgelehnt“/ “rejected due to lack of customer holding” is no longer required for processing with DTCC. However, the error code will still exist and used instead to indicate that settlement at CBF cannot be achieved on the same day. Therefore, the error text for “KV0810F” was updated to „Taggleiches Settlement nicht mehr möglich“/ “Same Day Settlement no longer possible“.

The CBF error code will be updated in the directory 

CBF Messages and Error Codes

 with the transition phase of the CBF Release in May 2019.

Reorganisation of DTCC account 6200

The following changes will be effective Friday, 15 February 2019.

Account setup at DTCC for German securities in the DTCC environment

DTCC maintains an omnibus account (7211) at CBF for German (DE) securities, which is currently mirrored in DTCC using account 2000.

With the execution of the reorganisation of the account on 15 February 2019, DTCC customers need to deliver their settlement instructions in DE securities directly towards account 6200. If the account change is not considered the instruction will be rejected by DTCC. DTCC had informed its customers about this change in a dedicated customer information.

CBF customers should inform their counterparties of this change. It might be necessary to update the existing standing instructions, in order to reduce the risk of settlement fails due to enriched validation by DTCC and the resulting automated rejections.

Extension of cut-off time at DTCC

Based on the renewed connectivity setup between DTCC and CBF, it was agreed to enhance the current instruction deadline for DTCC customers. The cut-off time at DTCC for accounts opened with CBF will be extended. The modification will be effective 15 January and relates to

  • The DTCC mirror account (6200) for German (DE) securities.
    The related omnibus account is represented in CBF using the account master 7211.
  • The CBF omnibus account at DTCC (2000) for U.S. and Canadian securities.

In future, instructions from DTCC customers can be considered for settlement on the same day, if they are accepted before 11:00 EST (Eastern Standard Time) in DTCC’s settlement system. CBF’s deadline to receive valid free of payment delivery instructions (DFoP) for same-day settlement remains at latest 18:00 CET (Central European Time) on settlement day.

Transmission of text information to DTCC

With the modification of the connectivity channel to DTCC, CBF enhanced the transmission of information provided as free text in settlement instructions.

Currently, free-text information can be stored in instructions with DTCC at CBF, but these details cannot be forwarded to DTCC. The update of the message flow with DTCC enables the transmission of text information in settlement instructions. That is, customers can provide additional settlement details to their counterparty at DTCC using various connectivity channels:

  • Customers acting in ICP mode can via:
    • the CASCADE Online functionality (HOST / PC) enter details.
      The field “Text” is available for this purpose.
    • CBF’s automated connectivity channels (SWIFT, MQ and File Transfer) transmit details using the SWIFT tag “Settlement Instruction Processing Narrative“ (:70E::SPRO).
  • Customers acting in DCP mode can via
    ISO 20022 transmit the text in field <SttlmInstrProcAddtlDtls>.

The text must not exceed 70 characters. If more data is provided, it will be truncated.

The modification concerns instructions provided to

  • The CBF omnibus account 7211 (that is for DE securities);
  • The CBF mirror account 7911 (that is for U.S. and Canadian securities).

Contact

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Particular questions 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.