T2S Release 3.0 – Deployment activities – Update II

03.06.2019

Note: This announcement, originally published on 9 May 2019 and updated on 14 May 2019, has been further updated to include the latest information including a modified timeline before the deployment weekend.


In Announcement D19022, Clearstream Banking AG, Frankfurt1 informed customers about the content of the releases that will be introduced in May and June 2019.

The TARGET2-Securities (T2S) Release 3.0 will be deployed on

the weekend 8 and 9 June 2019
for business day Monday, 10 June 2019

This Announcement shows the intended timeline and modifications in the T2S Operational Day between Friday, 7 and Monday, 10 June 2019 for the deployment of T2S Release 3.0. Additionally, at end of of this announcement, a dedicated section “Notes for the start in production” is included.

T2S Change Requests and T2S Problem Tickets

CBF regularly updates the lists of T2S Change Requests and T2S Problem Tickets (PBIs) to be introduced with T2S Release 3.0 in the attachmenent section of the Announcement D19005. As part of the preparation for the T2S Release Weekend, the list of PBIs has been enriched with the most recently released tickets. Please note that the list contains only tickets that might have impact on CBF customers acting in ICP and / or DCP mode.

For the implementation with T2S Release 3.0, the following two PBIs that can also affect CBF customers have been authorised:

  • PBI 204559 - CBF Settlement Instructions for French registered shares are unsettled even after CSD Hold is released
    Whenever there are two release instructions received at the same time over the same transaction, the system is not able to properly manage the parallel execution of both maintenance instructions. Therefore, one of the release instructions is neither denied nor executed.
  • PBI 204633 - Securities Settlement Transaction Status Advice (sese.024) does not correctly inform about status "FUTU"
    Whenever there is an externally matched release over a settlement instruction on Party Hold or CSD Hold, the system is not able to inform correctly the corresponding settlement reason code "FUTU" for the released leg of the transaction if the ISD has not been reached.

Impacts on the CBF Business Day for the T2S Release 3.0 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 attached schedule is based on the latest test results after the software deployment of the T2S Release 3.0 on 22 March 2019 in the T2S Pre-Production environment (UTEST).

In the next step, at the end of May 2019, 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 at the beginning of June 2019. However, the following assumptions for the deployment weekend can be taken into account:

  • Customers acting in ICP mode using SWIFT, MQ or File Transfer (FT) procedures towards CBF’s automated connectivity channels or ClearstreamXact need to consider that any instruction transmitted between Friday, 7 June 2019, 19:45, and Sunday, 9 June 2019, at around 05:00, until the implementation phase in Clearstream Banking is finalised, will be queued in the backend systems. Only customers transmitting instructions via SWIFT to CBF will receive an acknowledgement upon receipt of the instruction and have an existing message subscription.
  • The opening hours for the Clearstream Online functionalities are modified. The CASCADE HOST / PC frontend and Xact Web Portal will be available until Friday, 7 June 2019, 19:45. Afterwards the systems are shut down and will be opened on Sunday, 9 June 2019, between 05:00 to 10:00. 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, MQ or File Transfer (FT)) to receive the CBF settlement reporting are requested to check the modified reporting times where applicable. CBF will provide the files according to the existing message subscription. Depending on the T2S Release 3.0 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 must be prepared to use the updated XML scheme (XSD) once T2S Release 3.0 has been successfully implemented. T2S supports for the deployment activities the schema defined in SWIFT MyStandards (ISO 20022:2004) and the schema provided via a CSD (ISO 20022:2013). Any instruction that will be transmitted to T2S:
    • On Friday, 7 June 2019, before 20:00 and is accepted by T2S will be converted by T2S. Once the deployment activities are complete, the instruction is processed using the modified processes. The corresponding reporting is sent based on the new XSDs / formats
    • On Friday, 7 June 2019, after 20:00 must take the new XSD / format into account. If the latest definitions are not used, the instruction will be rejected when T2S reopens after the software deployment.
  • On Friday, 7 June 2019, 20:00, T2S will close the online functionality (T2S GUI, U2A) and the “Straight Through Processing” channels (STP, A2A). On Sunday, 9 June 2019, 10:00, T2S will start its maintenance window. Incoming instructions that will reach T2S during the deployment phase or maintenance window are queued. After the reopening of T2S, these instructions will be processed, either on Saturday, 8 June 2019, after the software implementation or on Monday, 10 June 2019 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, 9 June 2019, when CBF will start to provide the settlement results in ICP mode.
  • For the processing via KADI and OneClearstream markets the following processing applies:
    • In general, settlement instructions resulting from corporate actions processing will be created on Friday, 7 June 2019, 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).
    • Corporate Action Confirmations (MT566) reporting will be transmitted to customers as following:
      • For OneClearstream it will be sent in real-time mode Sunday, 9 June 2019, once CBF has finalised the deployment activities. That is reporting can be provided after 05:00 until the CBL maintenance window will start (at around 10:00).
      • For KADI it will be provided on Monday, 10 June 2019, 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, 8 June 2019 until 05:00.

    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, 9 June 2019.

CBF customer communication on the T2S Release 3.0 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 recommended customers to establish this setup, which can be adjusted at any time, by Friday, 31 May 2019 at the latest.

Envisaged customer communication
„T2S Release 3.0 Deployment Weekend“

Operational News

Milestone

Due date / time (CEST)

#1

T2S Release Weekend Schedule
Latest status for planning

Monday, 3 June 2019,
18:00

#2

Completion of CBF End of Day Processing Friday, 7 June 2019

Friday, 7 June 2019,
19:30

#3

Green Light for
T2S Software Deployment

Friday, 7 June 2019,
20:00

#4

Start of Transmission (A2A)
T2S Settlement Messages / Reports

Saturday, 8 June 2019,
18:25

#5

Start of Transmission
Clearstream Settlement Reporting

Sunday, 9 June 2019,
07:00

#6

Completion of T2S Real-Time Settlement (RTS) and Start of Maintenance Windows

Sunday, 9 June 2019,
10:00

Once an above-mentioned milestone has been achieved, CBF will promptly publish the “Operational News” in English. An alert will inform about the status update.

CBF Indicative Timeline for the T2S Release 3.0 Deployment Weekend

The attached modified timeline indicates the changes in the CBF operational schedule during the T2S Release Weekend. Different to the deployment weekend for the previous T2S Main Release 2.0 in the past year, it was decided that the "DCP Window" is removed from the planning.

The timeline created by CBF is based on the T2S Migration Playbook that was made available on Friday, 31 May 2019. Changes in comparison to the initial timeline are highlighted. The plan covers the period from Friday, 7 June 2019, 18:45, to Monday, 10 June 2019, 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:

Processing in line with daily operational schedule

Process / reporting will not be executed

Process ahead compared to daily operational schedule; see revised time

Process postponed compared to daily operational schedule; see revised time

Publication Operational News

Notes for the start in production

The T2S Change Request “T2S-0520-SYS“ defines that the “Market Infrastructure Transaction Identification (MITI)” of the underlying instruction will be provided for instructions resulting from transformations as well as for market and reverse claims. Today, CBF already provides the related references in the corresponding settlement instructions and the custody reporting. Therefore, this enhancement is relevant for customers acting in DCP mode. Further enhancements that are introduced with the CR “T2S-0686-SYS (Enhanced reporting for market claims and transformations)” will be implemented by CBF with the Release in November 2019.

Furthermore, starting 10 June 2019, in sese.020 (“Securities Transaction Cancellation Request”) the “Corporate Action Event Identification (CorpActnEvtId)” and the reason code for cancellation due to transformation will be supported by T2S as additional information. CBF already transmits the event identification in its reporting, therefore customers acting in ICP mode need only to consider the new reason code “CAND/CANT”.

Based on the CBF deployment approach for the message flow via LIMA and the processing via KADI the T2S enhancements will be delivered in a two-steps approach:

  • Customer acting in ICP mode
    With the launch of the CBF Release on 13 May 2019, the new cancellation code “CAND/CANT” is introduced. Depending on the security (ISIN), the corporate action type and a possible ongoing transformation period, the new value can be transmitted at earliest for:
    • OTC instructions not eligible for a settlement on T2S, Monday, 13 May 2019, once such an event is cancelled using MT548 (“Settlement Status and Processing Advice”).
    • OTC instructions to be settled via T2S, Monday, 10 June 2019, via MT548 (“Settlement Status and Processing Advice”).
  • Customers using ClearstreamXact
    Already today, status reporting for instructions that settle on the Creation Platform (ICSD) shows for the cancellation of transformations the value "CAND/CANT". Instructions that are settled on T2S can show the value on Saturday, 8 June 2019 at the earliest, after 17:25.
  • Customers acting in DCP mode
    Once the T2S Release 3.0 has been deployed, T2S will be in the position to transmit the “CorpActnEvtId” in sese.024 and sese.025 and will advice cancellation requests due to transformations that were created by CSDs (using sese.020) via the status reporting (sese.024). Customer acting in DCP mode can receive this additional information for OTC instructions and stock exchange transactions (LION), in the course of Monday, 10 June 2019, earliest.

With T2S Release 3.0, the ISO transaction type code “BIYI” (Buy-In) will be introduced in ISO 20022. This enhancement is based on the T2S Change Request “T2S-0607-SYS”.

  • Customers acting in ICP mode can use the newly introduced ISO transaction code “BYIY” via CBF’s automated connectivity channels (ISO 15022) and CASCADE Online Functionality (HOST / PC) starting Monday, 10 June 2019, at 05:00.
  • Customers acting in DCP mode must have the related privilege “SIM_UBIYI” before a related message will be accepted by T2S. In the week prior to the T2S Release Weekend, CBF will enrich the existing privileges for all customers acting in DCP mode. On Monday, 10 June 2019, customers can start with the configuration of their message subscriptions, if required.

Based in the T2S Change Request “T2S-0652-SYS: Increase the limit of distinct values for the parameters relating to message subscriptions”, T2S will allow all T2S Actors to configure their message subscriptions. The number of distinct values for parameters will increase from 50 to 100. Customers acting in DCP mode can create or modify their message subscription on their demand as the usage of the enhancement is classified as optional service enrichment. The updated service will be available after the deployment of the T2S software.

Customers acting as a Cash-DCP are requested to consider the customer information provided by the assigned National Central Bank (NCB) due to the enhancements in T2S Cash Reporting which will be active as of business day 10 June 2019. This is valid for:

  • T2S-0542-SYS “Enrich the Bank to Customer Debit/Credit Notification (camt.054) with data elements securities account Owner Parent BIC and securities account Owner Party BIC” and
  • T2S-0590-SYS “Include information from the underlying settlement instruction in the T2S ‘Bank to customer statement (camt.053)’ and in the T2S ‘Bank to customer debit credit notification (camt.054)’ messages for Settlement, Custody/Asset servicing and Reconciliation”.

Customers using T2S Auto-Collateralisation who would like to use the T2S enhancement for a mimum amount for auto-collateralisation transactions are requested to contact the assigned NCB that the settings can be enabled for a processing as of 10 June 2019.

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.