Processing of information related to “Place of Trade”

04.12.2019

Following Announcements D19036 and D19058, Clearstream Banking AG, Frankfurt1 informs customers about an extension in the processing of information related to the “Place of Trade” effective on

Monday, 9 December 2019

Background

Since Monday, 18 November 2019, after the implementation of the change request "T2S-0606-SYS: T2S should maintain and report information related to 'Place of Trade' and 'Place of Clearing' of a settlement instruction consistently across T2S messages", T2S provides information on the "Place of Trade" in the settlement reporting. With this change, customers acting in DCP mode transmit all values allowed by SWIFT for the field “Place of Trade” to T2S.

In line with T2S, CBF extends the service offering for the processing of information related to the trade place locations so that all codes provided by SWIFT can be provided via the automated connectivity channels in ICP and DCP mode.

Scope

Already today, the market identifier code (MIC) of an exchange can be optionally provided by the customer in the field ":94B::TRAD//EXCH/" in ICP mode or in DCP mode using “<Id><MktIdrCd> of <MktTpAndId> with <Tp><Cd><EXCH>”. For any other “Place Code (Type)” in field “:94B::TRAD//” respectively in “<Id><Desc> of <MktTpAndId>”.

According to the SWIFT message catalogue, the following “Place Codes” are available for field “94B::TRAD//” and will be processed in the future using the below rules:

Place Code (Type)DescriptionNotes
EXCHStock ExchangeIf the code "EXCH" is used, only allowed MIC values can be transmitted

OTCO

Over the Counter

CBF uses the value "1GFF" for processing of collateral management and securities lending instructions. This value must not be provided by customers and will result in a rejection of the instruction. Other values are accepted by CBF and are not transferred to CASCADE's instruction database.

PRIM

Primary Market

Additional values (narrative or description) are neither validated by CBF nor transferred to CASCADE's instruction database.

SECM

Secondary Market

VARI

Various

The current processing of the “Place Code = EXCH” remains unchanged. All other information on the different trading locations provided via an automated connectivity channel in ICP and DCP mode will not be considered. That is, the information that is not stored by CBF as instruction detail is also not available for downstream processes. Therefore, this detail cannot be:

  • Provided in reporting transmitted via the automated connectivity channels (SWIFT, MQ, File Transfer (FT));
  • Displayed in the CASCADE Online functionality (HOST / PC).

Based on the changes for the new service, CBF will modify the reporting of instructions from collateral management and securities lending. Currently, such instructions show the “Place Code = EXCH". From 9 December 2019, the value "OTCO" will be used for this purpose. The reporting will provide, "94B::TRAD//OTCO/1GFF" instead of “94B::TRAD//EXCH/1GFF”.

Next steps

The interim solution regarding the validation of the further MIC values is not affected by the above-mentioned functional enhancement and will be decommissioned on Monday, 13 January 2020.

Contact

Please contact our Client Services teams for questions regarding the functionality. Questions related to the technical connection can be addressed to our Connectivity Support teams. Particular questions related to the processing of information regarding the “Place of Trade” will be routed to the experts of the T2S Settlement Functionality team.

------------------------------------------

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.