Note: This announcement, originally published on 3 June 2022, and updated on 21 June 2022 has been further updated to provide more details about the ESMIG configuration for CBF customers acting in DCP mode.

Clearstream Banking AG, Frankfurt¹ informs customers about deployment activities of CBF and T2S enhancements that will be introduced on

the weekend 2 and 3 July 2022
for business day Monday, 4 July 2022

In addition to the information on the production launch of T2S Release 6.0, this Announcement shows the intended timeline and modifications in the T2S Operational Day between Friday, 1 July, and Monday, 4 July 2022. At the same time during this weekend, the migration activities of Phase 2 (CSD Migration) for the project Stock Exchange Transactions Go OTC (SET-GO) will be performed. Information on the steps of this migration can be found in the Stock Exchange Transactions Go OTC - Customer Migration Guide.

Impacts on the CBF business day on the Deployment Weekend

Due to the “T2S Release Weekend Schedule” the timeline of the operational day and respective reporting during the deployment weekend will be changed. With this Announcement, CBF customers receive the current schedule² that highlights the processing during the deployment weekend. Based on the most recent information provided, the following assumptions can be made:

• Customers acting in ICP mode and using the CBF connectivity channels via SWIFT, MQ, File Transfer (FT) or ClearstreamXact need to consider that any instruction transmitted between Friday, 1 July 2022, at 20:00, and the finalisation of the Clearstream Banking implementation phase on Sunday, 3 July 2022 at around 06:00, will be queued. Only customers transmitting instructions via SWIFT to CBF will receive an acknowledgement upon receipt of the instruction based on their existing message subscription.
• The opening hours of the Clearstream Online functionalities will be modified. The CASCADE HOST / PC frontend and Xact Web Portal will be available supporting all functions until Friday, 1 July 2022 at 20:00. After this, customers are requested not to enter, modify, or cancel instructions. During Sunday, 3 July 2022, Clearstream Online functionalities will be open from 06:30 to 11:00.
• Customers acting in ICP mode and using an automated connectivity channel (SWIFT, MQ or File Transfer (FT)) for the receipt of 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 6.0 timeline, files might be empty and will be transmitted only if empty reports are ordered. In addition, the customer’s technical infrastructure should accept and store the provided files. Otherwise, the information / data will be lost. CBF recommends accepting files at any time during the T2S Release Weekend.
• On Friday, 1 July 2022, at around 16:00, CBF will start the cancellation of pending LION instructions in custody types collective safe custody (CSC) and non-collective safe custody via T2S (NCSC-T) in T2S. Prior to the cancellation, CBF will take a data snapshot of these instructions so that reversible actions can be taken in the course of the migration. At this point in time, the automated connectivity channels (SWIFT, MQ, File Transfer (FT)) for LION will be closed. If customers send modification requests for LION instructions after the announced closing, then they cannot be processed by CBF anymore. The related rejection will be transmitted at around 19:00.
• Customers using the LION Online functionality will be able to retrieve information under transaction “KVLI” until 19:00, whereas the maintenance transactions “KVLA” and “KVLS” will already be blocked from 15:45.
• On Friday, 1 July 2022 at 20:00, T2S will close the online functionality (T2S GUI, U2A) and the “Straight Through Processing” channels (STP, A2A). On Sunday, 1 July 2022 at 11:00, T2S will start its maintenance window. Incoming instructions that will reach T2S during the deployment phase or maintenance window are queued. 
• With T2S Release 6.0, the European Central Bank (ECB) will introduce the Eurosystem Single Market Infrastructure Gateway (ESMIG). The current gateway will be closed. Hence, the access to the message queue is disabled. In the timeframe from 20:00 until the new gateway is activated at around 22:00, no instructions can be sent to T2S.

Overview T2S instruction processing on Friday, 1 July 2022

Timeline planned	Connectivity channel	Instruction processing
Until 20:00	Current T2S connectivity channel is open	Incoming instructions will be accepted and forwarded to processing
Between 20:00 and 22:00	Both the existing and the new connectivity channel through ESMIG are not available for future processing	Incoming instructions are lost and not processed
At around 22:00	The new connectivity channel through ESMIG is open	Incoming instructions are queued for processing until the end of the T2S Release 6.0 deployment activities
	The previous T2S connectivity channel will be out of service	Instructions will not be accepted anymore

Customers acting in DCP mode should have concluded the testing regarding the technical connectivity through ESMIG before its start in production. CBF provided information on testing possibilities and timeframes in separate customer information. In order to ensure access through the new ESMIG gateway, the rights management needs to be adapted. The assignment of privileges and / or the extension of roles is in the responsibility of the administrators. CBF recommends establishing the rights management in production as early as possible before Monday, 4 July 2022, so that normal business can be ensured.

Since Monday, 27 June 2022, DCP administrators can allocate the new privileges (T2S_Access, CRDM_Access and BDM_Access) to users in production. Moreover, CBF enhanced the existing role named “Settlement Queries DCP”. The two new ESMIG privileges BDM_Access and T2S_Access have been added allowing immediate access to BDM and T2S GUI for all user owning this role. That is, as of Monday, 4 July 2022, users already owning the role “Settlement Queries DCP can access the new infrastructure.

The implementation approach ensures that DCP Administrators can allocate the new ESMIG privileges BDM_Access and T2S_Access to any user – even though the user owns the role “Settlement Queries DCP”. For any user not owning the role “Settlement Queries DCP” and requiring access to BDM and / or T2S GUI the DCP Administrator needs to grant ESMIG privileges BDM_Access and / or T2S_Access. The privilege CRDM_Access is not part of any additional role besides the role “Access Rights Admin./Basic DCP". If required, the DCP Administrator has to grant the privilege CRDM_Access to that / these user(s).

T2S plans to enable a "DCP Window" allowing the modifications of routing options that shall be available on Saturday, 2 July 2022 from 11:55 to 15:00. This activity is only required for DCPs who would like to change their “T2S Party Technical Address (PTA)”, if not the existing T2S A2A configuration remains valid. 

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, 3 July 2022, after CBF has started to provide the settlement results in ICP mode.

According to the latest SET-GO implementation plan, the following details can be provided:

• Along with the SET-GO project, as of Friday, 1 July 2022, at around 19:00, instructions from non-CCP stock exchange trades in custody types CSC and NCSC-T will no longer be processed via LION. As of Sunday, 3 July 2022, planned for 06:30, they will be forwarded via the Stock Exchange Transaction Interface (SETI) to T2S for settlement.
• On Sunday, 1 July 2022, at around 09:00, the processing of the daily trades provided by the stock exchanges on Friday, 1 July 2022 at around 22:30, will commence. SETI will send instructions from non-CCP stock exchange trades according to their custody type to the associated settlement platform. This means that SETI will forward the transactions for securities in non-collective safe custody (NCSC) to Creation for further settlement later than usual.
• The implementation of SET-GO Phase 2 marks the beginning of the transition phase until the LION application is decommissioned. In this phase, the existing message flow from LION and the extended message configuration of the MT537 - CBF Statement of Pending Transactions are available. The extended OTC reporting can be received as of Sunday, 3 July 2022. Further information on this change can be found in the related Announcement (D22006). As at present, the MT537 will continue to be generated from LION. On Sunday, 3 July 2022, as of 08:00, the transactions in custody types CSC and NCSC-T cancelled in the course of the SET-GO migration (Phase 2) will be displayed in this report with the deletion indicator "LC". On the following two business days (Monday, 4 July 2022, and Tuesday, 5 July 2022), the cancellation status will be reported with the indicator "LG". Thereafter, this reporting will be sent out empty during the transition period, which is expected to end in November 2022, unless the message configuration is cancelled by the customer beforehand.

Similar to previous deployment weekends, the timeline for some Clearstream services will be impacted:

• For the processing via KADI (CBF in its role as Issuer CSD) and Custody (OneClearstream markets), the following processing applies: Settlement instructions resulting from corporate actions processing will be created on Friday, 1 July 2022, in line with the regular business day and presented to T2S before the system will be closed for the deployment activities. On this processing day, customers will receive Corporate Actions messages (MT564, MT568) only from 23:00, deviating from the regular transmission time (that is, 19:30). Additionally, the transmission times of Corporate Action Confirmations (MT566) will be modified. The reporting, which is generated via Custody and KADI can be provided on Sunday, 3 July 2022, after 06:00 until the maintenance windows will start (at around 11:00).
• In general, the processing at Clearstream Banking S.A., Luxembourg (CBL) is not impacted by the T2S Release Weekend procedure. The procedures in CBL regarding the settlement of DvP instructions in foreign currencies, stock exchange trades in non-collective safe custody (NCSC) netted by Eurex, as well as for the markets included in the Local Market Partner (LMP) concept, will continue to run in the existing business as usual mode. But the securities settlement of instructions against a foreign currency will shift. The cash management at CBL will be conducted 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 transmits the release instruction for the “CoSD Hold” to T2S. Therefore, 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. Customer 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, 3 July 2022.

CBF customer communication during the Deployment Weekend

Before and during the deployment weekend, “Operational News” will be published on the Clearstream website, to which CBF customers can subscribe to be informed about the progress of the implementation of T2S Release 6.0 and the SET-GO CSD Migration (Phase 2). 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 My Clearstream section under Subscriptions / Real-time alerts.

Indicative timeline for customer communication
"Deployment Activities Release Weekend July 2022”^a

Operational News	Milestone	Due date / time (CEST)
#1	SET-GO: Pre-Migration – Maintenance of static data account	Monday, 20 June 2022, 14:30
#2	CBF: July Release Weekend Schedule – Final update	Monday, 27 June 2022, 14:30
#3	SET-GO: Pre-Migration – Cancellation request of outdated pending LION instructions	Friday, 1 July 2022, 09:00
#4	SET-GO: Migration – Automated cancellation of pending LION instructions	Friday, 1 July 2022, 16:00
#5	CBF: Completion end of day processing	Friday, 1 July 2022, 19:30
#6	T2S: End of processing of incoming messages	Friday, 1 July 2022, 20:00
#7	T2S: Green Light for software deployment	Friday, 1 July 2022, 20:30
#8	SET-GO: Receipt of daily SE trade confirmations	Friday, 1 July 2022, 23:00
#9	T2S: Opening of the U2A connectivity channel via ESMIG	Saturday, 2 July 2022, 12:10
#10	T2S: Transmission (A2A) Settlement Messages / Reports via ESMIG	Saturday, 2 July 2022, 21:45
#11	SET-GO: Transmission of Migration Reports 1 and 2	Sunday, 3 July 2022, 06:00
#12	SET-GO: Go decision - Green Light start transmission to T2S	Sunday, 3 July 2022, 06:30
#13	T2S: Start of Transmission (A2A) CBF Settlement Reporting	Sunday, 3 July 2022, 08:00
#14	SET-GO: Transmission of Migration Report 3	Sunday, 3 July 2022, 11:00
#15	T2S: Completion of Real-Time Settlement (RTS) and start of T2S and CBF maintenance windows	Sunday, 3 July 2022, 11:15
#16	SET-GO: Finalisation migration activities	Sunday, 3 July 2022, 14:00

a. The rows in pink concern SET-GO, the rows in blue concern T2S/CBF.

Once an above-mentioned milestone has been achieved, CBF will promptly publish the “Operational News” with the updated status in English. An alert will inform subscribed users about the publication of the “Operational News”.

CBF Indicative Timeline for Deployment Weekend

The attached timeline indicates the changes in the CBF and T2S operational schedule during the deployment weekend. The timeline created by CBF is based on the “T2S Release 6.0 Deployment Playbook” published by ECB. This plan will cover the period from Monday, 20 June 2022, to Monday, 4 July 2022, at 06:00. In addition, details will be shown related to the LION reporting for system wise cancelled instructions on Monday, 4 July 2022 and Tuesday, 5 July 2022. Events and processes before and after this specific period can be considered as unchanged: 

Click to enlarge image

Contact

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Particular questions related to the introduction of the T2S Release 6.0 or the project SET-GO will be routed to the experts of the related teams.

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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.

2. All times in the Announcement are specified in Central European Summer Time (CEST).