Clearstream Banking AG, Frankfurt1 informs customers that TARGET2-Securities (T2S) will reduce the recycling period for pending matched instructions in the T2S Pre-Production environment (UTEST).
The updated recycling period of 63 T2S settlement days will apply in the testing environment effective
Thursday, 18 January 2018 for
T2S settlement date Monday, 22 January 2018
Background
With the start of the community testing for T2S Wave 4, CBF informed customers that the performance of all T2S test environments was impacted by the high volume of pending instructions in the T2S pre-production environment (UTEST). The high volume still leads to delays in the End of Day (EoD) as well as Start of Day (SoD) processing of all T2S test environments.
During 2017, the T2S Service Desk reported a number of delays caused by the high volume of pending instructions. Hence, it was proposed by all involved parties to introduce mitigating actions.
Functional modification
Based on the decision made by the Operational Managers Group (OMG), additional optimisation procedures will be introduced in UTEST, that is,
- Reduction of the recycling parameter for matched instructions. The parameter will be set at 63 settlement days. The date information provided in the field "Intended Settlement Date (ISD)" will be used as the baseline value.
- Removal of T2S events related to the regular recycling steps (RREC at 06:552 and 12:10) and the start of the partial settlement window (SAPT at 12:30).
Impacts on customer simulation activities
Similar to the automated cancellation of unmatched instructions, where customers receive a system generated cancellation message after five calendar days, cancellation messages for matched instructions will be provided. T2S will send the cancellation after the 63. settlement day has been completed.
As the CBF customer simulation environment (IMS23) is connected to UTEST, the cancellation message will be processed accordingly and forwarded to customers acting in ICP mode. Customers acting in DCP mode will receive the messages from T2S and, if the “YCON” flag is set, from CBF, too.
Customers acting in DCP may update their event-driven reporting and message flows if they are related to the recycling period or partial settlement window as outlined in the previous section.
CBF would like to remind customers to actively monitor the number of pending instructions and ensure that not more than 500 pending instructions are available in the test system. In order to determine the number, all instructions need to be considered independent from
- The status (matched, unmatched, hold, release);
- The business procedure (for example, OTC domestic or cross-border, stock exchange trades (LION or CCP instructions), Corporate Actions); or
- The connectivity channel (ICP or DCP mode).
This limitation applies to all CBF accounts3 of a customer that are set up in the CBF customer simulation environment (IMS23) for testing.
Contact
Please contact our Connectivity Support teams for questions regarding the CBF customer simulation environment (IMS23). Particular questions related to the dedicated test cases related to T2S Releases will be routed to the experts of the T2S Settlement Functionality team.
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1. Clearstream Banking AG (“CBF”) with registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. All times are given in Central European Time (CET).
3. All accounts = Any CBF account whether it is a main account (XXXX 000) and a sub-account (XXXX yyy).