Clearstream Banking AG, Frankfurt1 informs customers that CBF will align the matching tolerance amounts for foreign currencies in CASCADE with the respective matching tolerance amounts of TARGET2-Securities (T2S). The aligned tolerance amounts will apply in CASCADE effective
Monday, 15 January 2018
Background
According to the “T2S Manual of Operational Procedures (MoP)”, at least once a year T2S will update the tolerance amounts for foreign currencies. The underlying foreign exchange rates are not published in the T2S system as such and are not accessible to the users.
The Operational Managers Group (OMG) agreed to update the foreign currency matching tolerance amounts. Based on this decision, T2S changed the underlying configuration in the system. The modification became active on 29 December 2017.
Functional modification
The matching tolerance amounts are available in CASCADE Online, in CASCADE HOST via the transaction “KVAV” function “IW” and in CASCADE PC via “bank-information / currency parameters”.
The table below shows the T2S tolerance amounts that will be displayed in CASCADE. Additionally, Clearstream Banking created the new section T2S-related information.
Foreign currency matching tolerance amounts as of 29 December 2017
Currency | Country | T2S tolerance amount | Status | |
AUD | Australian Dollar | Australia | 39.00 | Updated |
CAD | Canadian Dollar | Canada | 38.00 | Unchanged |
CHF | Swiss Franc | Switzerland | 29.00 | Updated |
CNY | Chinese Renminbi | China | 195.00 | Updated |
CZK | Czech Koruna | Czech Republic | 643.00 | Updated |
DKK | Danish Krone | Denmark | 186.00 | Updated |
EUR | Euro | European monetary area | 25.00 | Unchanged |
GBP | Pound Sterling | UK | 22.00 | Updated |
HKD | Hong Kong Dollar | Hong Kong | 232.00 | Updated |
HUF | Hungarian Forint | Hungary | 7,809.00 | Updated |
JPY | Japanese Yen | Japan | 3,365.00 | Updated |
MXN | Mexican Peso | Mexico | 573.00 | Updated |
NOK | Norwegian Krone | Norway | 249.00 | Updated |
NZD | New Zealand Dollar | New Zealand | 42.00 | Updated |
PLN | Polish Zloty | Poland | 105.00 | Updated |
RUB | Russian Rouble | Russia | 1,734.00 | Updated |
SEK | Swedish Krona | Sweden | 250.00 | Updated |
SGD | Singapore Dollar | Singapore | 40.00 | Updated |
TRY | New Turkish Lira | Turkey | 113.00 | Updated |
USD | US-Dollar | USA | 30.00 | Updated |
ZAR | South African Rand | South Africa | 377.00 | Updated |
The update of matching tolerance amounts has no impact on instructions that have already been matched.
Further approach
Based on the MoP, at least once a year the rates will be updated by T2S. If market turbulences and significant exchange rate fluctuations occur, individual rates may be changed before the next planned update.
Since CBF migrated to T2S in February 2017, the matching and settlement procedure are conducted on the T2S settlement platform. From a functional point of view, the tolerance amounts that are set up by T2S are not required to be maintained in CASCADE any longer and can be deleted in the system.
CBF informs customers that with a following CBF Release the existing online transaction “KVAV” function “IW” respectively “bank-information / currency parameters” will be decommissioned. CBF will advise the decommissioning date in due time. In future, the foreign currency matching tolerance amounts can be retrieved from the newly created web page, only.
CBF customers acting in DCP mode can query the matching tolerance amounts by using the "Tolerance Amount Query". The related privilege has been granted with CBF’s migration to T2S.
Contact
Please contact for inquiries related to the scope of T2S the Client Services teams. Particular questions will be routed to the T2S Settlement Functionality team and answered by our experts.
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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.