Activation CBF service “T2S Auto-Collateralisation on Main Account”
In 2018, Clearstream Banking AG, Frankfurt1 provided timely information on implementation activities of the future CBF functionality “T2S Auto-Collateralisation on Main Account”. The service will become active with the CBF Release scheduled on
19 November 2018
Resolution of T2S Problem Tickets
In Announcements RS18098 and RS18180, CBF informed customers about the pending resolution of T2S Problem Tickets (PBIs), which may lead to an incorrect processing of instructions for the initial registration of registered shares resulting from corporate actions (“FMB-KE”). Additionally, these PBIs prevented the introduction of the CBF functionality “T2S Auto-Collateralisation on Main Account”.
With T2S Release 2.2., the most recent published PBI "203517 - Pooled settlement restrictions settled with zero position although sufficient position was available” will be resolved.
Extensive testing confirmed that the underlying software will be deployed by T2S on 17 November 2018. Therefore, from 19 November 2018, the CASCADE-RS functionality “initial registration” will be available again without restrictions and the new CBF service “T2S Auto-Collateralisation on Main Account” can be offered.
CASCADE-RS
Pending the resolution of the aforementioned PBIs on T2S, CBF introduced an interim solution for the initial registration procedure for unregistered positions in corporate actions (FMB-KE). With the deployment of the modified T2S software, the original automated process can be reinstalled and the interim procedure is no longer required. From 19 November 2018, the regular registration procedure for positions in FMB-KE can be conducted. CBF would like to thank customers for their cooperation during the previous months.
CBF service “T2S Auto-Collateralisation on Main Account”
Customers wishing to use the new CBF service “T2S Auto-Collateralisation on Main Account” via an existing CBF main account are advised that a modification of the static data for the account will become necessary. The related re-configuration form is available on the Clearstream website. Clearstream assists customers with transformation questions and coordinates the necessary steps with all involved parties (for example T2S and the national central banks). Customer should contact their Relationship Officer to agree on a transformation date.
CBF service “T2S Auto-Collateralisation via Sub-Account”
Although the new collateralisation service will be introduced on a CBF main account, the existing service, which allows collateralisation via a dedicated sub-account for the T2S Auto-Collateralisation functionality remains. No transformation procedure is necessary if a customer wants to continue to use the T2S Auto-Collateralisation service on sub-accounts. Customers interested in changing to the new CBF service should consult their Relationship Officer.
With the implementation of the CBF service "T2S Auto-Collateralisation on Main Account", the service offering for the existing sub-accounts that are set up for the provision of collateral for T2S Auto-Collateralisation will be enhanced. From 19 November 2018, registered shares can also be held in these sub-accounts.
CBF customer simulation
CBF supports a simulation of the transformation activities and procedures in test environments of CBF (customer simulation, IMS23) and T2S (Pre-Production, UTEST). Similar to production, a dedicated test plan can be set up for each CBF customer. The necessary details for a participation in the simulation are available in the CBF Customer Simulation Period November Guideline.
Interested customers can email their request to participate in the simulation to the Clearstream Connectivity Support team (connectfrankfurt@clearstream.com).
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 CBF service “T2S Auto-Collateralisation on Main Account” will be routed to the experts of the T2S Settlement Functionality team.
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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.