T2S Release 4.2 – Information on production launch and SWIFT Maintenance Release – Update II


Note: This announcement and the related attachments, originally published on 18 September 2020 and amended with functional details on 23 October 2020, have been updated for the upcoming Release Weekend.

Clearstream Banking AG1, Frankfurt informs customers about the upcoming TARGET2-Securities (T2S) Release 4.2. According to the T2S Release Concept the release will be deployed on

the weekend 21 and 22 November 2020
for business day, Monday, 23 November 2020

T2S Release 4.2 – Scope

Initially, for T2S Release 4.2, 14 T2S Change Requests (CRs) were approved for the implementation in production. Due to changes in the implementation of the Central Securities Depositories Regulation (CSDR)2, the Change Request “Send status update message upon transition to ‘Failing’" (T2S-0692-SYS) will be introduced only with T2S Release 5.0 in June 2021. The scope of T2S Release 4.2 has been modified accordingly. 13 CRs are approved at T2S Steering Level. In addition, the resolution of various T2S Problem Tickets (PBIs) will be delivered. 

With this Announcement, CBF provides the scope elements for T2S Release 4.2. 

  • T2S Release 4.2 Overview Change Requests
    The latest descriptions of the originally approved T2S CRs are provided in the first list attached. In this list, the Change Request T2S-0692-SYS is highlighted and shows the new implementation date. Four of the listed CRs may require functional modifications for CBF customers acting in ICP mode. Customers acting in DCP mode will find an indication whether a T2S CR requires an update of the XSD files (please refer to column “XSD Change for DCP”). More details on these requirements can be found in the related ECB documentation. In addition, the XSD files modified for T2S Release 4.2 were made available for download via MyStandards (SWIFT) end of July 2020.
  • T2S Release 4.2 Problem Tickets
    Based on the latest reporting provided by T2S, nine PBIs4 have been identified that might have impact on CBF customers acting in ICP and / or DCP mode. They are provided in the second list attached. The last published list (version 1.0) has been reviewed on the basis of information provided by T2S in the beginning of November 2020. No additional PBIs have been included in the scope of T2S Release 4.2 that may impact customers acting in ICP and / or DCP mode. CBF continues to assess the information provided for the upcoming release. Experience shows that until a T2S release is launched, additional tickets can be authorised for the implementation. Therefore, this Announcement will be updated over the coming months and, if necessary, supplemented with a file of the prioritised fixes.

    CBF’s assessment for these Problem Tickets shows that the fixes will not require software changes in CBF. Customers are recommended to validate these scope elements and check whether operational and / or functional modifications in their procedures are required. 

T2S Release 4.2 – Transition plan

The installation of T2S Release 4.2 into production is foreseen on 21 and 22 November 2020. The deployment will be executed via the “Release Weekend Schedule”. In line with the deployment approach of previous T2S Releases, the schedule for the T2S Operational Day will be modified due to the implementation activities. The deployment will start after the end of day procedure (“T2S End of Day“) for Friday, 20 November 2020 has been completed. On Monday, 16 November 2020, CBF will provide an updated version of the indicative timeline for changes in the operational day during the deployment weekend. 

The below table provides an overview of the important T2S milestones:

T2S Service Transition Plan - Activity for T2S Release 4.2


Latest publication date for updated Scope defining set of documents

Friday, 7 August 2020

Service Transition Stage Report for R4.2 in Pre-Production (UTEST)

Monday, 14 September 2020

OMG Go / No-Go decision to deploy R4.2 to Pre-Production (UTEST)

Tuesday, 15 September 2020

Deployment to Pre-Production (UTEST)

Friday, 25 September 2020

End of testing of R4.2 scope elements in Pre-Production (UTEST)

Wednesday, 4 November 2020

Market Infrastructure Board (MIB) approves the R4.2 deployment to Production

Tuesday, 10 November 2020

Deployment of R4.2 to Production environment

Saturday, 21 November 2020

Table 1 – T2S Release 4.2 Implementation timeline

CBF services – Enhancements for T2S Release 4.2

Based on the final functional description provided by T2S, CBF identified the system requirements for November Release 2020. CBF aims to absorb the impact on customers acting in ICP mode as much as possible. Functional enhancements provided by T2S will be integrated into CBF's service offering, but the use of these changes is optional for customers. Therefore, CBF will enhance the CASCADE Online functionality (HOST / PC) and provide new layouts of the screens without requiring customers to enter additional data. In addition, the extended services can be used via the automated connectivity channels (SWIFT, MQ or File Transfer (FT)). The new fields are offered as an option so that an implementation can take place on the customers demand.

Based on CBF’s implementation approach, the following T2S Change Requests will be introduced to customers:

T2S-0713-SYS “Alignment of T2S Messages with ISO Standards Release 2018 – 2019 and migration to ISO registered versions” 

T2S regularly updates the specification of the SWIFT ISO message types used (fields and qualifiers). Currently, the T2S messages are based on the ISO standards of the release 2016/2017. With the November Release 2020, the enhancements of the years 2018 and 2019 are incorporated in the scope of services. Against this background, further ISO Transaction codes (ISO15022 Field :22F::SETR//) provided:

  • SWIF stands for switch from. It is used in the funds industry if there is a change of an investment from one sub-fund to another sub-fund (redemption leg);
  • SWIT stands for switch to. It is used in the funds industry if there is a change of an investment from one sub-fund to another sub-fund (subscription leg).

CBF will include these transaction types in the table of accepted qualifiers on 23 November 2020 . Additional validations will not be put in place, that is customers can use the new values in the message types MT540 - MT543 on their demand. 

With the implementation of T2S Release 3.0, CBF provided the "Buy-In Indicator" in the CASCADE instruction management. The ISO 15022 standard defines the value "BYIY" for this business case. This value currently differs from the value "BIYI" provided in the ISO 20022 standard. 

T2S announced a harmonisation of the values with a future release and that long-term, only the value "BYIY" will be supported. This alignment will take place with the November 2020 release. Customers acting in ICP modus can still send the value “BYIY” to CBF. The previous conversion for settlement in T2S becomes inapplicable. In future, customers acting in DCP mode need to send the value “BYIY” instead of “BIYI”.

During the release weekend, T2S will in all instructions systematically convert the ISO Transaction code “BIYI” into the new value “BYIY”. From that moment, T2S will use in outbound messages exclusively the new value. Therefore, the T2S instruction will differ content-wise from the instruction set up originally by CBF. Hence, a future processing of the T2S messages is not possibly. As CBF stores all instructions set up in DCP modus in its data repository, these instructions are excluded from processing as well.

Analysis shows that the number of instructions with a Buy-in indicator is extremely small and there are many business days without any instruction with such an indicator. Against this background, CBF asks the customers to cancel all such instructions on Friday, 20 November 2020, until 6 pm, and to re-instruct them on Monday, 23 November 2020, if necessary.

T2S-0728-SYS “T2S must be able to identify, store and report settlement related information to settlement instructions created as a result of partially successful buy-in”

As per the Central Securities Depositories Regulation (CSDR), additional instructions are set up in case a buy-in is only partially successful. These instructions need to show a tag giving the central depository (CSD) the possibility to identify the additional instructions accordingly. In order to meet this requirement, T2S will establish the transaction type “BSSP -Partial successful buy-in“ with the November 2020 release.

CBF will consider the requirements resulting from the implementation of the CSDR in the CASCADE instruction management. From 23 November 2020, the new transaction type “BSSP” will be supported and incorporated in the processing. 

This transaction type can only be used with CASCADE instruction types AA01 / AA02. Even if the underlying transaction type of a buy-in is linked to an instruction against payment (DvP), CBF will allow the qualifier for instructions free of payment (FoP) as well. This process is supported throughout, so that these instructions will be considered in the processing by the passive matching service. This means that receipt instructions set up by CBF (RFoF) will also bear this qualifier.

The new transaction type “BSSP -Partial successful buy-in“ is neither established in ISO15022 nor in ISO20022. Hence, after the November 2020 release, it can be used only through the SWIFT admitted Data Source Scheme (DSS). 

CBF will introduce the value “BSSP” in the field Settlement Transaction Condition Indicator (:22F:) in the automated message exchange (SWIFT, MQ, File Transfer (FT)) for the message types used in the settlement of instructions (MT536, MT537, MT540-548 and MT586). In instructions sent by customers acting in ICP mode (MT540-MT543), the new value can be used together with DSS code “REGL” (:22F::STCO/REGL/BSSP).

For customer using the CASCADE online functionality (Host / PC), a new field „PARTIAL BUYIN IND“ will be provided in the input screen for security transfers (“KVEE / WE“) or for matching instructions („KVEE / MI“). This field will be shown in the online functionality for instruction information (“KVAI”) and securities movements (“KVDU”) as well.

This is the draft of the new entry screen (page 2) for security transfers:


CBF Service – Enhancements for the SWIFT Release November 2020

In line with the modifications advised by SWIFT for the Release November 2020, CBF will enhance the service scope for customers acting in ICP mode. The newly introduced tags will be available via the automated connectivity channels (SWIFT, MQ or File Transfer (FT)). The new fields are offered as an option to allow an implementation on the customers demand.

Introduction of new qualifiers for the acknowledgement and matching time stamps

Since T2S Release 3.0 customers acting in ICP mode are informed about the time stamps for acknowledgement and matching in the field :70E::SPRO (“Settlement Instruction Processing Narrative”) of the SWIFT message types MT536 (“Statement of Transactions“) and MT537 (“OTC Statement of Pending Transactions“) and in the field :70E::SPRO of the SWIFT message type MT548 (“Settlement Status and Processing Advice“). With the implementation of the November Release 2020, respective qualifiers for the acknowledgement and matching time stamps will be introduced in field :98C: (“Date/Time”): 

  • ASTS will be used to indicate the “Acknowledged Status Timestamp”
  • MTCH will be used to show the “Matched Status Timestamp” 

The format of the option C is defined with :4!c//8!n6!n (Qualifier)(Date)(Time). The use of these changes is optional for customers.

CBF will introduce these tags in message types MT536 (“Statement of Transactions“), MT537 (“OTC Statement of Pending Transactions“) and MT548 (“Settlement Status and Processing Advice“).

During an interim period until June 2021, customers in ICP mode can either use the details provided via the narrative or the dedicated tags. After 14 June 2021, the option to provide the time stamps for acknowledgement and matching via field :70E: will no longer be available.

Enhancement of MT530 (“Transaction Processing Command”) for buy-in processing

With the Central Securities Depositories Regulation (CSDR) the buy-in process will gain in importance. Against this background, new processes will be established at the CSDs and their customers. Based on the results of discussions in the Securities Market Practice Group (SMPG), MT530 (“Transaction Processing Command”) will be enhanced for the

  • Field 22F: Indicator BYIY
    In the mandatory sequence B (“Request Details”) the field :22F: (Indicator) must be specified one of the following three status concerning a buy-in (BYIY):
    • BSSY indicates “successful”;
    • BSSN indicate “unsuccessful”;
    • BSSP indicates “partially successful”.
  • Field 19a: Amount: Cash compensation amount
    In the “optional repetitive sequence C” (“Additional Information”) the optional field :19A: (“Cash Compensation Amount”) will be enhanced with the qualifier “BCAM”. The format is defined as 4!c//[N]3!c/15d. 
  • Field 90A: Price: Buy-in Price
    In the “optional repetitive sequence C” (“Additional Information”) a new qualifier for buy-in price (BYIY) will be established to define the actual price, the price below par and the price above par. The price will be expressed in percentage points. It provides two options
    • Option A 
      This option is for percentage-quoted securities. Hence, the price is defined in basis points (definition: 4!c//4!c/[N]15d). It offers the values:
      • DISC - price in basis points below par;
      • PRCT - actual price (par) in basis points;
      • PREM - price in basis points above par;
      • YIEL - yield.
    • Option B 
      This option is for securities quoted per unit. Hence, the price is defined as an amount (definition: 4!c//4!c/3!a15d). It offers the values:
      • ACTU - Actual price expressed as an amount of currency per unit or per share.
      • DISC - price expressed as a discount;
      • PREM - price expressed as a premium.

CBF will introduce the new tags related to the buy-in procedure in MT530 (“Transaction Processing Command”). The usage of MT530 and the new fields is optional for CBF customers.

Although the new fields will be included in the structure of the MT530 with the Release in November 2020, because of the SDR postponement CBF does not expect to receive MT530 with the new codes. The introduction of the new fields serves CBF for getting prepared to the new regulation.

A detailed information regarding the correct way the fields need to be filled for MT530 Buy-In messages will be provided by the CSDR project at a later stage.

Enhancement of MT566 (“Corporate Action Confirmation”) for reconciliation purposes

Along with the implementation of the “Future German Model on Corporate Action Cash Payments in T2S” in June 2020, the references of the underlying instructions in a compensation booking were changed. Since then, the field :20C:: RELA indicates the MITI (Market Infrastructure Transaction Identifier, unique T2S reference) instead of the T2S Actor Reference.

Within the scope of the release in November 2020, SWIFT will introduce the field :20C::MITI in message type MT566 Corporate Action Confirmation. This enhancement will be included in the CBF services. The definition of the field :20C: with the MITI reference of the underlying instruction will continue to read :4!c//16x.

In order to easily reconciliate corporate action confirmation messages (MT566) for market claims and transformations with the related settlement instructions (MT54x or sese.023), CBF will report in future the MITI in field :20C: in sequence A1 of the MT566 under the correct qualifier MITI instead of the qualifier RELA currently in use. This process will be applied to customers acting in ICP as well as in DCP mode and to the following instruction types:

  • OTC instructions including cross-border settlement (AA01/AA02);
  • Stock exchange trades (LION, AA10).

As today, CBF will indicate to customers in field :13B::LINK the message type of the underlying instruction. For customers acting in ICP mode the related ISO15022 message types (MT540-544) will be shown. Furthermore, the references mentioned in field :70E:: remain as they are.

This is an example of an MT566 with the new definition of field :20C::MITI in “Sequence A1”:

:16R: GENL
:20C: :CORP//1202021033359700
:20C: :SEME//KADL050055180172
:23G: NEWM
:98C: :PREP//20201021050055
:16R: LINK
:13B: :LINK/DAKV/sese.024
:20C: :MITI//2009294791881829
:16S: LINK
:16S: GENL

Field :13B::LINK shows the message type of the underlying instruction. To customers acting in DCP mode sese.032 or sese.024 will be reported, to customers acting in ICP mode the ISO15022 message types MT540, MT541, MT542 or MT543.

Customer simulation

Customers may enter test cases in the CBF Customer Simulation environment (IMS23) in regard to the enhancements in the CBF functionality. 

In accordance with the ECB transition plan, the updated software for T2S Release 4.2 was implemented on Friday, 25 September 2020 in the T2S Pre-Production Environment (UTEST). 
CBF will support the simulation activities of its customers in the period from 26 October to 20 November 2020. Customers will be offered a ”guided simulation”. The Customer Simulation Guideline with the corresponding simulation calendar was published on 6 October 2020. The participation in the CBF customer simulation is optional. Customers can execute their test cases on their demand. 

Scheduling overview

The following timetable shows the milestones of the upcoming CBF Release in November 20206

October 2020

2 October

Publication of “CBF Customer Simulation Guideline” and the registration form for participation in the “CBF Guided Customer Simulation”

16 October

Submission date for the registration form for participation in the “CBF Guided Customer Simulation”

23 October

Publication of „Indicative Timeline for the T2S Release 4.2 Deployment Weekend”

26 October

Start of the “CBF Guided Customer Simulation”

November 2020

9 November

CASCADE-PC version 9.9 is ready for download. The installation of this version is mandatory.

16 November

Publication of „Timeline for the T2S Release 4.2 Deployment Weekend”

20 November

End of the „CBF Guided Customer Simulation“

23 November

Go-live T2S Release 4.2 and functional launch of T2S and SWIFT related enhancements in CBF


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 T2S Release 4.2 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.
2. Please note that CSDR has been shifted into 2021. On 18 September 2020, the OMG decided nevertheless to install the CSDR Scope in the T2S Simulation Environment UTEST. As Clearstream will not provide CSDR test opportunities for the November 2020 Release, the CSDR Project will inform at a later stage when it can be tested in 2021.
3. Details about the scope elements of T2S Release 4.2 are published on the ECB’s website.
4. Based on the T2S Status Reporting end of August 2020.
5. The ISO Transaction Code REBL will be introduced with the T2S Change Request T2S-0623-SYS (Standing rebalancing of securities positions).
6. The current Xemac client (software package version 5.11) remains unchanged and can continue to be used.