MT530 Transaction Processing Command – Service upgrade
Clearstream Banking AG, Frankfurt1 informs customers about the future use of the “T2S Actor Reference” in the message type related to the modification of a settlement instruction in the SWIFT standard ISO 15022. The extended service offering is effective
27 September 2021
Background
The TARGET2-Securities (T2S) settlement platform offers the service to provide instructions with the flag "already matched". This entry has the effect that the customer’s creating an instruction also sets up the counter-instruction so that the matching is already given. Therefore, the T2S fees for matching do not apply when using the flag. With the implementation of T2S Release 5.0 in June 2021, the existing service of T2S will be extended to cross-border instructions.
Since the migration from CBF to T2S, CBF offers customers acting in ICP mode the usage of the flag "already matched" via CASCADE Online functionality (HOST / PC) or automated connectivity channels. From 14 June 2021, the service can also be used for cross-border instructions with T2S In-CSDs linked to CBF.
At present time, modifications for settlement instructions of the CASCADE instruction types AA01 / AA02 can only be provided by using the CASCADE instruction number ("KP reference"). As of 27 September 2021, the CBF service offering will be supplemented for CASCADE instructions with the flag "already matched". After implementation, using the automated connectivity channels (SWIFT, MQ and File Transfer (FT)) modification requests can be transmitted with the “T2S Actor Reference”.
Implementation approach
The existing functionality of the message type "MT530 Transaction Processing Command" is enhanced for settlement instructions with the flag "already matched" by using the “T2S Actor Reference”. Once implemented, the new referencing is available for modification requests of CASCADE settlement instructions with the instruction types AA01 / AA02 (that is, Domestic OTC instructions including instructions sent by Eurex Clearing AG (ECAG) related to the Trade Date Netting via C7 SCS, and cross-border instructions) can be used for the following changes:
- Party Hold;
- Partial Release Request;
- Partial Settlement Indicator;
- Settlement Priority; and
- Instruction linking.
As the modification request must be uniquely addressed, following information is required for target instructions with the flag "already matched":
- Reference Owner BIC
The required BIC11 is shown in "MT548 Settlement Status and Processing Advice" in "Subsequence A1 Linkages", that contains the field “:20C::PCTI” using the field “Linked Message (:13B::LINK/DAKV/)". - T2S Actor Reference (TxID)
The corresponding reference is provided in the "MT548 Settlement Status and Processing Advice" in the "Optional Sequence A1 Linkages" using the field "Processor Transaction Identification (:20C::PCTI)". - Indicator for the instruction to be changed:
- Receipt instruction = "RECE“;
- Delivery instruction = "DELI“;
- Delivery and receipt instruction = "PCTI".
If a customer wishes to modify a counterparty instruction, a Power of Attorney (PoA) must be stored at CBF. CBF will reject modification requests that do not fulfil this requirement. This means that such instructions will be rejected via “MT548 Settlement Status and Processing Advice" indicating the error codes:
- KV7072F POA für LAST liegt nicht vor //
There is no Power of Attorney for the account to be debited;
or - KV7073F POA für GUT liegt nicht vor //
There is no Power of Attorney for the account to be credited.
The table below gives an overview of the use of the Reference Owner BIC, the T2S Actor Reference, and the indicator for the instruction to be changed:
Modification related to | Reference Owner BIC | T2S Actor Reference | Indicator of related instruction |
Located in | Mandatory Sequence A General Information | Optional Sequence B1 Linkages | Optional Repetitive Sequence C |
Delivery instruction | :95P::ACOW// | :20C::PREV// | :20C::ACOW// |
Receipt instruction | :95P::ACOW// | :20C::PREV// | :20C::ACOW// |
Delivery and receipt instruction | :95P::ACOW// | :20C::PREV// | :20C::ACOW// |
This extended referencing using the T2S Actor Reference in field “Previous Message Reference (:20C::PREV)“ can also be used for instructions that have not been created with the flag "already matched". If in field “Account Owner (:20C::ACOW)” the indicator:
- “RECE“ or „DELI“ is used, the related receipt or delivery instruction will be modified. The modification is only accepted, if the indicator and the T2S Actor Reference correspond to the referred delivery or receipt instruction.
- "PCTI“ is used, the related delivery or receipt instruction will be modified. However, the counterparty instruction remains unchanged in the instruction database.
Message formats
Below some examples of MT530 are provided allowing the modification of a settlement instruction with the flag “already matched” using the “Previous Message Reference”.
Change of Party Hold indicator for a receipt or delivery instruction
| Message fields and contents | Comment |
:16R:GENL | |
:20C::SEME//123456 | |
:23G: NEWM | |
:98A::PREP//20210406 | |
:95P::ACOW//DEBANKFFR12 | Reference Owner BIC |
:97A::SAFE//33330000 | |
:16S: GENL | |
:16R:REQD | |
:20C::PREV//SP581005E1K2BG | T2S Actor Reference |
:22F::SETT//YPRE | YPRE for release or NPRE for Hold |
:16S: REQD | |
:16R: ADDINFO | |
:20C::ACOW//DELI | Identicator DELI for delivery instruction or RECE for receipt instruction |
:16S: ADDINFO |
Change of Settlement Priority for a delivery and receipt instruction
SWIFT Feld und Inhalt | Bemerkung |
:16R:GENL | |
:20C::SEME//123456 | |
:23G: NEWM | |
:98A::PREP//20210406 | |
:95P::ACOW//DEBANKFFR12 | Reference Owner BIC |
:97A::SAFE//33330000 | |
:16S: GENL | |
:16R:REQD | |
:20C::PREV//SY581005E1K223 | T2S Actor Reference |
:22F::PRIR//0003 | Modification of Settlement Priority using the value „3” |
:16S: REQD | |
:16R: ADDINFO | |
:20C::ACOW//PCTI | Identicator PCTI for delivery and receipt instruction |
:16S: ADDINFO |
Customer impact
The usage of the "MT530 Transaction Processing Command" and the new modification indicators is still optional for customers using the CBF automated connectivity channels.
The service will be available from 27 September 2021 and can be used by customers at any time after that date. It is not necessary to update the existing connectivity settings, that is, the latest configuration remains valid. Furthermore, the reporting for modification requests remains unchanged by this adaptation. This means, in "MT548 Settlement Status and Processing Advice", the status information is provided in the existing structure and the corresponding format.
In addition, customers aiming to provide cross-border instructions with the flag "already matched" have to inform the T2S In-CSD linked to CBF and / or their couterparty in a cross-border market in time so that the related PoA can be set up on T2S. Further information is available in the Announcement for T2S Release 5.0 (D21004).
In a first step, this service upgrade will be made available for the technical connectivity to CBF via LIMA. Clearstream plans to offer this functionality as well for ClearstreamXact and will publish a related announcement in due time.
Customer simulation
Customers have the opportunity to enter test cases in the CBF customer simulation environment (IMS23) with regard to the enhanced functionality. The updated software will be available for testing from Monday, 5 July 2021. Customers can execute their test cases on their demand.
Further information
In case of questions, please contact your Relationship Officer. Particular questions related to the introduction of the upgraded “MT530 Transaction Processing Command” will be routed to the experts of the CBF Settlement Functionality team.
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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.