CBF Release November 2022 – Modifications for SWIFT Release
Clearstream Banking AG, Frankfurt1 informs customers about the modifications in the CBF automated connectivity channels due to the upcoming SWIFT Release in November 2022. The enhancements will be available after the introduction of the release as of
Sunday, 20 November 2022
Background
Based on the analysis CBF has conducted for the SWIFT November Release 2022 on settlement messages, CBF will enhance the scope of services for customers acting in ICP mode. The newly introduced tags will be available via the automated connectivity channels SWIFT, MQ, and File Transfer (FT).
Implementation approach
CBF supports the “Partial Release request2” functionality offered by TARGET2-Securities (T2S) and provides the related status reporting (MT548 - Settlement Status and Processing Advice and / or MT537 - CBF Statement of Pending Transactions) if the customer has subscribed the message configuration. With SWIFT Release 2022, the scope of services in status reporting will be enhanced. The new indicator "PREL" (Partially Released) confirms that an instruction for a Partial Release request has been accepted. This flag is provided for pending instructions as status information (:24B::PEND// or :PENF//) and when displaying the nominal (:36B:). This means that the current status reporting for Partial Release requests regarding:
- “PEND//FUTU” and providing the quantity in field :70D: using the value “PRQT” will in future be reported using “PEND//PREL” and showing the quantity in field :36B::PREL//
- “PENF//CYCL” providing the quantity in field :70D: using the value “PRQT” will in future be reported using “PENF//PREL” and showing the quantity in field :36B::PREL//
After the implementation of the project "Stock Exchange Transactions Go OTC (SET-GO)", the indicator for a market price using the value "RATE" can be taken from the scope of services. In the future, the market price in the field "Transaction Details Narrative (:70E::TRDE)" will be removed from the message types MT536 - Statement of Transactions and MT537 - CBF Statement of Pending Transactions. This update will be provided with the implementation of the SWIFT Release in November 2022.
Format description
With the introduction of the indicator "PREL" (Partially Released), enhancements in status reporting for pending instructions are necessary. In the following the format descriptions after the introduction of the release are shown.
MT537 – CBF Statement of Pending Transactions
The modification concerns the fields:
- Quantity of Financial Instrument to be released (:36a:) in the sequence:
- Optional sub sequence C2 (16R:TRANSDET) Transaction Details
- Reason Code (:24B:) in the sequences:
- Optional sub sequence C3a (16:REAS); and
- Optional sub sequence D1a1B1a1 (16:REAS), for “PENF” only.
MT548 – Settlement Status and Processing Advice
The modification concerns the fields:
- Quantity of Financial Instrument to be released (:36a:) in the sequence:
- Optional sub sequence B (16R:SETTRAN)
- Reason Code (:24B:) in the sequences:
- Optional repetitive sub sequence A2a (16R:REAS); and
- Optional repetitive sub sequence C1a1B1a1 (16R:REAS), for “PENF“, only.
Samples
Quantity of Financial Instrument to be released:
:16R:SETTRAN
:36B::SETT//UNIT/100
:36B::PREL//UNIT/65
Pending reporting:
:16R:REAS
:24B::PEND//PREL
:70D::REAS///SETS 000/MATS 002/PROS 100/PEND PREL/PRQT 65
Customer impact
The SWIFT enhancement will affect customers acting in ICP mode and using the T2S functionality “Partial Release request”. As of 20 November 2022, the updated status reporting can be transmitted if the Partial Release request has been accepted by T2S. This means that the instruction with the specified nominal can be processed in the next “Partial Settlement Window”. Even if there are modifications in the status reporting for pending instructions, the reporting for removal of a Partial Release request by setting the status "on hold" as well as the settlement confirmation remain unchanged. Also, the settlement reporting for instructions subject to the T2S partial settlement is not affected by the change.
With the introduction of the indicator "PREL" to display the released nominal, the information of the nominal in the field "Reason Narrative (:70D:)" using the value "PRQT" is no longer necessary. CBF aims to remove this information with the release in November 2023 and kindly asks customers to prepare for the update well in advance.
Customer simulation
The simulation activities will be conducted in a “free simulation mode”. The already established static data for CBF accounts and the related connectivity settings in the CBF customer simulation environment (IMS23) remain unchanged. The customer SWIFT interface, from where the test messages will be sent and received, must support the “SWIFT future mode”.
According to the ECB planning, the updated software for the T2S Release 6.2 will be installed on Friday, 23 September 2022, in the T2S Pre-Production Environment (UTEST). Immediately after the software deployment of T2S, CBF will start to update its software in IMS23 and will close the simulation environment until Thursday, 21 October 2022. After that, IMS23 will be available for testing. A dedicated webpage provides information on the availability of the CBF customer simulation environment (IMS23).
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Particular questions will be routed to the experts of the CBF Release Management 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.
2. More details regarding the T2S functionality “Partial Release request” can be found as attachment.