T2S processing on Easter 2017
Clearstream Banking AG, Frankfurt1 informs the customers about the securities settlement activities on
Good Friday, 14 April 2017 and Easter Monday, 17 April 2017.
On these days, TARGET2-Securities (T2S) will be open for free of payment settlement activities only and TARGET2-Cash will be closed.
CBF requests all customers who regularly enter delivery against / with payment instructions to prepare for a particular liquidity management procedure taking place on
Tuesday, 18 April 2017.
General framework on processing days 14 and 17 April 2017
Based on the specifications provided by ECB, T2S will be open for the settlement of Free of Payment instructions (FoP). The T2S connectivity channels for T2S In-CSDs and customers acting in DCP mode will be available. Instructions can be sent to the T2S settlement platform and T2S will provide the reporting according to the T2S Operational Day.
On Good Friday (14 April 2017) and Easter Monday (17 April 2017), all CBF systems will be available for the customers. Customers acting in ICP mode can transmit their instructions to CBF. Clearstream’s real-time interface towards T2S will be active. CBF’s real-time and standard reporting will be provided as defined with the migration to T2S in Wave 4.
Delivery against / with Payment instructions (DvP2)in EUR with ISINs in collective safe custody (CSC) will not be executed as TARGET2-Cash is closed on these processing days. Therefore, T2S will reject DvP instructions that indicate an Intended Settlement Date (ISD) of 14 or 17 April 2017. T2S will transmit the rejection code “MVSD403 – The Intended Settlement Date of the Settlement Instruction against payment is not a T2S Settlement Date for the Currency”. DvP instructions submitted to CBF will be rejected, also. The error message “KV6128F The settlement day is not a business day in TARGET2/ T2S” will be shown to the customers.
As TARGET2-Cash will be closed and DvP instructions cannot be settled, the T2S Auto-Collaterali-sation functionality will not be executed on the Easter holidays, that is Good Friday, 14 April 2017 and Easter Monday, 17 April 2017.
CBF will be open for FoP settlement. As Clearstream Banking S.A., Luxembourg, (CBL) will be also open on these days, there can be settlement of DvP instructions in non-EUR currencies and / or in ISINs in non-collective safe custody (NCSC).
Even though T2S is open for settlement, T2S In-CSDs that have already migrated can define whether they would like to support FoP settlement on these days. The following table indicates which T2S In-CSDs and T2S Out-CSDs, that have a link to CBF currently, plan to support the FoP service.
Table 1: Overview CSD opening days on Easter Holidays
CSD | Processing on Easter | CBF cross-border link |
BOGS, Greece | Closed | No |
CDCP, Slovakia | Closed | No |
CBF, Germany | Open | -- |
Depozitarul Central, Romania | Closed | No |
DTCC, U.S.Aa) | Closed on Good Friday | Yes |
Euroclear, ESES Markets | Closed | Yes |
Iberclear, Spainb) | Closed | Yes |
Interbolsa, Portugal | Closed | No |
KDD, Slovenia | Open | No |
Keler, Hungary | Closed | No |
LuxCSD, Luxembourg | Open | Yes |
Malta Stock Exchange, Malta | Closed | Yes |
Monte Titoli, Italy | Closed | Yes |
NBB-SSS, Belgium | Closed | No |
OeKB, Austria | Open | Yes |
SIX-SIS, Switzerlandc) | Open | Yes |
VPLux, Luxembourg | Open | No |
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a. T2S Out-CSD setup applies.
b. Iberclear will become T2S In-CSD with T2S Final Wave in September 2017; currently set up as T2S Out-CSD.
c. SIX-SIS executes settlement as T2S In- and Out-CSD.
This announcement provides an overview for the following services:
- Liquidity management activities for Tuesday, 18 April 2017;
- Processing of settlement instructions in the domestic market and with T2S In-CSDs open on Good Friday, 14 April 2017 and Easter Monday, 17 April 2017;
- Processing of settlement instructions with T2S In-CSDs, DTCC and Iberclear closed on Easter holidays 2017;
- Processing of settlement instructions with CBL;
- Custody processing;
- Collateral management services (Xemac®);
- Lending Management Services (LMS);
- CBF reporting;
- Availability of client support on Easter holidays 2017.
The details can be found below.
Liquidity management activities for Tuesday, 18 April 2017
In general, T2S and CBF will provide cash forecast reporting as usual on Maundy Thursday (13 April 2017), Good Friday (14 April 2017) and Easter Monday (17 April 2017). The reporting will be provided to the predefined times3.
Customers can retrieve the CBF Cash Forecast via the CASCADE Online functionality (TRAN: KUCF, FC: CF).
Due to the closing of TARGET2-Cash the content of the cash forecast cannot provide the number that is requested for Tuesday, 18 April 2017. This leads into the situation that CBF recommends to the customers to calculate their liquidity needs for the settlement date Tuesday, 18 April 2017.
Content of the CBF Cash Forecast for Tuesday, 18 April 2017 reported on:
- Maundy Thursday, 13 April 2017 and Good Friday, 14 April 2017
The current day T2S cash forecast (“Abwicklung Pending”) will cover pending DvP instructions with an ISD before 18 April 2017. As Good Friday and Easter Monday are no cash settlement days, no T2S figures for this day will be available in the following day T2S cash forecast (“Abwicklung nächster Tag”). The CBF cash forecast will already consider the CBF custody payments and instructions from Eurex Clearing AG for Tuesday, 18 April 2017. Hence the amounts in the cash forecast reporting can changed from Thursday to Friday if DvP instructions are newly entered or cancelled between 13 April 2017, 17:00 and 14 April, 17:00; - Easter Monday, 17 April 2017
The current day T2S cash forecast (“Abwicklung Pending”) will cover pending DvP instructions with an ISD before 18 April 2017. This amount might change from Friday to Monday, if DvP instructions with an ISD before 18 April 2017 are newly entered or cancelled between 14 April 2017, 17:00 and 17 April 2017, 17:00. The following day T2S cash forecast (“Abwicklung nächster Tag”) will cover pending DvP instructions with an ISD 18 April 2017. The CBF Forecast will show the CBF custody payments and instructions from Eurex Clearing AG for Tuesday, 18 April 2017, as already shown on Thursday and Friday. On Easter Monday, this CBF cash forecast report is complete and can be used to verify the results calculated by our customers.
According to the CBF cash management service, for the business day Tuesday, 18 April 2017 the existing standing orders will be considered by CBF and the predefined values will be used to generate a liquidity transfer based on the cash forecast of Thursday, 13 April 2017. Hence, CBF customers using a standing order based on the CBF cash forecast shall either enter a single liquidity transfer on their demand via CBF CASCADE Online functionality (TRAN: KNEE, FC: EL) or use the functionality provided by their National Central Bank (NCB).
Single liquidity transfer requests entered in the CBF cash application for the business day Tuesday, 18 April 2017 need to be entered until Maundy Thursday, 13 April 2017, 18:30, latest. Please note that in this case available standing orders will be disregarded, that is, the customer must enter the total liquidity requirement in CASCADE as CASCADE will not accept a value date Good Friday or Easter Monday. If these days are set the error message “KN1572F Datum ist kein Werktag // Date is not a working day” will be displayed.
If a customer decides to instruct a liquidity transfer via the NCB only the additional liquidity need compared to the standing order in CASCADE has to be ordered. The respective deadlines for the injection of liquidity transfer have to be considered. More information will be available via the NCB.
CBF will initiate the liquidity transfer requests on Thursday, 13 April 2017 towards TARGET2-Cash. TARGET2-Cash will receive the liquidity transfer with the value day, Tuesday, 18 April 2017 and the respective NCB will manage the liquidity injections towards the related T2S Dedicated Cash Account (DCA).
Processing of settlement instructions in the domestic market and with T2S In-CSDs open on Good Friday, 14 April 2017 and Easter Monday, 17 April 2017
CBF and their cross-border link partners LuxCSD, OeKB and SIX-SIS will be open for FoP settlement activities during Easter 2017 in line with T2S. Customers can transmit FoP instructions for the domestic market as well as for these cross-border markets with an ISD on Good Friday or Easter Monday.
Any CBF instruction type which is designed for FoP can be transmitted in ICP or DCP mode. CBF supports, for example, transfers to the German Federal Debt Administration (AA03), usage of pledge instructions (AA04 / 05), GBC instructions (AA07 / 09) and bond stripping (AA14 / 15).
The CASCADE Registered Shares functionality for registration and de-registration will be available, too. CBF informed the registrars about the holidays in 2017 and expects that – like in the past - responses / feedback for such instructions will be given in time.
Physical deliveries of securities as well as deposit and withdrawal instructions (AA16 / 18) will not be processed. During the Easter holidays the securities counter for physical deliveries of securities will be closed. However, the Electronic Documentation Transmission (EDT) portal for the various EDT services will be technically available for uploads and CSV file transfer, but no processing and consequently no admission to Collective Safe Custody will take place. With regard to the value dates and submission deadlines for issuance instruction we kindly ask the customers to refer to respective announcements on public holidays related to New Issues services offered by CBF.
T2S will conduct the related FoP settlement activities (that is, validation, matching, settlement and reporting). The settlement and reporting will be executed based on the T2S Operational Day schedule.
Please note that neither CASCADE nor T2S will allow to store the value date Good Friday or Easter Monday as ISD in DvP instructions. Such instructions entered in ICP mode will be rejected by CASCADE with the error message “KV6128F Settlement-Day ist kein T2- / T2S-Business-Day // The settlement day is not a business day in TARGET2 / T2S” and hence will not be forwarded to T2S. Customers acting in DCP will receive the rejection from T2S “MVSD403 – The Intended Settlement Date of the Settlement Instruction against payment is not a T2S Settlement Date for the Currency”.
Processing of settlement instructions with T2S In-CSDs, DTCC and Iberclear closed on Easter Holidays 2017
As indicated in Table 1: Overview CSD opening days on Easter Holidays most of the T2S In-CSDs, DTCC and Iberclear will be closed for settlement activities on Easter 2017.
Any settlement instruction – even though it was transmitted in the past and the ISD has a date prior to 14 April 2017 – will be blocked for settlement until 18 April 2017.
- For T2S In-CSDs the result of a settlement attempt or of the instruction revalidation procedure will be reported with “SXAA0nn - Settlement instruction is not settled because of an intraday restriction (…)” by T2S, that is, the instruction remains pending;
- The existing procedure related to public holidays with the Spanish market remain unchanged. Settlement instructions towards Iberclear will be acknowledged by CBF. A further settlement processing can be achieved on Tuesday, 18 April 2017, only;
- The existing procedure related to public holidays with the US market remain unchanged. DTCC is closed on Good Friday and FoP settlement can be executed on Easter Monday, 17 April 2017.
Customers can transmit FoP and DvP instructions to such cross-border markets during these days. However, the ISD must be different to Good Friday and Easter Monday. If the counterparty instruction is available on T2S, matching will occur and the reporting will be provided upon the defined subscription rights from T2S.
Please note that CBF counterparties acting in ICP mode in such cross-border markets might not receive allegements information via their CSD during the Easter holidays as their settlement and / or reporting applications are closed. This is different for counterparties acting in DCP mode. They can receive the regular T2S reporting according to their subscription rights.
Processing of settlement instructions with CBL
CBF will be open for OTC as well as Stock Exchange instructions in NCSC securities. These instructions can be settled via the Creation platform on Good Friday, 14 April 2017 and Easter Monday, 17 April 2017.
The Creation platform will be open to settle DvP instructions of CSC and NCSC ISINs in foreign currencies based on the regular service levels. The securities leg of CSC ISINs will settle on T2S as T2S conducts for such instructions a FoP settlement procedure even though the instruction is entered as DvP instruction in CASCADE.
Custody processing
CBF will conduct custody processing according to the “KADI event schedule”. Therefore, all events with an entitlement date Good Friday, 14 April 2017 and Easter Monday, 17 April 2017 will be executed. In general, the securities leg will settle on the value date at T2S as CBF generates its corporate actions instructions (AA01 and AA13) as FoP, only. The cash leg will not settle till Tuesday, 18 April 2017 using CBF’s cash processing cycle “DD1”, because TARGET2-Cash is closed during the Easter holidays. CBF will transmit the corporate actions confirmation (MT566) once T2S or TARGET2-Cash provided the settlement results.
The table below provides an overview of security and cash processing resulting from custody processing on T2S and TARGET2-Cash:
Table 2: Overview custody processing during Easter Holidays
Interest for Bund Payment | Not applicable | Via T2S PFoD; settlement day | Processing will be executed during the NTP |
Redemption for Bund Payment | On value date | Via T2S PFoD; settlement day | Processing will be executed during the NTP |
Interest for corporate bonds or dividend payments in Euro | Not applicable | Via CBF DD1 | -- |
Redemption for corporate bonds in Euro | On value date | Via CBF DD1 | -- |
Interest for corporate bonds or dividend payments in foreign currency | Not applicable | Via Creation on value date | -- |
Redemption for corporate bonds in foreign currency | On value date | Via Creation on value date | -- |
Non-income events without cash compensation | On value date | Not applicable | -- |
Non-income events with cash compensation | On value date | Via CBF DD1 | -- |
Market Claims / Transformation for pending settlement instructions | Based on pending instruction related to the event | If applicable via CBF DD1 | Upon successful settlement on Good Friday / Easter Monday |
With regard to the TEFRA D certification period, at the end of the 40 days the positions will be moved into the respective CBF sub account (xxxx 671). This procedure will be applicable during the Easter holidays, too.
Collateral management services (Xemac®)
CBF collateral management services will be open on Good Friday, 14 April 2017 and Easter Monday, 17 April 2017. As T2S supports FoP settlement CBF customers can maintain their collateral holdings, that is, transfers of positions into and out of the Xemac pool are possible. Also, substitutions can occur. Xemac reporting will be transmitted as for a regular business day.
Since on Good Friday and Easter Monday claim amount changes in Xemac in favour of Deutsche Bundesbank will neither be considered at Bundesbank nor in TARGET2-Cash, does CBF recommend that customers do not initiate any claim amount changes in Xemac on these days.
CBF likewise recommends that customers leave claim amounts in favour of Eurex Clearing AG unchanged on these days as Eurex Clearing AG will not be processing any instructions on these days. For further information please refer to the Eurex Clearing AG circular 025/17.
Lending Management Services (LMS)
Lending services will be supported on Good Friday, 14 April 2017 and Easter Monday, 17 April 2017, because these activities are executed via FoP (AA11 / 12) settlement procedures.
CBF applications and reporting
On Good Friday, 14 April 2017 and Easter Monday, 17 April 2017 all CBF systems including the CASCADE Online functionality (HOST / PC) will be available for the customers.
The CBF real-time and standard settlement reporting will be provided according to the existing CBF business day schedule. Customers, who subscribed an empty file reporting might receive such data.
Detailed information on the reporting schedule can be found in the Detailed Functional Description (DFD) “CBF Business Day”.
Availability of client support on Easter Holidays 2017
During the Easter holidays the Clearstream’s Client Services team can be reached during their regular service times. Questions sent to the T2S-Support team will be answered starting on Tuesday, 18 April 2017.
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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. In this announcement for Delivery versus Payment, Receive versus Payment, Delivery with Payment and Receipt with Payment instructions the abbreviation “DvP” is used.
3. More information on the CBF schedule can be found in the DFD Business Day.