T2S settlement day: settlement process during night-time

Transcription

1 T2S day: process during night-time 1

2 Settlement process during night-time: contents of the presentation This part summarizes the UDFS v1.0 description of the process during the night-time: as of the start of day period until the maintenance window describing the content and dependencies of each process. The description considers the processing of corporate actions (CA) in this framework with: The mechanism to handle the precedence of CA related The availability of the whole time period until the maintenance window for all CA related, DVP related and any other. 2

3 Settlement process during night-time : day periods available The start of day period: Starts after the successful completion of the previous end of day period and after 6:45 pm Is followed by the night-time period The night-time period: Starts after the successful completion of the start of day period Is followed by the real-time period or the maintenance window depending on the timing of the end of the night-time period The real-time period: Starts after the end of the night-time or the maintenance window: o In case the night-time completes before 3.00 a.m., real-time period begins before the start of the maintenance window at 3.00 a.m. Is followed by the end of day period 3

4 Settlement process during night-time : day periods available T2S Periods Start of day Night time Real time Maintenance window T2S Timeline 6:45 p.m. Start of day Description of T2S Timeline 7:30 p.m.start of the first night-time cycle Change of business date Preparation of the night time First night time Cycle Last night time Cycle Start of real-time if end of last night-time cycle before 3:00 a.m. Real time processes including real time preparation and real time 3:00 a.m. start of maintenance window System maintenance 7:00 pm final deadline for CMS feed 7:30 pm INDICATIVE timing so far SEQUENCE to qualify inx types versus CYCLE to qualify seq type RTS starting directly after NTS when possible Maintenance Window slot 5:00 a.m. start of real-time if not started before maintenance window, else continuation of real-time Real time Real time processes including real time preparation, real time and partial windows 4

5 Settlement process during night-time: start of day period Available application processes in T2S T2S Periods T2S Processes T2S Detailed Processes after the close of the previous day. & not before 6:45 Close of previous day Change of business date Change of business date with creation of a new day schedule Interface Static Data Management Settlement Liquidity Management Information Management Start of day Preparation of the night time Revalidation of instructions/ restrictions/amendments/hold and release/cancellation instructions At 7:00 p.m. Final deadline to accept and process data feeds from collateral management systems and payment/ banks for the current business date Valuation of securities positions Valuation of collateral eligible instructions Application processes available but NO BOOKING Final deadline for receiving prices = start time to process them 5

6 Settlement process during night-time : main features of the night-time period Two distinct cycles The first night-time cycle including 5 sequences mainly dedicated to settle transactions: cash related (0), CA related (1) *, FOP related (2) *, CBO related (3) *, DVP related (4)* The last night-time cycle, including 4 sequences mainly dedicated to settle transactions: DVP related (4) *, with partial (X), multiple liquidity provider related (Y), liquidity transfer related (Z). Standard processing of the sequences Batch of transactions selected prior to the start of the sequence Reporting related to the performed during the sequence Processing of messages queued during the All other application processes, but the posting (UDFS ) and optimisation (UDFS ), are available on a continous basis during the night-time period *And all unsettled transactions from previous sequences 6

7 Processes along one sequence (example Sequence 1) Availability of reporting from PREVIOUS SEQUENCE Application process available for SI, SR,LT input to be settled in NEXT SEQUENCE ( ) Selection of transactions of the SEQUENCE CATEGORY and of the previous sequence BATCH SETTLEMENT of the selected transactionsfor the Sequence 1 Processing of SD maintenanace and SI maintenance queued during 7 the Sequence 1

8 Settlement process during night-time: Processing corporate actions The processing of corporate actions raises the following needs: The processing of CA must precede any other in the night-time The participants must be able for the during the night-time (i) to assess that the processing of CA is achieved (ii) before starting to process other Mechanisms have been introduced in UDFS v1.0 to ensure the precedence of CA related : Restrictions rules set by CSDs, combined with the use of transaction codes CORP and CLAI allow to process CA related instructions only on a given ISIN Ability for the relevant CSD to remove the restriction once all CA related instructions are settled in order to allow of all other instructions on the considered ISIN Description of the process during the night: The processing of CA related instructions can start as of Cycle 1/sequence 1 The processing of DVP related instructions can occur during both Sequences 4 of the NTS period, provided the restriction mentioned above is removed by the CSD for the considered ISIN A complementary Real-time period may be available for the processing of DVP should there be any time left before the maintenance window Settlement results are communicated at the end of each sequence to the T2S Actors 8

9 Settlement process during night-time: Processing corporate actions End of start of day period Settlement sequence 0 Process queued messages Settlement sequence 1 Ability to apply INTRADAY SECURITY Sequence 0 reporting RESTRICTION on all SI but CA related until Sequence 4 of Cycle1. Sequence 1 reporting Sequence DEDICATED to CA related transactions Process queued messages Settlement sequence 2 Process queued messages Or even until Sequence 2 reporting Sequence 4 of Cycle 2.. Settlement sequence 3 Sequence 3 reporting Process queued messages Or even until Real-time period Settlement sequence 4 Sequence 4 reporting ( ) ( ) 9

10 Settlement process during night-time: Switchover to realtime period ( ) Night time Last night time Cycle Start of real-time if end of last night-time cycle before 3:00 a.m. Real time Real time processes including real time preparation and real time 3:00 a.m. start of maintenance window Maintenance window System maintenance 5:00 a.m. start of real-time if not started before maintenance window, else continuation of real-time Real time Real time processes including real time preparation, real time and partial windows Real time closure processes ( ) 10