T2S Settlement processing at Easter and 1 May in 2018
LuxCSD informs customers about the securities settlement activities on the following public holidays:
- Good Friday, 30 March;
- Easter Monday, 2 April; and
- Labour Day, 1 May 2018.
On these days, the TARGET2-Cash (T2) system will be closed, whereas TARGET2-Securities (T2S) will be open for free of payment (FOP) settlement activities only. The settlement procedure will be conducted similarly to the T2S processing in 2017.
The T2S connectivity channels for T2S In-CSDs and customers acting in ICP/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, 30 March, Easter Monday, 2 April and Labour Day, 1 May 2018, LuxCSD settlement and reporting systems will be available for customers, but T2S will reject deliveries against payment (DvP) instructions against EUR that indicate an intended settlement date (ISD) of one of these public holidays. EUR DvP instructions submitted to LuxCSD will also be rejected. As T2 will be closed and DvP instructions cannot be settled, the T2S auto-collateralisation functionality will not be executed. FOP settlement instructions in T2S will settle as usual.
LuxCSD recommends that customers review the liquidity needs for the respective settlement days on the basis of available cash forecasts and determine the liquidity requirements.
These three days might also lead to custody-related security payments. In some circumstances, these days can be defined as record date for custody. If the announced record date is a public holiday according to the T2 calendar, the previous business day will be processed as record date.