T2S Release 3.2: Xact Web Portal and SWIFT ISO 15022 modifications
LuxCSD1 informs customers about the upcoming TARGET2-Securities (T2S) Release 3.2. According to the T2S Release Concept the T2S Change Requests and the issue resolution for Problem Tickets will be deployed on
the weekend 16 and 17 November 2019
for business day, Monday, 18 November 2019
Xact Web Portal and SWIFT ISO 15022 will be enhanced to enable the access to services provided in the scope of T2S Release 3.2. This Announcement details the enhancements related to:
- T2S CR 606 - T2S should maintain information related to ”Place of trade” and ”Place of Clearing”;
- T2S CR 609 - T2S must be able to report ”PENF” settlement status for settlement instructions for which settlement at the Intended Settlement Date (ISD) is no longer possible;
- T2S CR 653 - Partial Release functionality.
Description of the changes
T2S CR 606 – T2S should maintain information related to ”Place of Trade” and ”Place of Clearing”
The Central Securities Depository Regulation (CSDR) requires an enhancement of the instruction details. The “Place of Trade” and “Place of Clearing” fields are to be supported when entering the instruction and included in the settlement reporting.
Currently, T2S allows the entry of “Place of Trade” and “Place of Clearing” in the automated message transfer (A2A via settlement transaction instruction, sese.023) but does not use the information for further processing and reporting.
The field “Place of Clearing” is intended for optional use and can be provided as BIC8 but is recommended to be submitted as BIC11. This information will be forwarded by Clearstream to T2S.
LuxCSD customers can already enter the fields “Place of Trade” and “Place of Clearing”. Therefore there is no change on the customer side.
SWIFT ISO 15022
The two fields ”Place of Trade” and ”Place of Clearing” when present in the instruction MT540-543, will be reported in field :94B::TRAD// and in field :94H::CLEA// in optional sequence B in MT536, MT537, MT544-547 and MT548.
Xact Web Portal
The fields can be populated in the Securities Instruction screen.
T2S CR 609 – T2S must be able to report ”PENF” settlement status for settlement instructions for which settlement at the Intended Settlement Date (ISD) is no longer possible
The CSDR requires an update of the status concept for pending instructions. A CSD must be able to distinguish between:
- “Pending settlement instructions” for which settlement at the Intended Settlement Day (ISD) is still possible.
- “Failing settlement instructions” for which settlement at the Intended Settlement Day (ISD) is no longer possible.
A new settlement status code “Failing“ will be introduced. In addition to the new status code, the reason code based on the existing list for pending instructions will be provided. After the relevant T2S cut-off time for a dedicated settlement procedure was reached, a status reporting indicating the failed instruction will be transmitted.
|Settlement instruction types||T2S cut-off time|
Delivery versus Payment (DvP)
Receipt versus Payment (RvP)
Delivery with Payment (DwP)Receipt with Payment (RwP)
|DvP / RvP instruction with the BATM flag|
(usage of label “ADEA” (Accept After Regular Settlement Deadline))
Delivery free of Payment (DFoP)Receipt free of Payment (RFoP)
The list of possible status and reason codes defined for the LuxCSD reporting and settlement advices via MT537 and MT548 via SWIFT 15022 or via Xact Web Portal has been verified so that all reason codes transmitted by T2S can be made available.
T2S CR 653 - Partial Release functionality
The new T2S functionality will enable the partial release of the quantity specified in a pending securities settlement transaction instruction (settlement transaction instruction, sese.023). The Partial Release functionality is offered for delivery instructions (delivery versus payment (DvP), delivery free of payment (DFoP) and delivery with payment (DwP)). The Partial Release request can be initiated with the “Hold / Release functionality” by specifying the quantity to be released.
T2S will execute the request within all defined Partial Settlement windows during the day and night-time processing. If a Partial Release request is accepted by T2S for settlement during a current Partial Settlement window, the transaction is considered within this processing step.
However, it has to be considered that Partial Release requests:
- can only be submitted from Start of Day (SoD) on Intended Settlement Date (ISD) at 18:45 enabling a settlement with the start of the night-time processing (First and Last Cycle, Sequence 4).
- setup for DvP and DwP instructions will be considered until 16:00 on the settlement date and will be reported as failed with the End of Day reporting, if the settlement could not be (fully) achieved.
- setup for DFoP instructions will be considered until 18:00 on the settlement and will be reported as failed with the End of Day reporting, if the settlement could not be (fully) achieved.
- failed on a settlement date must be reinstructed if required - as T2S expects a new Partial Release request.
If a Partial Release request cannot be (fully) executed on the business day, the Partial Release process is stopped, and the underlying instruction is set on hold.
In line with the service offering defined by T2S, the automated connectivity channels as well as the Xact Web Portal will be updated to enable the creation and deletion of Partial Release requests.
SWIFT ISO 15022
The Partial Release request can be instructed via MT530 using Xact via SWIFT or Xact File Transfer.
To create a Partial Release via MT530, customers must populate the following fields:
- :36B: in sequence C with the security quantity
To cancel a Partial Release via MT530, customers must populate field :22F::SETT//NPRE in sequence B.
In case of a Partial Release request, the remaining quantity to be released (must be different from zero) will be reported as follows:
In the MT548, in the field reason narrative :70D::REAS in Subsequence A2a under code PQRT, and;
In the MT537,
- in the field reason narrative :70D::REAS in Subsequence B1 under code PQRT, if :22H::STST//STAT is present;
- in the field reason narrative :70D::REAS in Subsequence C3a under code PQRT, if :22H::STST//TRAN is present.
Xact Web Portal
Customers can instruct or cancel Partial Release requests via Xact Web Portal using the new option “Creation Partial Release” or “Cancel Partial Release” accessible via List view and Detailed view in Xact Settlement screen, on existing “On Hold” instructions.
To create a Partial Release request, the following conditions must be met:
- The selected instruction is a Delivery Customer Instruction for CSD accounts (48xxx or xxxx-xxx), and;
- Party Hold is set to “True” in List view or “ticked” in Detailed view.
When selecting “Creation Partial Release”, Party Hold must be unticked, and a settlement quantity has to be entered.
To create a Partial Release cancellation request on an instruction, the following conditions must be met:
- The selected instruction is a Delivery Customer Instruction for CSD accounts (48xxx or xxxx-xxx); and;
- Party Hold is set to “True” in List view or “ticked” in Detailed view, and;
- The requested partial release quantity is not null.
Then, select “Cancel Partial Release” to request the cancellation.
The Detailed view will show:
- Requested Partial Release quantity
- Quantity Remaining Released
- Quantity Remaining On Hold
Only when all these requirements are met, T2S will accept the Partial Release request and will submit the instruction for settlement processing. The settlement will be executed during the upcoming Partial Settlement window if:
- The transaction is still pending and matching was performed;
- The Counterparty allows Partial settlement and the cash threshold is sufficient for the released quantity. However, the counterparty does not have to agree on the Partial Release request) as such; and;
- The cut-off time for the Partial Request has not yet been reached.
If T2S stops the Partial Release process because:
- A (new) hold on underlying instruction or counterparty instruction was initiated;
- A standard release of underlying instruction was provided;
- The underlying or counterparty instruction is not flagged for partial settlement;
- Instruction linking, or pooling applies or will be requested by the customer or counterparty;
- Or the Partial Settlement indicator is “PARC” and the released quantity is less than the quantity resulting from the cash threshold equivalent in the underlying settlement instruction.
LuxCSD will inform the customer and counterparty that the instruction was initialised by T2S. In this case the related MT548 will be transmitted.
If a customer wishes to delete the Partial Release request, “Cancel Partial release” must be selected.
For further information, please contact the Clearstream Connectivity Helpdesk or your Relationship Officer. Particular questions related to the T2S Release 3.2 will be routed to the experts of the T2S Settlement Functionality team.
1. LuxCSD S.A. (LuxCSD), registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.