Progress on AMI-SeCo Single Collateral Management Rulebook for Europe and Eurosystem Collateral Management System - April 2021
As part of our regular communications, and further to Announcement L20062, LuxCSD1 would like to update customers concerning the ongoing activities regarding the implementation of the AMI-SeCo Single Collateral Management Rulebook for Europe (SCoRE) Standards and Eurosystem Collateral Management System (ECMS).
SCoRE Standards and ECMS Project status
An agreement on the final content of SCoRE Standards is still under discussion with CMH-TF Expert Groups. The latest versions of the SCoRE Standards for Triparty Collateral Management and Corporate Actions have now been received and are currently under review.
LuxCSD, as a member of the AMI-SeCo CMH-TF Experts Groups as well as a participant in various workshops and meetings with National Central Banks (NCBs), the European Central Bank (ECB)and other actors, continues to act in the best interest of its customers. Discussions are ongoing regarding various SCoRE Standards, and dialog is open with the NCBs and the ECB regarding elements of ECMS specification. We remain hopeful for the scope of both SCoRE and ECMS initiatives to reach stabilisation by Q2 2021.
LuxCSD Project status
LuxCSD readiness preparations for SCoRE are on track, and we will affirm this status in the current SCoRE Survey issued by AMI-SeCo’s CMH-TF. Our readiness for the go-live of ECMS, from all perspectives of the ECMS Community, is running according to the ECMS Project key milestones, which are set by the Governing Council of the ECB in order to ensure readiness by the go-live date in November 2023.
An in-depth analysis of all applicable SCoRE Standards is continuing, with the goal to identify all business requirements for our internal Triparty Collateral Management, Corporate Actions and Billing processesto comply with the standards. We also continue to work towards ECMS specifications and are currently on track to achieve these targets according to plan. However, many open questions remain, especially regarding Corporate Actions and ISO 20022 messages, which require resolution in the coming weeks in order to preserve the short-term schedule.
For Triparty Collateral Management, Clearstream Banking2, as Tri-Party Agency (TPA) services provider for LuxCSD, is defining an adapted GC Pooling and NCB Pledge modelto meet the Eurosystem requirements.
As a result, a single Clearstream Triparty Collateral Management service will run on a unified IT platform. It will allow increased re-use facilities and opportunities for balance sheet netting across products in either central bank money or commercial bank money. Consolidation work to achieve this goal is running according to plan.
For Corporate Actions, LuxCSD will comply with the new standards to the highest extent possible to further harmonize the Asset Servicing offering.
Whilst our initial impact analysis and scope definition have been completed, finalisation of the specification phasefor Corporate Action processing flows is dependent on the completion of SCoRE Standards and the corresponding ECMS Specifications.
For Billing standards, we are still awaiting further details regarding the proposed ISO 20022 message camt.077 and will refine our internal requirements once more information becomes available. LuxCSD is already compliant with all other Billing standards.
Our draft Internal Business Requirements for specific SCoRE and ECMS adaptations are progressing according to plan, notwithstanding the remaining open questions. Accordingly, we currently aim to publish details regarding customer impacts by Q3 2021.
We continue to fully support the implementation of SCoRE standards and ECMS and will also provide more in-depth information regarding testing needs and implementation schedule as soon as it becomes available.
Your support by LuxCSD
Should you have questions or require further information please contact ECMS.programme@clearstream.com, LuxCSD Client Services or your Relationship Manager.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.
2. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.