Change requests

1. Change requests T2S Advisory Group Bucharest, 30 June 2011 – 1 July 2011 T2S Programme Office European Central Bank

2. Background • The URM SG assessed whether each request for changes are needed for the start of T2S • The URM SG recommended the Advisory Group (AG) to • implement 13 requests that are needed for the start of T2S • consider remaining ones potentially in a later release of T2S The AG is invited to consider the change requests and recommendations of the URM SG

3. Change requests • 0276_URD Unmatched status pushed after first unsuccessful matching attempt • 0299_URD Remove inconsistencies in chapter 13 to clarify that the unmatched status will not be pushed after first unsuccessful matching attempt Reason for CR: • Explicit notification of a first unsuccessful matching attempt after successful validation of a settlement instruction Consequence of not implementing the change request: • Some markets that still consider the implicit notification of the unmatched status as insufficient in the new T2S context will have to bear some additional costs to adjust their systems/market practice URM-SG recommendation: Rejection 0276_URD and approval of 0299_URD

4. Change requests • 0277_URD Securities CSD links for same day creation, not only as of future date • 0294_SYS Security CSD links maintenance in A2A • 0295_SYS Maintenance of restriction type rules in A2A Reason for CR: • Mainly for the set-up of short term commercial papers issued intra day Consequence of not implementing the change request: • The set-up of these securities will not be possible. Use of GUI as alternative not viable due to high volume URM-SG recommendation: • Approval

5. Change requests • 0278_URD Limit utilisation report to be pushed by T2S Reason for CR: Get an automatic report from T2S about the current limit utilisations for a particular client of a payment bank Consequence of not implementing the change request: Payment bank will have to use queries to get the information URM-SG recommendation: Rejection and Consider it potentially in a later release of T2S

6. Change requests • 0279_URD Removal of allegement removal for a cancellation instruction and allegement cancellation for a cancellation instruction Reason for CR: • Deletion of notifications that will not be covered in T2S as no standard market practices have been identified by SGMS Consequence of not implementing the change request: • Cost impact due to the need to add new T2S specifications to cover those notifications URM-SG recommendation: • Approval

7. Change requests • 0282_URD Introduction of T2S securities account as an optional matching field Reason for CR: • Further minimise the risk of cross matching in countries where currently matching is based on CSD account numbers Consequence of not implementing the change request: • Reopening of the discussion on matching fields to revert back to an option with no impact to the URD and specifications URM-SG recommendation: • Approval

8. Change requests • 0283_URD Disallow partial settlement of blocking instruction Reason for CR: • Only allow blocking if the full amount of securities/cash are available (and recycle the blocking instruction otherwise) Consequence of not implementing the change request: • CSDs will not be able to handle voluntary elections URM-SG recommendation: • Approval

9. Change requests • 0284_URD T2S Central board function for Security Maintaining Entity Reason for CR: Support the communication of information regarding securities reference data between the investor CSDs and the Security Maintaining Entity CSD in T2S Consequence of not implementing the change request: A channel of communication might need to be established by CSDs outside T2S URM-SG recommendation: Rejection and Consider it potentially in a later release of T2S

10. Change requests • 0285_URD New attribute at securities account level to identify account allocation instructions Reason for CR: • Recognise securities accounts attributed to account allocation operations, for billing purposes (direct holding market’s “all-in model”) Consequence of not implementing the change request: • Reopening of the discussion on direct holding market’s all-in model to find an option with no impact to the URD and specifications URM-SG recommendation: • Approval

11. Change requests • 0288_URD Technical acknowledgements at infrastructure level Reason for CR: • Move the responsibility for creating the technical acknowledgements within the T2S Platform Consequence of not implementing the change request: • It would increase the number of messages created by the T2S application URM-SG recommendation: • Approval

12. Change requests • 0290_URD Mandatory bundling of messages into files during night-time period Reason for CR: • Align the reporting by bundling settlement related messages into files during night-time period to be consistent with the settlement process, which is carried out in sequences Consequence of not implementing the change request: • Increase of message traffic and costs attached to it URM-SG recommendation: • Approval

13. Change requests • 0291_SYS Enhance cash side-reporting and new attribute in message subscription service. Reason for CR: • Enhancement end of day statement of accounts and debit/credit notifications to better recognise cash related postings Consequence of not implementing the change request: • Complexity for reconciliation of cash movements resulting from settlement instructions URM-SG recommendation: • Approval

14. Change requests • 0292_SYS Link securities account to DCA via A2A Reason for CR: • Provide A2A messages for linking a securities account to a dedicated cash account in T2S Consequence of not implementing the change request: • Initial set-up and maintenance via U2A. Initial set-up (migration) will entail high volume usage. URM-SG recommendation: • Approval

15. Change requests • 0293_SYS Inclusion of the already matched flag criteria in the message subscription Reason for CR: • It will reduce the message traffic and costs attached to it Consequence of not implementing the change request: • CCP, Stock Exchanges and Trading Platforms that will most likely send T2S an already matched settlement instruction will have to adapt their systems to receive two notifications instead of one from T2S for each instruction they send T2S URM-SG recommendation: • Approval

16. Change requests • 0296_SYS Maintenance of roles and privileges in A2A. • 0297_SYS Message subscription rule maintenance in A2A Reason for CR: Provide A2A messages for maintaining roles & privileges and the message subscription Consequence of implementing the change request: The request would create more development costs for CSDs (to replicate the T2S roles and privileges in their own systems, to build a U2A function in their system for manual input of these roles and privileges and to feed T2S using the A2A messages) and T2S (create new messages) without obvious efficiency gain URM-SG recommendation: • Rejection and Consider them potentially in a later release of T2S

17. Change requests • 0298_SYS Close links and eligible securities deletion in A2A. Reason for CR: Provide A2A messages for close links and eligible securities deletion Consequence of not implementing the change request: Deletion of close links and eligible securities is to be performed via U2A in T2S and also in the collateral management system. May be limited operational risk URM-SG recommendation: Rejection and Consider it potentially in a later release of T2S

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