Clearstream Banking TARGET2-Securities Clearstream Customer - - PowerPoint PPT Presentation

T2S Info Session 05-DEC-2014

Clearstream Banking

TARGET2-Securities Clearstream Customer Readiness 05 December 2014

T2S Info Session 05-DEC-2014

Agenda

T2S Clearstream Customer Readiness Customer Involvement and Information Channels Getting Ready for Wave 1 and Wave 3

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T2S Info Session 05-DEC-2014

T2S Clearstream Customer Readiness

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• The open dialogue Clearstream is having with the market participants

serves to share views and to achieve a common understanding about T2S and its underlying impacts

• Close collaboration enables Clearstream to understand customers

requirements in the future T2S environment, testing and simulation needs

• The interaction with the customer via active market consultations allows

Clearstream to better support the readiness of its community. Our task is to smoothen the migration to T2S at maximum level for all our customers.

Our Mission for customer readiness support

Common understanding of the T2S impacts Understanding of the T2S-related customer requirements Our mission: Ensure readiness to T2S of the market community

T2S Info Session 05-DEC-2014

Customer Involvement and Information

Clearstream has been actively involving customers since 2011 to ensure community readiness for T2S

T2S Customer Business Events

• Bilateral Meetings
• Webinars
• Workshops and Roadshows
• User Advisory Board
• DUG / IIG
• Effektenrunde

T2S Information Board

• Clearstream T2S Bulletin
• Clearstream T2S Web Portal
• Clearstream T2S Distribution List

Clearstream Customer

Clearstream T2S Customer Task Force

• Ensures awareness and identifies

the customer’s impact

• Aligns adaptation requirements

between Clearstream and its customers for the implementation

• f T2S

SPOC Concept

• The Single Point of Contact

(SPOC) on customer side is the basis for close collaboration within the implementation phase

• Coordinates the communication of

Clearstream T2S related activities

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T2S Info Session 05-DEC-2014 09 December 2014 5

Customer Information – SPOC Concept

Single-Point-of-Contact (SPOC) on customer side is the basis for close collaboration within the implementation phase

Responsibilities and tasks of the SPOC

– Coordinates the communication of Clearstream T2S- related activities within an entity – Will be responsible for the Clearstream implementation readiness tasks and the management of the necessary sign-off procedures

Clearstream interaction with the SPOC

– Receives all information on the T2S implementation project via email – Will always be kept informed about major readiness activities – Is invited to Clearstream’s T2S Roadshows, webinars and dedicated workshops

• The SPOC will act as

central point of contact for all securities accounts related to a single entity SPOC-Concept for Clearstream Our SPOC will act as central customer contact for all securities accounts related to a single entity

Please note: – Clearstream will provide detailed informa-tion on the future account setup – SPOCs will be asked to validate if the existing account structure is already prepared for the future processing in a T2S world

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T2S Customer Readiness Activities

Checklist Simulation Training Account Setup

– Based on (sub) accounts customers will be requested to select their service level, that means e.g. DCA and RTGS account requirements – Usage of partial settlement – Connectivity setup – Usage of T2S-Auto Collateralisation Service – Customers will be requested to participate in our simulation phase for wave 3 – Customers allowing a third party as account

• perator shall indicate

which party will participate – Simulation cases will be based on connectivity setup – ICP and DCP authorisation tests will have to be executed – Team Clearstream and SPOC to validate if test cases were successful and customer is ready – Clearstream will conduct series of Webinars for different settlement services – Customer workshops for wave-specific requirements will be set up to ensure readiness – CASCADE trainings (sessions and brochures) will detail the future settlement requirements – All customers received information

• n account setup

– Bilateral meetings on demand supported by Relationship Management to discuss new account structure and setup – The BIC Branch Code (BIC11) registration form has been provided Please note: – The first T2S Webinars were conducted in early November 2013 – T2S Customer workshops aim to achieve customer awareness for the migration towards T2S and define the prerequisites for future services

Wide spectrum of activities are being conducted to ensure customer readiness for T2S

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T2S Customer Readiness Documentation

Clearstream provides its customers with comprehensive documentation to ensure T2S knowledge transfer

Release 1 Published Release 2 Published Release 3 Published − Static Data − Domestic OTC Settlement − Connectivity ICP − Connectivity DCP − Stock Exchange Settlement − Business Day − Custody − Cash Management − CBF Settlement Reporting

Detailed Functional Description (DFD) for our launch on 12 September 2016 within T2S wave 3

Release 4 Publication planned in first half 2015 − Cross Border Settlement − GSF1) Services − New Issues and Vaults Processing

1) GSF = Global Securities Financing covering Collateral Management and Lending Services

Simulation Guide Migration Guide – Describes the migration concept and wave approach as well as impact on future settlement processes – Provides a timeline for the transition period and a checklist of tasks – Delivers the overall guidance for the simulation – Informs about test environment requirements, connectivity testing and will detail the test steps during the execution period 18 webinar sessions in German and English related to the DFDs Standard Customer Presentations T2S Glossary T2S Bulletin

  

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Getting Ready for T2S - Approach

Our roll-out follows risk based deployment approach

• f T2S changes

For the migration to T2S, three main migration paths must be coordinated ‒ Settlement Functionality adaptation ‒ Deployment of T2S adaptations in a stepwise approach and as early as possible implementation into production to allow early user involvement ‒ Static Data ‒ Migration of static data to T2S as early as possible (starting wave 1) ‒ Dynamic Data (mostly pending instructions and positions) ‒ Migration inevitable in a “big-bang” approach for wave 3 We follow a risk based approach for T2S migration

With our November Release 2014 further T2S functional requirements have been introduced To mitigate migration risk for the whole market, Clearstream has

• pted for a decoupling of the migration paths

T2S Info Session 05-DEC-2014 09 December 2014 1) Except for problems on the layer of technical connectivity 2) Except for so-called incidents which are directly addressed to the T2S service desk at 4CB 9

Please note: − Requirements for Test Coordination and Support are still in discussion with ECB / 4CBs

Clearstream’s User Test Support

Clearstream is your central interface to the T2S platform

Our Customer Support

• Clearstream will be the contact for

banks acting as ICP and/or DCP (in terms of authorisation) during user testing1)

• Clearstream monitors all customers’

issues

• Customers’ issues will be analysed in

detail – together with customers

• Clearstream consolidates remaining

issues and provides these to ECB / 4CB to follow up

• Clearstream monitors and tracks all

issues until a solution is available

• Clearstream continuously informs

customers about status of issues and their resolution

ECB / 4CB Test Coordination and Support

• Provide daily coordination and

support for CSDs’ / NCBs’ testing activities

• Address inquiries on T2S services

and functions2)

• Address inquiries on software defects
• On behalf of UTSG assess identified

defects from business perspective in

• rder to prioritise these
• Prepare and conduct UTSG meetings
• including preparation of

consolidated list as basis

• Follow test status of CSDs / NCBs
• Assess / monitor risks of and issues

from UT and follow up on mitigation measures

Clearstream Customer

T2S Info Session 05-DEC-2014

Customer Account Setup and Connectivity

‒ Until 30/01/2015 customers will provide their BIC11 details for account setup which will be transferred to simulation environment ‒ Once simulation environment has been agreed the connectivity setup can be tested

Precondition for Simulation

‒ Clearstream will participate in wave 1 community testing window (02.03.-15.05.2015) with the main target to pass the ICP authorization which is required by Monte Titoli

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Getting Ready for T2S Wave 1

Customer Simulation Wave 1 – Monte Titoli

Please note:

‒ The details regarding the Customer Simulation for wave 1 will be presented in the workshop “Introduction Wave 1 Simulation and Migration” on 25 March 2015

Bilateral Agreement on Simulation Activities

‒ Clearstream Test Management will get in contact with the involved parties ‒ Service Level between Clearstream and Monte Titoli have to be agreed

Scheduling Environment and Test Day

‒ Based on the availability of the concerned infrastructure the timeline will be defined ‒ Test Day Calendar will ensure that FoP matching procedures can be conducted

Scope Definition of Cross-Border Transactions

‒ Besides the settlement of FoP matching instructions it is requested to be define if further functionality can be enabled ‒ Static data for accounts and securities must be aligned with the involved parties

Preparation Simulation Environment

‒ Data Preparation for static data securities, accounts and connectivity to Monte Titoli and Clearstream customers ‒ Deployment of software and health check of components

T2S Info Session 05-DEC-2014

Getting Ready for T2S Wave 3

Regular Outbound Cut-Off for Migration Close Queues from Customers Block Outbound Traffic to ICP - Customers Open Queues from Customers1) Open Queues and Regular Outbound2)

1) After this activity Clearstream is nearly complete in standard T2S processing mode 2) Potentially suppressing of migration related messages for customer acting in ICP mode (FoP instructions to set up the initial positions, pending instructions)

Cut-Off for Settlement Day Friday ICP - Customer Input Blocked Point of No Return (PoNR)

“Basic Storyline” for T2S Migration Weekend Wave 3 (CBF)

Finalisation of Settlement Day Friday 1 Backup for potential fall-back (after Cut-Off for Migration) 2 Position setup via FoPs to T2S a) Transfer of Instructions b) Settlement c) Reconciliation 4 Migration of pending instructions to T2S 5 T2S NTS Cycle 1 6 Send new instructions to T2S 7 T2S NTS Cycle 2 8 3 Cancellation processing by CSD T2S RTS Processing 9

Client Connectivity Inbound Client Connectivity Outbound

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Dedicated 2 hours input window will be foreseen for DCP input after “PoNR” and before T2S NTS Cycle 2 Report “CBF Cancelled Instructions” Customers are requested to initiate liquidity transfers towards T2S via T2 prior to T2S NTS Cycle 1 Report “Not successfully migrated Instructions”

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Customer Readiness Schedule - all Waves

Most important target dates to be considered in the CBF customer’s planning listed by date

No. Date Milestone 1 05/11/2014 CBF Information Session Introduction Wave 1 2 17/11/2014 CBF November Release 3 30/01/2015 Account Setup CBF Customer Wave 1 4 16/02/2015 DCP Firm Commitment 5 24/02/2015 T2S Summary Session Spring 2015 6 25/03/2015 Introduction Wave 1 Simulation/Migration 7 07/04/2015 Start CBF Customer Simulation 8 13/04/2015 Go-Live CBF as T2S SME 9 28/04/2015 CBF April Release 2015 10 19/05/2015 Introduction Wave 2 a 22/06/2015 Launch Wave 1 No. Date Milestone 11 19 – 21/06/2015 Go-Live CBF as T2S SME – Final migration 12 01/07/2015 Account Setup CBF Customer Wave 2 13 08/09/2015 T2S Summary Session Autumn 2015 14 15/09/2015 Account Setup CBF Customer Wave 3 15 22/11/2015 CBF November Release 2015 16 02/12/2015 Introduction Wave 2 Simulation/Migration 17 22/02/2016 Start Community Testing Wave 3 17 22/02/2016 CBF Customer Simulation Wave 3 b 28/03/2016 Launch Wave 2 18 29/07/2016 Finalization CBF Customer Simulation Wave 3 c 12/09/2016 Launch Wave 3

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Clearstream T2S Customer Readiness

We are looking forward to supporting and guiding you

T2S Customer Business Events – Bilateral Meetings – Webinars – Workshops and Roadshows T2S Communication Channels – Clearstream T2S Bulletin – Clearstream T2S Web Portal – Clearstream T2S Distribution List T2S Customer Readiness Team – T2S Mailbox – T2S-Support@clearstream.com –

• Tel. +49 (0) 69 / 211 18 27 8

–

• Fax. +49 (0) 69 / 211 60 80 60

Clearstream Customer

Glossary

Clearstream Banking published a comprehensive list of terms and definitions related to the T2S Implementation project. Please refer to our ‘Clearstream Banking’s TARGET2-Securities Glossary’ on www.clearstream.com. We are looking forward to supporting and guiding you.

T2S Info Session 05-DEC-2014