OEKB CSD PARTICIPANT MEETING - NOVEMBER 29TH, 2019
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OeKB CSD Participant Meeting November 29th, 2019
Agenda 1. Business Facts & Figures 2. Upcoming T2S Releases 2020 3. Report 5th Meeting of the User Committee 4. Project Settlement Discipline 5. T2/T2S Consolidation 6. Project Shareholder Rights Directive 7. AOB November 29th, 2019 2
1. Business Facts & Figures
1. Business Facts & Figures as of 31.10.2019 November 29th, 2019 4
2. Upcoming T2S Releases 2020
2. Upcoming T2S Releases 2020 (1/3)
T2S Problem Release 3.3
TEST January 17th, 2020
PROD February 15th, 2020
Problem Tickets only, no impact on participants
November 29th, 2019 62. Upcoming T2S Releases 2020 (2/3)
T2S Major Release 4.0
TEST May 15th, 2020, PROD June 13th, 2020
6 Change Requests
CR Number CR Description Document
Reporting of Beneficial Ownership indicator in allegements, status messages and
T2S-0671-SYS Link
settlement confirmations
During partial settlement windows, recycling should only be triggered after an
T2S-677-SYS Link
optimisation attempt
T2S should allow and process already matched instructions with deviating settlement
T2S-658-SYS Link
parameters on DELI and RECE legs
T2S-668-SYS Provide the T2S reference of the linked instructions preventing settlement Link
T2S-689-URD New process to maximise settlement of transactions at DVP cut-off Link
T2S-0719-SYS Common Reference Data Management for T2-T2S Consolidation – Modified Objects Link
November 29th, 2019 72. Upcoming T2S Releases 2020 (3/3)
T2S Minor Release 4.2 & SWIFT Standard Release 2020
TEST October 30th, 2020, PROD November 21st, 2020
8 Change Requests
CR Number CR Description Document
T2S-0654-URD T2S Penalty Mechanism Link
T2S-715-URD Optimisations to the T2S Penalty Mechanism’s (CR654)user requirements Link
T2S-0684-SYS Handling for outbound messages with amounts exceeding 15 digits Link
T2S-0695-SYS Trade date to become mandatory within a settlement instruction (sese.023) Link
T2S-0703-SYS Camt.050 exchanged between T2S and CLM Link
T2S-0713-SYS Alignment of T2S Messages with ISO Maintenance Release 2018 - 2019 Link
T2-T2S Consolidation and ECMS will require an internal communication within the
T2S-0702-SYS Link
consolidated platform
T2S-0718-URD Daily provision of Euro Foreign Exchange Rates for the penalty mechanism Link
November 29th, 2019 83. Report User Committee
3. Report 5th Meeting of the User Committee (1/1) Meeting took place on November 14th, 2019 Agenda: 1. Business Facts & Figures 2. Update on projects and activities of OeKB CSD 3. Shareholder Rights Directive 4. Miscellaneous Meeting Protocols will be available on My OeKB CSD – User Committee November 29th, 2019 10
4. Settlement Discipline
4. Settlement Discipline (1/12)
Measures offered by OeKB CSD to prevent Settlement Fails
Real-time matching
Tolerance level
Bilateral cancellation facility
Hold and release mechanism
Recycling of failed settlement instructions
Partial settlement
…
OeKB CSD already offers these measures to its participants.
November 29th, 2019 124. Settlement Discipline (2/12)
Calculation of Penalties
OeKB CSD will calculate cash penalties for each (free of or against payment)
settlement instruction that:
failed to settle on its intended settlement date (SEFP); or
matched after its intended settlement date (LMFP).
The calculation will be done on a daily basis for each business day that a instruction
fails to settle after its Intended Settlement Date (ISD).
Concerned securities
CSD-eligible MiFID/R securities ("virtually all securities"),
traded on an EU-trading platform or cleared by an EU-CCP.
Excluded are shares whose main trading platform is outside of the EU.
November 29th, 2019 134. Settlement Discipline (3/12)
Calculation of Penalties
reference price ("Most relevant Market" or "Highest Turnover" in accordance with ESMA FIRDS DB)
type of security (CFI)
penalty = penalty rate * reference price * units/nominals
Penalty Rate – simplified outline
shares, liquid 1.0 BP
shares, illiquid 0.5 BP
shares, growth market 0.25 BP
government bonds, provinces, central banks,
0.1 BP
multilateral development banks, EFSF, ESM, …
other bonds 0.2 BP
bonds, growth market 0.15 BP
other 0.5 BP
lack of cash overnight reference rate of the particular central bank (>0)
November 29th, 2019 144. Settlement Discipline (4/12)
Daily Settlement Fails Reports
OeKB CSD will provide a "new settlement fails penalties report" and a "modified
settlement fails penalties report" on a daily basis:
T2S-DCPs: SWIFT semt.044 or flat file
preliminary version of the description of flat file available here
reporting of new penalties – will be sent by 11:30 a.m. CET
reporting of modified penalties – will be sent by 12:00 a.m. CET
T2S-ICPs: SWIFT MT537
draft version of the description available in the near future
Settlement Client
GUI (including Excel downloads)
November 29th, 2019 154. Settlement Discipline (5/12)
Overview of the First Month
November 29th, 2019 164. Settlement Discipline (6/12)
Monthly Aggregated Amounts Report
OeKB CSD will provide a "monthly aggregated amounts report": Sum up of all cash
penalties for each participant (party BIC), per currency and counterparty.
T2S-DCPs: SWIFT semt.044 or flat file
preliminary version of the description of flat file available here
will be sent by 12:45 a.m. CET on the 14th business day of the month
T2S-ICPs: SWIFT MT537
draft version of the description available in the near future
Settlement Client
GUI & Excel downloads
sum per customer reference
net aggregated amount for PFOD
November 29th, 2019 174. Settlement Discipline (7/12)
Overview of the Month Following the Settlement Fails
November 29th, 2019 184. Settlement Discipline (8/12)
Monthly Appeal Period
Appeals may be lodged by participants for important reasons at any time during the
calendar month, as from the moment of computation and reporting of the penalty, and
until (and including) the 10th business day of the following month.
Each time that an appeal is accepted and a change is applied to a penalty, it will be
reported on the following business day.
November 29th, 2019 194. Settlement Discipline (9/12)
Monthly Payment (Collection & Distribution)
On the 17th business day of the following month, OeKB CSD will collect and distribute the penalties net
aggregated amounts one booking per participant (party BIC).
Ahead of the 17th business day, OeKB CSD will create PFOD instructions to receive the cash amounts
from its participants that have to pay a net aggregated amount. OeKB CSD participants must have
adequately funded their DCA, in order for the PFOD to timely settle on the 17th business day. The PFOD
settlement will
debit the OeKB CSD participants’ DCA and a
credit OeKB CSDs’ DCA.
Ahead of the 17th business day, OeKB CSD will create PFOD instructions to pay the cash amounts to
participants that will receive a net aggregated amount. The PFOD settlement will
debit OeKB CSDs’ DCA and a
credit the OeKB CSD participants’ DCA.
November 29th, 2019 204. Settlement Discipline (10/12)
Moving target
Enters into force on September 14th, 2020 postponement possible
Art.19 of Regulatory Technical Standards (RTS) on Settlement Discipline
CCPs have to collect penalties from and distribute penalties to their Clearing Members
EACH seeks to convince European Commission to allow the respective CSD to collect and distribute
penalties also for the settlement fails of CCPs and their Clearing Members
November 29th, 2019 214. Settlement Discipline (11/12)
OeKB CSD Communication
Infomail – Settlement Discipline #1:
slides
FAQs
draft version of the description MT537
Participant Meeting:
updates in 2020
November 29th, 2019 224. Settlement Discipline (12/12)
Q&A
Any questions?
You can also send your questions to kurt.kerschbaum@oekb-csd.at at a later time.
November 29th, 2019 235. T2/T2S Consolidation
5. T2/T2S Consolidation (1/1)
A project of the Euro Central Banks
Go Live: November 2021
Aspects for OeKB CSD:
OeKB CSD will continue to offer conversion of statements of accounts (camt.053 from T2S-DCA into
MT940) for its participants.
Collection and distribution of income will continue to take place on T2S-DCAs.
November 29th, 2019 256. Project Shareholder Rights Directive
6. Project Shareholder Rights Directive (1/9)
SRD II in a Nutshell
Shareholders Rights Directive II (EU) 2017/828
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32017L0828
Implementing Regulation (EU) 2018/1212
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32018R1212
National (Austrian) Implementation
https://www.parlament.gv.at/PAKT/VHG/XXVI/I/I_00624/index.shtml
Top left hand quadrant:
Topics concerning
all Intermediaries,
including CSDs
November 29th, 2019 276. Project Shareholder Rights Directive (2/9)
Four Scope Items for our Community (OeKB CSD as Issuer CSD)
a. Shareholder Identification (SI) Shares admitted to trading on a
"Who owns my shares?" regulated market within EU
b. Information on General Meetings (IGM) deposited with OeKB CSD as
c. Information on other Corporate Actions (ICA) Issuer CSD
d. Proxy Voting (PV)
November 29th, 2019 286. Project Shareholder Rights Directive (3/9)
a. Shareholder Identification
Response
4
1st Int. 2 2nd Int. 3 nth Int.
Issuer 1 CSD 2 3
Intermediary A Intermediary X Shareholder A
(or Agent) (as Issuer CSD)
Request
2 3
Intermediary B Intermediary Y Shareholder B
3 3
4
1 Request: 2 Response: Shareholder C1
• ISO 20022 based • ISO 20022 based 4
• Specific to a single ISIN • Total balance of all account holders (of ISIN)
• Issued by the issuer himself • List of account holders, including balances Intermediary Z Shareholder C2
(or an appointed agent) of individual accounts (downstream)
• List of own accounts held with other
intermediaries, including balances and kind Shareholder E
of holding (upstream) (less than 0.5%)
November 29th, 2019 296. Project Shareholder Rights Directive (4/9)
b. Information on General Meetings
1st Intermediary 2nd Int. nth Int.
Issuer 1 CSD 2 3 4
Intermediary A Intermediary X Shareholder A
(or Agent) (as Issuer CSD)
2 3 4
Intermediary B Intermediary Y Shareholder B
3
4
Shareholder C1
1 Information Message is: 2 Information Message is:
4
• ISO20022 based • ISO20022 based Intermediary Z Shareholder C2
or and
• entered via GUI (based on 20022) • provided on GUI (Asset Servicing
• … but design yet to be finalized Client) 4 Shareholder E
(less than 0.5%)
November 29th, 2019 306. Project Shareholder Rights Directive (5/9)
c. Information on Corporate Actions
1st Intermediary 2nd Int. nth Int.
Issuer 1 CSD 2 3 4
Intermediary A Intermediary X Shareholder A
(or Agent) (as Issuer CSD)
2 3 4
Intermediary B Intermediary Y Shareholder B
3
4
Shareholder C1
1 Information Message is: 2 Information Message is:
4
• ISO15022 based • ISO15022 based Intermediary Z Shareholder C2
or and
• entered via GUI (based on 15022) • provided on GUI (Asset Servicing
• … but design yet to be finalized Client) 4 Shareholder E
(less than 0.5%)
November 29th, 2019 316. Project Shareholder Rights Directive (6/9)
SRD II, Tentative Roll-Out Timeline OeKB CSD
March, to be announced Thu, September 3rd
Discussion of Draft Directive in Effect in EU
• Review 6 months
• Feedback
• Changes
Wed, March 4th Wed, April 8th Mon, August 3rd Mon, August 31st
Draft Specification Final Specification Participant Testing Live System Online
• SI: ISO20022 • SI: ISO20022 • Connectivity Testing • Connectivity Test
• IGM: GUI+ISO20022 • IGM: GUI+ISO20022 • Data Format Testing • Smoke Test
• ICA: GUI+ISO15022 • ICA: GUI+ISO15022 • Processes and Timing
4 months
2019 2020
November 29th, 2019 326. Project Shareholder Rights Directive (7/9)
SRD II, Status on National Level
Börsegesetz 2018, BGBl. I No. 107/2017, last amended by Bundesgesetz BGBl. I No. 776/2019, is amended
as follows (July 2019) https://www.parlament.gv.at/PAKT/VHG/XXVI/I/I_00624/index.shtml
The legal framework in Austria has been finished in summer 2019.
Cornerstones of the Austrian national implementation:
Minimum threshold of 0.5%. Below this threshold a holding is not to be reported.
The issuer can be charged with cost incurred by compliance with the regulation – within reasonable limits.
Exemption of SRD II related reporting from the so called "Bankgeheimnis" i.e. banking secrecy
The implementation of the rules comes into effect with Sept. 3rd, 2020 (latest possible deadline)
Non-compliance with the regulation leads to a penalty of Euro 25,000.-- per case.
November 29th, 2019 336. Project Shareholder Rights Directive (8/9)
SRD II, Stakeholders (in alphabetical order)
Aktienforum
Bankenverband
CANIG - Corporate Actions National Implementation Group
CIRA
FMA
Intermediaries (Banks, OeKB CSD)
Issuers
Service Providers (e.g. Information Brokers)
Shareholders
WKO
November 29th, 2019 346. Project Shareholder Rights Directive (9/9)
Building Market Awareness
Intermediaries have built awareness among themselves quite early (platforms
Bankenverband and CANIG)
Building similar awareness regarding Issuers remains an important task
past conferences, meetings:
Aktienforum (September 2019)
C.I.R.A. Jahreskonferenz (October 2019)
planned:
C.I.R.A. Special Day January 15th, 2020
…
November 29th, 2019 357. AOB
Thank you for your kind attention!
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