Annex 4 T2S Community CROSS CSD SETTLEMENT AND EXTERNAL CSD SETTLEMENT Test Plan

Transcription

1 T2S Test Plan Annex 4 T2S Community CROSS CSD SETTLEMENT AND EXTERNAL CSD SETTLEMENT Test Plan 1 July 2015 Version 2.1

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3 Index 1.0 Introduction TESTING PURPOSE STAKEHOLDERS GUIDELINES FOR TESTING FOR PARTICIPANTS SERVICES INVOLVED IN TESTING6 6.0 TEST PLAN Guidelines Participants fulfillments Identification of the stakeholders involved in each functionality SCHEDULING 8 Appendix A: 9

4 1.0 Introduction The introduction of the new settlement platform Target2 Securities required a broad and major adaptation of the settlement functionalities for the services of Cross Border Settlement (Cross CSD Settlement and External CSD Settlement). The transition to T2S will enable access to a wider and harmonized network of actors within the European Settlement scenario, also thanks to a multi-currency infrastructure. In this context, MT has provided its participants with an efficient post-trading service as well as centralized management of foreign activities. The adaptations and new implementations have been agreed within the system during the T2S project activities and are described in the technical documentation, published in the web-based platform MT-X, in a dedicated section. The Cross Border is made available through the systems provided by MT only in indirect mode. For this reason both DCP and ICP participants may use this service only through MT. The description of the operational processes and their service levels are reported in the Instructions to Foreign Settlement Services specifically adapted to regulate the obligations of the participants and of MT, even under the new contracts of participation of which they are an integral part. The Settlement Service is made available to both categories of participants (DCP and ICP), in line with the features and the peculiarities that the type of connection envisages. ICPs can enjoy the facilities of the new platform through MT. Regarding DCPs, the mode of use will depend on the type of service (e.g. External CSD Settlement available only in indirect mode). If necessary, the system elaborated and shared specific Market Practices, also published in the web-based platform MT-X and on MT s website. For details on the organization of the tests, operating time and assistance to participants in the testing phase, the management of the defects, the certification to go-live and so on, please refer to document entitled 'T2S COMMUNITY TEST general part Test Plan 5_02_2015 ENG v1.0 As to the financial instruments involved and the related CSDs please see Appendix A Cross Border. Monte Titoli SpA 4

5 2.0 TESTING PURPOSE This document is intended for the participants to the Foreign Settlement Service of MT (DCP and ICP) and has the aim to illustrate and share with them the services and the test plan of the activities prepared by MT to test jointly the Cross Border processes. The testing of the system will allow MT participants, consistent with operational models and the technical documentation published for T2S, to enable them to perform the end-to-end assessment of the correct management of the Cross Border processes, with particular reference to the following aspects: 1. WEB based functionalities (MT-X); 1. New functionalities and adaptations planned for T2S; 2. Accountancy of the financial instruments and management of securities accounts; 3. Protocols and systems of communication / interaction between MT and participants, and vice versa; 4. Messages produced/ received by/from MT system, through the different channels supported (RNI / WEB / SWIFT); 3.0 STAKEHOLDERS Stakeholders interested in the execution of the Community tests are the participants in the Foreign Settlement Service which usually operate with MT in the Cross Border service. During the testing of the procedures, the following stakeholders will participate, each of them according to their specific competence areas: the CSDs migrating with MT in the first wave (so called Cross CSD); the CSDs which, even if not connected to the T2S platform or which do not migrate, will interact with MT as External CSDs. Monte Titoli SpA 5

6 The involvement of the CSDs is essentially activated by the participants on behalf of which the CSDs operate, even if the specific requirements are also in these test cases generally coordinated by MT during the execution of the specific tests. Infrastructures possibly involved, such as settlement systems or market entities, are provided in the operating model of the relative functionalities and are therefore indicated in the context of specific procedures. For a general view about the parties involved in the test plan and how the testing environment will be populated for T2S, please refer to the document 'T2S COMMUNITY TEST general part Test Plan 5_02_2015 ENG v GUIDELINES FOR TESTING FOR PARTICIPANTS For a general view about the financial instruments object of the test plan and about their migration in T2S, please refer to the document 'T2S COMMUNITY TEST general part Test Plan 5_02_2015 ENG v. As for the business days immediately following the MWDR on 18th and 19th April (tentatively from 20 th to 22 nd April), tests with Greek CSD (BOGS) and Swiss CSD (SIS) are not to be executed, as MT planned de-migration tests in these days. For specific events of corporate actions (on stock), whose setup in test environment requires predetermined activities and tight timelines execution, it will be identified some reserved ISIN codes. With the aim of optimizing the system, the participants are required not to operate using these segregated ISINs (ref. document Annex 2 - T2S Community CUSTODY Test plan). 5.0 SERVICES INVOLVED IN TESTING Here below the principal services to be tested with participants: Management of Cross CSD Settlement transactions Management of External CSD Settlement transactions Monte Titoli SpA 6

7 6.1 Guidelines 6.0 TEST PLAN Here below the guidelines identified for a correct and optimized management of the general testing phase and of specific test cases in which participants and/or other stakeholders are involved. The structure of the test cases agreed was decided taking into account the standard operating cycle of each event or functionality but does not exclude, in particular cases and for operational needs, the intervention by MT to force the passage of the planned subsequent phases of each process and / or to shorten or dilate the physiological execution time windows; Each participant is required to send to MT the settlement instructions and consequently to check the outcome of that action, according to the rules described in the operational model; The financial instruments of each participant will be migrated in the production environment on February 23 rd, 2015; Securities and cash accounts of each intermediary will be migrated from CLIMP in the production environment on February 23 rd, Participants fulfillments For the execution of tests, participants and the other actors involved must check the correctness of the following main aspects: Receipt, for each test case, of messages sent by MT, as mentioned in the operative models; Transmission channel enabled and relative receiving options (default or customized); Timing of receipt of each notice/ reporting; Format of messages received, according to the technical documentation shared and published in the documental section of MT-X platform; Correct processing of new functionalities, with a particular focus on the use of the functionalities of Matching (migrated to T2S), Hold & Release, and Bilateral Cancellation; Correctness of the information received, according to the test cases to be executed. Monte Titoli SpA 7

8 6.3 Identification of the stakeholders involved in each functionality The involvement of the participants and of other stakeholders is required for each functionality, to identify, in a timely and consistent way, the execution and checking responsibility in each different role played by every actor (Foreign CSD). 7.0 SCHEDULING Following the set-up of the necessary configurations in the new platform, all the transactions admitted by the service offered by MT, adapted to the new T2S platform (as described in MT T2S User Requirements for Cross Border Settlement v.2.3), can be tested in the test environment dedicated to Community and Business Day tests. The operative model consists of the following cases: Cross CSD Settlement: settlement instruction input by a MT participant to be settled in a CSD participating to the new T2S platform The settlement instruction supported are: DVP, RVP, DWP, RWP, DFP, RFP, PFOD. The following functionalities are included in the test plan: Hold&Release Partial Settlement Cancellation External CSD Settlement: settlement instruction input by a MT participant to be settled in an Issuer CSD not participating to the new T2S platform. The settlement instruction supported are: DVP, RVP, DFP, RFP. The new functionality offered by T2S allowing to execute transactions placed outside the new platform is called COSD (conditional settlement), which blocks securities and countervalue, activating it at the Intended Settlement Date. MT will provide the above mentioned functionalities through X-TRM while X-TRM on line is to be used as client support for queries about the status of settlement instructions. Monte Titoli SpA 8

9 The reporting has to be checked according to the fields available in the user s standard layouts. The cancellations are admitted if sent by MT participant, by the counterparty, by the foreign system or by MT itself. The financial instruments to be used are indicated in Appendix A Cross Border. The balances on securities accounts will be the ones present in production environment at the moment of data migration. They will be available starting from the first date of the Community testing period, March 2 nd. Appendix A: CROSS CSD SETTLEMENT: The test case refers to settlement instructions input by a MT participant where the Issuer CSD is inside T2S (SIX and BOGS) and MT is Investor CSD. The following financial instruments are available for tests to be executed with the Swiss CSD (SIX): CH SGS/REG SH CHF1 CHF CH SWISSCOM/REG SH CHF1 CHF CH ACTELION/REG SH CHF0.5 CHF CH GIVAUDAN/REG SH CHF10 CHF CH SYNGENTA/REG SH CHF0.1 CHF CH ZURICH INSUR GR/REG SH CHF0.1 CHF CH ROCHE HLDG/DR NPV CHF CH CS GROUP/REG SH CHF0.04 CHF CH ADECCO/REG SH CHF1 CHF CH HOLCIM/REG SH CHF2 CHF CH ABB/REG SH CHF1.03 CHF CH UBS/REG SH CHF0.1 CHF CH NESTLE/REG SH CHF0.1 CHF CH TRANSOCEAN/REG SH CHF15 CHF CH JULIUS BAER GRP/REG SH CHF0.02 CHF CH SPS/REG SH CHF15.30 CHF CH BALOISE-HLDG/REG SH CHF0.1 CHF CH SONOVA HLDG/REG SH CHF0.05 CHF CH LONZA GRP/REG SH CHF1 CHF CH SWISS LIFE HLDG/REG SH CHF5.10 CHF CH SCHINDLER HLDG SCHINDLER HLDG PS CHF CH KUEHNE+NAGEL IN/REG SH CHF1 CHF Monte Titoli SpA 9

10 CH PARGESA HLDG/BR SH CHF20 CHF CH PSP SWISS PROPE/REG SH CHF0.1 CHF CH GEORG FISCHER/REG SH CHF1 CHF CH HELVETIA HLDG/REG SH CHF0.1 CHF CH BUCHER INDUSTRI/REG SH CHF0.2 CHF CH OC OERLIKON COR/REG SH CHF1 CHF CH RIETER HLDG/REG SH CHF5 CHF CH TEMENOS GRP/REG SH CHF5 CHF CH THE SWATCH GRP/REG SH CHF0.45 CHF CH LOGITECH INTL/REG SH CHF0.25 CHF CH ARYZTA/REG SH CHF0.02 CHF CH KUDELSKI/BR SH CHF10 CHF CH STRAUMANN HLDG/REG SH CHF0.1 CHF CH BC VAUDOISE/REG SH CHF10 CHF CH IMPLENIA/REG SH CHF1.90 CHF CH LINDT & SPRUENGL PS CHF CH KUONI REISEN HL/REG SH CHF1 CHF CH FLUGHAFEN ZUERI/REG SH CHF50 CHF CH VAUDOISE ASSURA/REG SH CHF25 CHF CH EVOLVA HLDG/REG SH CHF0.2 CHF CH SCHINDLER HLDG/REG SH CHF0.1 CHF CH SANTHERA PHARM/REG SH CHF1 CHF LI LIECHTENST LAND/BR SH CHF5 CHF LI VP BANK/BR SH CHF10 CHF CH ZUERCHER KB BSKT/ZKB 16 EUR CH UBS BSKT/UBS 21 EUR CH BK J BAER & CO BSKT/BAER 16 EUR CH UBS BSKT/UBS 21 EUR CH UBS LONDON BSKT/UBS 16 EUR CH VONTOBEL FP BSKT/VONT 16 EUR CH VONTOBEL FP BSKT/VONT 16 EUR CH VONTOBEL FP BSKT/VONT 16 EUR CH UBS BSKT/UBS 20 EUR CH UBS BSKT/UBS 20 EUR CH UBS LONDON BSKT/UBS 16 EUR CH ZUERCHER KB BSKT/ZKB 15 ZT EUR CH UBS LONDON ALU/UBS WT EUR CH UBP BSKT/UBP 17 CT EUR CH LEONTEQ SEC FESX/LEON 19 EUR CH UBS JERSEY BRAN SX5E/UBS 17 +WT PIP EUR CH UBS JERSEY BRAN SX5E/UBS 17 EX WT EUR CH LEONTEQ SEC FESX/LEON 17 EUR CH VONTOBEL FP 4.84 BSKT/VONT 16 EUR CH SWITZERL CONF 2 EIDG 22 CHF CH SWITZERL CONF 4 EIDG 23 CHF Monte Titoli SpA 10

11 CH SWITZERL CONF 2.25 EIDG 20 CHF CH POLAND/1 EMTN SR CHF CH SWITZERL CONF 3 EIDG 18 CHF CH SWITZERL CONF 4.25 EIDG 17 CHF CH SWITZERL CONF 2 EIDG 21 CHF CH SWITZERL CONF 3 EIDG 19 CHF CH GOLDMAN SACHS WERTP BSKT/GS WERTP 17 EUR CH EFG INTL FIN EFGCLS/EFG 15 CT EUR CH LEONTEQ SEC SX5E/LEON 15 CT EUR CH CS NASSAU 6.1 BSKT/CS 16 EUR CH VONTOBEL FP CL/VONT 15 EUR CH THERAMETRICS THERAM ANR CHF CH CONZZETA CONZZETA ANR CHF With reference to the settlement instructions to be tested with the Greek CSD (BOGS), a list of financial instruments, at present still under preparation with the Greek CSD, will be available. EXTERNAL CSD SETTLEMENT: the scenario refers to settlement instructions input by a MT participant where the Issuer CSD is outside T2S and MT is the Investor CSD For these test case the following functionalities are envisaged: ALLEGEMENT, CANCELLATION AND PARTIAL SETTLEMENT. The following ISIN and CSD BIC codes are available for the test cases related to the functionalities of ALLEGEMENT and CANCELLATION: CEDELULLACF with the ISINs LU and XS MT is SME (Securities Maintaining Entity) DAKVDEFFDOM with the ISINs DE000A0D8Q15 and DE000BHY0AJ1 - In this case Monte Titoli is not SME (Securities Maintaining Entity) For the test case of PARTIAL SETTLEMENT This test case is possible only with the U.K. CSD (Crest), having the following details: CRSTGB22XXX with the ISIN GB00B15KY104 Monte Titoli SpA 11

12 Please note that, since Monte Titoli s databases have been updated with production data, all securities (and not only those indicated above) are now available to be tested. Monte Titoli SpA 12

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14 The publication contains text, data, graphics, photographs, illustrations, artwork, names, logos, trade marks, service marks and information ( Information ) connected with Monte Titoli S.p.A. ( Monte Titoli ). Monte Titoli attempts to ensure Information is accurate, however Information is provided AS IS and on an AS AVAILABLE basis and may not be accurate or up to date. Information in this publication may or may not have been prepared by Monte Titoli but is made available without responsibility on the part of Monte Titoli. Monte Titoli does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of the publication or any of the Information. No responsibility is accepted by or on behalf of Monte Titoli for any errors, omissions, or inaccurate Information in this publication. This publication does not represent solicitation, by Monte Titoli, of public saving and is not to be considered as a recommendation by Monte Titoli as to the suitability of the investment, if any, herein described. No action should be taken or omitted to be taken in reliance upon Information in this publication. We accept no liability for the results of any action taken on the basis of the Information. February 2015 Monte Titoli S.p.A. London Stock Exchange Group All rights reserved Contacts: T2S Testing Assistance: mt-t2s-test@lseg.com Telephone: (0) Monte Titoli S.p.A. Piazza degli Affari, Milano