TARGET2-BE User Group 9/11/2016

Transcription

1 TARGET2-BE User Group 9/11/2016

2 TARGET2-BE User Group Agenda TARGET2 consultation Eurosystem vision for the future RTGS services T2S and TARGET2 Internal liquidty transfers in T2S Privileges for auto-collateralisation Assessment change requests release 1.3 End-of-day cash sweep Migration to TARGET2 Cash SSP Closure Current Accounts 2/ 27

3 TARGET2-BE User Group Agenda Miscellaneous Fax procedure for contingency Instant Payments Cold start SWIFT AOB 3/ 27

4 Eurosystem vision for the future RTGS services Feedback_RTGS_services_consultation.pdf 4/ 27

5 T2S changes with impact on TARGET2 Internal liquidity transfers Reverse auto-collateralisation instructions Assessment change requests release 1.3 End-of-day cash sweep: delay 5/ 27

6 T2S CR 555 internal liquidity transfer Current behaviour of T2S: Only possible between DCA accounts: Belonging to same payment bank or Linked to the same RTGS account. CR 555 allows internal liquidity transfers in case at least one DCA belonging to a Central Bank is involved. CB s to provide liquidity in contingency situations: T2 not available: Liquidity transferred in T2S towards a specific NBB DCA could be used to inject liquidity in the T2 contingency module; Existing collateral freezing could be used to inject liquidity on DCA Liquidity bridge T2/T2S not working: From T2 to T2S: a regular Target2 payment towards the RTGS account of the NBB can be injected on the DCA of the payment bank in T2S; From T2S to T2: excess liquidity on a DCA can be transferred to the DCA of the NBB and injected by the NBB in Target2 6/ 27

7 T2S CR 555 internal liquidity transfer Considered as a tool enabling T2S to start settlement without having to wait until T2 changed its business day (currently not foreseen in MOP) In case the crediting of a DCA is secured by collateral, national (NBB) procedures are applicable Existing procedure to continuously freeze collateral to be injected in the T2 contingency module will be extended: Liquidity transfers to DCA are critical payments but, Cannot be processed in the T2 Contingency module NBB to open a specific DCA for contingency arrangements; NBB to communicate to the DCA holders: Updated procedures Organize testing Will be implemented with the T2S 1.2 release (end November 2016) 7/ 27

8 T2S CR 545 Reverse autocol instructions Current behaviour of T2S: In case CB auto-collateralization is triggered, T2S: Automatically generates the reverse transaction; In a pending party hold status. To be released by the collateral provider at the CSD side However: Instruction not initiated by a CSD client; CSD client not always visibility on cash position on DCA CR 545 splits Release party hold instruction privilege: Instruction on securities account: Remains at the CSD side Auto-collateralization instruction on securities account: Can be granted to the DCA holder (party that obtained credit from CB) On a cross system entity basis: T2S operator grants system privileges to relevant CB; CSD grants object privileges to CB; CB grants object privileges to DCA holder. 8/ 27

9 T2S CR for assessment release 1.3 (07/2017) CR543: Currently a payment banks can not define a minimum amount for a single NCB auto-collateralisation transaction: Proposed change: Payment bank to define per primary CMB an individual minimum amount to be transferred in an auto-collateralization scenario If missing cash amount is lower: cash buffer will be created Also applicable for client-collateralization Aim: limit the number of transactions in case of auto-collateralization NBB to support? 9/ 27

10 T2S CR for assessment release 1.3 (07/2017) CR580: Currently automatic intraday reimbursement of NCB autocollateralisation foreseen at 16:30 Proposed change: 5 additional time-slots to trigger intraday reimbursement Set-up of time slots parameter carried out by the NCB based on registration forms Set-up will be activated the next T2S business day Collateral relocation will not be triggered after the additional automatic intraday reimbursement. NBB to support? 10 / 27

11 T2S automatic end-of-day cash sweep At 17:45 T2S generates outbound liquidity transfers: Final Cash sweep Includes all remaining cash on DCA s In case at 17:52 the transfers are not processed a 30 minutes delay closing of T2 is immediately agreed by the T2 settlement managers Cash sweep issues: Processing period very tight At 17:45 T2S is currently dealing with unexpected traffic; Settlement instructions same priority as the LT instructions Permanent solution under investigation 11 / 27

12 T2S automatic end-of-day cash sweep Proposed interim solution to avoid T2 delay closing: Target2 interbank cut-off at 18:00 Processing of T2S final cash sweep possible until 18:10 Possible issues: Incoming liquidity on T2 account after 18:00 Can be avoided by using the 16:30 optional cash sweep Redistribution via normal MT202 payment not possible Advantage: T2 not delayed in case of slowdown Acceptable interim-solution for Belgian market? In case of technical problems the currently agreed rules remain applicable 12 / 27

13 Migration to TARGET2 13 / 27 CashSSP Application for cash transactions e.g. withdrawals, deposits of notes Currently via Current Accounts In 2017 own account in TARGET2-BE Impact for participants with cash transactions New BIC New direct debit mandates Testing Banks to TARGET2-BE All accounts with minimum reserves in Current accounts application End 2017

14 Instant Payments 14 / 27 Investigation phase Eurosystem solution TARGET Instant Payments Settlement (TIPS) TaskForce with market (banks and ACHs) All documents on site ECB Vision for the future of financial market infrastructures If green light: end 2018 Market solution based on ASI model 6 integrated ASI6 real-time Functional enhancements TARGET2 Open issues November 2017

15 Contingency procedures Update procedures New contingency procedures related to T2S Fax procedure procedure 15 / 27

16 Contingency Procedures Due to the migration of NBB-SSS and ESES- BE to T2S some contingency procedures disappeared NBB-SSS : no more forms T01 and T02 available ESES-BE : no more mandated payments New procedures Liquidity Transfers T2 T2S Fax procedure and new procedure for sending contingency forms The new procedures will be tested during the next contingency procedure exercise (December 2016) 16 / 27

17 Current orders T2 T2S Form I Banking Community (Chapter 5.1) sent by RTGS account holder Debit own RTGS account Credit DCA (linked to own RTGS account) Input via ICM by the NBB act on behalf Also standing orders are possible for D+1 (Form I Chapter 5.2) Only for DCAs linked to your RTGS 17 / 27

18 Current orders T2S T2 Form I Banking Community (Chapter 5.3) Debit own DCA Credit any RTGS account Form must be sent and signed by DCA holder Via T2S GUI NBB «acting on behalf» 18 / 27

19 Contingency Procedures «FAX» In the event that a Target2 participant has an issue and wants to switch to the contingency procedure, he is obliged to provide the Central Bank with the proper forms. Until now the duly signed forms had to be sent by fax (02/ ) The technical support of the fax machine is not longer guaranteed in certain financial institutions. 19 / 27

20 Contingency Procedures «FAX» Participants can decide themselves whether they use a fax to send the forms or use instead (duly signed forms as PDF as attachment) In any case the demand to switch to the contingency procedure has to be preceded by a call to the new general telephone 02/ This number is only known by the direct particpants and can only be used for contingency purposes. 20 / 27

21 Contingency Procedures «FAX» All incoming calls for 5200 are recorded. Recordings will only be used in case of any dispute between the participant in question and the Central Bank. 21 / 27

22 PROD & CUST The intention is to follow this procedure for both environments, production and test The telephone number 2045 of the TARGET2-BE helpdesk remains in use for any other purposes. We urge all participants not to broadcast the new number and only to spread it among their co-workers. 22 / 27

23 TARGET2-BE User Group SWIFT cold start TARGET2 Call for candidates 23 / 27

24 SWIFT Cold Start WHAT : In the extreme situation when all operating centres (OPC)s are unavailable, SWIFT will restore its services from an empty or zeroised state (so-called cold start) in its disaster recovery infrastructure for all customers. SWIFT's messaging services will be unavailable for all customers until the global cold start recovery procedure is completed WHEN : Annual tests are organised by SWIFT since march Next exercise : 22 and 23 April / 27

25 SWIFT Cold Start and TARGET2 Participants can send messages to the SSP during the exercise The SSP responds to messages received up until the moment of the start of the Cold start exercise Messages sent after the start of the Cold start should be reconciled by the participant and unprocessed messages resent All Open cycles (usage Y copy ) will be lost and can not be retrieved (e.g. queued and warehoused payments) The test can be used to practice reconciliation procedures and validate readiness for such an unlikely situation 25 / 27

26 SWIFT Cold Start and TARGET2 TARGET2 has features that might make the reconciliation process easier : Messages status can be checked via ICM (U2A/A2A) Messages can be easily reset (SSP double entry check) SSP will provide help to make it easier to treat the lost Y- copy messages Communication procedure among the banks, CBs and SSP might be tested NBB asks volunteers to participate in next exercise to exchange messages via TARGET2 Detailed scenario will follow Contact TARGET2-BE helpdesk 26 / 27

27 TARGET2-BE User Group 27 / 27