Collection of additional requirements for the T2S cash forecast

Transcription

1 Collection of additional requirements for the T2S cash forecast Workshop on T2S cash forecast and message output optimisation 23 February 2016 European Central Bank 0

2 Introduction Recently many requests have targeted the cash forecast. Therefore it was decided in the CRG meeting of September 2015 to collect ideas and requirements around the cash forecast and consider them together for improvement In addition, it must be considered that the cash forecast query and report are critical functions in terms of performance in the production environment This presentation from the CRG meeting of 15 December 2015 collects the proposed changes for the cash forecast functionalities and lists the ongoing related CRs currently under discussion or parked for future release The aim of the workshop is to gather the dedicated requirements and discuss the proposed changes which may require re-design the cash forecast functionality as well as split the functionality to allow performance optimisation Related A2A messages: camt.003 Cash Forecast Query camt.004 Cash Forecast Query Response camt.052 Current Settlement Day Cash Information Report and Following Settlement Day Cash Forecast Report Related U2A Screens (refer UHB): Cash Forecasts - Search/List Screen Cash Forecast - Details Screen 1

3 Proposed Changes - Overview 1. Display the sum of debit and sum of credit cash movements separately Involves A2A Schema Adaption as contained in CR 540 Effort: Low Performance Impact: Low 2. Display CORP related cash movements separately Involves A2A Schema Adaption Effort: Medium Performance Impact: Medium 3. Instructions to be included after DVP-Cut-Off Involves U2A & A2A changes as contained in CR 556 Effort: High Performance Impact: High 4. Possibility to select either all DCAs or one specific DCA Involves U2A & A2A change & Access rights change Effort: Medium-High Performance Impact: Low 2

4 Proposed Changes - Overview 5. Display incoming/outgoing cash separately based on counterparty instruction released/on hold U2A & A2A change Effort: Very high Performance Impact: Very high 6. Wildcard pattern for search U2A change Effort: Low (if only Cash Forecast Screen to be adapted) Performance Impact: Very high 7. Outstanding Auto-Collateralisation/T2S DCA Balances Possibility to select all BICs or one specific BIC U2A change tbc 8. Cash postings GUI screen to include the T2S Actor Ref. U2A change 3

5 Change Requests - Overview 1. CR 359: Change of hold/release to counterparty before the Intended Settlement Date The change request is put on hold for release CR 541: Bulk-release functionality (U2A) for settlement instructions The change request is put on hold for release CR 542: Enrich the Bank To Customer Debit/Credit Notification (camt.054) with data elements securities account Owner Parent BIC and securities account Owner Party BIC The change request is put on hold for release CR 547: Enrichment of Settlement Instruction with default DCA at the acceptance Three options identified to solve the cash forecast report issue Option 3 long term solution for future release 4

6 Change Requests - Overview 5. CR 580: Additional automatic intraday reimbursement of NCB auto collateralisation instructions Manual bulk release (U2A) functionality for settlement instructions proposed in CR 541 The change request is put on hold for release CR 590: Include ISIN and Message Identification in the T2S Bank to customer statement (camt.053) message Seek SGMS opinion on usage of message field (Message Identification) as proposed The change request is put on hold for release 2.0 5

7 Proposed Change 1: Display the sum of debit and sum of credit cash movements separately As implemented for the U2A cash forecast, the A2A cash forecast should also separately display the sum of pending cash movements that debit and credit a DCA. CR Alignment of U2A and A2A cash forecast information raised by the German NUG for Release 2 (CR Link) Consider additional balance type codes in datatypes T2SCashBalanceCodes_T2S_1 (camt.004) and BalanceType12Code_T2S_1 (camt.052) for debit and credit sum used in the following fields: camt /reportorerror/accountreport/accountorerror/account/multil ateralbalance camt /report/balance 6

8 Proposed Change 2: Display CORP related cash movements separately Separately display the sum of pending cash movements for CORP transactions Deutsche Bank In camt.052 it can be considered to amend the current used field for Bank Transaction Codes (/BkToCstmrAcctRpt/Rpt/TxsSummry/TtlNtriesPerBkTxCd/BkTxCd/Prtry/Cd) by adding the new code CORP to the already existing code list. No ISO change needed. 7

9 Proposed Change 3: Instructions to be included after DVP-Cut-Off - The cash forecast for the current settlement day, if initiated after the event DVP cut-off has been finished (around 4 p.m.), should only include instructions, which can still be settled during the current business day. - The cash forecast for the following settlement day should include settlement instructions for the given ISD and settlement instructions with an ISD equal or less than the current settlement day which cannot settle on the current business day. CR Modification of cash forecast for the current and following business day after DVP cut-off raised by the German NUG for Release 2 (CR Link) 8

10 Proposed Change 4: Possibility to select one, several or all DCAs In A2A and U2A mode it should be possible to select one, more than one or ALL DCAs to receive cash forecast information in a single report/query. Deutsche Bank ISO message camt.003 supports to query based on DCA but currently it is not a search criteria in T2S (e.g. one or several DCAs) No ISO change needed 9

11 Proposed Change 5: Display incoming/outgoing cash separately based on counterparty instruction released/on hold Cash forecast should display two additional fields for the incoming and outgoing cash for released pending instructions: 1. Status of counterparty instruction is released 2. Status of counterparty instruction is on hold Discussion in the DCP-G Not available for that level of detail in camt.004 and camt.052. Schema change would be needed for camt.004 and camt

12 Proposed Change 6: Wildcard pattern for search Re-establish the wildcard patterns into the fields for the search to facilitate NCBs for monitoring all DCAs under their system entity (balance and cash forecast) in order to have a full view of the DCA or a limited view. CRG written procedure for GUI optimisation (Usability issue proposed by BdF) 11

13 Proposed Change 7: Outstanding Auto-Collateralisation/DCA Balances Possibility to select one or all Parties In U2A mode it should be possible to select one or ALL Parties to receive Outstanding Auto-Collaterialisation Information or DCA balances in a single query. PBI

14 Proposed Change 8: Cash postings GUI screen to include the T2S Actor Ref. The only reference provided by the T2S GUI on the cash postings screen is the T2S Reference. This reference is normally meaningless as it can only be reconciled ex-post with the information received from the back office. Our suggestion would be to include the relevant T2S actor references on this screen. In this way the postings screens would be somewhat aligned with the behaviour of the camt.054 message. Banco de España 13

15 Remarks Proposed Change 1 could be implemented within the current technical design and is already addressed in CR 540 (Alignment of U2A and A2A cash forecast information) and could be delivered earliest in Release 1.3, depending on prioritisation of CRs for that release by the CRG For the other changes we deem it required to do a technical re-design of the Cash Forecast functionality with detailed requirements of the different but related changes 14

16 Change Requests: CR 359 Change of hold/release to counterparty before the Intended Settlement Date For matched settlement instructions, hold statuses of counterpart should be communicated to party before and on the Intended Settlement Day (and after the intended settlement day in case of late settlement). VP Securities The proposed change 5, requests for additional fields in the cash forecast report to indicate cash flow related to counterparty hold/release instructions The CRG (1-2 Oct 2012) decided to put the change request on hold for release

17 Change Requests: CR 541 Bulk-release functionality (U2A) for settlement instructions To implement a U2A bulk-release functionality for the on-hold settlement instructions selected according to a specific criteria (such as e.g. ISO transaction code, counterparty, collateral receiving account, CSD, etc.) in order to release pending reverse collateral instructions and any other settlement instruction on hold. Deutsche Bundesbank The CRG (17-18 Sept 2015) decided to put the change request on hold for release

18 Change Requests: CR 542 Enrich the Debit/Credit Notification (camt.054) with data elements securities account Owner Parent BIC and securities account Owner Party BIC To enrich the Bank To Customer Debit Credit Notification (camt.054) with the Securities Account Owner Parent BIC and the Securities Account Owner Party BIC. Deutsche Bundesbank The CRG (17-18 Sept 2015) decided to put the change request on hold for release

19 Change Requests: CR 547 Enrichment of Settlement Instruction with default DCA at the acceptance When the T2S Dedicated Cash Account is not included in a Settlement Instruction, T2S should enrich the Settlement Instruction with the default DCA configured in Static Data at the initial Instruction Validation process, and this DCA will be kept in the instruction regardless any change that could happen in Static Data. 4CB There were three options identified to solve the cash forecast report issue, which is a showstopper for the migration of the German market as well as some other markets. The PMG concluded that option 1 (i.e. CR 547 in Release 1.2) is a temporary solution and option 3 (i.e. resolve the cash forecast report issue without impacting the management of the Default DCA functionality) i.e. CR 547 with dynamic update of the DCA) is the long term solution 18

20 Change Requests: CR 580 Additional automatic intraday reimbursement of NCB auto collateralisation instructions The T2S Payment Bank user should have a choice to release pending reimbursement instructions: Intraday by manually releasing the on-hold instructions Or at 4.30 pm automatically by T2S during the automatic reimbursement process Or via subscription, for an additional automatic intraday reimbursement process at noon and 3pm (or other slot). Banque de France CR 541 proposes to have manual bulk release (U2A) functionality for settlement instructions. The CRG (15 Dec 2015) decided to put the change request on hold for release

21 Change Requests: CR 590 Include ISIN and Message Identification in the T2S Bank to customer statement (camt.053) message To facilitate an optimal reconciliation, T2S should include ISIN and Message Identification in the Bank to customer statement (camt.053) message National Bank of Belgium / NBB-SSS CRG to check with the SGMS for their opinion on usage of message field Message Identification as proposed in the change request. The CRG (8-9 Feb 2016) decided to put the change request on hold for release

22 Thank you for your attention 21