kdpw_stream settlement operation type codes under ISO 15022/20022

Transcription

1 Appendix kdpw_stream settlement operation type codes under ISO 15022/20022 Specification of business requirements Version 0.4 Warsaw, June Krajowy Depozyt Papierów Wartościowych S.A. ul. Książęca Warszawa T F E kdpw@kdpw.pl Krajowy Depozyt Papierów Wartościowych Spółka Akcyjna z siedzibą w Warszawie (00-498) przy ulicy Książęcej 4, wpisana do rejestru przedsiębiorców prowadzonego przez Sąd Rejonowy dla m. st. Warszawy, XII Wydział Gospodarczy Krajowego Rejestru Sądowego, pod nr KRS , NIP , wysokość kapitału zakładowego i kapitału wpłaconego zł.

2 Table of contents Document history Introduction Settlement operation type attributes Operation type codes for selected settlement processes OTC trade Transactions which require opening and closing phase identification Corporate actions List of kdpw_stream settlement operations Transitional period Appendix 1 List of ISO20022 operation type codes Appendix 2 Operation type codes in ESMA s CSDR technical standards Appendix 3 Place of trade codes definition under ISO150022/ Face amount of debt instruments 2/28

3 Document history KDPW version 0.4 NMPG discussion results, update of transactions requiring matching KDPW version Open issues in NMPG discussions NMPG version Comments agreed by S&R NMPG PL KDPW version Clarification of CA provisions KDPW version Comments raised by NMPG PL KDPW version 0.2 Operations table edit KDPW version 0.1 First release 1. Introduction This document describes settlement operation codes under ISO15022/20022 requirements in kdpw_stream. The implementation of standard settlement operation attributes is a key part of the alignment of KDPW system communications with the international standards and practice. The requirement to identify the settlement operation type under ISO follows from the technical standards published by the European Securities and Markets Authority (ESMA) which accompany the European Regulation on improving securities settlement in the European Union and on central securities depositories (CSDR). This document presents a comparison of the existing and the new attributes of settlement operation types in kdpw_stream messages. The document contains a complete list of settlement operation types processed by KDPW and their new codes. Face amount of debt instruments 3/28

4 2. Settlement operation type attributes Settlement operations are currently defined in kdpw_stream using the following set of attributes: KDPW settlement transaction type - (KDPWSttlmTxTp) - 2 characters KDPW place of trade (KDPWPlcOfTrad) - 2 characters KDPW trading mode (KDPWTradMode) - 2 characters Transaction phase (TxPhs) - 4 characters All these attributes have values defined by KDPW and described in the KDPW Detailed Rules of Operation. In the new solution, settlement operations will be defined using the following attributes: Settlement transaction type (SttlmTxTp) - 4 characters Mandatory attribute of settlement instructions. Four-character code under ISO15022 in the field: 22F::SETR - Type of Settlement Transaction (counterpart to SctiesTxTp - SecuritiesTransactionType in ISO20022). Place of trade (PlcOfTrad) max, 16 characters Optional field. Used if necessary to define the place of trade of the original transaction in the settlement instruction. Exchange markets will be defined using an MIC. Counterpart to 94B::TRAD Place of Trade in ISO15022 and PlcOfTrad in ISO Trading mode (TradMode) max. 16 characters (we expect to use fourcharacter codes) Optional field. Only used if necessary to provide additional details of the transaction or settlement under the regulatory requirements, a fee schedule, specific operating requirements, etc. Four-character codes used in the field will be defined by KDPW. Trading mode in ISO messages will be defined in 22F::STCO - Settlement Transaction Condition in ISO15022 and SttlmTxCond in ISO Face amount of debt instruments 4/28

5 The new solution will not use the attribute Transaction phase (TxPhs). The kdpw_stream message structures require no alignment with the new settlement operation type codes. All of the required fields are included in the existing message versions. The table below presents kdpw_stream message fields used with the existing and the new settlement operation type codes. Transaction type Existing solution <KDPWSttlmTxTp> TR </KDPWSttlmTxTp> New solution <SttlmTxTp> TRAD </SttlmTxTp> Place of trade <KDPWPlacOfTrad> XG </KDPWPlacOfTrad> <PlacOfTrad> EXCH/XWAR </PlacOfTrad> Trading mode <KDPWTradMode> ZG </KDPWTradMode> <TradMode> GTDL </TradMode> Transaction phase <TxPhs> OPEN </TxPhs> None Face amount of debt instruments 5/28

6 The table below presents how the new settlement operation type codes in kdpw_stream correspond directly to codes used in ISO15022/ISO20022 messages. KDPW XML messages ISO15022 (SWIFT MT) ISO20022 Transaction type <SttlmTxTp> TRAD </SttlmTxTp> :22F::SETR//TRAD <SctiesTxTp> <Cd> TRAD </Cd> </SctiesTxTp> Place of trade <PlacOfTrad> EXCH/XWAR </PlacOfTrad> :94B::TRAD//EXCH/XWAR <PlcOfTrad> <Id> <MktIdrCd>XWAR</MktIdrCd> </Id> <Tp> <Cd>EXCH</Cd> </Tp> </PlcOfTrad> Trading mode <TradMode> EXWA </TradMode> :22F::STCO/KDPW/EXWA <SttlmTxCond> <Prtry> <Id>GTDL</Id> <Issr>KDPW</Issr> </Prtry> </SttlmTxCond> Face amount of debt instruments 6/28

7 3. Operation type codes for selected settlement processes 3.1 OTC trade The example below presents a settlement instruction for an OTC trade between participants AAAA and BBBB: <sese.ins > <GnlInf> <InstrTp>DP</InstrTp> <SndrMsgRef>A_INS1</SndrMsgRef> <FuncOfMsg>NEWM</FuncOfMsg> </GnlInf> <TradDtls> <ISIN>PL </ISIN> <ReqdSttlmQty> <Unit>1100</Unit> </ReqdSttlmQty> </TradDtls> <SttlmDtls> <SttlmTxTp>TRAD</SttlmTxTp> <SttlmDtTm> <Dt> </Dt> </SttlmDtTm> <DlvrgSdDtls> <DlvrgAgtDtls> <KDPWMmbId>AAAA</KDPWMmbId> <KDPWSafAcct>ABCD</KDPWSafAcct> </DlvrgAgtDtls> </DlvrgSdDtls> <RcvgSdDtls> <RcvgAgtDtls> <KDPWMmbId>BBBB</KDPWMmbId> <KDPWSafAcct>1213</KDPWSafAcct> </RcvgAgtDtls> </RcvgSdDtls> <SttlmAmt Ccy="PLN"> </SttlmAmt> </SttlmDtls> </sese.ins > As shown in the example, the only attribute necessary to identify the transaction type is the field SttlmTxTp which is completed with the value TRAD. The instruction contains no place of trade or trading mode identifier. 3.2 Transactions which require opening and closing phase identification For repo, tri-party repo, buy-sell-back, securities lending and collateral transactions, the opening and the closing phase need to be identified. According to the SMPG practice, the phase is identified using the settlement operation type and the instruction type. Face amount of debt instruments 7/28

8 The main kdpw_stream instruction types are: - DP/DN delivery versus payment / delivery free of payment (DvP, DFP), - PP/PN receive versus payment / receive free of payment (RvP, DFP). Depending on the scenario and transaction phase, the settlement instruction should specify the following operation type and instruction type values: Operation type Instruction type Description Repo REPU DP Repo opening leg collateral delivering party RVPO PP Repo opening leg cash delivering party REPU PP Repo closing leg cash returning party RVPO DP Repo closing leg collateral returning party Tri-party repo TRPO DP Repo opening leg collateral delivering party TRVO PP Repo opening leg cash delivering party TRPO PP Repo closing leg cash returning party TRVO DP Repo closing leg collateral returning party Buy-sell-back / sell-buy-back SBBK DP Opening selling party BSBK PP Opening buying party SBBK PP Closing selling party BSBK DP Closing buying party Securities lending SECL DN Loan opening lender SECB PN Loan opening borrower SECL PN Loan return lender SECB DN Loan return borrower Providing/releasing collateral COLO DN Collateral delivery (provider) COLI PN Collateral receive (recipient) COLO PN Delivered collateral return (provider) COLI DN Received collateral return (recipient) For instructions which require matching of the above operation codes, the following values will be cross-matched: REPU <-> RVPO TRPO <-> TRVO SBBK <-> BSBK SECL <-> SECB COLI <-> COLO Face amount of debt instruments 8/28

9 3.3 Corporate actions Settlement instructions generated as a result of corporate action processing will be identified with the operation type code CORP irrespective of the action type. An instruction will be linked to an action type using the CA identifier in the field CARef provided that the identifier has been issued as well as the action type code in the field CaCd. The following corporate action type codes will be used in the field CaCd: - CONV conversion of all securities marked with an ISIN code - PARI assimilation of all securities marked with an ISIN code - EXRI execution of subscription right - RHDI distribution of subscription right - SPLF split - SPLR reverse split - REDM redemption - CHAN, WRTH withdrawal of securities Face amount of debt instruments 9/28

10 4. List of kdpw_stream settlement operations The table below presents the new settlement operation codes processed in kdpw_stream. The list of operation types is based on the KDPW Detailed Rules of Operation effective as of 1 January Settlement operation codes processed by KDPW: TRAD trade settlement REPU repo transaction RVPO reverse repo transaction SBBK sell-buy-back transaction BSBK buy-sell-back transaction TRPO tri-party repo transaction TRVO - tri-party reverse repo transaction SECL securities lending transaction SECB securities borrowing transaction CORP corporate action settlement COLI collateral in COLO collateral out PLAC registration of financial instruments REDI withdrawal of securities PORT portfolio transfer OWNI internal transfer (within one institution) OWNE external transfer (involving more than one institution) CNCB central bank transaction Face amount of debt instruments 10/28

11 CLAI transfer resulting from a market claim MKUP mark-down MKDW mark-up INTP asset status change (KDPW internal code) - Unless the tables below specify otherwise, transfers of securities involving cash settlement take place in sessions 1-3 and of securities involving no cash settlement at sessions Unless indicated otherwise, real-time settlement of transactions of a given type (if operated in the real-time settlement system) takes place from 08:00 to 17:00 for transfers of securities involving cash settlement and from 08:00 to 13:00 for transfers of securities involving no cash settlement. Face amount of debt instruments 11/28

12 Types of operations which require the confirmation of settlement details have the following codes: Previous No. Operation Transact Place of trade Trading RTGS Settlem Comments code: ion type mode ent - Transaction session type - Place of trade - Trading mode - Transaction phase (previous item on the list) 1 a) Transaction concluded outside organised TRAD DvP: DvP: 1-3 TR-NR-ZN trading executed by KDPW FoP: FoP: 1-4 (95, 96) b) Registration of securities referred to in 40 subpara. 6 of the KDPW Rules FoP: FoP: 1-4 b-e: place of TR-IN-ZN c) Deregistration of securities from registration accounts kept in KDPW in connection with their settlement must be indicated (97) transfer to a foreign market FoP: FoP: 1-4 WZ-IN-ZN- CLO1 (65a) TR-IN-ZN Face amount of debt instruments 12/28

13 d) Registration of Treasury bills according to the (60) provisions of 40a subpara. 2 of the KDPW Rules - FoP: 1-4 RZ-IN-ZN (85b) e) Deregistration of Treasury bills from registration accounts kept in KDPW in connection with their transfer from an auxiliary FoP: FoP: 1-4 WZ-IN-ZN- CLO1 (65b) account kept for KDPW in the National Bank of Poland 2 Transfer of securities in connection with post- TRAD KDPW/XPXX DvP: DvP: 1-3 Currently, RTGS TR-XP-ZN transaction settlement FoP: FoP: 1-4 from 16:30 (93, 94) 3 Transfer of securities between participants accounts in connection with the settlement of a transaction concluded as part of a Treasury bond sale auction or sale auction of Bank Gospodarstwa Krajowego bonds, underwritten or guaranteed by the State Treasury, where a party to the transaction is an auction participant who is not a direct participant TRAD PRIM/NBPX DvP: TR-NB-SW (88) 4 Registration of securities in connection with their transfer from the UK market if such securities are registered in the UK market as CREST Depository Interests (CDI) 5 Presenting securities for deregistration in connection with their transfer to the UK market if such securities are to be registered in the UK market as CREST Depository Interests (CDI) MKUP FoP: FoP: 1-4 MU-IN-ZN (75) MKDW FoP: FoP: 1-4 MD-IN-ZN- SUBS (11) Face amount of debt instruments 13/28

14 6 Transfer of securities between accounts kept for different participants, other than the transfers referred to in other items 7 Transfer of securities between accounts kept for the same participant, other than the transfers referred to in other items 8 Transfer of securities between accounts kept for different participants without transfer of ownership of these securities OWNE FoP: FoP: 1-4 OE-IN-ZN (13 OT-IN-ZN (14) OI-IN-ZN (15-16) OWNI FoP: FoP: 1-4 OW-IN-ZN (18) PORT FoP: FoP: 1-4 PT-IN-ZN (24) 9 Leg of a repo transaction executed without using KDPW as intermediary 10 Transfer of securities following marking to market operations for a repo transaction concluded without using KDPW as intermediary 11 Leg of a sell-buy-back transaction executed without using KDPW as intermediary 12 Repo settlement performed as part of the tri-party repo service, including cash transfer performed as part of the tri-party repo service REPU/ RVPO COLI/ COLO SBBK/ BSBK TRPO/ TRVO DvP: DvP: 1-3 TR-NR-ZR- OPEN RE-NR-ZR- CLOS (96a, 96b) REPU Fop: DvP: 1-4 DvP: DvP: 1-3 TR-NR-ZB- OPEN RE-NR-ZN- CLOS (96c, 96d) - DvP: 1-3 RE-NR-ZN- OPEN RE-NR-ZN- Face amount of debt instruments 14/28

15 13 Transfer of securities following marking to market operations performed as part of the tri-party repo service, including cash transfer performed as part of the tri-party repo service COLI/CO LO CLOS (84a, 84b, 111) TRPO - DvP: 1-3 RE-NR-ZN (84c, 111) 14 Transfer of securities in connection with a securities SECL/ DvP: DvP: 1-3 TP-IN-ZN lending and borrowing agreement concluded outside SECB FoP: FoP: 1-4 (86a, 86b) the lending and borrowing system organised by KDPW 15 Registration of securities according to the provisions of TRAD PRIM DvP: DvP: 1-3 RZ-IN-ZN 40 subpara. 5 of the KDPW Rules FoP: FoP: 1-4 (85a, 86) ZW-IN-ZN (73, 74) 16 Deregistration of securities from participants accounts according to the provisions of 40 subpara. 5 of the KDPW Rules 17 Exercise of rights from convertible bonds, preference bonds or subscription warrants according to the provisions of 40 subpara. 5 of the KDPW Rules REDI - DvP: 1-3 FoP: 1-4 REDI EXWA - DvP: 1-3 FoP: 1-4 WZ-IN-ZN (98, 99) ZW-IN-ZN (100, 101) 18 Transfer of securities in connection with the clearing guarantee system operated by KDPW_CCP COLI/ COLO FoP: FoP: 1-3 MS-IN-ZN (101a, 101b, 74b, 74c) Face amount of debt instruments 15/28

16 Types of operations which require the confirmation of settlement details from BondSpot S.A. and trade counterparties have the following codes: Previous No. Operation Transact Place of trade Trading RTGS Settlem Comments code: ion type mode ent - Transaction session type - Place of trade - Trading mode - Transaction phase (previous item on the list) 19 Transaction concluded in secondary trading on the electronic market of Treasury securities operated by BondSpot S.A.. 20 Leg of a repo transaction executed on the electronic market organised by BondSpot S.A. TRAD EXCH/TBSP - DvP: 1-3 Instructions submitted from a market may require confirmation of one or both trading parties REPU/ EXCH/TBSP DvP: DvP: 1-3 Instructions RVPO submitted from a market may require confirmation of one or both trading parties TR-MT-ZN (54, 87, 102) RE-MT-ZN- OPEN RE-MT-ZN- CLOS (26, 27, 80, 80a, 103, 103a) Face amount of debt instruments 16/28

17 21 Leg of a sell-buy-back transaction executed on the electronic market organised by BondSpot S.A. 22 Repo settlement performed as part of the tri-party repo service for transactions executed on the electronic market organised by BondSpot S.A., including cash transfer performed as part of the tri-party repo service 23 Transfer of securities following marking to market operations performed as part of the tri-party repo service for transactions executed on the electronic market organised by BondSpot S.A., including cash transfer performed as part of the tri-party repo service SBBK/ BSBK TRPO/ TRVO COLI/ COLO EXCH/TBSP DvP: DvP: 1-3 Instructions submitted from a market may require confirmation of one or both trading parties RE-MT-ZN- OPEN RE-MT-ZN- CLOS (26, 27, 80, 80a, 103, 103a) EXCH/TBSP - DvP: 1-3 Instructions RE-MT-TRsubmitted from a OPEN market require RE-MT-TRconfirmation of CLOS both trading (103b, 103c, parties 112) EXCH/TBSP TRPO - DvP: 1-3 RE-MT-ZN (84d, 112) Types of operations which do not require the confirmation of settlement details have the following codes: Previous No. Operation Transact Place of trade Trading RTGS Settlem Comments code: ion type mode ent - Transaction session type - Place of trade - Trading Face amount of debt instruments 17/28

18 mode - Transaction phase (previous item on the list) 24 Stock exchange transaction concluded on a market other than the derivatives market whose settlement is guaranteed by the clearing fund or the KDPW clearing fund 25 Stock exchange transaction concluded outside a session Stock exchange transaction involving acquisition of a qualifying holding 26 Transaction concluded as part of a public offering through the Warsaw Stock Exchange 27 A buy-in or sell-out securities transaction concluded on the stock exchange market for the purpose of correct performance of obligations arising from the clearing of other transactions 28 Transaction concluded on the basis of an order submitted as part of a securities subscription carried out through the Warsaw Stock Exchange IT system 29 Transaction concluded in the alternative trading system organised by the Warsaw Stock Exchange whose settlement is guaranteed by the ATS Guarantee Fund, or the KDPW ATS Guarantee Fund TRAD EXCH/XWAR - DvP: 1-3 TR-XG-ZG (36) TRAD EXCH/XWAR TRPK - DvP: 1-3 TR-XG-PK TR-XG-ZP (39, 41) TRAD EXCH/XWAR TRSW - DvP: 1-3 TR-XX-SW (40) TRAD EXCH/XWAR BISO - DvP: 1-3 TR-XG-BI (42) TRAD PRIM/XWAR - DvP: 1-3 TR-XX-PS (43) TRAD EXCH/XNCO - DvP: 1-3 TR-XA-ZG (44) Face amount of debt instruments 18/28

19 30 - Block transaction concluded in the alternative trading system organised by the Warsaw Stock Exchange - Transaction involving the acquisition of a qualifying shareholding, executed in the alternative trading system organised by the Warsaw Stock Exchange 31 A buy-in or sell-out securities transaction concluded in the alternative trading system organised by the Warsaw Stock Exchange for the purpose of correct performance of obligations arising from the clearing of other transactions 32 Block transaction concluded on the over-the-counter regulated market 33 Transaction concluded on the over-the-counter regulated market whose settlement is guaranteed by the clearing fund or the KDPW clearing fund 34 Transaction concluded in the alternative trading system organised by BondSpot S.A. whose settlement is guaranteed by the ATS Guarantee Fund, or the KDPW ATS Guarantee Fund 35 Block transaction concluded in the alternative trading system organised by BondSpot S.A. 36 Transfer of securities between participants accounts in connection with the settlement of a transaction concluded as part of a Treasury bond redemption auction or a redemption auction of Bank Gospodarstwa Krajowego bonds, underwritten or guaranteed by the State Treasury TRAD EXCH/XNCO TRPK - DvP: 1-3 TR-XA-PK TR-XA-ZP (45, 47) TRAD EXCH/XNCO BISO - DvP: 1-3 TR-XA-BI (46) TRAD EXCH/RPWC TRPK - DvP: 1-3 TR-XC-PK TR-XC-ZP (48, 50) TRAD EXCH/RPWC - DvP: 1-3 TR-XC-ZG (51) TRAD EXCH/BOSP - DvP: 1-3 TR-XM-ZG (52) TRAD EXCH/BOSP TRPK - DvP: 1-3 TR-XM-ZP (53) TRAD SECM/NBPX - DvP: 1-2 TR-NB-ZN (55) Face amount of debt instruments 19/28

20 37 a) Transaction involving the sale to a bank or the purchase from a bank of Treasury securities by the National Bank of Poland at auction as part of the monetary policy, b) the sale to a bank or the purchase from a bank of Treasury securities by the National Bank of Poland outside auction as part of the monetary policy. 38 Transfer of securities between participants accounts in connection with the settlement of a transaction concluded as part of a Treasury bond exchange auction or an exchange auction of Bank Gospodarstwa Krajowego bonds, underwritten or guaranteed by the State Treasury - redemption 39 Transfer of securities between participants accounts in connection with the settlement of a transaction concluded as part of a Treasury bond exchange auction or an exchange auction of Bank Gospodarstwa Krajowego bonds, underwritten or guaranteed by the State Treasury - allocation 40 Transfer of securities between participants accounts in connection with the settlement of a transaction concluded as part of a Treasury bond sale auction or a sale auction of Bank Gospodarstwa Krajowego bonds, underwritten or guaranteed by the State Treasury 41 Obligatory buyout of shares of a public company referred to in 82 subpara. 1 of the Law on public offerings TRAD SECM/NBPX TRPP - DvP: 1 TR-NB-PP (55a) TRAD SECM/NBPX - FoP: 1-4 TR-NB-ZN (56) TRAD PRIM/NBPX - FoP: 1-4 TR-NB-ZN (56) TRAD PRIM/NBPX DvP: TR-NB-SW (57) TRAD - DvP: 1-3 TR-IN-ZN (59) Face amount of debt instruments 20/28

21 42 Delivery of underlying instrument in connection with exercise of derivative instrument OWNE SECM/KDPW - FoP: 1-3 TR-DV-ZG (60b) 43 Repo transaction settled on the basis of a settlement instruction sent by KDPW_CCP 44 Sell-buy-back transaction settled on the basis of a settlement instruction sent by KDPW_CCP REPU/RV PO SBBK/ BSBK OTCO/KDPW - DvP: 1-3 TR-OC-ZG (60a) OTCO/KDPW - DvP: 1-3 TR-OC-ZG (60a) 45 Settlement instructions generated as a result of corporate action processing CORP R, 1-4 AS-IN-ZN CH-IN-ZN PP-IN-ZN PP-IN-ZN PP-IN-ZN PP-IN-ZN RZ-IN-ZN- OPEN WY-IN-ZN WZ-IN-ZN (1, 6, 20, 21, 22, 23a, 34, 64, 66) 46 Registration of financial instruments in the depository PLAC FoP: DvP: 1-3 FoP: 1-4 RZ-IN-ZN (33) PP-IN-ZN Face amount of debt instruments 21/28

22 (23b) 47 Deregistration of securities from the account of a participant REDI CLOS FoP: FoP: 1-4 WZ-IN-ZN CLOS (67) 48 Granting and returning an automatic securities loan SECB/ SECL AUTO - DvP: 1-3 BO-IN-ZN- OPEN BO-IN-ZN- CLOS (2, 3, 9, 10) 49 Settlement related to the grant of a loan concluded in the negotiated lending system Settlement related to the return of a loan concluded in the negotiated lending system SECB/ SECL PNEG - DvP: 1-3 LB-PN-ZN- OPEN LB-PN-ZG- CLOS (7, 7a) 50 Lender substitution SECB/ SECL SUBS - FoP: 1-3 LE-IN-ZN- SUBS (8) 51 Leg of a repo transaction concluded between the REPU/ OTCO/NBPX Opening: DvP: 1 RE-NB-ZN- National Bank of Poland and a bank RVPO 17:00 OPEN Closing: RE-NB-ZN- 11:00 CLOS (28, 29) 52 Transfer of securities onto the account of the National CNCB Delivery: Delivery: CB-IN-ZN Bank of Poland for the purpose of collateralising CB-NB-ZN technical credit Return: Return: (4, 5) Transfer of securities onto KDPW participant s account from the account of the National Bank of Poland in connection with the repayment of technical credit Face amount of debt instruments 22/28

23 53 Transfer of the collateral for a securities loan to the lender 54 Transfer of securities contributed as initial margin by order of a participant COLI/ COLO COLI/ COLO - FoP 1-3 TZ-IN-ZN (61) FoP: FoP: 1-3 TZ-IN-ZN (62a) 55 Change of the status of securities INTP FoP: FoP: 1-4 ZS-IN-ZN (69, 70) Face amount of debt instruments 23/28

24 Types of operations involving only cash transfers have the following codes: Previous No. Operation Transact Place of trade Trading RTGS Settlem Comments code: ion type mode ent - Transaction session type - Place of trade - Trading mode - Transaction phase (previous item on the list) 56 Cash transfer in connection with the settlement of a transaction according to 50 of the KDPW Rules Cash transfer related to the processing of compensation referred to in 68 of the KDPW Rules 57 Cash transfer in connection with a fee charged as a result of the refusal by a participant to accept a transaction concluded as part of a Treasury bond redemption or exchange tender organised by the Ministry of Finance CLAI KP-IN-ZN (104) KR-IN-ZN (113) OWNE INTR :45 - DP-IN-ZN (105) 58 Cash transfer in connection with: - replenishment of a shortage or return of a surplus of contractual collateral of a negotiated loan, or - take-over of contractual collateral of a negotiated loan COLI/ COLO PNEG ZP-IN-ZN (106) Face amount of debt instruments 24/28

25 by KDPW_CCP 59 Cash transfer in connection with the processing of collateral of automatic securities loans 60 Cash transfer in connection with the execution of a cash payment arising from a transaction executed outside organised trading, determined on the basis of an instruction sent by KDPW_CCP COLI/ COLO COLI/ COLO AUTO BP-IN-ZN (108) CCPT IP-OC-ZG (109) Face amount of debt instruments 25/28

26 5. Transitional period Settlement instructions submitted to kdpw_stream before the implementation date of the new codes to be settled after the implementation date should use the existing operation type codes. Status and settlement confirmation messages for such instructions sent after the implementation date will use the new operation type codes. Face amount of debt instruments 26/28

27 Appendix 1 List of ISO20022 operation type codes This section presents the list of settlement operation type codes in ISO20022 messages. The kdpw_stream codes are a subset of the codes on the list presented below. AUTO AutoCollateralisation Relates to an auto-collateralisation movement BSBK Buy Sell Back - Relates to a buy sell back transaction. CLAI Market Claim Transaction resulting from a market claim. CNCB Central Bank Collateral Operation Relates to a collateral delivery/receipt to a National Central Bank for central bank credit operations. COLI Collateral In Relates to a collateral transaction, form the point of view of the collateral taker or its agent. COLO Collateral Out Relates to a collateral transaction, form the point of view of the collateral giver or its agent. CONV DR Conversion Relates to a depository receipt conversion. CORP Corporate action Relates to a corporate action ETFT Exchange Traded Funds Relates to an exchange traded fund (ETF) creation or redemption. FCTA Factor Update Relates to a factor update. INSP Move of Stock Relates to a movement of shares into or out of a pooled account. ISSU Issuance Relates to the issuance of a security such as an equity or a depository receipt. MKDW Mark-Down Relates to the decrease of positions held by an ICSD at the common depository due to custody operations (repurchase, pre-release, proceed of corp. event realigned). MKUP Mark-Up Relates to the increase of positions held by an ICSD at the common depository due to custody operations (repurchase, pre-release, proceed of corporate event realigned). NETT Netting Relates to the netting of settlement instructions. NSYN Non Syndicated Relates to the issue of medium and short term paper (CP, CD, MTN,notes...) under a program and without syndication arrangement. OWNE External Account Transfer Relates to an account transfer involving more than one instructing party (messages sender) and/or account servicer (messages receiver). OWNI Internal Account Transfer Relates to an account transfer involving one instructing party messages sender at one account servicer (messages receiver). PAIR Pair-Off Relates to a pair-off: the transaction is paired off and netted against one or more previous transactions. PLAC Placement Relates to the placement/new issue of a financial instrument. PORT Portfolio Move Relates to a portfolio move from one investment manager to another and/or from an account servicer to another. It is generally charged differently than another account transfer (OWNE, OWNI, INSP), hence the need to identify this type of transfer as such. REAL Realignment Relates to a realignment of positions. REDI Withdrawal Relates to the withdrawal of specified amounts from specified subaccounts. REDM Redemption (Funds) Relates to a redemption of Funds (Funds Industry ONLY). RELE DR Release/Cancellation Relates to a release (into/from local) of Depository Receipt operation. REPU Repo Relates to a repurchase agreement transaction. RODE Return of Delivery Without Matching Relates to the return of financial instruments resulting from a rejected delivery without matching operation. RVPO Reverse Repo Relates to a reverse repurchase agreement transaction. SBBK Sell Buy Back Relates to a sell buy back transaction. SBRE Borrowing Reallocation Internal reallocation of a borrowed holding from one safekeeping account to another. SECB Securities Borrowing Relates to a securities borrowing operation. SECL Securities Lending Relates to a securities lending operation. SLRE Lending Reallocation Internal reallocation of a holding on loan from one safekeeping account to another. SUBS Subscription (Funds) Relates to a subscription to funds (Funds Industry ONLY). SYND Syndicate of Underwriters Relates to the issue of financial instruments through a syndicate of underwriters and a Lead Manager. TBAC TBA Closing Relates to a To Be Announced (TBA) closing trade. TRAD Trade Relates to the settlement of a trade. TRPO Triparty Repo Relates to a triparty repurchase agreement. TRVO Triparty Reverse Repo Relates to a triparty reverse repurchase agreement. TURN Turnaround Relates to a turnaround: the same security is bought and sold to settle the same day, to or from different brokers. Face amount of debt instruments 27/28

28 Appendix 2 Operation type codes in ESMA s CSDR technical standards Under the record keeping requirements, ESMA requires at least the following operation type codes: a) TRAD - purchase or sale of securities; b) COLI/COLO/CNCB - collateral management operations; c) SECL/SECB - securities lending/borrowing operations; d) REPU/RVPO/TRPO/TRVO/ BSBK/ SBBK - repurchase transactions; e) OTHR (or more granular codes as provided by the CSD) - others. Appendix 3 Place of trade codes definition under ISO150022/20022 TRAD Place of Trade Place at which the order was traded, directly by the instructing party or not. FORMAT :4!c/[8c]/4!c[/30x] (Qualifier)(Data Source Scheme)(PlaceCode)(Narrative) Place Code must contain one of the following codes: EXCH Stock Exchange Place of trade is a stock exchange. OTCO Over The Counter Place of trade is over the counter. PRIM Primary Market Place of trade is the primary market. SECM Secondary Market Place of trade is the secondary market. VARI Various Trade was executed on various places. USAGE RULES When Place Code is OTCO, Narrative, if present, must specify the system. When Place Code is EXCH, Narrative, if present, must specify the Market Identifier Code (MIC). A cross-exchange netted transaction is to be identified by the combination of Various (Place field :94B::TRAD//VARI) and Netting (Indicator field :22F::SETR//NETT). Face amount of debt instruments 28/28