CBF Customer Simulation Period November 2018 Guideline

Transcription

1 CBF Customer Simulation Period November 2018 Guideline

2 CBF Customer Simulation November 2018 Guideline September 2018 Document Number: 7218 This document is the property of Clearstream Banking AG, Frankfurt ( Clearstream Banking or CBF ) and may only be changed with prior written consent obtained from Clearstream Banking. The information in this document is subject to change without notice and does not represent any obligation on the part of Clearstream Banking, a subsidiary or other affiliate of Clearstream International S.A. Copyright Clearstream Banking AG, Frankfurt (2018). All rights reserved. Clearstream Banking AG, Frankfurt, is a Deutsche Börse Group company.

3 Content 1. Introduction Scope of the customer simulation Preparation of the customer simulation CBF customer simulation calendar CBF Customer simulation environment (IMS23) Stock Exchange transactions (CCP / non-ccp) Execution of dedicated test cases Admission procedure OTC Reinstruction Procedure Introduction Test preparation CASCADE-RS services: LEI Introduction Test preparation Custody services Specific environment requirements Introduction T2S Auto-Coll on main account Introduction Test preparation Contact Appendix A - CBF processing day in customer simulation Appendix B - T2S Deployment Schedule Appendix C - Setup of domestic OTC settlement instructions Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

4 This page has intentionally been left blank. September 2018 Clearstream Banking Frankfurt 4 Customer Simulation Period November 2018

5 1. Introduction Clearstream Banking Frankfurt (CBF) will offer a customer simulation period and test cases dedicated to the enhancements developed by CBF for the existing CBF functionality. The functional details about the envisaged changes are available in Announcement D18053 CBF Release Information November The test case set up by CBF will support the simulation of business cases where specific environment requirements are necessary for the CBF November Release. These consider mainly the processing between CBF and T2S when the functionality might impact CBF customers acting in ICP and / or DCP mode. As the customer simulation environment is used simultaneously for other Clearstream testing activities, customers must consider the test requirements, if applicable. In addition, customers can execute test cases based on their own needs using the CBF Customer Simulation environment (IMS23). Customers acting in DCP mode might require additional testing for their procedures with T2S using the T2S Pre-Production Environment (UTEST). The participation in this simulation is optional and not a prerequisite for admission to production for the launch date of the CBF Release on 19 November In the period from 29 October to 16 November 2018, customers can execute test cases related to the modifications in the CBF software. Customers who would like to execute dedicated test cases were already asked to register by latest 28 September The related registration form is available on the Clearstream website. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

6 2. Scope of the customer simulation A few functional modifications in the CBF software require a dedicated test setup. Therefore, CBF will offer a customer simulation period with all related software updates induced by CBF, starting from 29 October Additionally, customers can execute test cases based on their own requirements. In line with the functional description in Announcement D18053 CBF Release Information November 2018 the following test cases will be supported. Admission procedure: OTC Reinstruction Procedure After the implementation of the Release in November 2018, CBF will resend valid OTC instructions to the T2S platform if the instructions were initially rejected due to missing securities static data at T2S. For the customer simulation, CBF will set up dedicated ISINs to allow the testing of the related instruction management procedures. CASCADE-RS services: LEI CBF will enhance the details for shareholder data. The Legal Entity Identifier (LEI) will be added. The message-based applications (SWIFT, MQ and File Transfer) and the CASCADE Online functionality (HOST / PC) will be extended. CBF will enable for the above-mentioned connectivity channels a number of predefined registered shares that allow the registration and modification of shareholder data. Custody services using the KADI or OneClearstream Custody functionality CBF will set up and execute corporate actions for: o o Securities issued by CBF. That is, the event type interest and redemption in Euro, dividend payment in a foreign currency as well as a conversion; Securities issued by the T2S In-CSD, ESES France. That is, the event type bonus share and rights issue. T2S Auto-Coll on main account Customers who would like to participate in the upgraded service and require testing can request a test window to allow a transition of the main account. The test window will be agreed on by the involved parties (T2S, NCB and CSDs). More details are available in the related sections of this document. In Announcement D17044, CBF informed customers that the Statement of Transactions (MT536) will be updated. November 2017, the Optional Subsequence B1a2 Transaction Details indicate in TAG 94B the depository. Additionally, CBF delivers the depository information in the MT536 within the TAG 70E (Transaction Details Narrative ). This detail is provided with the label /CUST. CBF announced, that this label will be decommissioned with the CBF Release in November However, on request of the market members, the decommissioning has been postponed to the CBF Release in May Customers testing the MT536 should consider the remaining format when analysing their test results. 2.1 Preparation of the customer simulation Before the customer simulation can be executed, a downtime from 28 September to 26 October 2018 is scheduled in IMS23. During this period, CBF will create additional security holdings on customer accounts for dedicated test cases, if requested. The registration form was published on the Clearstream website on 31 August 2018 and must be returned by latest 28 September The CBF T2S Settlement Functionality Team will modify the account settings based on the provided registration form and conduct quality checks. Between 22 and 25 October 2018, CBF will collect the existing holdings of predefined securities from customer accounts and redistribute them via CBF account 4424 to the respective CBF main account (xxxx 000). Once the holdings are set up, customers acting in ICP mode can verify them via the CASCADE Online functionality (HOST / PC) or MT535 Statement of Holding, if subscribed in IMS23. In the above-mentioned timeframe, customers must not enter test cases or transmit instructions via an automated connectivity channel towards IMS23 or UTEST. In addition, the CASCADE Online functionality (HOST / PC) must not be used. This will allow the CBF T2S Settlement Functionality Team a reconfiguration of IMS23 in time. Customers who are connected to UTEST and receive (settlement) reporting might notice instruction flows between CBF and T2S from setup activities. September 2018 Clearstream Banking Frankfurt 6 Customer Simulation Period November 2018

7 The table below shows the ISINs that will be maintained by the CBF T2S Settlement Functionality Team: Instrument type ISIN Name Nominal available for testing Bond AT000B % ERSTE GP BNK FLRMTN 5,000 No Bearer share BE LOTUS BAKERIES S.A. 50,000 No Strip BE ARTHUR S.A. Resulting ISIN Stock Exchange processing Bearer share DE BAY.MOTOREN WERKE AG 10,000 XETR, XFRA Registered share DE INFINEON TECH AG NA 100,000 XETR Registered share DE DAIMLER AG NA 100,000 XETR, XFRA Registered share DE SIEMENS AG NA 100,000 XETR, XFRA Registered share DE STADA ARZNEIMITTEL VNA 100,000 XETR Registered share DE LUFTHANSA AG 100,000 XETR Bearer share DE000A0STYJ1 IM INTERNATIONALMEDIA AG 5,000 No Bearer share DE000A0XFQG2 IM INTERNATIONALMEDIA JGE Resulting ISIN No No Warrant DE000CA54AD2 COMMERZBANK OS CALL n.a. Warrant DE000CA54AF7 COMMERZBANK OS CALL (added for completeness Warrant DE000CA54AG5 COMMERZBANK OS CALL only) No Bearer share FR VINCI S.A. 50,000 No Table 1 - Dedicated ISINs for the customer simulation period November 2018 From 29 October 2018,the customer simulation environment will be available and participating customers can start to execute test cases and assess possible impacts on their functional and organisational procedures. For this simulation period, the latest static data for CBF accounts and related connectivity settings requested by customers or other Clearstream test activities will be available. 2.2 CBF customer simulation calendar The following calendar covers the period from 29 October to 16 November It shows the availability of the CBF Customer Simulation environment (IMS23) and highlights the CCP batch days as well as the execution days related to the dedicated test cases. According to the T2S Service and Transition Plan, the UTEST phase for T2S Release 2.2 finishes on 31 October After this date, however, customers can still execute test cases for the resolution of T2S Problem Tickets (PBIs) 1, as the software will remain unchanged until the next deployment date. The overall test schedule shown on the following page indicates the downtimes already defined for IMS23 or UTEST. If one of the environments is not available or the testing is limited because of particular measures ensuring a proper test execution, there might be additional downtimes. CBF will inform customers about such downtimes in due time via to their contact nominated in the Customer Simulation Registration Form. Customers acting in DCP mode and connected to UTEST need to consider possible CBF downtimes while executing their test cases. During these periods, the T2S feedback might not be transmitted. This applies if the related settlement processing requires a validation by CBF. However, the T2S reporting will be provided upon message subscription and will contain the information according to the definition of T2S. 1 Appendix B lists the PBIs that are planned to be resolved with T2S Release 2.2. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

8 Customer simulation calendar: CBF Release November 2018 Test day Availability CCP Simulation Dedicated test case of IMS23 Calendar Focus Day Monday 29-Oct-18 Open Preparation Focus Day: BONU (Announcement Date) Preparation Focus Day: RHDI (Announcement Date) Tuesday 30-Oct-18 Open CCP Batch Day Preparation Focus Day: CONV (Notification) CASCADE-RS start of testing, functionality is available until 13 November Wednesday 31-Oct-18 2 Open CCP Batch Day Preparation Focus Day: DVCA (Notification) Thursday 01-Nov-18 Open CCP Batch Day Friday 02-Nov-18 Open until 14:00 Saturday 03-Nov-18 Weekend Sunday 04-Nov-18 Weekend Monday 05-Nov-18 Open Tuesday 06-Nov-18 Open CCP Batch Day OTC Reinstruction Procedure start of testing Preparation Focus Day: CONV (Record Date) Preparation Focus Day: DVCA (Ex Date) Focus Day: CONV (Payment Date) Preparation Focus Day: BONU (Ex Date) Preparation Focus Day: RHDI (Ex Date) Preparation Focus Day: DVCA (Record Date) Preparation Focus Day: INTR and REDM (Notification) Wednesday 07-Nov-18 Open CCP Batch Day Focus Day: DVCA (Payment Date) Preparation Focus Day: BONU (Record Date) Preparation Focus Day: RHDI (Record Date) OTC Reinstruction Procedure closing test step Admission completed Thursday 08-Nov-18 Open CCP Batch Day Focus Day: BONU (Payment Date) Focus Day: RHDI (Payment Date) Friday 09-Nov-18 Open until 14:00 Saturday 10-Nov-18 Weekend Sunday 11-Nov-18 Weekend Monday 12-Nov-18 Open Preparation Focus Day: INTR and REDM (End of interest period) OTC Reinstruction Procedure closing test step Admission completed Tuesday 13-Nov-18 Open CCP Batch Day Focus Day: INTR and REDM (Payment Date) CASCADE-RS end of testing Wednesday 14-Nov-18 Open CCP Batch Day Thursday 15-Nov-18 Open OTC Reinstruction Procedure end of testing Friday 16-Nov-18 Open until Clean-up testing environments 14:00 Table 2 - Customer simulation calendar for the period November T2S UTEST period finishes this day. September 2018 Clearstream Banking Frankfurt 8 Customer Simulation Period November 2018

9 3. CBF Customer simulation environment (IMS23) The static data for CBF accounts and the related connectivity settings in IMS23 have been modified from previous T2S Release and Clearstream projects. During the setup phase for the customer simulation period October and November 2018, the T2S Settlement Functionality Team will verify the settings for registered accounts. The account and connectivity settings for the account master and main account (xxxx 000) will be aligned with the production setup. Customers requiring a modification of the existing setting in IMS23, need to flag this in the registration form and to contact the Clearstream Connectivity Support team (connectfrankfurt@clearstream.com). 3.1 Stock Exchange transactions (CCP / non-ccp) Upon customer demand, stock exchange trades can be entered for settlement via LION or CASCADE. Trades can be set up with a Market Identifier Code (MIC) in the trading system. If the flag: XFRA is used, they are forwarded as non-ccp trades towards the CBF system LION. XETR is used, they are processed via CCP and clearing results will be provided to CBF for further processing in CASCADE. In general, the simulation environment of Eurex Clearing (ECAG) for CCP activities will be connected to the CBF Customer Simulation environment (IMS23). For information on available instruments, please refer to the websites of the trading systems and ECAG will forward test instructions to CBF in ICP mode. These instructions will be transmitted on the CCP Batch Days only. The batch days defined by ECAG are shown in the Table 2 - Customer simulation calendar for the period November 2018 in section 2.2. Once the CCP instructions arrive at CBF, they will be forwarded for settlement to UTEST. ECAG will delete pending (unsettled) transactions according to their testing / batch day procedures. Stock Exchange instructions processed via LION transactions will be supported during the period from 26 October to 9 November Figure 1 - Process chain stock exchange instruction Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

10 4. Execution of dedicated test cases This chapter provides the detailed description of dedicated test cases for the customer simulation in the period from 29 October to 16 November Each of the following sections provides a short summary of the modifications. The detailed functional specification is available in Announcement D18053 CBF Release Information November If CBF requires information from the customer for a successful test execution, these prerequisites are also shown in the following sections. CBF is going to deploy its software changes in October 2018, so that customers can start their end-to-endtest with UTEST on 29 October Important note: During the test execution, each customer participating in the simulation is requested to consider that high volume of pending instructions in UTEST impacts the performance of all T2S test environments. Therefore, the customer should actively monitor the number of pending instructions and ensure that no more than 500 pending instructions are active in the test system. In order to determine the number, all instructions must be considered, independent from: The status, that is, matched, unmatched, hold or release; The business procedure, that is, domestic and cross-border instructions, Stock Exchange trades (via LION or CCP) and instructions resulting from corporate actions; or The connectivity channel, that is, ICP or DCP mode; The test activity conducted with Clearstream Banking (for example CBF Release November 2018, One Clearstream). This limitation applies to all accounts (and sub-accounts) of a customer that are set up in the CBF Customer Simulation environment (IMS23) for testing. 3 In case of updates customers are requested to use the latest version of the Release Information for their preparation of test cases. September 2018 Clearstream Banking Frankfurt 10 Customer Simulation Period November 2018

11 4.1 Admission procedure OTC Reinstruction Procedure Introduction The CBF OTC Reinstruction Procedure enables customers acting in ICP mode that CBF will resend valid OTC instructions to the T2S platform if the instruction was initially rejected due to missing securities static data at T2S. CBF will start the activity when T2S transmits a rejection message with a predefined error code. The following conditions have been defined for the recycling process: OTC instructions ( AA01 / AA02 between CBF customers and their counterparties) are taken into consideration as long as the instruction does not contain a linking parameter. If the account of the receiving party has been set up for passive matching, then the automated generated match instruction is taken into account. If the account of the receiving party has been set up for processing using the Strict TEFRA D Service, the instruction is not subject to the service: o o When the Intended Settlement Day (ISD) is already in the past; or After the Intended Settlement Day (ISD) has been completed. Instructions accepted for the recycling process will remain in the CASCADE instruction database with the details given by customers. The recycling process will be executed until the fourth T2S Operational Day following the Intended Settlement Day (ISD+4) specified in the instruction. If the securities master data are not (fully) entered until the end of the recycling period, CBF will reject the instructions. Customers will receive a cancellation message. CBF will introduce a further CASCADE Dispo Status 015 CBF Recycling for the new recycling process. With this, CBF will define two further codes that will be presented instead of one T2S error code: KV6631F Instruction is being recycled. ISIN configuration on T2S incomplete; and KV6632F Recycling mode terminated. ISIN configuration on T2S still incomplete. At the times defined below, selected instructions that are marked for the recycling process will be reinstructed to T2S. Reinstruction schedule applying in Production Simulation Related processing step 10:20 10:05 After completion of the CBF Autoadmission Procedure 12:50 11:50 15:00 13:30 Before the end of the Allegement Delay Period and considering the T2S Partial Settlement Window 4 4 to allow the modification of the instruction (hold / release) Before the end of the T2S DvP cut-off considering eventually required liquidity management actions as the instruction may not be available in the T2S Cash Forecast 17:40 15:20 Before the end of the T2S FoP cut-off Table 3 Time table for the reinstruction procedure in the customer simulation 4 The T2S Synchronised Day does not support the Partial Settlement Window 4. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

12 4.1.2 Test preparation Based on the future processes, CBF will create test cases for the OTC Reinstruction Procedure in the customer simulation. This test setup will support customers acting in ICP mode to validate the instruction flow and management in their systems from 19 November CBF will create three ISINs for this purpose in the customer simulation environment (IMS23) during CBF s internal setup phase. That is, initially the securities master data will not be available on UTEST. According to the simulation calendar, ISINs will be created in a subsequent step on UTEST. However, during the test execution, the necessary master data will be transmitted to UTEST for two of the three ISINs. One ISIN will remain in a pending mode during the entire execution phase. ISIN Description Type Status admission procedure DE000CA54AD2 COMMERZBANK OS CALL Warrant To be completed 07-Nov-18, before 11:00 DE000CA54AF7 COMMERZBANK OS CALL Warrant Remains n.a. pending DE000CA54AG5 COMMERZBANK OS CALL Warrant To be completed 12-Nov-18, after 13:00 Table 4 ISINs for test execution OTC Reinstruction Procedure CBF asks customers participating in the test to ensure that their internal test system for securities master data will be enriched according to their needs, too. As the test case will serve for the instruction management only, no positions in the registered customer accounts will be created. This behaviour is similar to production, where the counterparties will start to provide instructions even though no holding is in place. Customers can enter or transmit their instructions on their demand from 1 November to 15 November Appendix C outlines how to set up domestic OTC settlement instructions. Based on the different status of the ISINs, the following test scenarios can be executed: Create instructions for an ISIN whose admission process is not (entirely) completed. Validate the instruction management (modification / cancellation) within the recycling period. Check the dependencies on ISD setup instructions. Check the reporting during the recycling period. Check the reporting once the recycling period is terminated. Check the reporting once the admission procedure of an ISIN is completed. Check the instruction management once the admission procedure of an ISIN is completed. On 16 November 2018, customers will cancel their pending instructions to clean up IMS23 and UTEST. September 2018 Clearstream Banking Frankfurt 12 Customer Simulation Period November 2018

13 4.2 CASCADE-RS services: LEI Introduction CBF will update its connectivity channels allowing customers to enter the Legal Entity Identifier (LEI) in predefined CASCADE-RS instructions. Hereby, information for a legal entity identifier can be entered, modified, deleted, verified or displayed. The LEI cannot be entered for individual or natural persons. The Legal Entity Identifier has been set up with the following credentials: Field name: LEI Allowed value: The Legal Entity Identifier that identifies participants in the financial market. Syntax: Alphanumeric (20) Mandatory: No During the customer simulation, customers acting in ICP mode can use: The automated connectivity channels SWIFT, MQ or File Transfer: o o o Instruction to Register (MT500); Modification of Client Details (MT519); and Confirmation of Registration or Modification (MT501) will contain the qualifier LEID in the Optional Subsequence C2 Personal Details. The data is to be provided in field :70C: Additional Text with the format :70::ADTX//:4!c//1*35x. That is, 70C::ADTX///LEID XXXXXXXXXXXXXXXXXXXX The CASCADE Online functionality (via HOST only) The related screens will be updated in order to incorporate the information on LEI for legal entities, that is: o o Transaction KVCE for registration, KVCU for re-registration and KVCA for modification of shareholder data via CASCADE HOST; Section RS via CASCADE-PC. The customer simulation is limited to the above-mentioned functionality and dedicated ISINs. In production, the LEI information can be provided via the Investors Portal and the details will be available as output in the related CASCADE-RS reports. However, both features are not available in IMS Test preparation In order to allow the test execution of the CASCADE-RS functionality, CBF will enable five ISINs in the customer simulation environment (IMS23). During the customer simulation period, CBF will not transmit instructions for registration or modification to the registers and will simulate the feedback. In order to give customers the opportunity to receive both a positive a negative feedback, a corresponding configuration will be set up in IMS23. During the internal setup phase, between 22 and 25 October 2018, CBF will collect existing holdings of predefined securities from customer accounts and redistribute them via CBF account 4424 to the CBF main account (xxxx 000) registered for the customer simulation. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

14 ISIN Description Position Feedback for registration or modification request DE INFINEON TECH AG NA 100,000 Positive DE DAIMLER AG NA 100,000 Positive DE SIEMENS AG NA 100,000 Negative DE STADA ARZNEIMITTEL VNA 100,000 Positive DE LUFTHANSA AG 100,000 Positive Table 5 ISINs for test execution LEI CBF asks customers participating in the test to ensure that their internal test system for securities master data will also contain these ISINs. Before customers will start with the test using an automated connectivity channel (SWIFT, MQ or File Transfer), CBF recommends to check the connectivity settings. Technically, CBF customers can send instructions to the CBF Customer Simulation environment (IMS23) by using the production BIC DAKVDEFFXXX in the header or the CBF test BIC ZYDGDEF0XDOM when they instruct via File Transfer or MQ. Via SWIFT, BIC ZYDGDEF0XDOM must always be used. If a customer would like to send an instruction to a test system via File Transfer, the message has to be identified as not being for production. This is done by a TNG trailer at the end of the instruction: ä5: ätng: üü The trailer is also used for CBF replies to customers. This guarantees that CBF test messages can clearly be identified, so that the customer can avoid injections into the customer s production system. Important note: As this dedicated test case will serve for the creation and update of shareholder data, the holding is limited. Customers must use the test environment for regression or volume testing. For example, to check if the number of instructions to maintain all shareholder data for an entire ISIN is feasible. Neither the CBF nor the UTEST environment will have the sufficient capacity. Customers can enter / transmit their instructions on their demand from 30 October to 13 November On 16 November 2018, customers will cancel their pending instructions to clean up IMS23 and UTEST. September 2018 Clearstream Banking Frankfurt 14 Customer Simulation Period November 2018

15 4.3 Custody services Specific environment requirements The general framework for corporate actions processing in CBF defines that events will be executed via CBF KADI (Kapitaldienste) or the OneClearstream service. The processing of events in the customer simulation environment (Focus Days) will be executed as in production. However, customers need to consider that the securities static data in IMS23 have been defined for the migration to T2S. In order to allow a testing, static data in various areas will be modified. Therefore, the events scheduled in IMS23 are limited to the scope defined in the document. CBF asks customers participating in the test to ensure that their internal test system for securities master data will contain these ISINs, too. The preparation of Focus Days will distinguish between ISINs where CBF acts in its role as Issuer CSD and Investor CSD and consider if the ISIN will be processed via KADI or OneClearstream. The table below lists the event-driven activities and the related processing for both services during the customer simulation period November Event-related activity KADI OneClearstream Cash proceeds Corporate action announcement Corporate action confirmation Corporate action instructions During the customer simulation in November 2018, all cash proceeds in Euro will be transferred to the related RTGS account as no Bund Payment is scheduled. In general, the liquidity transfer will be initiated in the CBF DD1 cycle using the T2 ASI procedure 3. Cash movements will be reported via MT942 / 950 Cash reporting. The cash proceed in USD will be booked on the 6-series cash account. Customers will be informed via MT564, if subscription rights have been enabled in account master data and connectivity settings. The notification will be provided as shown in the event details or highlighted in Table 2 - Customer simulation calendar for the period November In general, the confirmation will be provided once the payment authorisation has been provided by the paying agent. Customers will be informed via MT566, if subscription rights for the related event type have been enabled in account master data and connectivity settings. The corporate action confirmation will be provided on payment date as shown in the event details or in Table 2 - Customer simulation calendar for the period November 2018 During the customer simulation in November 2018, only Euro payments are scheduled. All cash proceeds will be settled via the Dedicated Cash Account (DCA) established for UTEST. Cash movements will be reported via Xact. Customers will be informed via MT564, if subscription rights have been enabled in the connectivity settings. The notification will be provided as shown in the event details or in Table 2 - Customer simulation calendar for the period November In general, the confirmation will be provided once the payment authorisation has been provided by the paying agent. Customers will be informed via MT566, if subscription rights have been enabled in the connectivity settings. The corporate action confirmation will be provided on payment date as shown in the event details or highlighted in Table 2 - Customer simulation calendar for the period November 2018 During the customer simulation in November 2018, MT565 will not be supported. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

16 Event-related activity KADI OneClearstream Creation of market claims Creation of reverse claims DCP reporting (UTEST) Detection period for market claims and transformations Instruction management Liquidity transfer service Securities proceeds Security positions The related free of payment (FoP) instructions or payment free of delivery (PFoD) instructions for cross-border transactions are generated and forwarded to T2S for real-time settlement (RTS) several times during the day, depending on when the underlying transaction was settled. The related free of payment (FoP) instructions are generated and forwarded to T2S for Night-Time Settlement (NTS), only. The related instruction will be generated once the underlying OTC instruction has reached the status matched. LION instructions will be compensated once the transaction was settled. This is independent of the actual payment of the event. The related free of payment instructions (FoP) are generated and forwarded to T2S for Real Time Settlement (RTS) several times during the day depending on the settlement of the underlying transaction. Customers acting as Securities DCP will receive sese.023, sese.024 and sese.025, if enabled by the customers. Customers acting as Cash DCP can subscribe for the related cash messages (camt), if agreed with the responsible National Central Bank. During the customer simulation, the market claims and transformation period is five days. Customers can enter settlement instructions on their demand, if they want to test market claims, reverse claims or transformations. Based on the compensation rules, instructions require the final settlement, therefore customers need to agree with their counterparties on the respective instruction details. Customers who wish to settle free of payment (FoP) instructions can set up such instructions against the CBF account CBF W/KUNDENSIMU CRC (PASSIV), if no other counterparty is available. Table 10 OTC instruction flow provides the required information to enter OTC settlement instructions. During the customer simulation in November 2018, automated liquidity transfer services to the T2S DCA in UTEST will not be supported. All securities proceeds will be settled on UTEST. Securities movements and balances will be reported via the automated connectivity channels (SWIFT, MQ and File Transfer) as well via the CASCADE Online Functionalities (HOST / PC) and Xact. Please refer to section 2.1 Preparation of the customer simulation for an overview of the holdings provided for each registered account as defined in Table 1 - Dedicated ISINs for customer simulation period November Customers must ensure that they have sufficient holdings in the respective ISIN on the registered accounts in order to successfully participate in the customer simulation. Usage of OPT / OUT flag Market and reverse claims as well as transformations will be processed and Ex / Cum flag according to the compensation rules. Customers can still overrule the general Record Date criteria to generate claims by using the respective flags (opt-out flag / cum flag / ex flag) within their OTC instructions. Please refer to the CBF Compensation Handbook and the OneClearstream specifications for more details. Table 6 IMS23 system parameters for corporate actions processing September 2018 Clearstream Banking Frankfurt 16 Customer Simulation Period November 2018

17 4.3.2 Introduction With the CBF Release starting in November 2018, CBF customers will only be credited with cash and security proceeds once CBF has received the credit confirmation from its agent or the Issuer CSD as from payment date. This process is called payment authorisation and will be applicable for the following event scenarios: Income cash proceeds: o o Securities admitted by CBF (as Issuer CSD) paying in a non-eur currency; Securities admitted by another CSD (CBF Investor CSD) paying in a EUR currency and a non-eur currency. Non-income securities proceeds: o o o Securities admitted by CBF (as Issuer CSD) crediting in securities admitted by another CSD (CBF Investor CSD) proceeds; Securities admitted by another CSD (CBF Investor CSD) crediting in security proceeds independent from the admitting CSD; Securities admitted by CBF (as Issuer CSD) crediting security proceeds admitted by CBF (if the event is set up without depository booking). Among others, the updated service impacts: The Pre-notification of events, subject to payment authorisation: The Corporate Action Notification (MT564) including the position-based REPE for cash and mandatory security events will contain an URF information using the field :70E::ADTX//PAYMENT UPON RECEIPT OF FUNDS. Additionally, the value date will be shown as unknown for cash events. The Usage of Settlement Restrictions for reorganisation events: For reorganisation events on securities admitted by another CSD, which leads to a withdrawal of securities, CBF will transmit settlement restriction to T2S at entitlement date, end of day. The Settlement of Corporate Action instruction and confirmation: After payment authorisation, the related Corporate Action instruction in cash and / or securities will be transmitted to the respective settlement system intraday. The Transaction Management for market claims, reverse claims and transformations: Market claim, reverse claim and transformation cash instructions for OTC (domestic and crossborder) transactions, stock exchange trades (LION) and Eurex CCP instructions will only be generated after payment authorisation in order to avoid any settlement prior to the proceeds distribution out of customer holdings. Focus Days for securities issued by CBF KADI As announced in the registration form the functional enhancements in respect to the Central Securities Depositories regulation (CSDR) test cases will be set up. These Focus Days will be executed based on the conditions outlined in Table 6 - IMS23 system parameters for corporate actions processing. The dedicated details for the event types: Interest and redemption in Euro; Dividend payment in a foreign currency; Conversion are defined for each Focus Day in the following tables. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

18 Focus Day Event type SWIFT event ID ISIN Security description Instrument type Payment period Redemption in Euro TA 130 Mandatory event REDM AT000B % ERSTE GP BNK FLRMTN VJ Bond Not applicable Notification date 6 November 2018 Payment detail Redemption rate: 100% Record date 12 November 2018 Value / payment date 13 November 2018 Event-specific details Two instructions will be created for this event type, that is, one instruction for the cash leg and the withdrawal instruction for the security. The cash and securities instructions will be released separately upon receipt of the payment. Following the payment authorisation: The cash instructions in Euro can settle in the upcoming DD cycle. The instructions for the redemption (securities leg) will be transmitted in real-time to UTEST. Once both the cash and securities legs are released for processing, the Transaction Price Claim (TPC) and Redemption Price Claim (RPC) can settle intraday in the next available cash cycle. For cross-border instructions, the related PFoD can settle with the next NTS. In addition, the deletion of underlying pending instruction will be executed with the T2S event EODP. Once a day, pending instructions are transformed and transmitted to T2S for the next NTS cycle. Focus Day Event type SWIFT event ID ISIN Security description Instrument type Interest payment in Euro TA 110 Mandatory event INTR AT000B % ERSTE GP BNK FLRMTN VJ Bond Payment period 1 July 2018 to 30 September 2018 Notification date 6 November 2018 Payment detail 3%; payment will be executed in Euro. Record date 12 November 2018 Value / payment date 13 November 2018 Event-specific details Not applicable September 2018 Clearstream Banking Frankfurt 18 Customer Simulation Period November 2018

19 Focus Day Event type SWIFT event ID ISIN Security description Instrument type Dividend in USD TA 120 Mandatory event DVCA DE BAY.MOTOREN WERKE AG Bearer share Payment period 1 January 2018 to 31 December 2018 Notification date 31 October 2018 Payment detail Dividend amount 2,00 (Currency: USD) Ex-date 5 November 2018 Record date 6 November 2018 Value / payment date 7 November 2018 Event-specific details Cash proceeds will be transferred to the 6-series cash account. Focus Day Event type SWIFT event ID ISIN Security description Instrument type Conversion TA 232 Voluntary event CONV DE000A0STYJ1 IM INTERNATIONALMEDIA AG Bearer share Notification date 30 October 2018 Conversion details Ratio 1:2 resulting ISIN DE000A0XFQG2 IM INTERNATIONALMEDIA JGE Ex-date 4 November 2018 Record date 5 November 2018 Value / payment date 6 November 2018 Event-specific details The CBF corporate action reporting for the event type conversion relevant for CSDR will be updated with the CBF Release November In future, CBF will transmit two corporate action confirmations (MT566). One confirmation shows the debit of securities in the old ISIN and the second one confirms the credit of the securities in the new ISIN. This is different to the existing reporting, where a single confirmation is transmitted. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

20 Securities issued by T2S In-CSD OneClearstream Custody As announced in the registration form the functional enhancements in respect to the CSDR test cases will be set up. These Focus Days will be executed based on the conditions outlined in Table 6 - IMS23 system parameters for corporate actions processing. The dedicated details for the event types: Bonus share; Rights issue are defined for each Focus Day in the following tables. The underlying securities are issued by the T2S In-CSD ESES France. Both test cases will be set up on demand of Clearstream Banking and will be not requested to be executed in ESES. Therefore, no similar activity is reported by the Issuer CSD. Focus Day Event type SWIFT event ID ISIN Security description Instrument type Bonus share Voluntary event BONU FR VINCI S.A. Bearer share Notification date 29 October 2018 Issuance details Ratio 3:1; resulting ISIN: FR VINCI S.A. Ex-date 6 November 2018 Record date 7 November 2018 Value / payment date 8 November 2018 Event-specific details The security distribution will be initiated on Record Date and forwarded to the T2S NTS cycle. The test case will support the market claim procedure. Focus Day Event type SWIFT event ID ISIN Security description Instrument type Rights issue Voluntary event RHDI BE LOTUS BAKERIES S.A. Bearer share Notification date 29 October 2018 Issuance details Ratio 5:2; resulting ISIN: BE ARTHUR S.A. Inhaber-Strip-VVPR Ex-date 6 November 2018 Record date 7 November 2018 Value / payment date 8 November 2018 Event-specific details The test case will support the market claim procedure. September 2018 Clearstream Banking Frankfurt 20 Customer Simulation Period November 2018

21 4.4 T2S Auto-Coll on main account Introduction The T2S Auto-Collateralisation (T2S Auto-Coll) service provides automatically collateralised intraday liquidity when there is not enough liquidity provisioned on a Dedicated Cash Account (DCA) to settle a delivery versus payment transaction. Customers that would like to start using the T2S Auto-Coll service via an existing CBF main account must consider that a transformation of the account will become necessary. That is, the account will be updated to reflect the earmarking flag EEUR or EXXX. Additionally, the position type for all holdings is requested to be modified. This transformation requires an interaction with the T2S settlement platform for the static data of the securities account (SAC) as well as the earmarking for existing holdings and pending instructions. CBF will support a simulation of the transition tasks and procedures. Similar to production a dedicated test execution plan considering the timeline, number of holdings and pending instructions needs to be set up individually for each CBF customer. The test execution highly depends on the deployment of a T2S Problem Ticket (PBI). As long as the resolution has not been delivered in UTEST, the testing cannot be started. According to the latest planning, the test execution can start on 12 November Test preparation Interested customers can provide a simulation request via to the Clearstream Connectivity Support team (connectfrankfurt@clearstream.com). The simulation request should include the following details: Settings for envisaged simulation Format CBF account master CBF sub-account for T2S Auto-Coll service NCB responsible for Dedicated Cash Account (DCA) DCA used for customer simulation with CBF Third Party Management (Head Office) enabled Message types used for maintenance of registered shares Participation in LION Eurex Clearing Member Preferred simulation period 4 digits 7 digits Name Number of DCA Yes / No List of messages Yes / No Yes / No Start date / end date Table 7 Details of the simulation request related to T2S Auto-Coll on main account The CBF T2S Settlement Functionality Team will collect simulation requests for T2S Auto-Coll on main account and will agree on the timeline with the involved participants and T2S Actors. Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

22 5. Contact During the preparation and the execution of the customer simulation period from 1 October to 19 November 2018, please contact our Connectivity Support teams (connectfrankfurt@clearstream.com) for any questions regarding the dedicated test cases. Particular questions related to the setup and test data as well as the test results will be routed to the T2S Settlement Functionality Team. During the customer simulation period, this team will be available from 09:00 to 16:00. September 2018 Clearstream Banking Frankfurt 22 Customer Simulation Period November 2018

23 Appendix A - CBF processing day in customer simulation The following table shows the CBF schedule for core activities, reporting times and deadlines within the T2S Synchronised Standard Day. T2S Activity CBF Activity Application / system Timing Start of T2S T2S 07:00 Testing Maintenance Window / End CBF 07:00 Partial Settlement Window 1 / Start Partial Settlement Window 1 / End Partial Settlement Window 2 / Start Partial Settlement Window 2 / End CASCADE Online / Start CASCADE 07:00 CASCADE Reporting pending transaction CASCADE Reporting MT536 Clearing & Settlement Statement pending transaction CASCADE Reporting MT536 Clearing & Settlement Statement pending transaction CASCADE Reporting MT536 Clearing & Settlement Statement DD1 Cycle, followed by optional generation of Liquidity Transfers from RTGS to DCA Reporting MT564 Notification MT566 Confirmations (Income + Non-Income) MT568 Narrative KADI Non-Income: instruction of Market Claims on settled underlyings CASCADE Reporting pending transaction CASCADE Reporting MT536 Clearing & Settlement Statement CASCADE 07:30 CASCADE 08:00 T2S 08:00 T2S 08:15 CASCADE 09:00 CASCADE 10:00 T2S 10:00 CASH 10:10 T2S 10:15 KADI 10:30 KADI 10:30 CASCADE 10:30 CASCADE 11:00 Further details Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

24 T2S Activity CBF Activity Application / Timing Further details system CASCADE Reporting CASCADE 11:15 pending transaction KADI Reporting KADI 11:30 MT566 Confirmations (Income) CASCADE Reporting CASCADE 12:00 MT536 Clearing & Settlement Statement pending Transactions Partial T2S 12:00 Settlement Window 3 / Start Partial T2S 12:15 Settlement Window 3 / End KADI Non-Income: KADI 12:25 instruction of Market Claims on settled underlyings Partial Settlement Window 4 / Start T2S n/a Not supported in UTEST Partial Settlement Window 4 / End Partial Settlement Window 5 / Start CASCADE Reporting pending Transactions CASCADE Reporting MT536 Clearing & Settlement Statement DD2 Cycle, followed by Optional generation of Liquidity Transfers from RTGS to DCA CASCADE Reporting MT536 Clearing & Settlement Statement pending Transactions KADI-Reporting MT564 Notification MT566 Confirmations (Income + Non-Income) MT568 Narrative Deletion of pending CCPinstructions DD3 Cycle, followed by Optional generation of Liquidity Transfers from RTGS to DCA T2S n/a Not supported in UTEST CASCADE 12:45 CASCADE 13:00 CASH 13:25 CASCADE 13:30 KADI 14:00 T2S 14:15 CBF 14:15 CASH 14:15 September 2018 Clearstream Banking Frankfurt 24 Customer Simulation Period November 2018

25 T2S Activity CBF Activity Application / Timing Further details system Partial T2S 14:30 Settlement Window 5 / End DvP/Cash SR Cut-Off T2S 14:30 In the context of the CBF Cash Forecast reporting, in the simulation, the T2S event IDVP is used to generate the T2S Cash Forecast towards IMS23 Collateral T2S 15:00 Reimbursement CASCADE Reporting CASCADE 15:00 MT536 Clearing & Settlement Statement KADI-Reporting KADI 15:00 MT566 Confirmations (Income) Cash Forecast for Night CASH 15:00 Time Processing BATM/CBO Cut- T2S 15:10 Off Inbound LTO T2S 15:15 cut-off and Automatic Cash Sweep Acceptance of T2S 15:30 FoP instruction / End (FoP cut-off) End of Day T2S 15:30 Processing CASCADE Reporting CASCADE 15:30 pending Transactions CASCADE End of day Processing CASCADE 15:30 CASCADE Reporting MT536 Clearing & Settlement Statement pending Transactions CASCADE Reporting via HOST File Service Daily Cash Report ( Geldtagesauszug ) Cash Reporting: MT942 EUR Cash Clearing Report MT950 EUR Cash Clearing Report CASCADE Reporting via HOST File Service Settlement List ( Regulierungliste ) Daily Account Statement ( Depotauszug ) CASCADE CASCADE CASH CASCADE after T2S End of Day Processing after T2S End of Day Processing after T2S End of Day Processing after the end of T2S business day Clearstream Banking Frankfurt September 2018 Customer Simulation Period November

26 T2S Activity CBF Activity Application / system Timing Reporting via HOST File CASCADE after the end Service: KV / of T2S KV / KV business day (various matching status) / KV (trades affected by custody events) Cash Management: CASH 16:00 Deadline for entry, deletion or modification of Liquidity Transfer for following NTS Start of Day T2S 16:15 Processing / Change of Business Day CBF: Start of Day CBF: Start of Day 16:15 LION Online / Start (after CBF: LION Online 16:15 reorganisation) KADI-Reporting KADI 16:15 MT564 Notification MT566 Confirmations (Non-Income) MT568 - Narrative Cash Management: Optional generation of Liquidity Transfers from RTGS to DCA based on CBF Cash Forecast CASH 16:30 Night-Time Settlement / Start T2S 17:15 CASCADE Reporting MT536 Clearing & Settlement Statement pending Transactions CASCADE 17:00 Night Time T2S ca. 17:40 Settlement / End T2S: Early Real Time Settlement / Start T2S ca. 17:40 KADI-Reporting MT564 Notification MT566 Confirmations (Non-Income) MT568 Narrative KADI 18:00 Early Real-Time T2S 19:00 Settlement / End Maintenance T2S 19:00 Window / Start Testing / End T2S 19:00 Maintenance Window / End Real-Time Settlement / Start KADI-Reporting MT564 Notification MT568 Narrative CASCADE Reporting MT536 Clearing & Settlement Statement T2S ca. 19:10 T2S ca. 19:10 KADI 19:30 CASCADE 20:00 Further details September 2018 Clearstream Banking Frankfurt 26 Customer Simulation Period November 2018

27 T2S Activity CBF Activity Application / system Timing CASCADE Reporting CASCADE 21:30 MT535 Statement of Holdings KADI-Reporting KADI 23:00 MT564 Notification MT566 Confirmations (Non-Income) MT568 - Narrative CASCADE Reporting CASCADE ca. 23:00 MT536 Clearing & Settlement Statement pending Transactions CASCADE Reporting CASCADE 23:45 Pending Transactions Reporting CASCADE 02:00 MT536 Clearing & Settlement Statement Pending Transactions CASCADE Online / End CBF: CASCADE 03:00 Online / End Maintenance Window / CBF: 03:00 Start Maintenance Window / Start CASCADE Reporting CASCADE 05:00 pending transaction CASCADE Reporting CASCADE 06:00 MT536 Clearing & Settlement Statement Pending Transactions KADI-Reporting KADI 06:00 MT564 Notification MT566 Confirmations (Income + Non-Income) MT568 Narrative Maintenance T2S 07:00 Window / End Table 8 - CBF processing day in IMS23 Further details Clearstream Banking Frankfurt September 2018 Customer Simulation Period November