Exercise CLS1: Funding of the Participant's CLS LOM Account Exercise CLS2: Standing Intra-Account Funding Arrangement... 9

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1 CLS 1

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3 Contents Exercise CLS1: Funding of the Participant's CLS LOM Account... 5 Exercise CLS2: Standing Intra-Account Funding Arrangement... 9 Exercise CLS3: CLS Payments Exercise CLS4: Transfer from the CLS LOM to the Settlement Account (Sweep CLS LOM) Exercise CLS5: Queued payments on CLS LOM

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5 EXERCISE CLS1: FUNDING OF THE PARTICIPANT'S CLS LOM ACCOUNT Exercise: A participant wish to fund its CLS LOM. This can be done with an intra-account transfer instruction. Step A: Create an Intra-account transfer instruction from the settlement account to the CLS LOM. 1. Under Instructions, select Fund settlement instruction 2. Click on Intra-account transfer instruction 3. The following window (Instruction detail) will appear: 4. Instruction detail From the From account dropdown list, select Settlement account, active. From the To account dropdown list, select CLS, active At Transfer option, select Exact amount, no credit. Under Amount enter DKK 200 or an amount chosen by you. Enter a Related reference code, use e.g. test. Click on submit 5. The Instruction is now captured 5

6 Step B: Verify that funds are transferred from the settlement account to the CLS LOM account (CLS, Active) 1. To verify that the transfer has been processed, check Classic position or Consolidated position. Check that the status of the CLS account has been credited with the transferred amount. In this exercise, the CLS LOM has been credited with DKK 200 or the amount you chose. Step C: In addition to viewing the Classic or Consolidated position verify the intra-account transfer by generating an Account statement for both the Settlement account and the CLS LOM. 1. Under Enquiries, choose AC001 - Account Statement 6

7 2. The following window will appear: 3. Account statement request Select Settlement Account from the dropdown list Enter FSVD (from) and FSVD (to). Use current FSVD which is set as default. Press submit 4. The following report is generated: 5. Check that the Settlement account has been debited with DKK Press back to return to the main menu 7. Now change Account from Settlement Account to CLS LOM on the dropdown list and press submit 7

8 8. The following report is generated: 9. Check that the CLS LOM has been credited with DKK Press back to return to the main menu End of exercise 8

9 EXERCISE CLS2: STANDING INTRA-ACCOUNT FUNDING ARRANGEMENT Exercise: A participant wants to create an intra-account transfer instruction that occurs Monday to Friday, at a specific time of the day or at the start of an event at a fixed amount. This is also called a standing intra-account funding arrangement in Kronos2. Step A: Create a standing intra-account instruction from the Settlement account to the CLS LOM that will be generated every day at the start of the RTM settlement trigger event (default standing arrangement). 1. Under Instructions, choose Role player profile instructions 2. Select Maintain standing intra-account funding arrangement 3. The following window will appear: 4. Maintain standing intra-account funding arrangements Select the Default option from the Week day dropdown list. In this test there are no current standing arrangement registered and the displayed list is therefore empty. Select Add from the Action dropdown list as no default arrangements are registered. If the list already contains registered standing arrangements Add will not appear as an option, in this case choose Modify instead. Click on the small plus icon to the right to create a new standing intra-account instruction. 9

10 5. A new Instruction detail window will open: 6. Instruction detail Sequence No: 1 From account: Choose Settlement account from the dropdown list To account: Choose CLS LOM from the dropdown list Transfer option: Select Exact amount no credit. More options exist. Amount = DKK Enter Related reference code. Use your Bank initials or User initials. Under Event of day, choose the RTM settlement trigger from the dropdown list Enter a Change reason of your choice Press continue 7. The first window is displayed again. Now one item is shown on the list under Maintain standing intra-account funding arrangements with the details entered in previous instruction. 8. Enter a Change reason of your choice 9. Press submit 10

11 10. A message box with the information Instruction sent is shown. See below. Step B: Verify that the standing intra-account instruction has been processed 1. Click on Maintain standing intra-account funding arrangement in the menu bar to the left 2. Select the Default option from the Week day dropdown list. 1 item is now displayed. See below. Note: By changing default to a specific day on the week day dropdown list you should see the same standing intra-account instruction every day of the week. End of exercise 11

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13 EXERCISE CLS3: CLS PAYMENTS Exercise: A participant wants to make a CLS payment to another participant. This can be done with a Fund Settlement Instruction, where the payment is initiated from the CLS LOM account. 1. Under Instructions, select Fund settlement instruction. At Settlement options, select LOM. Enter continue. 2. The following window will appear. Under Capture LOM information, choose CLS LOM. Enter continue. 13

14 3. The next window is Capture Instruction Detail. Choose Settlement Beneficiary bank always choose CLS Bank International Enter Amount, e.g. DKK Under Ultimate beneficiary BIC (UBB), select (None) Under UBB (Once off), enter the BIC for the ultimate beneficiary bank. In this exercise use XYHMUS30XX (Danske Bank) or ZYHGUS30XXX (Nordea) Enter continue 14

15 4. Now an Instruction summary will appear. Enter submit. 5. The Fund Settlement Instruction is now captured. 6. Verify that the CLS account has been debited with the corresponding amount. Under Enquiries, select AC001 Account statement Under Account, choose CLS, Active Enter submit A report opens; verify that the CLS LOM Account has been debited with the correct amount. In this exercise DKK End of exercise 15

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17 EXERCISE CLS4: TRANSFER FROM THE CLS LOM TO THE SETTLEMENT ACCOUNT (SWEEP CLS LOM) Exercise: A participant wants to sweep its CLS LOM before the automatic cut-off (at 3 PM Kronos2 will automatically transfer any excess funds from the CLS LOM to the settlement account). This can be done with an intra-account transfer instruction. 1. Under Instructions, select Fund settlement instruction 2. Click on Intra-account transfer instruction 3. The following window will appear: 4. Instruction detail Under From account, select CLS, active from the dropdown list. Under To account, select Settlement account, active from the dropdown list At Transfer option, select All available, no credit Enter submit 5. The instruction is captured 6. To verify that the funds have been transferred to the settlement account, select Classic or Consolidated position. Check, that the account status of the CLS LOM is zero. 17

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19 EXERCISE CLS5: QUEUED PAYMENTS ON CLS LOM Exercise: A participant wants to initiate a CLS Payment. However there are no available funds on the CLS LOM. In contrast to payments initiated from the settlement account, there is a queuing mechanism on the CLS LOM. Therefore, the payment is queued until additional funds are transferred to the CLS LOM. Step A: Check the bank's position, i.e. balance on the Settlement Account and CLS LOM. In this exercise, the balance on CLS LOM should be zero. 1. Click on Classic or Consolidated position. Verify that the balance is zero. Step B: Initiate a CLS Payment 1. Under Instructions, select Fund settlement instruction. At Settlement options, select LOM. Enter continue. 19

20 2. The following window will appear. Under Capture LOM information, choose CLS LOM. Enter continue. 3. The next window is Capture Instruction Detail. Choose Settlement Beneficiary bank always choose CLS Bank International Enter Amount, e.g. DKK Under Ultimate beneficiary BIC (UBB), select (None) Under UBB (Once off), enter the BIC for the ultimate beneficiary bank. In this exercise use XYHMUS30XX (Danske Bank) or ZYHGUS30XXX (Nordea) Enter continue 20

21 4. An Instruction summary will appear. Enter submit. 5. The Fund Settlement Instruction is now captured. Step C: Verify that the payment is queued on the CLS LOM 1. Choose Classic or Consolidated position. Estimated position shows the balance of the CLS LOM in this exercise the CLS LOM account has a deficit of DKK In addition, the column Next payment shows that there is a queued payment of DKK

22 Step D: Transfer additional funds to the CLS LOM in order to settle the queued payment. This is done by initiating an Intra-account transfer instruction of DKK Under Instructions, select Fund settlement instruction 2. Click on Intra-account transfer instruction 3. The following window (Instruction detail) will appear: 4. Instruction detail From the From account dropdown list, select Settlement account, active. From the To account dropdown list, select CLS, active At Transfer option, select Exact amount, no credit. Under Amount enter DKK Enter a Related reference code, use e.g. test. 22

23 Click on submit 5. The Instruction is now captured Step D: Verify that the queued payment has been settled and the balance of the CLS LOM has changed accordingly. 1. Choose Classic or Consolidated position. Verify that the Estimated position is now DKK And the balance under Next payment is zero. 23

24 2. Under Enquiries, choose Account statement (AC001) and draw a report for the CLS LOM. 3. The following report is shown: 4. The report shows that the CLS LOM account has first been credited with DKK Subsequently, the account is debited with DKK 1.000, i.e. the queued payment has been settled. End of exercise 24