OUTCOME OF 1ST TG5 MEETING

Transcription

1 TARGET 2 SECURITIES PROJECT TEAM WORKING DOCUMENT T2S/07/0042_V 1.0 OUTCOME OF 1ST TG5 MEETING 1. Introduction At the beginning of the first meeting of the T2S Technical Group on Interfaces and Telecommunication (TG5) the chairman (Siegfried Vonderau) welcomed the members of TG5. It was followed by a tour de table so that each member could introduce himself. 2. Overview of the TARGET2-Securities project (T2S) A presentation was given by the T2S Project Team to explain the decisions taken on T2S in the past and those that are expected to be taken in the near future. The principles of T2S and its high-level design were introduced as well as the governance and organisation of the current project phase. End-to-end cost recovery: The issue on end-to-end cost recovery was raised by the TG5 members. It was clarified that the meaning of end-to-end cost recovery has to be further discussed in the Advisory Group. It is also expected that the discussion on pricing will start soon. Direct access of CSDs participants: In general as working assumption for TG5 it is assumed that direct access will be provided to CSDs participants, CCPs and trading platforms. Among the TG5 members there were different opinions on this point. It was clarified by the chairman that TG5 should take the direct access of CSDs participants as given and will have to work out the related items according to the mandate of TG5. Then it will be up to the Advisory Group to decide whether direct access of CSDs participants should be offered by T2S.

2 The TG5 members requested that in case of direct access of CSDs participants the CSDs must receive information about the transactions sent directly to T2S. Interrelation between T2S and CCBM2: The members of TG5 asked about the interrelation of T2S and CCBM2. To start the discussion from a common basis it was agreed to have a presentation on CCBM2 in the next meeting of TG5. Cash accounts with CSDs: For settlement purposes only cash accounts in T2S will be used. Further clarification on this issue will be needed. Provisioning of liquidity for T2S: The way of providing liquidity for the settlement in T2S has to be assessed, i.e. among others TG5 will have to get clarity on the accounts to be used for making available liquidity (RTGS accounts, sub-accounts, ). Action Points For T2S Project team: To give a presentation on CCBM2 in the next meeting of TG5 (5 July 2007). 3. Report from the first meeting of the Advisory Group (AG) The chairman of TG5 briefly reported about the main items discussed during the first meeting of the Advisory Group (AG) which took place on 22 May From next time onwards the chairman of TG5 will take part in the meetings of the AG as an observer and he will report about the progress of the work of TG5 and raise topics to be discussed in the AG if required. Tri-party meeting: It was mentioned that there will be a Tri-party meeting on 25 June Those meetings have the aim to inform a wider group of market participants about the current status of the T2S project. 3CB and 3CBplus: 3CB is the cooperation of Banque de France, Banca d Italia and Deutsche Bundesbank to develop and operate TARGET2. For T2S the cooperation will be enlarged by Banco de Espana and it will be named 3CBplus. Legal issues: If legal issues are identified in TG5 they will be raised to the lawyers of the Eurosystem for legal assessment. It was asked by the members of TG5 with whom they will have contracts when T2S will go live. From the market participants point of view the framework should be available as soon as Page 2 of 7

3 possible. Single investor account: It will be supported by T2S. Nevertheless it has to be decided whether it will be core functionality or whether it will be an optional one. This decision will be taken by the AG. 4. Mandate of Technical Group 5 and tasks to be performed 4.1 Mandate of Technical Group 5 The chairman of TG5 presented the Explanatory Note on the mandate of TG5. He emphasised that it will be important for the ongoing work that the focus should be on user requirements and not on solutions. The solutions will be worked out in the next step of the T2S project. Also during this phase there will be close contact with the market participants. If the members of TG5 cannot reach an agreement on some of the user requirements related to interfaces, the different views will be presented to the AG according to its rules and procedures, and the AG will have to take a decision. The members of TG5 were asked to provide their comments on the Explanatory Note on the mandate of TG5 by (christoph.heid@ecb.int) till 18 June Contingency and business continuity requirements for CSDs: The issue will be dealt with in TG6. Settlement of non-euro currency in T2S: It was clarified that there will be no cross-currency settlement possible in T2S. T2S will be able to run settlement in non-euro central bank money. Use of push and pull mode: It was mentioned by the members of TG5 that it has to be discussed whether information should be provided by T2S in push or pull mode. Interfaces with CBs: The requirements of the CBs will be collected from them and the result will be made available for the members of TG5. Sub-accounts: In T2S it will be possible that one entity can open several sub-accounts to provide liquidity for the settlement in T2S. It will be up to each entity to decide whether one or several sub-accounts will be opened. Data warehouse in T2S: The TG5 members asked whether a data warehouse function will be offered by T2S. This issue will be dealt with in TG6. CBs access to information: It was highlighted by the members of TG5 that CBs should have no access to information related to securities transactions, except to those related to their own ones Page 3 of 7

4 in the role of a CSD s participant. TG5: Provisioning of comments on Explanatory Note on mandate of TG5 till 18 June Deliverables and their table of content The T2S Project Team presented an overview of the deliverables expected to be provided by TG5 and their table of content. The members of TG5 were invited to send their comments on the proposed table of content of the document User Requirements: T2S Technical Group on Interfaces and Telecommunication by (christoph.heid@ecb.int) till 18 June Proposed table of content: It was agreed to add to each chapter of the document User Requirements: T2S Technical Group on Interfaces and Telecommunication an additional subchapter should be added called Assumptions and dependencies. T2S Project Team: Update the proposed table of content of the document User Requirements: T2S Technical Group on Interfaces and Telecommunication and distribute it before the next meeting of TG Survey regarding regular reporting requirements consultation The T2S Project Team presented the scope and the way of the envisaged survey on regular reporting requirements. Auditing: The members of TG5 raised the questions on who is going to provide the data needed for auditing purposes and whether CSDs and CSDs participants will have access to this kind of information. Both questions will be covered by TG6. Cost of reports: Considering the Code of Conduct each service has to be priced separately. Pricing issues will be dealt with separately outside of TG5. Delivery of reports: A limited set of standardised reports if any identified during the current user requirements phase will be provided by T2S at the agreed point in time automatically (= push mode). Page 4 of 7

5 Glossary: One glossary for all TGs should be made available to ensure a common understanding of the different terms used. Giovannini 1 and reporting: The members of TG5 mentioned that some documents produced in the framework of Giovannini 1 might be used as source of information for regular reporting requirements of CSDs in addition to the envisaged survey. T2S Project Team: Provisioning of a first version of the glossary to be used by all TGs and the T2S Project Team before the next TG5 meeting. 4.4 Consultation of National User Groups (NUGs) The T2S Project Team presented the general approach envisaged for the consultation of the NUGs. It will be up to each National Central Bank to setup the NUG in its country. A more detailed discussion on the consultation of NUGs will take place during the next meeting of TG Time schedule for the work of Technical Group 5 The T2S Project Team presented the overall planning for the work ahead of TG5 and explained the interdependencies and relations between TG5 meetings, survey and consultations, and AG meetings. The TG5 members commented on the time schedule. 5. for discussion 5.1 List of use cases to be executed via T2S The T2S Project Team presented the definition of the term use case and the logic for devising the list of use cases. Also the list itself was briefly introduced and the way forward. Logic for devising the list of use cases (slide 5): The members of TG5 expressed that the diagram showing the logic for devising was seen as the basis would be sufficient for them to get an overview whether all use cases are covered by the detailed list. To use the diagram as basis for the check it was requested to complete it by adding (i) DVD as a third settlement type transaction, and (ii) the non-settlement type transactions. Page 5 of 7

6 T2S Project Team: Completing the diagram showing the logic for devising the list of use cases by 15 June TG5: Check and comment the diagram logic for devising the list of use cases till 25 June The T2S Project Team would also welcome it to receive comments on a part of the diagram and/or the list of use cases before the deadline. 5.2 T2 as basis for implementation of T2S The T2S Project Team informed about the interfaces that exist today in TARGET2 (T2). For each interface the main elements were presented as well as a first estimation on what might be additional user requirement on these interfaces because of implementing T2S on the basis of T2. In general the implementation of T2S on the basis of T2 does not a priori introduce limits to users needs related to T2S. 5.3 Use of standards (ISO and 20022) The T2S Project team presented the use of the ISO standards and their strategic evolution. During the presentation it was mentioned that the SWIFT Board took the decision to develop ISO in core business areas (including settlement). It is envisaged to make available the core ISO messages (and documentation) as of SWIFT Release 2010 (November 2010) which matches with the current planning on T2S. The SWIFT Board decided that ISO will exist in parallel to ISO from 2010 onwards till 2013/2015 if the final migration decision is taken during another meeting of the SWIFT Board later on. Core ISO 20022: From T2S point of view it might be necessary that some messages that are currently part of the non core business areas should be included into the development plan of ISO core messages, because they will be needed to run some business cases of T2S. MT940: The SWIFTNet FIN message MT940 is not sufficient for the cash reporting in case of securities transactions. An enlarged message will be needed to fulfil the requirements of CSDs and CSDs participants taking part in T2S. Page 6 of 7

7 6. Any other business No issues were added to the agenda. 7. Dates of forthcoming meetings The dates for forthcoming meeting are the following: Thursday 5 July 2007 Tuesday 4 September 2007 Wednesday 17 October 2007 Monday 12 November 2007 Agenda and background documents should be made available to the member of TG5 at minimum five business days before the meeting. The meetings themselves are planned to start at 09:00 am. Page 7 of 7