T2S Migration Wave 3

Following EuroCCP’s Newsflash dated 26 August 2016 regarding the migration of Euroclear Belgium, France and Nederland to Target 2 Securities (T2S), we would like to remind our Clearing Participants and their Settlement Agents of the forthcoming changes to EuroCCP’s settlement arrangements in the Belgium, French and Dutch market.

The migration of Euroclear Belgium, France and Nederland to the T2S platform is scheduled for the weekend of 10-11 September, with an initial settlement date of 12 September 2016.  With the Wave 3 migration to the T2S platform Clearing Participants are reminded that EuroCCPs, settlement arrangements and SSIs will change.

The new EuroCCP SSIs will apply to those settlement instructions with Trade Date Monday 12 September 2016 and thereafter:-

EuroCCP SSIs Euroclear:
Delivery / Receiving party BIC (DEAG / REAG) EMCFNL2AXXX
CSD of Delivering / Receiving party (PSET) BIC11 local CSD*
Client of Delivering / Receiving party (Seller / Buyer) EMCFNL2AXXX
*Euroclear Belgium: CIKBBEBBXXX, Euroclear France: SICVFRPPXXX, Euroclear Nederland: NECINL2AXXX
Please note that these SSIs include settlement in French registered securities (BRN).

Wave 3 Migration

The migration of Wave 3 is scheduled as follows:-

  • Friday 9 September 2016
  • Last settlement date in Euroclear’s legacy settlement system
  • Last trade date for trades that will settle through the account with EuroCCP’s settlement agent.
  • Friday 9 September to Sunday 11 September 2016
  • Migration Weekend
  • Monday 12 September 2016
  • First T2S settlement date
  • Settlement Agent EuroCCP will send settlement instructions with trade date 9 September to the T2S platform.
  • At close of business, EuroCCP will send the first settlement instructions to the T2S platform with Trade Date 12 September 2016.
  • Tuesday 13 September 2016
  • Last Intended Settlement Date for settlement instructions that settle through EuroCCP’s Settlement Agent.
  • Wednesday 14 September
  • First Intended Settlement Date for settlement instructions that settle through EuroCCP’s new account in T2S.

Pending settlement instructions will be migrated as follows:-

  • Matched settlements – will be migrated by Euroclear
  • Unmatched settlements – will be migrated by Euroclear
  • Pre-matched settlements  – will be migrated by Euroclear
  • Market claims & transformations – will NOT be migrated by Euroclear

In order to ensure the successful migration of all settlement instructions to the T2S platform, Clearing Participants must ensure that they fully release all trades to the CSD, with Trade Date prior to 12 September 2016, on the actual trade date.

Migrated pre-matched settlement instructions will be put on hold by Euroclear with “matched” status in the T2S platform.  Only the instruction leg of the party that used the pre-matched functionality prior to migration will be put on hold.  EuroCCP strongly advises its Clearing Participants and their Settlement Agents to release the migrated pre-matched settlement instructions shortly after migration.

Migrated unmatched settlement instructions must be matched in T2S.

Market claims and transformation instructions that have not settled in Euroclear’s legacy settlement system by close of business on Friday 9 September, will not be migrated to the T2S platform.
Once the migration is complete and, if required, EuroCCP and the impacted Clearing Participants will process market claims or transformations on a bilateral basis.

Clearing Participants and their Settlement Agents should be aware that the following EuroCCP SSI’s will apply to the migrated unmatched settlement instructions, bilaterally re-processed market claims and transformations:-

The following SSIs will only apply for settlement instructions with a Trade Date prior Monday 12 September:-

EuroCCP SSIs Euroclear
Delivery / Receiving party BIC (DEAG / REAG) ABNCNL2AECP
CSD of Delivering / Receiving party (PSET) BIC11 local CSD*
Client of Delivering / Receiving party (Seller / Buyer) EMCFNL2AXXX
*Euroclear Belgium: CIKBBEBBXXX, Euroclear France: SICVFRPPXXX, Euroclear Nederland: NECINL2AXXX

EuroCCP’s settlement instructions with Trade Date 9 September 2016 will be instructed in the T2S platform on Monday 12 September 2016.

Fall-back scenario

If the point of no return is not reached during the Migration Weekend, Euroclear will restore pre-migration processes and remove T2S specific processes. Settlement instructions that were removed by Euroclear will be re-instructed by EuroCCP’s settlement agent.

The settlement arrangements, static data and Standard Settlement Instructions (SSIs) that were originally in place in EuroCCP’s records, will remain unchanged.