Following the migration of Euro denominated settlement activity to T2S, the TARGET2-Securities platform, on 12 September 2016, VP Securities, the Danish Central Securities Depository, will connect to T2S and outsource the settlement process to this pan European platform for Danish Kroner denominated securities settlement.
In advance of the production migration to the T2S platform, VP Securities has scheduled a Migration Weekend Dress Rehearsal (MWDR) for the weekend of 7 – 8 April 2018.
A go-live date for the production migration is scheduled for settlement date Monday 29 October 2018.
The purpose of this newsflash is to provide our Clearing Participants and their settlement agents with further information on the migration of Danish Kroner denominated securities settlement to T2S by covering the following topics:-
- Migration Weekend Dress Rehearsal schedule and EuroCCP’s Reporting (CIF and PoAs).
- Client testing in T2S mode for the Danish market.
- Clearing participants and EuroCCP’s Standard Settlement Instructions (SSIs).
- EuroCCP’s Service Description – Denmark T2S – Danish Kroner.
Standard Settlement Instructions
With the migration of Danish Kroner denominated securities settlement, settlement arrangements and SSIs for Clearing Participants and EuroCCP’s will change. EuroCCP will contact those clearing participants that are active on this market to obtain new SSIs for the production environment via the EuroCCP Denmark Information Form, which should be signed and completed and returned to EuroCCP as soon as possible.
The new EuroCCP SSIs, detailed below, will apply from settlement date Monday following the successful migration weekend:-
EuroCCP SSIs VP Securities:
|Delivery / Receiving party BIC (DEAG / REAG) ||EMCFNL2AXXX |
|Securities Account ||VPDK17501175001 |
|CSD of Delivering / Receiving party (PSET) ||VPDKDKKKXXX |
Migration Weekend Dress Rehearsal
EuroCCP will participate in the MWDR by uploading production activity to its client test environment, which will be reflected in the associated reporting and messages provided by EuroCCP. The MWDR is scheduled as follows:-
Thursday 5 April 2018
- EuroCCP’s Client test environment will be cleaned for the Danish market at close of business. EuroCCP’s CIF file which is generated and distributed from EuroCCP’s test environment will not include activity related to the Danish market.
Friday 6 April 2018
- There will no messages send to VP Securities from EuroCCP’s client test environment for the Danish market.
- A copy of EuroCCP’s production activity for the Danish market will be reflected in EuroCCP’s Client test environment and submitted in the VP test environment. This will include settlement instructions that failed to settle on Thursday 5 April and settlement instructions for intended settlement date 9 April 2018.
- Due to the early closure of the VP system, settlement instructions with trade date Friday 6 April 2018 for intended settlement date Tuesday10 April will not be submitted to the VP system, and will be send to T2S on Monday 9 April 2018.
Saturday 7 April 2018
- Migration Weekend Dress Rehearsal.
- EuroCCP will undertake the reconciliation of migrated positions and pending instructions based on messages received from VP Securities and T2S, once the “Point of no return” is reached.
Monday 9 April 2018
- First settlement date in T2S.
- EuroCCP will submit settlement instructions with intended settlement date Tuesday10 April 2018 to T2S. All settlement instructions will include the new Standard Settlement Instructions in accordance with the VP Securities T2S specifications, once these are available.
Client testing T2S mode for Danish market
From Monday 14 May 2018, EuroCCP’s client test environment will be in T2S mode for the Danish market. Clearing Participants and their settlement agents are invited to undertake testing in accordance with VP Securities T2S requirements.
In order to support testing, Clearing Participants must inform EuroCCP of their Standard Settlement Instructions before testing starts in T2S mode.
Settlement Agent Power of Attorney
Settlement instructions which are sent by EuroCCP to settlement agents under a Power of Attorney (PoA) will also be distributed during the MWDR at the same time that EuroCCP submits settlement instructions in T2S. Clients wishing to participate in testing using these PoA instructions should instruct their settlement agents to process the swift MT54X messages received.
Reporting during MWDR from EuroCCPs client test environment
During the MWDR, EuroCCP’s CIF file will be generated and distributed from EuroCCP’s test environment as usual.
EuroCCP’s Service Description Denmark T2S – Danish Kronor
With the introduction of T2S for Danish Kronor denominated securities settlement in the Danish market, certain elements of EuroCCP’s services for the Danish market may change.
In order to provide Clearing Participants and their settlement agents with a detailed description of these changes, a Service Description Denmark T2S – Danish Kronor document has been published.