CMB T2S Setup

Business CaseSetup of a Credit Memorandum Balance

5 GUI Workshop

Frankfurt March 31th, 2011

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Business Case: U2A configuration of all the necessary Static Data to setup a Credit Memorandum Balance (CMB) in T2S

CMB:

A Credit Memorandum Balance is a tool T2S uses to track the provision of Intraday Credit from Central Banks (CBs) to Payment Banks (for CB Collateralisation) and from Payment Banks (PBs) to their clients.

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CMB: establishes links between T2S Dedicated Cash Accounts (T2S DCAs) and Securities Accounts (SACs) allows the Collateralisation Procedure requires the configuration of Limits

Collateralisation: In order to perform a Collateralisation Procedure several Links between T2S DCA and SAC have to be set up

Limits: A limit is a cap on Intraday Credit in T2S Intraday-credit secured inside T2S: auto-collateralisation (auto-coll) or clientcollateralisation (client-coll) Limits Intraday-credit secured outside T2S: external guarantee Limits and unsecured credit Limits3

General ApproachWe will show the complete CMB configuration that is divided into:o

Cash SD Configuration Actors: CBs, PBs SD objects: T2S DCAs, External RTGS Accounts, CMBs and Limits

o

Security SD configuration: Actor: CSDs SD objects: SACs, CMB SA Links

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Business case References:URD T2S.03.180, T2S.14.640, T2S.16.600, T2S.16.610, T2S.16.611, T2S.16.612, T2S.16.620, T2S.16.655, T2S.16.656, T2S.16.657 UDFS 1.2.6, 1.2.6.3, 1.2.6.4, 1.2.6.6, 1.2.6.7, 1.6.2.2

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CMB GENERAL CONFIGURATION

T2S Operator

NCB NCB

CSD CSD

Payment Payment Bank Bank

CSD CSD Participant Party

CSD CSD Participant

Party

DCA

CMB

Securty Securty Account Account

Securty Securty Account Account

CMB SA LINK

CMB SA LINK CMB SA LINK

CASH SIDE

SECURITY SIDE6

1. 2. 3. 4.

Static data Sitemap Central Bank Configuration Configuration for Central Bank Collateralisation Configuration for Client Collateralisation

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Sitemap Static Data- T2S Dedicated Cash Account -

Menu Static Data

Search Criteria Screen / Menu Level Menu Level Menu Level List Screen 3 2 1

M4

Static DataM4.9

T2S Dedicated Cash Account

M4.9.1

M4.9.2

M4.9.3

M4.9.4

M4.9.5

M4.9.6

T2S DCAs

Limits

CMB

Liquidity Transfer Orders

Liquidity Transfer Orders Link Sets

External RTGS Accounts

C/L

T2S DCAs Search Screen / List ScreenSearch, Reset, Delete

Parties

C/L

Parties Select Screen / List Screen

C/L

Limits Select Screen / List ScreenSearch, Reset, Delete, Restore CMB Details

C/L

CMB Select Screen / List ScreenSearch, Reset, Delete, Restore

C/L

C/L

Liquidity Transfer Orders Search Screen / List ScreenDelete New, Edit Search, Reset, Delete Details

Liquidity Transfer Order Link Sets Search Screen / List ScreenDelete Details Restore Search, Reset, Delete, Restore

External RTGS accounts

C/L

External RTGS Account Search Screen / List ScreenDelete Search, Reset, Delete, Restore Details

Delete

New, Edit

Details New, Edit Select Cancel

New, Edit

Delete, Restore

Cancel

Details

Close External RTGS Account

New, Edit D

Restore

D

T2S DCAs Details Screen

Limits Credit Memorandum Balance

Cancel

D

CMB Details Screen

D

D

Liquidity Transfer Order Details ScreenNew, Edit Submit

Liquidity Transfer Order Link Set Details ScreenLiquidity Transfer Orders Edit Details Cancel

External RTGS Account Details ScreenSubmit Edit

Detail / Enter Screen

Submit Submit Edit Submit Edit Cancel E Edit

E

Parties

T2S DCAs New / Edit Screen

E

Limits New / Edit ScreenReset

E

E

E

CMB New / Edit ScreenReset Revisions Revisions

Liquidity Transfer Order New / Edit ScreenReset Revisions Revisions

Liquidity Transfer Order Link Set New / Edit Screen

External RTGS Account New / Edit ScreenReset Revisions Revisions Revisions

Reset Revisions Revisions

Revisions

Revisions

Revision / Audit Trail

L

T2S DCAs Revisions List Screen

L

Limits Revisions List Screen

L

CMB Revisions List Screen

L

L

L

Liquidity Transfer Order Revisions List Screen

Liquidity Transfer Order Link Set Revisions List Screen

External RTGS Account Revisions List Screen

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Sitemap Static Data- T2S Dedicated Cash Account M3

Static DataM3.9


M3.9.4 M3.9.1

T2S DCAs

External RTGS Accounts

C/L C/L

T2S DCAs Select Screen / List ScreenSearch, Reset, Delete Submit

Parties

C/L

Parties Select Screen / List Screen

External RTGS Account Select Screen / List ScreenDelete Edit Search, Reset, Delete, Restore Details Close Submit External RTGS Account

Delete Edit

Details New Restore

New D

Cancel

D

T2S DCAs Details ScreenCancel

External RTGS Account Details Screen

Edit Edit

E E

T2S DCAs New / Edit ScreenParties Reset

External RTGS Account New / Edit ScreenReset

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Sitemap Static Data- CMBs and Limits -

M4

Static DataM4.9


M4.9.2

M4.9.3

Limits

CMB

C/L

Limits Select Screen / List ScreenSearch, Reset, Delete, Restore

C/L

CMB Select Screen / List ScreenSearch, Reset, Delete, Restore Cancel

New, Edit

New, Edit

Delete, Restore Details

Cancel

CMB Details Submit

D

CMB Details ScreenSubmit

Edit

E

Limits New / Edit ScreenReset

E

CMB New / Edit ScreenReset

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Sitemap Static Data- Securities Accounts Accounts Links -

Menu Static DataSearch Criteria Screen / Menu Level Menu Level Menu Level List Screen 3 2 1M4

Static DataM4.8

M4.7

Securities Account

Messages and Reports

M4.7.1

M4.7.2

M4.7.3

M4.8.1

M4.8.2

Securities Accounts

CSD Account Links

Accounts Links

Message Subscription Rule Set

Report Configurations

C/L

Securities Accounts Search Screen / List ScreenSearch Reset Delete Details

C/L

Parties Search Screen / List Screen

C/L

Parties Securities Account Account Links Account Links New Edit

CSD Account Links Search Screen / List ScreenSearch, Reset, Delete, Restore

C/L

C/L

Accounts Links Select Screen / List ScreenSearch, Reset, Delete, Restore Cancel New Submit Edit

Report Configuration Search Screen / List ScreenSearch, Reset, Delete, Restore Cancel

Submit New, Edit

Delete, Restore Details

Details Delete

Delete New Edit D Cancel Select D

Detail / Enter Screen

Securities Account Details Screen

Party Details Screen

Parties Cancel

D

Accounts Link Details Screen

D

D

Available Reports Details Screen Search Screen / List ScreenDisplay Generated Report

Report Configuration Details Screen

Submit

Edit

Revisions

Submit

Edit

Edit

E

Securities Account New / Edit ScreenReset

ESecurities Account Transfer Management Cancel Submit

E

Securities Account Transfer Management Edit Screen

CSD Account Links New / Edit Screen

E

E

Accounts Link New / Edit ScreenReset

Report Configuration New / Edit Screen

Reset

Revisions

Reset Revisions Revisions

Revision / Audit Trail

Revisions L

Revisions L

Restore L

Securities Account Revisions List Screen

Securities Account Revisions List Screen

L

Revisions

Accounts Link Revisions List Screen

Report Configuration Revisions List Screen

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Sitemap Static Data- Securities Accounts Accounts Links -

M4.7

Securities Account

M4.7.3

Accounts Links

C/L

Accounts Links Select Screen / List ScreenSearch, Reset, Delete, Restore Cancel

Delete, Restore New, Edit Details

D

Accounts Link Details Screen

Submit

Edit

E

Accounts Link New / Edit ScreenReset

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1. 2. 3. 4.


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Central Bank Configuration Business case: All the necessary Static Data steps to setup all the relevant links between its T2S Dedicated Cash Account (DCA) and the Security Account of the same CB as CSD participant in U2A

CB Configuration is necessary to allow Auto-collateralisation

Two parts:1. Cash Side Setup: CB perspective 2. Security Side Setup: CSD perspective14

Central Bank Configuration

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Central Bank Configuration Two parts: 1. Cash Side setup: CB perspective 2. Security Side setup: CSD perspective

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Central Bank Configuration

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CB configuration: Cash Side All the necessary Cash-related SD actions an CB must perform to set up the links between T2S DCA and SA for CB Configuration

Steps:1. Creation of CB T2S DCA (Step 1) and needed External RTGS account2. setup of CMB (Step 2) 3. setup of Auto-Coll Limit (Step 3)

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CB configuration: Cash Side creation of an External RTGS Account

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CB configuration: Cash Side Creation of NCB T2S DCA

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After confirmation, a pop-up window notifies the user of: the correct insertion of the item the ID assigned by the system to the item

Let us suppose the T2S Dedicated Cash Account is given the ID 123 by the system.

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CB configuration: Cash Side Creation of CMB

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After confirmation, a pop-up window notifies the user of the correct insertion of the item the ID the system assigned to the item

Let us suppose the CMB is given the ID 777 by the system.

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CB configuration: Cash Side Set up of Auto-Coll Limit

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Central Bank Configuration Two parts: 1. Cash Side setup: CB perspective 2. Security Side setup: CSD perspective

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CB configuration: Security Side

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CB configuration: Security Side all the necessary Security-related SD actions a CSD must perform to set up the links between T2S DCA and SA for CB Configuration

Steps:a) Creation of a new CSD participant for the CB (Step 4)b) Creation of a new SA (Regular) for Collateralisation (Step 5) c) Creation of a new SA (Receiving Collateral): REPO case (Step 7) d) Link the Regular SA to CB T2S DCA for Cash Settlement Purpose (Step 6) e) Link the Receiving SA to CB T2S DCA for Cash Settlement Purpose (Step 8)40


In step a) the CSD CSDAITAAXXX creates the CSD Participant CSDAITAAXXXNCBAXERRXXX

In step b) the CSD CSDAITAAXXX creates the Securities Account number 333 (Regular Securities Account): the holder of the account is CSDAITAAXXXNCBAXERRXXX

In step c) the CSD CSDAITAAXXX creates the Securities Account number 444 (Receiving Securities Account): the holder of the account is CSDAITAAXXXNCBAXERRXXX this step is required only for REPO countries

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REPO countries

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1. 2. 3. 4.


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Central Bank Collateralisation Business case: All the necessary Static Data steps to setup all the relevant links between T2S DCA of a Payment Bank and all the relevant SACs in U2A

CB Collateralisation: setup of all Static Data to allow Intraday Credit provisioning from CBs to PBs

Two parts: 1. Cash Side setup: CB perspective 2. Security Side setup: CSD perspective47

CB Collateralisation

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Central Bank Collateralisation Two parts: 1. Cash Side setup: CB perspective 2. Security Side setup: CSD perspective

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CB Collateralisation: Cash Side

all the necessary Cash-related SD actions a CB must perform to set up the links between T2S DCA and SACs for Collateralisation.

Steps:a) Creation of a new Payment Bank (Step-1)b) setup of a new T2S DCA for the Payment Bank (Step-2) c) setup of CMB (Step-3) in REPO case d) setup of CMB: Pledge case (Step-7)

e) Creation of the Auto-Coll Limit (Step-10)

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In step a) the CB creates the Payment Bank NCBAXERRXXXPAYBXERRPAR

In step b) the CB creates the T2S DCA 456 related to the Payment Bank NCBAXERRXXX-PAYBXERRPARBefore step d) the CSD has already created a new CSD Participant for the Payment Bank, a new SAC (555) for the CSD Participant

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CB Collateralisation: Cash Side (REPO)

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CB Collateralisation: Cash Side (PLEDGE)

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In order to finish the CMB configuration, CSD has to configure the link between the SAC to the DCA, belonging to the PB, for cash settlement purpose only This step will be described in slide 64 After this configuration by the CSD, CB can update the newly created CMB adding Receiving SAC information

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Central Bank Collateralisation

Two parts:1. Cash Side setup: CB perspective 2. Security Side setup: CSD perspective

60


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CB configuration: Security Side Security: all the necessary Security-related SD actions a CSD must perform to set up the links between T2S DCA and SA for CB Auto-collateralisation Steps:a) Creation of a CSD participant for the PB (Step-4) b) Creation of a SA (receive) for PB: Pledge Case (Step-5) c) Link the Receiving SA to PB DCA for Cash Settlement: Pledge Case (Step-6)

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In step a) the CSD creates the CSD Participant for the Payment Bank CSDAITAAXXX-PAYBXERRPAR

In step b) the CSD creates a new SAC (555) for the CSD Participant CSDAITAAXXX-PAYBXERRPAR

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64

1. 2. 3. 4.


65

Client Collateralisation Business case: All the necessary Static Data steps to setup all the relevant links between T2S DCA of a Payment Bank providing Client Collateralisation and the SAC of one of its clients in U2A

Two parts: 1. Cash Side setup: CB/PB perspective 2. Security Side setup: CSD perspective

66

Client Collateralisation

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Client Collateralisation : Cash Side all the necessary Cash-related SD actions a Payment Bank must perform to set up the links between T2S DCA and SA for Client Collateralisation Steps:1. Creation of a CMB for Client Collateralisation (Step-2) 2. Creation and setup of (Step-3):

External Guarantee Limit Auto-collateralisation Limit

Unsecured Credit Limit

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Client Collateralisation : Cash Side

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Client Collateralisation : Cash Side

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Two parts:1. Cash Side setup: CB perspective 2. Security Side setup: CSD perspective

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Client configuration: Security Side all the necessary Security-related SD actions a CSD must perform to set up the links between T2S DCA and SA for Clientcollateralisation Steps:1. Creation of a new CSD participant for the Client (Step-1) 2. Creation of a new SA for the Client (Step-4) 3. Link the Client SA to PB T2S DCA for Cash Settlement Purpose (Step5)

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Client configuration: Security Side

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THANK YOU

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Documents

CMB T2S Setup