The T2-T2S consolidation project is a European infrastructure project driven by the European Central Bank (ECB) with a planned go-live in November 2022. The aim of the T2-T2S consolidation project is to consolidate and optimize the provision of the TARGET2 (T2) and TARGET2-Securities (T2S) services and to address the increasing demand for having an effective facility for the provision of liquidity to existing and future Eurosystem payment and settlement services.
New features, changes and improvements:
Simulation start: 01 June 2022
Production start: 21 November 2022
Eurex Clearing requires Real-Time Gross Settlement (RTGS) Dedicated Cash Account (DCA) from its Clearing members for the processing of EUR payments via T2. RTGS DCA numbers start with the letter “R”, contain maximum 34 characters, and are in the following format if the free text field is used:
Eurex Clearing notes that MCA (main cash account) or T2S DCA is not accepted for this purpose.
The T2-T2S Consolidation project is a European infrastructure project driven by the European Central Bank (ECB). In line with ECB’s and Bundesbank’s T2-T2S Consolidation timeline, Eurex Clearing is planning to launch T2-T2S Consolidation-related changes on 21st November 2022. A mandatory simulation is planned in June. All Eurex Clearing Members which use T2 accounts with Eurex Clearing for cash margin and/or cash offsetting payments out of the netting process (Repo trades) must provide new RTGS DCA account numbers.
Collection of Clearing Member cash account data (referring to RTGS DCAs used in Eurex Clearing’s Ancillary System) is expected to last until end of May 2022 to enable a proper simulation set-up at Eurex Clearing.
Members must provide their cash account structure in the TARGET Registration Form to their NCBs as soon as possible for UTEST. In a similar way, the form must be submitted for the production environment. The deadline for the submission of the production form can be requested by the members from their NCBs.
Following details should be added into the Target Registration Form:
Eurex Clearing does not require RTGS DCA for settlement purposes. However, each securities settlement account requires a linked EUR cash account to allow cash only payments generated by the netting process. This linked EUR cash account must be a RTGS DCA and not a T2S DCA, if Central Bank Money is used.
Clearstream is currently asking some Eurex Repo Clearing Members for a T2S DCA. This account is needed for the opening of a CBF Master account which is a prerequisite for opening respective new sub-accounts to settle GC Pooling products (e.g. GC Pooling ECB Basket). This activity is driven by the Collateral Mobility Project.
Testing between Eurex Clearing and its members will commence on 1 June 2022 and will last until 30 September 2022.
The execution of penny tests (at minimum one credit and one debit AS transfer) will be carried out per each Clearing Member’s RTGS DCA(s). The testing of Eurex Clearing invoices and fees initiated manually by Eurex Clearing will start approximately in mid of August 2022. Testing between Eurex Clearing Members will be concluded until 30 September 2022. Clearing Members should ensure that sufficient funding of at least € 20 is available on each RTGS DCA participating in Eurex Clearing’s Settlement Bank Account Group.
A Member Readiness Statement to Eurex Clearing by the Clearing Member will be expected by 12 October 2022 at the latest.
Inclusion into Eurex Clearing’s Settlement Bank Account Group
|The name of Eurex Clearing’s Settlement Bank Account Group is DESEUXCDEFFASI-EUREXCLEARING-AG. Eurex Clearing Members making use of T2 cash payments in EUR |
must request the inclusion into Eurex Clearing’s Settlement Bank Account Group to their National Central Bank (NCB) in order to ensure a smooth cash processing.
This inclusion is required for every RTGS DCA of the Clearing Member who wishes to be set up in the Eurex Clearing system. With the inclusion into Eurex Clearing’s Settlement Bank Account Group, Eurex Clearing will be technically enabled to debit the specified RTGS DCAs.
Eurex Clearing Members have to provide the sign-up information for Eurex Clearing’s Settlement Bank Account Group (Field 197) in their TARGET Registration Form for test and production environments. , the account numbers of RTGS DCA(s) to join the AS Group must be filled in field 198 (“Cash Account Number”).
Collection of data from Clearing Members
|Eurex Clearing maintains the information about its Clearing Member’s T2 accounts as reference data used for automated payments processing. Eurex Clearing must collect information about the new T2 account numbers from all Clearing Members.|
Production-like information will be used first in the simulation environment. Upon successful testing, similar information will be used in the production environment.
Clearing Members will be asked to revise their current EUR account setup at Eurex Clearing and provide the account numbers of RTGS DCA(s) which have been provided to NCB for the inclusion to the Eurex Clearing’s Settlement Bank Account Group. Dedicated information for each clearing member will be provided via an individual reach-out from Eurex Clearing. Clearing Members are required to provide account information in time as part of the readiness activities. If you have any further questions or comments, please send an e-mail to CKAMTaskForce@eurex.com
Continued usage of ancillary system (AS) settlement procedures and AS transfer initiation pain.998
Eurex Clearing intends to settle AS transactions in RTGS using the AS settlement procedure E. In line with the ECB’s T2-T2S Consolidation-related nomenclature rules, Eurex Clearing will use the AS technical account: TDEEUREUXCDEFFASI in the AS settlement process. For this, Eurex Clearing will continue to use the pain.998 MX message type according to SWIFT MyStandards RTGS portal definitions.
Eurex Clearing has published Customer Guide for Eurex Clearing’s AS Transfer Order Process –pain.998. Clearing members are advised to check the customer guide and make sure that changes are reflected in their internal processes as described in the sample messages. The document is available in the Member Section under the following path:
Resources > Eurex Clearing > Documentation & Files > T2-T2S Consolidation
Preponement of overnight debit cash instructions in EUR via T2
Overnight debit cash instructions in EUR via T2 will be preponed from currently 7 a.m. CET/CEST to 2 a.m. CET/CEST. Please note that the deadline for fulfillment of the payment obligation remains at 8 a.m. CET/CEST. The corresponding reports with projected EUR debits/credits will be made available before 2 a.m. CET/CEST.
We kindly ask all Eurex Clearing Members to check if internal processing needs to be adapted in order to fulfil your payment obligation in due time. Please also bear in mind to revise the used reports in internal processes. All the reports are described in Eurex Clearing > Support > Initiatives & Releases > C7 Releases in the document Eurex Clearing XML Reports – Reference Manual.
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