Transcript DTCC Settlement Renewal

DTC Settlement
New Features
10/5/06
DTC Settlement Renewal
1
New Features
•
•
•
•
•
•
•
Multicurrency
Trade Linkage
Bulk Pledge
Partial deliveries
ISO 15022
Real-time 24x6
Holiday Processing
10/5/06
DTC Settlement Renewal
2
Multicurrency
• Real Time Gross
– New RTGS money account credited for
deliveries, debited for receives
– Receives pend if RTGS insufficient
– Monies stay in account until requested, or end
of day
– Monies can be moved to EODN to alleviate
collateral problems
– Possible pre-funding RTGS account via
RTGS valued pledge
10/5/06
DTC Settlement Renewal
3
Multicurrency
• End of Day Net Settlement
– Multiple “cycles” corresponding to settlement
locations; e.g: Euros in Frankfurt vs. Paris
– Each location supported by own collateral
– Collateral released after each settlement cycle
– Excess collateral supporting one location can be
automatically moved to support collateral shortfall in
another location
– Debit caps:
• Individual participant-set debit caps per location
• DTC-defined cap per currency (our liquidity in that currency)
• Combined cap across all locations (1.8 billion max)
10/5/06
DTC Settlement Renewal
4
Trade Linkage
•
•
•
•
Make these deliveries from these receives
Profile or instruction based
Uses sub-accounting to “corral” receives
Unused sub-account position released to
free after designated event/cut-off
10/5/06
DTC Settlement Renewal
5
Bulk Pledge
•
•
•
•
Bilateral collateral selection profile
Both sides approve collateral
Either side can request substitution
Automatic substitution for pending
deliveries
• EOD valuation drives release of excess or
request for additional collateral based on
bilateral settings
• Free or valued
10/5/06
DTC Settlement Renewal
6
Partial Deliveries
•
•
•
•
•
•
Receiver and Deliverer must agree
Profile or instruction based
Minimum receive amount
Prevent odd lots
Money prorated, no breakage
Partial receives non-reclaimable
10/5/06
DTC Settlement Renewal
7
ISO 15022
• All messages will be SWIFT-compliant
• Connection must be proprietary MQ, (no SwiftNet)
• Input:
– DO & PO January 2007
– COL, MSEG, SEG, and all other settlement-related transactions
by 4Q 2007
– IMS commands currently available; RAD approvals & cancels to
be added in 2Q ‘07
• Output:
– Output messages for Participant-submitted DOs and POs
currently available
– Receiver notifications for DOs and POs and by “topic”
subscription 2Q 2007
– All other output messages available by 4Q 2007
10/5/06
DTC Settlement Renewal
8
Real-time 24x6
• Currently
– Night cycle output available at 1 a.m.
– Real-time input available ~ 3 a.m.
• In November 2006
– Night cycle output available ~ 9 p.m (PTS/PBS; MRO
is ISO only)
• In 3Q 2007
– DOs and POs can be submitted 24x6; either
processed immediately or queued for future night
cycle processing
10/5/06
DTC Settlement Renewal
9
Holiday Processing
• Current:
– Night cycle (CNS, ACATS, NDOs, ID & CNS
Loans) processed on evening prior to holiday
• Proposed:
– Holiday is a business day
– Abbreviated night cycle on evening prior to
holiday
– Full night cycle on evening of holiday for next
regular business day
10/5/06
DTC Settlement Renewal
10