T2S
Direct access to the
Austrian market
Oesterreichische Kontrollbank AG
OeKB CSD
T2S Info Session
05.12.2014
03.12.2014
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Agenda
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About OeKB
About OeKB CSD
OeKB CSD’s T2S approach
New participants with T2S / Migration
Status and further steps
Customer Support
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Oesterreichische Kontrollbank
Aktiengesellschaft (OeKB)
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Foundation:
1946
Shareholders: Austrian Banks
Share capital: 130 Mio. Euros
Employees:
appr. 400 (OeKB Group)
A bank with special functions:
 Export Services: Export credit guarantees to insure export
transactions and export financing
 Capital Market Services: CSD since 1965, services for
issuers, financial service providers and investors
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About OeKB CSD
Key figures 2014
16%
 Assets under custody
 Bonds: EUR 307 billion
 Equities: EUR 98 billion
 Funds: EUR 102 billion
20%
64%
 Securities
 Austrian issues: 13,500
 non Austrian issues: 10,000
Bonds
Funds
Equities
 Participants (omnibus accounts)
 domestic: 112
 international: 40
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About OeKB CSD
A few of our many participants
About OeKB CSD
Links to other markets
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OeKB CSD’s T2S approach
Leveraging the maximum benefit from T2S
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100% usage of T2S no parallel systems
Making available the full T2S functionality
Delivering T2S standard to participants => no deviations
DCP and/or ICP for each of the 3 models
 Standard connectivity
 Connectivity via Technical Service Provider
 Connectivity via Agent/Account Operator
 Top quality asset servicing
 Settlement of all securities on T2S (Austrian & non Austrian)
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OeKB CSD’s T2S approach
100% usage of T2S no parallel systems
 Making use of 100% of the T2S functionality will allow
OeKB CSD to fully decommission its current settlement
and accounting systems:
 lowest possible running cost due to
 avoidance of parallel systems
 avoidance of duplicate databases, no mirroring, no data inconsistency, …
 T2S IT-pricing model (pay per IT-use, no volume based discount)
eliminates the disadvantage of higher unit costs for small CSDs
 CSD-processes not supported by T2S (asset servicing,
reporting,..) will remain on OeKB CSD-inhouse systems
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OeKB CSD’s T2S approach
Making available the full T2S functionality
 Participants will benefit from the availability of the full
T2S functionality
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Hold/release/hold
Reservation, blocking, earmarking,
Partial settlement,
Priority,
Linkages,
Auto collateralisation,
…
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OeKB CSD’s T2S approach
Delivering T2S “as is”
 By implementing T2S “as is” OeKB CSD will deliver the
full T2S STP functionality to its participants
 no CSD blocking for standard use cases
 lowest possible number of rules
 only one reference data extension attribute
(formerly MSA) for securities account type
 full use of T2S settlement day
allowing
participants
to minimize
their
implementation cost
 OeKB follows the T2S harmonization standards
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OeKB CSD’s T2S approach
DCP and/or ICP for each of the 3 models
 DCP Mode:
Participants
may use both
the DCP and
ICP Modes in
parallel
 A2A standardised
DCP interface with
SWIFT 20022
 U2A T2S client
 ICP Mode:
 Minimum changes to the
current SWIFT ISO 15022
interface
 Support of SWIFT ISO
20022
 Settlement client fully
integrated into the OeKB
Group Portal
Irrespective of the
model chosen to
connect:
(1) Standard
connectivity
(2) Connectivity via
Technical
Service Provider
(3) Connectivity via
Agent/Account
Operator
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OeKB CSD T2S Approach
Functionality in ICP, DCP Mode
ICP Mode
DCP Mode
Settlement SWIFT
Settlement
Client
Intra-CSD settlement
ISO 15022, ISO 20022
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ISO 20022
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Cross-CSD settlement
ISO 15022, ISO 20022
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ISO 20022
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External-CSD settlement
ISO 15022, ISO 20022
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n.a.
n.a.
Special case: cross-CSD settlement with
external-CSD settlement
ISO 15022, ISO 20022
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Multicurrency settlement
ISO 15022, ISO 20022
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n.a.
n.a.
Auto receive
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n.a.
n.a.
Physicals
ISO 15022, ISO 20022
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n.a.
n.a.
Change Global Certificate
ISO 15022, ISO 20022
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n.a.
n.a.
Securities account view
n.a.
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n.a.
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Billing view
n.a.
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n.a.
n.a.
Reporting
ISO 15022, ISO 20022

ISO 20022
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T2S A2A
T2S U2A
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OeKB CSD’s T2S approach
Model 1: Standard Connectivity
OeKB Group Login Portal
ICP Mode
Asset Services
Asset Service Client
Settlement Services
Settlement Client
DCP Mode
Participant (Business + Technical Sender)
OeKB CSD
Preview
Multicurrency
External
Reporting
Billing
Security Accounts
Internal
Cross CSD
T2S U2A
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OeKB CSD’s T2S approach
Model 2: Connectivity via Technical Service Provider
OeKB CSD
OeKB Group Login Portal
ICP Mode
DCP Mode
Technical Service Provider (Technical Sender)
Participant (Business Sender)
Asset Services
Asset Service Client
Settlement Services
Settlement Client
Preview
Multicurrency
External
Reporting
Billing
Security Accounts
Internal
Cross CSD
T2S U2A
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OeKB CSD’s T2S approach
Model 3: Connectivity via Agent /Account Operater
OeKB CSD
OeKB Group Login Portal
ICP Mode
Asset Service Client
Settlement Services
Settlement Client
DCP Mode
Power of
Attorney
Account Operator (Business + Technical Sender)
Participant
Asset Services
Preview
Multicurrency
External
Reporting
Billing
Security Accounts
Internal
Cross CSD
T2S U2A
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OeKB CSD’s T2S approach
ad model3: Account Operator Model
 Participant grants (by means of PoA) a third party (the
Account Operator) access to his account
 Participant defines the privileges of the third party:
 Information the third party shall receive (per message type and
qualifier)
 Types of instructions the third party is allowed to send (per
message type)
 Customization of message subscription for ICP Mode can be
set up by account owner via settlement client
 Participant can grant access/privileges to several parties
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OeKB CSD’s T2S approach
Top Quality Asset Servicing
 Fully compliant with T2S Standards
 Introduction of Record date (11/2015)
 Support of T2S Model regarding Claims Processing,
Transformations
 New Asset Servicing Platform (05/2015)
 New Asset Servicing Online Client with all information for
payments and corporate actions
 Fully automated SWIFT communication (preadvice, advice,
instruction for optional corp. actions, status information)
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OeKB CSD’s T2S approach
Settlement of all securities on T2S
 Settlement of all securities will take place on T2S
 13.000 Austrian issues
 10.000 non Austrian issues , irrespective of whether OeKB
CSD holds these issues with another T2S-CSD or with a
custodian outside T2S.
 Support of settlement in foreign currencies
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Securities leg as FOP in T2S
Cash leg on OeKB CSD cash accounts
Supported foreign currencies for all intra-transactions: USD, CHF, GBP
Supported foreign currencies for selected markets: USD, HUF, RUB, …
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OeKB CSD’s T2S Approach
Support of foreign currencies
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OeKB CSD
New participants with T2S / Migration
 The Austrian market will migrate in wave 3
 New participants interested in accessing the Austrian market
(with start of T2S/wave 3):
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should inform OeKB CSD by 03/2015
will be setup in the migration/testing environment upfront
can perform tests upfront
may go live with migration or shortly thereafter
 Note: Declaration Deadlines for DCPs for wave 3 (or shortly
thereafter):
 A2A: 16 February 2015
 U2A:16 November 2015
 Current participants:
 will be migrated automatically to the T2S Platform
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OeKB CSD
Project Status
 Internal systems are ready to test standard T2S
functionality
 Connectivity to T2S Test Environments is set up
 OeKB started Bilateral User Testing in Oct. 2014
 Ready to act as SME as of Wave 1
 Implementation of T2S Harmonisation Standards are on
track:
 Record day introduction in November 2015
 Corporate Actions on Flow
 All activities on schedule
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OeKB CSD
Migration project status/further steps
Q3
Q4
2014
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Dec.
Nov.
Oct.
Sept.
Aug.
July
June
May
April
March
Feb.
Jan.
Dec.
Nov.
Oct.
Sept.
Aug.
July
June
May
April
March
Feb.
Jan.
Dec.
Nov.
Oct.
Sept.
Aug.
July
Workshops
Trainings
Documentation
Test
Q4
2016
Dates
Milestones
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OeKB CSD
Customer Support-Workshops/Consultations
Vienna
Frankfurt
Settlement and Securities Accounts
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Cash Management
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Settlement
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First T2S online customer consultation
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Auto-Collateralisation
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Corporate Actions (part 1)
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Jan. 28th, 2015
Corporate Actions (part 2)
Dec. 15th, 2014
Jan. 28th, 2015
DCP Workshop
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Jan. 29th, 2015
Second T2S online customer consultation
Feb. 2015
Feb. 2015
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OeKB CSD
Customer Support - Documentation
Documentname
Brief Description
Technical
Connection
Version
Settlement Services Functional
Guide
Description of the scope of CSD.A
Settlement Services
ICP or DCP
V1.0
01.04.2014
V2.0
scheduled for Q4 2014
V1.0
18.04.2014
V2.0
scheduled for Q1 2015
Settlement SWIFT Manual ISO
15022
SWIFT Standards for Settlement
Services in ISO 15022 format
ICP
Availability
Settlement SWIFT Manual ISO
20022
SWIFT Standards for Settlement
Services in ISO 20022 format
ICP or DCP
V1.0
scheduled for Q1 2015
Settlement Client User Manual
Manual for the Settlement Client
ICP
V1.0
scheduled for Q1 2015
T2S U2A Connection
CSD.A specific parameterisation
of the T2S U2A connection
DCP
V1.0
scheduled for Q2 2015
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What are the key reasons for you opening an
account with a local CSD?
(1) Lower fees compared to indirect access via a
Custodian/(I)CSD
(2) The local CSD provides standardized
Services/Interface
(3) The local CSD provides top quality asset servicing
(4) All of the above
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Contact
Oesterreichische Kontrollbank AG
OeKB CSD
Strauchgasse 1-3
1011 Wien
Tel. +43 1 531 27-2000
E-mail: [email protected]
www.oekb.at/capitalmarketservices
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