Business Case
Setup of a Credit Memorandum Balance
5° GUI Workshop
Frankfurt – March 31th, 2011
1
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.
2
•
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 Limits
3
General Approach
We 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
4
•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
5
CMB
GENERAL CONFIGURATION
T2S
Operator
NCB
NCB
CSD
CSD
Payment
Payment
Bank
Bank
CMB
DCA
CSD
CSD
Participant
Party
CSD
CSD
Participant
Securty
Securty
Account
Account
Securty
Securty
Account
Account
Party
CMB SA LINK
CMB
CMBSA
SALINK
LINK
CASH SIDE
SECURITY SIDE
6
1.
Static data Sitemap
2.
Central Bank Configuration
3.
Configuration for Central Bank Collateralisation
4.
Configuration for Client Collateralisation
7
Sitemap – Static Data
- T2S Dedicated Cash Account -
Search Criteria Screen / Menu Level Menu Level Menu Level
List Screen
3
2
1
Menu Static Data
M4
M4.9
T2S Dedicated
Cash Account
M4.9.1
M4.9.3
M4.9.2
T2S DCAs
C/L
T2S DCAs – Search
Screen / List Screen
Delete
Parties
C/L
Parties –Select
Screen / List
Screen
C/L
Limits – Select
Screen / List Screen
Search,
Reset,
Delete
New,
Edit
M4.9.4
CMB
Limits
Details
Select
New,
Edit
Search,
Reset,
Delete,
Restore
CMB
Details
C/L
C/L
Liquidity Transfer
Orders – Search
Screen / List Screen
Liquidity Transfer
Order Link Sets –
Search Screen / List
Screen
New,
Edit
Details
Search,
Reset,
Delete
Delete
Cancel
D
Cancel
Credit
Memorandum
Balance
New,
Edit
Parties
E
Limits – New / Edit
Screen
Revisions
Revisions
E
CMB – New / Edit
Screen
D
External RTGS
Account – Details
Screen
Cancel
Submit
Edit
E
Liquidity Transfer
Order – New / Edit
Screen
Reset
E
Liquidity Transfer
Order Link Set –
New / Edit Screen
External RTGS
Account – New /
Edit Screen
Reset
Reset
Revisions
Revisions
Revisions
Revisions
Revisions
Revisions
Close
External
RTGS
Account
Cancel
E
Reset
Reset
Search,
Reset,
Delete,
Restore
Details
Restore
New,
Edit
Liquidity
Transfer
Orders
Edit
Details
Edit
Edit
T2S DCAs – New /
Edit Screen
Delete
Liquidity Transfer
Order Link Set –
Details Screen
Submit
Submit
External RTGS
Account – Search
Screen / List Screen
D
Liquidity Transfer
Order – Details
Screen
Submit
Edit
C/L
Details
D
CMB – Details
Screen
Submit
E
External
RTGS
accounts
Search,
Reset,
Delete,
Restore
Delete
Details
External RTGS
Accounts
Restore
Limits
T2S DCAs –
Details Screen
Search,
Reset,
Delete,
Restore
M4.9.6
Liquidity Transfer
Orders Link Sets
CMB – Select
Screen / List Screen
Delete,
Restore
M4.9.5
Liquidity Transfer
Orders
C/L
New,
Edit
Cancel
D
Detail / Enter Screen
Static Data
Revisions
Revisions
Revision / Audit Trail
Revisions
L
T2S DCAs –
Revisions List
Screen
L
Limits – Revisions
List Screen
L
CMB – Revisions
List Screen
L
L
Liquidity Transfer
Order– Revisions
List Screen
L
Liquidity Transfer
Order Link Set–
Revisions List
Screen
External RTGS
Account – Revisions
List Screen
8
Sitemap – Static Data
- T2S Dedicated Cash Account M3
Static Data
M3.9
T2S Dedicated
Cash Account
M3.9.4
M3.9.1
External RTGS
Accounts
T2S DCAs
C/L
C/L
Parties
T2S DCAs – Select
Screen / List Screen
External RTGS
Account – Select
Screen / List Screen
C/L
Parties –Select
Screen / List Screen
Search,
Reset,
Delete
Delete
Delete
Edit
Submit
Edit
Search,
Reset,
Delete,
Restore
Details
Close Submit
External
RTGS
Account
Details
Restore
New
Cancel
New
D
External RTGS
Account – Details
Screen
D
T2S DCAs – Details
Screen
Cancel
Edit
Edit
E
E
T2S DCAs – New /
Edit Screen
Parties
Reset
External RTGS
Account – New / Edit
Screen
Reset
9
Sitemap – Static Data
- CMBs and Limits -
M4
Static Data
M4.9
T2S Dedicated Cash Account
M4.9.3
M4.9.2
CMB
Limits
C/L
C/L
Limits – Select Screen / List Screen
CMB – Select Screen / List Screen
New,
Edit
Search,
Reset,
Delete,
Restore
New,
Edit
Delete,
Restore
Details
CMB
Details
Cancel
D
Search,
Reset,
Delete,
Restore
Cancel
CMB – Details
Screen
Submit
Submit
E
Limits – New / Edit Screen
Reset
E
Edit
CMB – New / Edit
Screen
Reset
10
Sitemap – Static Data
- Securities Accounts – Accounts Links -
Search Criteria Screen / Menu Level Menu Level Menu Level
List Screen
3
2
1
Menu Static Data
M4
M4.7
M4.8
Securities
Account
Messages and
Reports
M4.7.1
M4.7.2
Securities
Accounts
C/L
C/L
Securities Accounts –
Search Screen / List
Screen
Search
Reset
Delete
Search,
Reset,
Delete,
Restore
Securities
Account
Details
C/L
New,
Edit
Report Configuration
– Search Screen / List
Screen
Search,
Reset,
Delete,
Restore
Delete,
Restore
Submit
Account Links
New
Report
Configurations
Accounts Links –
Select Screen / List
Screen
Account Links
Delete
M4.8.2
Message
Subscription Rule
Set
C/L
CSD Account Links –
Search Screen / List
Screen
Parties
M4.8.1
Accounts Links
C/L
Parties – Search
Screen / List Screen
Details
Details
Cancel
New
New
Edit
Party – Details Screen
D
Parties
Cancel
Revisions
E
Reset
Securities
Account
Transfer
Management
Securities Account
Transfer Management
– Edit Screen
E
E
CSD Account Links –
New / Edit Screen
Reset
Cancel
Revisions
D
Accounts Link –
Details Screen
Submit
E
Securities Account –
New / Edit Screen
Delete
Submit
Cancel
Edit
Edit
D
Securities Account –
Details Screen
Submit
Search,
Reset,
Delete,
Restore
Select
Cancel
D
Detail / Enter Screen
M4.7.3
CSD Account
Links
Edit
Revision / Audit Trail
Static Data
D
Available Reports
Details Screen –
Search Screen / List
Screen
Report Configuration –
Details Screen
Edit
Display
Generated
Report
Edit
E
Accounts Link –
New / Edit Screen
Report Configuration
– New / Edit Screen
Reset
Reset
Revisions
Submit
Revisions
L
Securities Account –
Revisions List Screen
Restore
Revisions
Revisions
L
Securities Account –
Revisions List Screen
L
Revisions
Accounts Link –
Revisions List
Screen
L
Report Configuration –
Revisions List Screen
11
Sitemap – Static Data
- Securities Accounts – Accounts Links -
M4.7
Securities
Account
M4.7.3
Accounts Links
C/L
Accounts Links –
Select Screen / List
Screen
Search,
Reset,
Delete,
Restore
Delete,
Restore
New,
Edit
Details
Cancel
D
Accounts Link –
Details Screen
Submit
E
Edit
Accounts Link –
New / Edit Screen
Reset
12
1.
Static data Sitemap
2.
Central Bank Configuration
3.
Configuration for Central Bank Collateralisation
4.
Configuration for Client Collateralisation
13
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 perspective
14
Central Bank Configuration
15
Central Bank Configuration
•
Two parts:
1. Cash Side setup: CB perspective
2. Security Side setup: CSD perspective
16
Central Bank Configuration
17
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 account
2. setup of CMB (Step 2)
3. setup of Auto-Coll Limit (Step 3)
18
CB configuration: Cash Side
creation of an External RTGS Account
19
CB configuration: Cash Side
creation of an External RTGS Account
20
CB configuration: Cash Side
creation of an External RTGS Account
21
CB configuration: Cash Side
creation of an External RTGS Account
22
CB configuration: Cash Side
Creation of NCB T2S DCA
23
CB configuration: Cash Side
Creation of NCB T2S DCA
24
CB configuration: Cash Side
Creation of NCB T2S DCA
25
CB configuration: Cash Side
Creation of NCB T2S DCA
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.
26
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 account
2. setup of CMB (Step 2)
3. setup of Auto-Coll Limit (Step 3)
27
CB configuration: Cash Side
Creation of CMB
28
CB configuration: Cash Side
Creation of CMB
29
CB configuration: Cash Side
Creation of CMB
30
CB configuration: Cash Side
Creation of CMB
31
CB configuration: Cash Side
Creation of CMB
32
CB configuration: Cash Side
Creation of NCB T2S DCA
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.
33
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 account
2. setup of CMB (Step 2)
3. setup of Auto-Coll Limit (Step 3)
34
CB configuration: Cash Side
Set up of Auto-Coll Limit
35
CB configuration: Cash Side
Set up of Auto-Coll Limit
36
CB configuration: Cash Side
Set up of Auto-Coll Limit
37
Central Bank Configuration
•
Two parts:
1. Cash Side setup: CB perspective
2. Security Side setup: CSD perspective
38
CB configuration:
Security Side
39
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
CB configuration:
Security Side
•
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
41
CB configuration:
Security Side
42
CB configuration:
Security Side
43
CB configuration:
Security Side
44
CB configuration:
Security Side
REPO countries
45
1.
Static data Sitemap
2.
Central Bank Configuration
3.
Configuration for Central Bank Collateralisation
4.
Configuration for Client Collateralisation
46
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 perspective
47
CB Collateralisation
48
Central Bank Collateralisation
•
Two parts:
1. Cash Side setup: CB perspective
2. Security Side setup: CSD perspective
49
CB Collateralisation
50
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)
51
CB Collateralisation: Cash Side
•
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-PAYBXERRPAR
•
Before step d) the CSD has already created a new CSD Participant
for the Payment Bank, a new SAC (555) for the CSD Participant
52
CB Collateralisation: Cash Side
53
CB Collateralisation: Cash Side
(REPO)
54
CB Collateralisation: Cash Side
(PLEDGE)
55
CB Collateralisation: Cash Side
(PLEDGE)
•
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
56
CB Collateralisation: Cash Side
(PLEDGE)
57
CB Collateralisation: Cash Side
58
CB Collateralisation: Cash Side
59
Central Bank Collateralisation
•
Two parts:
1. Cash Side setup: CB perspective
2. Security Side setup: CSD perspective
60
CB Collateralisation
61
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)
62
CB configuration:
Security Side
•
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
63
CB configuration:
Security Side
64
1.
Static data Sitemap
2.
Central Bank Configuration
3.
Configuration for Central Bank Collateralisation
4.
Configuration for Client Collateralisation
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
67
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
68
Client Collateralisation :
Cash Side
69
Client Collateralisation :
Cash Side
70
Client Collateralisation
•
Two parts:
1. Cash Side setup: CB perspective
2. Security Side setup: CSD perspective
71
Client Collateralisation
72
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)
73
Client configuration:
Security Side
74
THANK YOU
75