Business Case

Setup of a Credit Memorandum Balance

5 GUI Workshop

Frankfurt March 31th, 2011

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.

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
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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

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

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

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 SIDE
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1. 2. 3. 4.

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

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 Data
M4.9

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 Screen

Search, Reset, Delete

Parties

C/L

Parties Select Screen / List Screen

C/L

Limits Select Screen / List Screen

Search, Reset, Delete, Restore CMB Details

C/L

CMB Select Screen / List Screen

Search, Reset, Delete, Restore

C/L

C/L

Liquidity Transfer Orders Search Screen / List Screen

Delete New, Edit Search, Reset, Delete Details

Liquidity Transfer Order Link Sets Search Screen / List Screen

Delete Details Restore Search, Reset, Delete, Restore

External RTGS accounts

C/L

External RTGS Account Search Screen / List Screen

Delete 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

T2S DCAs Details Screen

Limits Credit Memorandum Balance

Cancel

CMB Details Screen

Liquidity Transfer Order Details Screen

New, Edit Submit

Liquidity Transfer Order Link Set Details Screen

Liquidity Transfer Orders Edit Details Cancel

External RTGS Account Details Screen

Submit Edit

Detail / Enter Screen

Submit Submit Edit Submit Edit Cancel E Edit

Parties

T2S DCAs New / Edit Screen

Limits New / Edit Screen

Reset

CMB New / Edit Screen

Reset Revisions Revisions

Liquidity Transfer Order New / Edit Screen

Reset Revisions Revisions

Liquidity Transfer Order Link Set New / Edit Screen

External RTGS Account New / Edit Screen

Reset Revisions Revisions Revisions

Reset Revisions Revisions

Revisions

Revisions

Revision / Audit Trail

T2S DCAs Revisions List Screen

Limits Revisions List Screen

CMB Revisions List Screen

Liquidity Transfer Order Revisions List Screen

Liquidity Transfer Order Link Set Revisions List Screen

External RTGS Account Revisions List Screen

Sitemap Static Data

- T2S Dedicated Cash Account M3

Static Data
M3.9

T2S Dedicated Cash Account

M3.9.4 M3.9.1

T2S DCAs

External RTGS Accounts

C/L C/L

T2S DCAs Select Screen / List Screen

Search, Reset, Delete Submit

Parties

C/L

Parties Select Screen / List Screen

External RTGS Account Select Screen / List Screen

Delete Edit Search, Reset, Delete, Restore Details Close Submit External RTGS Account

Delete Edit

Details New Restore

New D

Cancel

T2S DCAs Details Screen

Cancel

External RTGS Account Details Screen

Edit Edit

E E

T2S DCAs New / Edit Screen

Parties Reset

External RTGS Account New / Edit Screen

Reset

Sitemap Static Data

- CMBs and Limits -

M4

Static Data
M4.9

T2S Dedicated Cash Account

M4.9.2

M4.9.3

Limits

CMB

C/L

Limits Select Screen / List Screen

Search, Reset, Delete, Restore

C/L

CMB Select Screen / List Screen

Search, Reset, Delete, Restore Cancel

New, Edit

New, Edit

Delete, Restore Details

Cancel

CMB Details Submit

CMB Details Screen

Submit

Edit

Limits New / Edit Screen

Reset

CMB New / Edit Screen

Reset

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Sitemap Static Data

- Securities Accounts Accounts Links -

Menu Static Data

Search Criteria Screen / Menu Level Menu Level Menu Level List Screen 3 2 1
M4

Static Data
M4.8

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 Screen

Search 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 Screen

Search, Reset, Delete, Restore

C/L

C/L

Accounts Links Select Screen / List Screen

Search, Reset, Delete, Restore Cancel New Submit Edit

Report Configuration Search Screen / List Screen

Search, 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

Accounts Link Details Screen

Available Reports Details Screen Search Screen / List Screen

Display Generated Report

Report Configuration Details Screen

Submit

Edit

Revisions

Submit

Edit

Edit

Securities Account New / Edit Screen

Reset

E
Securities Account Transfer Management Cancel Submit

Securities Account Transfer Management Edit Screen

CSD Account Links New / Edit Screen

Accounts Link New / Edit Screen

Reset

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

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 Screen

Search, Reset, Delete, Restore Cancel

Delete, Restore New, Edit Details

Accounts Link Details Screen

Submit

Edit

Accounts Link New / Edit Screen

Reset

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1. 2. 3. 4.

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

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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 perspective
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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 account
2. 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 an External RTGS Account

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CB configuration: Cash Side creation of an External RTGS Account

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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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CB configuration: Cash Side Creation of NCB T2S DCA

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CB configuration: Cash Side Creation of NCB T2S DCA

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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.

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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 account
2. setup of CMB (Step 2) 3. setup of Auto-Coll Limit (Step 3)

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CB configuration: Cash Side Creation of CMB

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CB configuration: Cash Side Creation of CMB

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CB configuration: Cash Side Creation of CMB

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CB configuration: Cash Side Creation of CMB

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CB configuration: Cash Side Creation of CMB

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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.

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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 account
2. setup of CMB (Step 2) 3. setup of Auto-Coll Limit (Step 3)

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

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

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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)
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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

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CB configuration: Security Side

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CB configuration: Security Side

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CB configuration: Security Side

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CB configuration: Security Side

REPO countries

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1. 2. 3. 4.

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

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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 perspective
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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

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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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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

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CB Collateralisation: Cash Side

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CB Collateralisation: Cash Side (REPO)

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CB Collateralisation: Cash Side (PLEDGE)

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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

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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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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

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CB configuration: Security Side

64

1. 2. 3. 4.

Static data Sitemap Central Bank Configuration Configuration for Central Bank Collateralisation 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

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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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