Further to our recent notifications on KDPW’s development plans for 2013, we have been advised recently that the new cash tolerance mechanism at the CSD should be available for testing in May 2013 and, subject to no issues occurring during the tests, implemented as of 3 June 2013.
Once the mechanism is improved, settlement instructions will be matched even if only one of the instructions would be sent with consent to amend its settlement amount, provided that the difference is smaller than the designated tolerance limit. At present, two instructions that have different qualifiers related to the consent to amend their settlement amounts cannot be matched in the CSD, even if amounts are equal or the discrepancy is within the limit.
Impact on investors: The enhanced cash tolerance mechanism should become available in the market as of the beginning of June 2013 and provide for better matching possibilities.
Related Newsflashes: KDPW announces its Development Plans for 2013