During a meeting held earlier today, CCP.A informed its members that with the forthcoming implementation of its planned new system the following major changes will take place:
- there will be only one settlement batch, for the night-time settlement, with no further interim settlement batches during the day, when real-time settlement will instead take place
- unsettled or partially unsettled instructions will no longer be cancelled daily after the T2S against-payment cut-off, instead unsettled instructions will remain in status pending in T2S for the remaining clearing cycle
- the “hold-and-release” functionality will no longer be supported at clearing system level, and therefore a change to a segregated account structure at CCP.A will have to be made; flexible account set-up options will enable any segregation granularity
- transaction management for corporate actions will be done in T2S and will be handled by the CSD in the future, which will result in a higher degree of automation and a reduction of operational risk
In February and March 2019 CCP.A will prepare the testing environment and internal tests are scheduled to take place from April to June 2019. Participant trainings will also be conducted in June 2019 and participant testing is planned for the period from July to September 2019.
The last day on which the old system should be used is planned to be Friday, 27 September 2019. The remaining unsettled positions will then be extracted and loaded into the new system, followed by an extraordinary settlement batch in the morning of the go-live date for all open positions with instructed settlement date prior to the go-live date. The latter has now been set to Monday, 30 September 2019.
Impact on investors: The new clearing System will enable CCP.A to anticipate future market and regulatory developments.