Sixth T2S Harmonisation Progress Report · on 30 September 2015, and the establishment of the European Post-Trading Forum (EPTF) are important initiatives which could potentially

Sixth T2S Harmonisation Progress ReportT2S Advisory Group18 March 2016

Sixth T2S Harmonisation Progress Report I Table of contents

3

Table of contents

Abbreviations 4

Preface

Key messages 7

1 Executive summary 9

2 Introduction 17

3 T2S harmonisation activities – priority 1 23

3.1 T2S ISO 20022 messages 23

3.2 T2S matching fields 26

3.3 Interaction with T2S (registration procedures) 28

3.4 Interaction with T2S (tax info requirements) 30

3.5 T2S schedule for the settlement day and calendar 32

3.6. T2S corporate actions standards 37

3.7 Settlement Finality I 41

3.8 Settlement Finality II 44

3.9 Settlement Finality III 46

3.10 IT outsourcing (settlement services) 48

3.11 Settlement discipline regime 50

3.12 Settlement cycles 52

3.13 Availability of omnibus accounts 55

3.14 Restrictions on omnibus accounts 57

3.15 Securities account numbers 59

3.16 Cash account numbers 61

4 T2S harmonisation activities – priority 2 63

4.1 Location of securities accounts/conflict of law 63

4.2 Corporate actions market standards 65

4.3 Place of issuance 67

4.4 Withholding tax procedures 69

4.5 Cross-border shareholder transparency and registration procedures 71

4.6 Market access and interoperability 73

4.7 Securities amount data

4.8 Portfolio transfer 69

Annex 1: Methodology 76

Annex 2: Monitored harmonisation activities per market 81

Annex 3: Non-compliance impact analysis 81

Annex 4: Detailed monitoring information per T2S market 105

Annex 5: List of members of the T2S Advisory Group 130

4

5

6

8

15

17

17

18

19

20

22

24

26

28

29

30

31

32

33

34

36

36

38

38

39

40

41

43

45

46

47

49

53

57

61

84

Sixth T2S Harmonisation Progress Report I Abbreviations

4

Abbreviations

Countries (covered in the report)

AT Austria IT Italy BE Belgium LT LithuaniaCH Switzerland LU LuxembourgDE Germany LV LatviaDK Denmark MT MaltaEE Estonia NL NetherlandsES Spain PT PortugalFI Finland RO RomaniaFR France SI SloveniaGR Greece SK SlovakiaHU Hungary

Others

AG T2S Advisory Group BSG Broad Stakeholders GroupCAJWG Corporate Actions Joint Working GroupCASG (T2S) Corporate Actions Sub-group CMU capital markets unionCPSS Committee on Payment and Settlement SystemsCSD central securities depository CSG (T2S) CSD Steering Group CSDR CSD RegulationDCP directly connected partyDvP delivery versus paymentECB European Central BankECSDA European Central Securities Depositories AssociationE-MIG European Market Implementation GroupEPTG European Post Trade Group EPTF European Post-Trading ForumESCB European System of Central BanksESMA European Securities and Markets AuthorityFISCO Clearing and Settlement Fiscal Compliance expert groupHSG (T2S) Harmonisation Steering Group ICP indirectly connected partyIOSCO Technical Committee of the International Organization of Securities CommissionsNUG (T2S) National User GroupSP Synchronisation PointT-BAG Tax Barriers Business Advisory GroupTFAX Task Force on adaptation to cross-CSD settlement in T2S UDFS T2S User Detailed Functional Specifications (v.1.21, 07/09/2012) URD T2S User Requirements Document (v.5.02, 07/09/2012)XMAP T2S Cross-border market practice sub-group

Sixth T2S Harmonisation Progress Report I Preface

5

Target2-Securities (T2S), the Eurosystem platform for settling securities in Europe, was launched on 22 June 2015. By 31 August 2015 five EU markets had joined T2S. On 29 March 2016 a further two markets will join them. By September 2017 a total of 21 European markets (covering 23 central securities depositories (CSDs)) will be connected.

T2S has the potential to provide a truly harmonised securities settlement process across all participating markets. This will contribute to safer and more efficient cross-border securities services (and thus cross-border investment) in the EU.

The extent to which this potential will materialise, bringing benefits to the entire European post-trade industry including issuers and investors, largely depends on all stakeholders adapting to and using T2S in a harmonised way. This is why both the Eurosystem and the T2S community of stakeholders (i.e. central banks, market infrastructures and participants) consider post-trade harmonisation to be a central objective of T2S and a key contribution to the integration of financial markets in Europe.

Over the last few years the T2S Community has done a considerable amount of work to create a single rulebook for post-trade processes (e.g. messaging protocols, operating hours, regulatory and legal rules) across the T2S markets. All rules and standards referred to in this publication have been endorsed by the T2S Advisory Group (AG), i.e. by senior representatives of market infrastructures, national central banks and financial intermediaries. AG members are committed to achieving full compliance with the harmonisation standards in their respective markets and are supporting their markets in this goal.

Will all T2S markets achieve compliance with the T2S harmonisation standards before they migrate to T2S? This report focuses on the level of compliance achieved by the markets in the first migration wave. It also closely monitors the markets planning to migrate in the second wave. The results show considerable progress in terms of compliance in the T2S markets concerned. They also provide evidence on the soundness of the harmonisation methodology by matching outcomes to planned actions. As anticipated, in the vast majority of cases, the markets already migrated to T2S comply fully with the T2S standards.

The report also covers the remaining gaps in the T2S harmonisation agenda. These now largely relate to what are considered the “macro” topics, i.e. regulatory and legal issues. The action plan for the creation of a capital markets union (CMU) in the EU, published by the European Commission on 30 September 2015, and the establishment of the European Post-Trading Forum (EPTF) are important initiatives which could potentially address most of these issues. Where relevant, the expected impact of the CMU agenda on the T2S harmonisation list is reflected in the current version of the report.

The AG plans to publish a status update before the third T2S migration wave (scheduled for 12 September 2016) and a full, seventh report before the fourth T2S migration wave (scheduled for 6 February 2017).

Preface

Sixth T2S Harmonisation Progress Report I Key messages

Key messages

• Common standards are already defined for 17 out of a total of 24 T2S harmonisation activities. 15 of these 17 standards have been given high priority by the AG, i.e. the objective is to have the standards implemented by all markets by the time they migrate to T2S.

• This report shows that substantial progress has been made since the last reporting cycle (completed in March 2015) regarding compliance of the T2S markets with the T2S harmonisation standards. This is particularly important for the five markets which migrated to T2S between June and August 2015, i.e. Italy (Monte Titoli), Romania (Depozitarul Central), Malta (Malta Stock Exchange), Switzerland (SIX-SIS) and Greece (BOGS). The results reconfirm the robustness and credibility of the AG’s harmonisation methodology.

• In addition, the two markets that will migrate to T2S on 28 March 2016, i.e. Portugal (Interbolsa) and Belgium (NBB-SSS) are en route to full compliance with almost all T2S harmonisation standards.

• Looking at the remaining T2S markets, for most prioritised standards, no major obstacles to achieving full compliance on time are anticipated. The main area where full compliance requires corrective action from some T2S markets (DE, FR, NL, BE, RO, PT and IT currently assigned red status) is related to the T2S corporate actions standards. These are complex business processes for asset servicing involving rules and procedures developed by a range of different actors. Gaps are still present, but T2S markets have done a great deal of work to address them.

• In most cases, this good progress reflects the efforts of the T2S National User Groups (NUGs), which have provided a forum for the key national stakeholders to agree on detailed implementation plans. These plans now include public dates for testing and migration readiness regarding the relevant standards. The national authorities, where relevant, have already adopted the necessary regulation, or have a plan to do so on time.

• The definition and implementation of a harmonised settlement discipline regime remains the key gap to completing the high-priority T2S harmonisation activities. The EU authorities are expected to adopt, by summer 2016, the relevant regulatory and implementing technical standards of the CSD Regulation. This should complete the definition process and pave the way for implementation (i.e. regulatory compliance) by the T2S CSDs and their markets of a harmonised settlement discipline regime in the EU.

• Regarding the completion of the harmonisation activity covering the Settlement Finality I concept (i.e. the moment of entry of a transfer order into the system), the T2S stakeholders are in the process of completing the steps needed to achieve full compliance with the agreed standard by all relevant actors.

• For the rest of 2016 the AG will focus its harmonisation work on, but not limit it to, monitoring the implementation plans of the T2S markets that will migrate to T2S on 12 September 2016 (migration wave 3), i.e. Belgium (Euroclear), France (Euroclear), the Netherlands (Euroclear), Denmark (VP Securities) and Luxembourg (VP Lux).

• Finally, the AG will take steps to foster progress in the remaining harmonisation activities throughout 2016. This requires coordinated effort by the T2S Community and the Eurosystem, in cooperation with the relevant EU and national public authorities. Some of these activities are receiving renewed momentum in the context of the European Commission’s CMU action plan. Within this context, the AG is fully committed to supporting the Commission-led EPTF to fulfil its mandate to i) review the remaining, or any new, barriers to an integrated post-trade environment in the EU and ii) to provide technical advice to the Commission on follow-up actions.

6

Sixth T2S Harmonisation Progress Report I Key messages

7

How to read the report

It is advisable for readers to first familiarise themselves with the T2S harmonisation methodology used for compiling the report and the tables, including the criteria for assessing the compliance status of T2S markets – all this reference information is to be found in Annex 1.

The reader can then go into the description of each of the 24 activities. A snapshot of the “traffic light” status of each activity in terms of definition, monitoring and compliance, as well as in terms of compliance per market is included in the respective section.

For an overview of the status of all T2S markets, please refer to Annex 2 (the table on compliance per market).

For background information regarding the compliance status of each T2S market, please consult Annex 4. This annex contains a high-level summary of the information provided by each T2S market during the relevant surveys and monitoring processes.

Sixth T2S Harmonisation Progress Report I Executive summary

1 Executive summary

The T2S Community1, the Governing Council of the ECB and EU public authorities share the view that post-trade harmonisation, as part of the EU’s financial integration process, is a key objective of T2S. The idea underpinning this view is that financial market integration needs to be complemented and supported by integration of the underlying infrastructure. The creation of T2S constitutes the Eurosystem’s contribution to securities market infrastructure integration, and it is widely recognised that the technical and operational harmonisation fostered by T2S, coupled with the legal and regulatory harmonisation agenda currently pursued by EU legislators, is a crucial ingredient for the creation of a single market for settlement services in Europe. This concept is also in line with the EU Commission’s objective to establish the “building blocks” for a capital markets union by 2018.2

Since 2011 harmonisation progress reports have been published regularly by the AG, a group comprising over 90 senior officials from the T2S Community, including central banks, CSDs and market participants from all T2S markets, i.e. markets where at least one CSD has signed up for T2S.3 Harmonisation is one of the group’s central deliverables, as stated in its mandate. Harmonisation work is coordinated by the ECB with the help and guidance of the T2S Harmonisation Steering Group (HSG), a dedicated substructure of the AG set up in 2011.4

The previous five reports focused on i) identifying the T2S-relevant harmonisation issues and relevant actors, ii) the exact methodology to ensure consistency, credibility and effectiveness of the harmonisation process and iii) the implementation plans and compliance results for the T2S markets.

The sixth report contains updates since the AG’s latest publication in April 2015. It covers a total of 21 EU markets, comprising 23 CSDs, and the status of 24 harmonisation “activities”.5

Table 1 shows the status of all of these activities as regards (i) whether a T2S standard has been defined, (ii) whether a monitoring process has been launched and (iii) the overall compliance of T2S markets, as observed at this stage.

8

1 The T2S Community is a community of stakeholders comprising market infrastructures, national central banks, financial intermediaries and observers from authorities and trade associations in Europe. 2 On 30 September 2015, the EU Commission published an action plan for a capital markets union: http://ec.europa.eu/finance/capital-markets-union/index_en.htm 3 The list of all CSDs that have signed the T2S Framework Agreement is available in the CSD section on the T2S website: http://www.ecb.europa.eu/paym/t2s/stakeholders/csd/html/index.en.html4 Read more about the AG and the HSG in the relevant sections of the T2S website. 5 Each T2S harmonisation activity is a sub-workstream which may include more than one standard. See, for example, the legal harmonisation activity in Table 1, which encompasses different rules of finality, outsourcing requirements and the conflicts of law issue.

http://ec.europa.eu/finance/capital-markets-union/index_en.htm

http://www.ecb.europa.eu/paym/t2s/stakeholders/csd/html/index.en.html

http://www.ecb.europa.eu/paym/t2s/governance/ag/html/index.en.html

http://www.ecb.europa.eu/paym/t2s/governance/ag/html/hsg/index.en.html


9

Table 1: Status dashboard of the T2S harmonisation activities (as at 18/02/2016)

The AG agreed to classify the T2S harmonisation activities according to two broad priority levels. Priority 1 activities are necessary to ensure efficient and safe cross-CSD settlement in T2S. The AG aimed to complete the definition process for these standards, ideally, before the launch of T2S (third column from the right in Table 1). All markets should be ready to operate in compliance with these standards by the time they migrate to T2S.

Regarding priority 2 activities, which are also important for the enhancement of the competitive environment and the efficiency of T2S, the AG agreed to continue pursuing them after the T2S launch. However, once the AG has endorsed priority 2 standards, T2S markets should aim to comply with them prior to their migration to T2S.

Regarding the definition column in Table 1, green indicates that the process is complete (i.e. a standard/rule has been endorsed by the T2S Community)6. At the other end of the spectrum, red means that there is currently a major obstacle to completing the definition process (or there are no actors working on a standard) and that urgent action is needed to facilitate the process.

As far as monitoring is concerned, green means that a monitoring and reporting framework has been established according to the agreed harmonisation methodology7 and results are regularly reported to the ECB team. 6 Endorsement by the T2S Community does not necessarily mean that the AG has the full responsibility for defining the standard, even for topics where it has been heavily involved. For example, some standards were laid down by the CSD Regulation, namely those relating to settlement cycles, IT outsourcing and the settlement discipline regime.7 See Annex 1 for the harmonisation methodology agreed by the AG.

Activities – priority 1 Definition Monitor Compliance

1 T2S ISO 20022 messages G G G

2l T2S mandatory matching fields G G G

3r T2S Messages Interaction for registration G G G

4 Interaction for tax info G G B

5 Schedule of settlement day G G G

6 T2S Corporate actions standards G G R

7 Settlement finality I (moment of entry) G X X

8 Legal harmonisation Settlement finality II (irrevocability of transfer order) G G G

9 Settlement finality III (irrevocability of transfers) G G G

10 Outsourcing IT services G G B

11 Settlement discipline regime Y X X

12 Settlement cycles G G B

13 CSD account structures Availability of omnibus accounts G G B

14 Restrictions on omnibus accounts G G Y

15 T2S accounts numbering Securities accounts numbering G G G

16 Dedicated cash accounts numbering G G G

Activities – priority 2 Definition Monitor Compliance

17 Legal harmonisation Location of securities account/conflicts of law R X X

18 Corporate actions market standards CA market (CAJWG) standards G G Y

19 Place of issuance Y X X

20 Tax procedures Withholding tax procedures R X X

21 Shareholder transparency - registration R X X

22 Market access Y X X

23 Securities amount data G G G

24 Portfolio transfer Y X X


10

Regarding the compliance column in Table 1, blue indicates that no further action is required in any of the T2S markets. Green shows that implementation is, overall, on track. Yellow indicates that some technical and regulatory barriers still need to be addressed in some national markets. Finally, red indicates that there are important barriers to fully implementing the standard in some markets and thus corrective action is required from private actors and national authorities. More details on the colour scheme are available in Annex 1 (Methodology).

As regards progress since the publication of the fifth report (April 2015), the following can be observed in Table 1.

Definition process – At present 17 standards out of a total of 24 activities are defined. It is important to note here that, of the seven for which a defined set of standards is missing, only one is a priority 1 activity, namely the settlement discipline regime. The adoption of the CSDR level 2 standards in Summer 2016, is expected to improve the definition process statuses for three more activities (settlement discipline regime, freedom of issuance and market access).

Three activities are assigned a red definition status in this report (location of securities accounts, shareholder transparency and tax procedures). This is due to the need to tackle legal barriers in the securities sphere, the lack of progress in terms of shareholder transparency and the finding that the recommendations issued by the Commission’s Tax Barriers Business Advisory Group (T-BAG) are at present not followed by most markets as agreed standards. The CMU action plan may provide the momentum for substantial follow-up action in these areas by both public authorities and private actors.

Monitoring process – All T2S markets are now fully monitored to assess their compliance with the harmonisation standards. There are well-established and agreed monitoring frameworks, deadlines and responsible actors for further action in each market. There is no change in the number of activities (16) that are monitored in this reporting cycle as compared with the previous cycle.

Compliance status – The rate of compliance of T2S markets has improved, with four activities marked in blue (no further monitoring required), nine activities in green, two activities in yellow and only one activity marked in red (compared with three blue, 11 green, one yellow and one red in the previous report). The improvement is down to the underlying efforts made by individual markets to comply with certain standards and may not be immediately evident in the aggregated picture provided by Table 1.

Despite the very good progress made in the last few years on priority 1 activities, significant steps still need to be taken to remove the remaining technical and regulatory barriers and ultimately achieve a truly open and efficient cross-border settlement environment in the EU and in T2S. Since the publication of the previous T2S harmonisation progress report, there has been little progress as regards the definition of new priority 2 standards and, consequently, the launch of new monitoring exercises. This is mostly owing to the fact that the elimination of a number of post-trade harmonisation barriers is dependent on progress in the current EU legislative initiatives in this field and on other EU-wide initiatives, the scope of which goes beyond T2S.

The publication of the CMU action plan and the establishment of the EPTF may provide the necessary momentum and the right governance forum at EU level to tackle these remaining “macro” harmonisation gaps.


11

Summary of monitoring results Table 2 provides the detailed harmonisation compliance results per T2S market. For more information, see Annex 2.

Table 2: Compliance status per T2S market (as at 18/02/2016)

Pri

ori

ty 1

P

rio

rity

2

T2

S

Mar

ket

s

1 T2S

mes

sag

es

ISO

200

22

2 T2S

mat

chin

g

field

s

3

Inte

ract

ion

w

ith

T2S

(R

egis

trat

ion

)

4

Inte

ract

ion

w

ith

T2S

(T

ax

pro

ced

ure

)

5

Sch

edu

le

of

sett

lem

ent

day

6

T2S

CA

st

and

ard

s

8 T2S

Sett

lem

ent

final

ity

II

9 T2S

Sett

lem

ent

Fin

alit

y III

10

Ou

tso

urc

ing

IT

(s

ettl

emen

t)

serv

ices

12

Sett

lem

ent

cycl

e

13

Ava

ilab

ility

o

f o

mn

ibu

s ac

cou

nts

14

Res

tric

tio

ns

on

o

mn

ibu

s ac

cou

nts

15

Secu

riti

es

acco

un

t n

um

ber

16 Cas

h

acco

un

t n

um

ber

18 CA

m

arke

t st

and

ard

s (C

AJW

G)

23

Secu

riti

es

amo

un

t d

ata

AT

GG

BB

GY

BB

BB

BB

GG

YB

BE

Euro

clea

rG

GB

BG

R -

?B

GB

BB

BG

GG

B

BE

– N

BB

-SSS

BB

BB

GG

BB

BB

BY

BG

R -

No

info

B

CH

BB

BB

R -

Mar

201

6B

BB

BB

BB

BN

AG

B

DE

GG

BB

GR

- ?

GG

BB

BB

GB

GB

DK

GG

BB

GG

BY

BB

BB

GB

GB

EEG

GB

BG

GB

GB

BB

BG

GY

B

ESG

GG

BG

GB

BB

GB

BG

BG

B

FIB

BB

BG

GB

BB

BB

YB

GY

B

FRG

GB

BG

R -

?B

GB

BB

YG

BG

B

GR

– B

OG

SB

BB

BB

BB

BB

BB

BB

BB

B

HU

GG

BB

GG

GG

BB

BB

GN

AR

B

ITB

BB

BB

R -

Dec

201

6B

BB

BB

BB

BB

B

LTG

GB

BG

GG

GB

BB

BG

GR

B

LU –

LU

X C

SDG

GB

BG

GG

BB

BB

BG

GR

- N

o in

foB

LU –

VP

LU

XG

GB

BG

GB

BB

BB

BG

GR

- N

o in

foB

LVG

GB

BG

YG

GB

BB

BG

GG

G

MT

BB

BB

BB

BB

BB

BB

BB

GB

NL

GG

BB

GR

- ?

BG

BB

BB

GB

GB

PT

GG

BB

GR

- Se

p 2

016

GG

BB

BB

GB

GG

RO

BB

BB

BR

- Fe

b 2

017

BB

BB

BB

BB

YB

SIG

GB

BG

GG

GB

BB

BG

GR

G

SKG

R -

?G

BG

GG

GB

BB

YG

GR

- N

o in

foG


12

A specific colour, based on a four-colour scheme, reflects the compliance status of each T2S market for the 16 monitored activities detailed in this harmonisation progress report. 21 EU national markets are covered; however, where more than one CSD exists in a given market, each “CSD market segment” is monitored separately. The AG focuses its analysis on T2S markets rather than specific T2S actors (CSDs, etc.) since there is a common understanding that harmonisation compliance is a coordinated effort across the entire national market, involving national market infrastructures, their clients and, where relevant, national authorities.

Red is assigned to markets that are not planning to fully comply with a given standard by their T2S migration date. Yellow means that there are obstacles which may prevent the achievement of full compliance by the migration deadline, or that detailed plans are still incomplete. Green indicates the existence of a full compliance plan provided by the relevant NUG to the ECB team. Finally, blue means the relevant T2S market is already operating according to the T2S standard. More details on the colour scheme methodology used by the AG are available in Annex 1.

Table 3: Change in compliance status per T2S market (as at 18/02/2016)

Table 3 provides information on the changed statuses since the fifth progress report. The previous status is shown on the left-hand side of each cell, while the right-hand side indicates the current status. With the first T2S migration wave having been completed, most compliance statuses have turned blue. However, there are some cases (SK, IT, PT, FR, NBB SSS) where the compliance status has been downgraded, primarily for corporate actions.

After a market has migrated to T2S, only two compliance statuses apply – red or blue – as by that point it is either compliant with the T2S standards or it is not. The green and yellow statuses are only used for markets that have not yet migrated. 9

9 The AG has agreed, as an exception to this rule, to keep the green and yellow statuses for the priority 2 activity on “market corporate actions standards”. This is justified by the fact that the AG substructures do not monitor the T2S markets directly with regard to this standard, but follow a specific statistical compliance methodology based on the monitoring results it receives from the E-MIG

Priority 1 Priority 2

T2S Markets

1

T2S messages ISO 20022

2

T2S matching

fields

3

Interaction with T2S

(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9

T2S Settlement Finality III

10

Outsourcing IT

(settlement) services

12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15

Securities account number

16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

AT G G B B G B B B B B B G G G Y B

BE Euroclear G G B B G R - ? B G B B B B G G G B

BE – NBB-SSS G B B B B G G B B B B B G Y G G R B

CH G B G B B B R - Mar 2016 G B G B G B B B B B G B G B

DE G G B B G R - ? G G B B B B G G B G B

DK G G B B G G B B B B B G G B G B

EE G G B B G G B G B B B B G G B

ES G G G B G G B B B G B B G B G B

FI B B B B G G B B B B B B G G B

FR G G B B G R - ? B G B B B G Y G G B Y G B

GR – BOGS G B G B B B G B G B B G B G B B B G B G B G B B

HU G G B B G G G G B B B B G R B

IT G B G B B B G B G R B G B G B B B G B B G B B

LT G G B B G G Y G Y G B B B B G G R B

LU – LUX CSD G G B B G G G B B B B B G G Y R B

LU – VP LUX G G B B G G B B B B B B G G Y R B

LV G G B B G G Y G B B B B G G G G

MT G B G B B B G B G B B B B B B B G B G B Y G B

NL G G B B G R - ? B G B B B B G G B G B

PT G G B B G G R G G B B B B G B G G

RO G B G B B B G B R - Feb 2017 B G B B B B B G B G B B

SI G G B B G G G G B B B B G G R G

SK G G R G B G G G G B B B G G R - No info G


13

Table 4: Compliance status of T2S markets in the first migration wave (as at 18/02/2016)

Wave 1 post migration results – Table 4 shows that, with the exception of two instances for corporate actions and one for the time schedule, all wave 1 T2S markets (i.e. IT, RO, MT, CH, and GR (BOGs)) are now fully compliant with the priority 1 T2S harmonisation standards. The Swiss market is planning to comply fully with the schedule of settlement day standard by 28 March 2016. Regarding corporate actions standards, the Italian and the Romanian markets have announced implementation plans for achieving full compliance by December 2016 and February 2017 respectively.

Table 5: Compliance status of T2S markets in the second migration wave (as at 18/02/2016)

Wave 2 monitoring results – As shown in Table 5, full compliance with almost all priority 1 standards is expected by both markets following their migration. In the case of the Belgian market (NBB-SSS), the limited restrictions on the use of omnibus accounts and the remaining gaps in compliance with the EU corporate actions standards should not considerably affect interaction with this market. The Portuguese market is planning its full compliance with the T2S CA standards by September 2016.

Table 6: Compliance statistics for T2S markets (as at 18/02/2016)

10 The numbers for the fifth report have been adjusted in this report in order to take into account the withdrawal of the Bank of New York Mellon CSD.

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

CH B B B B R - Mar 2016 B B B B B B B B NA G B

GR – BOGS B B B B B B B B B B B B B B B B

IT B B B B B R - Dec 2016 B B B B B B B B B B

MT B B B B B B B B B B B B B B G B

RO B B B B B R - Feb 2017 B B B B B B B B Y B

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

BE – NBB-SSS B B B B G G B B B B B Y B G R - No info B

PT G G B B G R - Sep 2016 G G B B B B G B G G

Blue Fifth report10 Sixth report

Priority 1 Priority 2 % of total statuses

Priority 1 Priority 2 % of total statuses

Blue 162 19 49 195 21 59

Green 144 16 43 109 14 33

Yellow 8 7 4 7 4 3

Red 6 4 3 9 7 4

N/A 2 0 0 2 0 0

Total 322 46 368 (100%) 322 46 368 (100%)


14

• 59% of the total statuses are now blue compared with 49% in the last report. This shows that, at least so far, when markets migrate to T2S they achieve close to full compliance with the T2S standards. This result is consistent with the high number (43%) of green statuses in the last report. In other words, compliance plans and AG assessments were confirmed by the ex-post monitoring results.

• The cases of non-compliance (red statuses) have increased marginally from 3% (fifth report) to 4% (sixth report) of the total statuses.11 This is largely attributable to non-compliance with the T2S and market corporate actions standards. As noted elsewhere in this report, the AG will provide its assessment to the T2S Board regarding the impact of these gaps on the rest of the T2S stakeholders.

Next stepsRegarding the next steps for fostering progress in the T2S harmonisation agenda, work will intensify as further T2S migration waves approach (starting in September 2016). In particular, the AG is planning to undertake the following during 2016.

• The main focus of 2016 will be on completing the work on the priority 1 activities, with the aim of completing the monitoring process and assessing the level of compliance.

• Pending the adoption of the CSDR level 2 standards, the AG will assess whether the T2S Community needs to take any further action on the affected T2S harmonisation activities (i.e. settlement discipline regime, market access and freedom of issuance).

• The AG will continue assessing the impact of the non-compliance cases on the rest of the T2S Community. The AG will provide its advice to the T2S Board accordingly.

• The AG will closely monitor the compliance and implementation plans of the markets in the third migration wave (migration date 12 September 2016). It will also assess the actual compliance achieved by the markets in the second T2S migration wave during live operations.

• The AG will seek to encourage progress on the priority 2 activities, in cooperation with market stakeholders and public authorities. In this context, the AG members fully support the European Commission’s CMU action plan and are committed to providing technical support to the Commission’s European Post Trading Forum (EPTF), where necessary. The T2S Community is represented in the EPTF by the chairman of the T2S HSG.

• The AG plans to publish a status update before the third T2S migration wave (scheduled for 12 September 2016) and a full, seventh report before the fourth T2S migration wave (scheduled for 6 February 2017).

11 There are also two statuses marked with an “N/A” in Table 2, meaning “not applicable”, e.g. for the standard on cash accounts where the local national central bank does not provide liquidity.

Sixth T2S Harmonisation Progress Report I Introduction

2 Introduction

15

The T2S project and post-trade harmonisationOne of the aims of T2S is to help overcome the current fragmentation in the securities settlement layer of the post-trade landscape, thus making an important contribution to the establishment of a single market for post-trade securities services in Europe.

The T2S Community, through the AG, has engaged in the issue of post-trade harmonisation to respond to the market’s request to deliver T2S in a harmonised post-trade environment: the full benefits of an integrated settlement platform can only be obtained if market rules surrounding settlement are harmonised across participating markets. In addition, a high level of harmonisation and standardisation ensures that the T2S operational blueprint is a lean one and does not perpetuate national specificities that could undermine the T2S project plan and the system’s efficiency.

Beyond T2S, post-trade harmonisation represents an important contribution to the integration of financial markets in Europe. It is therefore part of the ECB’s contribution to the CMU agenda in the field of cross-border investments.

The importance of T2S for financial integration in Europe is also illustrated in the ECB’s report on financial integration in Europe, published in April 2015.12

T2S harmonisation listThis sixth report addresses, in detail, a total of 24 harmonisation sub-workstreams (referred to as “activities”), which are currently managed by the ECB team under the guidance of the HSG and subject to the endorsement of the AG. These activities and, where relevant, the related standards are the result of very close cooperation between the Eurosystem and market actors: they include AG agreements, HSG proposals, the work of AG substructures, analysis conducted by the ECB team and other public and private initiatives outside the T2S governance arrangements.

The report provides the following information for each harmonisation activity

• a short definition of the activity;• the concrete objective of the activity;• the implementation deadline;• the responsible monitoring and implementation actor(s);• details on the current compliance status of each T2S market;• the monitoring process required, including interim deadlines prior to the implementation

deadline.

T2S harmonisation activities are broken down into priority 1 and priority 2 topics.

Priority 1 activities are necessary to ensure efficient and safe cross-CSD settlement in T2S. The HSG and the ECB team should focus on these activities as first priorities for resolution and implementation prior to the markets’ migration to T2S.

12 Available at: https://www.ecb.europa.eu/pub/pdf/other/financialintegrationineurope201504.en.pdf

Sixth T2S Harmonisation Progress Report I Introduction

16

The AG identified 16 priority 1 activities:

1. T2S ISO 20022 messages;2. T2S mandatory matching fields;3. interaction with T2S (registration procedures);4. interaction with T2S (tax info requirements);5. T2S schedule for the settlement day and calendar;6. T2S corporate actions standards;7. Settlement Finality I;8. Settlement Finality II;9. Settlement Finality III;10. IT outsourcing (settlement services);11. settlement discipline regime;12. settlement cycles;13. availability of omnibus accounts;14. restrictions on omnibus accounts;15. securities account numbers;16. dedicated cash account numbers.

Priority 2 activities are not essential to ensure safe and efficient cross-CSD settlement in T2S, but they are key for the enhancement of the competitive environment and the efficiency of T2S, and could continue to be pursued after the markets’ migration to T2S.

The AG identified the following priority 2 harmonisation activities:

17. location of securities accounts/conflict of law;18. corporate actions market standards;19. place of issuance;20. withholding tax procedures;21. cross-border shareholder transparency and registration procedures;22. market access and interoperability;23. securities amount data;24. portfolio transfers.

Structure of the report The sixth T2S harmonisation progress report is structured as follows:

• Section 3 provides updated information on priority 1 harmonisation activities, including where relevant, the compliance status of each T2S market;

• Section 4 provides updated information on priority 2 harmonisation activities, including, where relevant, the compliance status of each T2S market;

• Annex 1 describes the methodology agreed by the AG for compiling the T2S harmonisation list, including the four-colour status assignment scheme;

• Annex 2 features a table summarising the compliance status in all T2S markets (the T2S harmonisation “scoreboard”);

• Annex 3 features the AG’s impact analysis of those T2S markets assessed as non-compliant with the T2S standards (red statuses) – the AG presents this analysis to the T2S Board for any further action;

• Annex 4 reports the detailed results of the monitoring exercise broken down by each T2S market;• Annex 5 provides background information on the AG as the body publishing this report, including

the list of members.

Sixth T2S Harmonisation Progress Report I T2S harmonisation activities – priority 1

3 T2S harmonisation activities – priority 1

17

Priority 1 activities are necessary to ensure efficient and safe cross-CSD settlement in T2S. The HSG and the ECB team should focus on these activities as first priorities for resolution before the T2S launch and for implementation prior to the markets’ migration to T2S.

T2S messages

The following four sections cover all activities aimed at harmonising the use of settlement messages across T2S markets. Besides the use of a common list of messages and matching fields, this also includes AG agreements regarding the use of T2S messages for non-settlement information (specifically relating to registration and fiscal status).

3.1 T2S ISO 20022 messages

Activity descriptionThe objective of this activity is to monitor the development and implementation of the T2S ISO 20022 messages.

T2S ISO messages are part of the technical specifications/requirements for T2S actors’ interaction with the T2S services. T2S actors that do not comply with T2S ISO messages will not be able to connect to and communicate with the T2S technical platform (including during testing).

T2S markets are to achieve compliance before migration to T2S (depending on their migration wave).

Activity status

T2S STANDARD:T2S actors will communicate with the T2S technical platform using a set of ISO 20022 compliant messages (130 messages in total), customised to the specific needs of T2S.13

Some of these messages have been ISO 20022 registered and the rest of them will be registered during the course of the T2S migration. The AG (via the T2S Sub-group on Message Standardisation14) and the 4CB15 were the main actors in charge of the definition process for this activity.

Compliance status of T2S markets All T2S markets have provided their plans as to when they will implement the T2S ISO 20022 messages in view of their migration to T2S. No operational or regulatory barriers have been reported or identified so far. Seven T2S markets are already operating in full compliance with this standard (i.e. blue status assigned by the AG).

Priority 1 – activity no 1 Definition Monitoring Compliance

T2S ISO 20022 MESSAGES G G G

13 The full catalogue can be found in section 3 of the current T2S User Detailed Functional Specifications (UDFS) as published on the ECB/T2S webpages: http://www.ecb.europa.eu/paym/t2s/pdf/t2s_udfs_v2.1_clean_20151202_.pdf 14 For more information on the T2S Sub-group on Message Standardisation, please visit the relevant page of the T2S website.15 The 4CB is made up of the four national central banks of Germany, Spain, France and Italy that were mandated by the Governing Council of the ECB to develop and operate T2S.

http://www.ecb.europa.eu/paym/t2s/governance/ag/html/substand/index.en.html


18

CSDs are participating in T2S testing activities (which started in October 2014) using the T2S ISO messages.

Information input: T2S NUGs.

For details on the compliance status and colour methodology, please refer to Annex 1. For detailed explanations per T2S market, please refer to Annex 4.

Monitoring

3.2 T2S matching fields

Activity descriptionThe objective of this activity is to ensure that all T2S markets use the T2S matching fields16 in a standardised way for settlement in T2S. Non-compliance with this standard might negatively affect matching rates in T2S, thus leading to inefficiencies and a possible cost increase for the other CSDs in the T2S Community.

In addition, the existence of a single and exhaustive list of matching fields allows T2S actors (e.g. investor CSDs, intermediaries) to access all T2S markets without the need for managing divergent and mandatory specificities in the settlement transaction flow. This ensures a level playing field, independently of the location of matching services within the T2S markets.

T2S markets are to achieve compliance before their migration to T2S (depending on their migration wave). Activity status

T2S STANDARD:T2S actors are required to use as matching fields only the ones described in the relevant T2S system specification documents.17

16 See T2S UDFS (Section 1.6.1.2.3). 17 See T2S UDFS (Section 1.6.1.2).

Implementation date Migration to T2S (depending on migration wave).

CSDs are participating in their respective T2S testing activities using the T2S ISO messages.

Monitoring actors ECB team, T2S NUGs.

Monitoring process Compliance is monitored by the ECB team in cooperation with the respective T2S NUGs. Monitoring is a continuous process taking place before and after each T2S market migrates to T2S.


T2S MATCHING FIELDS G G G

Blue BE (NBB SSS), CH, FI, GR (BOGS), IT, MT, RO

Green AT, BE (Euroclear), DE, DK, EE, ES, FR, HU, LT, LU (LuxCSD), LU (VP LUX), LV, NL, PT, SI, SK

Yellow None

Red None

The single list of T2S matching fields is applicable to all matching activities (CSD matching services taking place either in T2S or outside the T2S platform) that lead to settlement in T2S (settlement in T2S securities and cash accounts).

This standard does not rule out that CSDs and their participants may use additional information/fields in their settlement instructions where applicable. This information may be necessary for CSDs providing certain ancillary services to their participants (e.g. repo and collateral services). Compliance status of T2S markets All T2S markets have explicitly reported that they will fully comply with the T2S matching fields (green status) and are participating in T2S testing activities (which started in October 2014) using the matching fields standards. Finland, Belgium (NBB-SSS), Greece, Italy, Malta, Romania and Switzerland are already using T2S matching fields in their day-to-day operations. The Slovakian market will continue using matching fields which are not part of the T2S standard. The AG will provide the T2S Board with an impact analysis of this case of non-compliance by the end of the first quarter of 2016.

Information input: SP2, SP3 and bilateral discussions.

For details on the compliance status colour methodology, please refer to Annex 1. For detailed explanations per T2S market, please refer to Annex 5.

Monitoring

3.3 Interaction with T2S (registration procedures)

Activity description The objective of this activity is to establish a T2S standard regarding the exchange of registration-related information in T2S.

The adoption of a homogeneous practice across all T2S markets aims to ensure that registration procedures do not interrupt straight-through processing nor hamper smooth cross-CSD settlement in T2S. Including registration information in T2S settlement instructions could reduce settlement efficiency in T2S by causing T2S instructing actors to put instructions on hold.18 Non-compliance would impose back-office costs on instructing counterparties and discourage cross-CSD activity in T2S.


19

18 This matter was thoroughly analysed by the TFAX, an AG substructure, in its final report (November 2012). Registration and settlement are closely related processes. It is crucial to adapt settlement and registration processes in order to achieve alignment of settlement and registration data. In practice, it is important to ensure that the register is only updated after confirmation of settlement. The TFAX report is available on the T2S website.

Blue CH, FI, BE (NBB-SSS), GR (BOGS), IT, MT, RO

Green AT, BE (Euroclear), DE, DK, EE, ES, FR, HU, LT, LU (LUX CSD), LU (VP LUX), LV, NL, PT, SI

Yellow None

Red SK

Implementation date

Migration to T2S (depending on migration wave).


Monitoring actors

ECB team, T2S NUGs.

Monitoring process

Compliance is monitored by the ECB team in cooperation with the respective T2S NUGs. Monitoring is a continuous process taking place before and after each T2S market migrates to T2S.

http://www.ecb.europa.eu/paym/t2s/progress/pdf/subadapt/report/2012-11-28_Report_of_the_TFAX.pdf


20

The target date for T2S markets to fully comply with this standard is their migration date to T2S (depending on their migration wave).

Activity status

T2S STANDARD:Registration details should not be exchanged via T2S messages.

The standard is based on the TFAX’s analysis, which showed that using T2S messages to transmit registration data could affect cross-CSD settlement efficiency and increase complexity in T2S. In addition, based on the current T2S design, this solution would not be feasible in all settlement scenarios.

Further registration-related aspects that might have an impact on cross-CSD settlement are analysed under the relevant priority 2 harmonisation activity elsewhere in this report (see Section 4.5).

Compliance status of T2S markets Based on the information gathered during surveys carried out with the T2S NUGs and on monitoring undertaken by the ECB team, most of the T2S markets are currently compliant with the standard or have a plan in place to fully comply by the time of their migration to T2S. Spain and Slovakia have agreed on implementation plans for full compliance by the time of their migration to T2S.

Monitoring

3.4 Interaction with T2S (tax info requirements)

Activity descriptionThe objective of this activity is to define T2S best market practice for the management of transaction-related tax information across borders, in order to avoid the inefficiencies generated by heterogeneous local tax requirements (transaction-related tax rules and information flow).





Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DE, DK, EE, FI, FR, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), LV, MT, NL, PT, RO, SI

Green ES, SK

Yellow None

Red None


INTERACTION WITH T2S (REGISTRATION PROCEDURES) G G G


21

Non-compliance would impose back-office costs on other instructing parties and might discourage cross-CSD activity in T2S.

The target date for T2S markets to have adopted a common market practice in this field is their migration to T2S (depending on their migration wave).

Activity status

T2S STANDARD:Tax-related information for domestic and cross-CSD transactions is not passed via T2S messagesNote: Tax-related information includes, but is not limited to, the tax status of the transaction, tax status or tax ID of the end investor, tax exemption identification number, alien registration number, passport number, corporate identification number, driving license number, foreign investment identity number, BIC, proprietary ID and name and address of the investor. ISO messages provide fields that can be used to pass information about a particular transaction tax type (withholding tax, payment levy tax, local tax, stock exchange tax, transfer tax, value-added tax, consumption tax), as well as the amount, debit/credit indicator, currency and other details. To fully comply with this standard, T2S markets/CSDs should not use these fields to pass on any kind of tax-related information.

The TFAX analysed the possibility of interaction with T2S as regards local tax requirements and concluded that there is no technical and process-based solution which would achieve efficient tax processing in the T2S environment.

Compliance status of T2S markets Based on the information gathered during surveys carried out with the T2S NUGs and on monitoring undertaken by the ECB team, all T2S markets are currently fully compliant with the standard.

Monitoring






INTERACTION WITH T2S (TAX INFO REQUIREMENTS) G G B

Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DE, DK, EE, ES, FI, FR, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), LV, MT, NL, PT , RO, SI, SK

Green None

Yellow None

Red None


22

3.5 T2S schedule for the settlement day and calendar

Activity descriptionThe use of a single schedule for the T2S settlement day and a single calendar per currency is established by the T2S User Requirements Document (URD) and is one of the first and key harmonisation agreements in the T2S context.19 The AG agreed, from the first stages of the T2S project, that the full compliance of T2S markets with the T2S schedule and calendar is a prerequisite for an efficient cross-CSD environment in T2S.

The main aim of this activity is twofold. First, its implementation should provide assurance on the removal of Giovannini barrier 7 on operating hours, settlement deadlines and opening days20 in T2S markets. Second, CSDs and their clients should have the possibility to define, within the single T2S schedule, their preferred operational model according to their business needs and service level agreements.

The AG took note that the proposals for the CSDR implementing technical standards, published by the European Securities and Markets Authority (ESMA) on 28 September 2015, include the legal requirement that linked CSDs (in an interoperable link arrangement) “shall agree on equivalent standards concerning reconciliation, opening hours for the processing of the settlement and of the corporate actions and cut-off times”.21

The target date for each T2S market to achieve full compliance with the T2S standard is its migration date to T2S.

Activity status

T2S STANDARD:T2S markets should be fully compliant with the T2S schedule for the settlement day and calendar, available on the T2S website.

In order to ensure consistency when monitoring implementation across T2S markets, it should be clarified that the status of “full compliance” with the T2S schedule and calendar is achieved if the following conditions are met by the T2S market/CSD in question. The T2S market/CSD operational model should ensure that:

1. the CSDs’ securities accounts (and national central banks’ dedicated cash accounts) in T2S are available for bookings throughout the whole T2S timetable (credits, debits, realignment, etc.);

2. settlement efficiency in T2S is not affected – for example, the T2S market/CSD will participate in the start-of-day processes and in the timely processing of corporate actions in a systematic manner;


T2S SCHEDULE FOR THE SETTLEMENT DAY AND CALENDAR G G G

19 The URD is available in the key documents section of the T2S website. 20 For further information, see http://ec.europa.eu/internal_market/financial-markets/docs/clearing/second_ giovannini_report_en.pdf21 See 3.12 Article CSD Links (Article 48): https://www.esma.europa.eu/sites/default/files/library/2015/11/2015-esma-1457_-_final_report_csdr_ts_on_csd_ requirements_and_internalised_settlement.pdf

http://www.ecb.europa.eu/paym/t2s/pdf/URD_v5_02.pdf

http://ec.europa.eu/internal_market/financial-markets/docs/clearing/second_giovannini_report_en.pdf

http://ec.europa.eu/internal_market/financial-markets/docs/clearing/second_giovannini_report_en.pdf


23

3. all other T2S daytime (operating hours) and cut-off times are respected (delivery-versus-

payment (DvP) cut-off, etc.);4. CSDs provide directly connected parties (DCPs) with authorisation for connecting to T2S

(where required and subject to the relevant T2S technical requirements).

In case of CSD legacy systems shut down during the T2S operating hours, CSD participants (investor CSDs, DCPs and indirectly connected parties (ICPs)) may not receive the same level of service. In particular, the timing according to which settlement instructions are sent to and reports are received from T2S-relevant settlement processes will depend on the CSD participants’ connectivity model to T2S (DCP, user to application, etc.). This is an issue of business models and service level agreements between CSDs and their participants. This policy should not affect the compliance status of a T2S market, provided that the above four conditions are met.

The T2S schedule is specified in the current version of the Scope Defining Set of Documents. The exact times in the T2S settlement day schedule could be subject to revisions based on changes in the T2S Community’s business needs.

Compliance status of T2S markets All T2S markets, except Switzerland, will comply with the standard by the time of their migration to T2S. The Swiss market has reported to the AG that compliance will only be possible by 28 March 2016.

As part of the non-compliance impact analysis (see Annex 3), the T2S Board agreed that the overall impact on the rest of the T2S Community is considered “low”, taking into account the low transaction volumes, the relatively short period of non-compliance and the low risk of non-implementation.

Information input: SP2, SP3 and bilateral interactions with NUGs.

For details on the compliance status colour methodology, please refer to Annex 1. For detailed explanations per T2S market status, please refer to Annex 4.

Monitoring


CSDs are participating in T2S testing activities in line with the T2S schedule for the settlement day.

Monitoring actors HSG (via T2S NUGs).


Blue GR (BOGS), IT, MT, RO

GreenAT, BE (Euroclear), BE (NBB-SSS), DE, DK, EE, ES, FI, FR, HU, LT, LU (LUX CSD), LU (VP LUX), LV, NL, PT, SI, SK

Yellow None

Red CH


24

3.6 T2S corporate actions standards

Activity descriptionDifferences in national rules related to the processing of corporate actions have been identified by the industry as one of the most critical obstacles to an integrated EU post-trade environment. As identified by the Giovannini Report (barrier 3), these differences cover a broad range of topics, with an impact beyond core settlement problems (e.g. variety of rules, information requirements and deadlines for corporate actions). These differences may require specialised local knowledge or the local storage of physical documents, and so inhibit the centralisation of securities settlement.

The AG endorsed the T2S corporate actions standards in July 2009 and updated them in May 2013.22 Non-compliance with these standards by T2S markets would hamper the efficient management of corporate actions on flows, especially in the context of cross-CSD settlement. These standards are based on the high-level corporate actions market standards as defined by the European Commission-sponsored CAJWG (see activity no 18, described in Section 4.2). More specifically, the T2S corporate actions standards provide the details necessary for T2S markets to implement the market standards for corporate actions on flows in a harmonised way in T2S.

Full compliance with the T2S corporate actions standards needs to be achieved before a market migrates to T2S. T2S markets are also required to be able to participate in bilateral interoperability testing, multilateral testing and community testing in line with the T2S corporate actions standards.

Activity status

T2S STANDARD:T2S markets should comply with the T2S corporate actions standards, as endorsed by the AG and published on the T2S website, related to corporate actions on flows (i.e. market claims, transformations and buyer protection).

In addition to the standards, the T2S Corporate Actions Sub-group (CASG) has published a detailed frequently asked questions (FAQ)23 document listing the most relevant questions relating to the implementation of the T2S corporate actions standards. The FAQ is a living document that is continuously updated as the T2S CASG addresses new questions raised by the T2S markets.

Compliance status of T2S markets As part of the latest CASG gap analysis and in line with the published AG methodology, the CASG provided a compliance status for each market (blue, green, yellow or red status – see Annex 1 for definitions). This was based on the T2S markets’ current compliance with the T2S standards and the existence of detailed plans and dates for full implementation prior to migration to T2S. Regulatory and legal barriers in national markets were also taken into consideration by the CASG.

Compared with the previous CASG gap analysis, the results show that all wave 1 markets have made considerable progress towards full compliance. For example, although the Italian market was downgraded (from green to red status), it complies with approximately 95% of all standards and

22 The full list of T2S corporate actions standards is available on the T2S website at http://www.ecb.europa.eu/paym/t2s/ governance/ag/html/subcorpact/index.en.html23 The latest update of the FAQ document was published in October 2015 and is available at http://www.ecb.europa.eu/ paym/t2s/progress/pdf/subcorpact/t2s_ca_standards_faqs_october.pdf


T2S CORPORATE ACTIONS STANDARDS G G R


25

plans to comply fully by the end of 2016. Similarly, the Portuguese market (migration wave 2) was downgraded to red status (from green), but it has committed to complying with all T2S corporate actions standards by September 2016. The impact of this non-compliance on the rest of the T2S Community is covered in the AG’s impact analysis report (see Annex 3). The remaining five T2S markets with red status (non-compliance by their migration date) are also covered in Annex 3.

The number of markets with yellow status has remained unchanged at two (AT and LV). 11 markets have green status: a decrease from the 16 markets that were marked green previously. This is because three wave 1 markets (CH, GR (BOGS) and MT) are now fully compliant with the T2S corporate actions standards and have a blue status (full compliance in operation) and two markets (IT and PT) have been given a red status by the T2S Community.

Information input: CASG gap analysis (status Feb 2016)


Figure 1: Comparative results for T2S markets’ implementation of T2S corporate actions standards (2014-16)

Source 2015/16 CASG gap analysis report

Blue CH, GR (BOGS), MT

Green BE (NBB-SSS), DK, EE, ES, FI, HU, LT, LU (LUX CSD), LU (VP LUX), SI, SK

Yellow AT, LV

Red BE (Euroclear), DE, FR, IT, NL, PT, RO


26

Monitoring

Legal harmonisation

Activities 7 to 10 cover issues of legal harmonisation across T2S markets. Together with the priority 2 activity relating to conflict of law issues (covered in Section 4.1), they are expected to enhance legal certainty and strengthen the legal framework for cross-CSD operations in T2S.

The three activities relating to settlement finality aim to ensure that all participating T2S “systems” have a harmonised definition of the moment of entry of transfer orders into the system (SF I), the moment of irrevocability of transfer orders (SF II), and the moment when settlement (i.e. entries into accounts) becomes irrevocable and enforceable (SF III). This is crucial for ensuring legally sound and seamless settlement at cross-CSD level.

The other priority 1 legal harmonisation activity refers to the authorisation of CSDs to outsource their settlement-related IT to a public entity (see Section 3.10).

The four activities presented below are clearly connected to already existing or ongoing international and EU legal harmonisation agreements/initiatives, such as the Settlement Finality Directive, the ESCB-CESR recommendations, the CPSS-IOSCO principles and the CSDR.

The priority 2 activity on legal certainty is linked to the possible future EU legislation in the area of securities law. The AG is of the view that this could be part of the Commission’s capital markets union agenda.

3.7 Settlement Finality I

Activity descriptionSF I is defined as the moment of entry of a transfer order into the system and contributes to the identification of the moment as of which a transfer order is protected against insolvency procedures. SF I is defined in and covered under:

• the Settlement Finality Directive 98/26/EC, Art. 3;• ESCB-CESR (2009) recommendations for securities settlement systems (no 1);• CPSS-IOSCO (2012) principles for financial market infrastructures (no 1 and 8);• Regulation (EU) No 909/2014 (CSDR), 23 July 2014, Art. 39/2 and 48/8.

The aim of this T2S harmonisation activity is to agree on a common T2S rule regarding the moment of entry of a transfer order into the system (SF I) and to ensure compliance by all T2S markets. The Framework Agreement (Art. 21, para. 4) and the CSDR (Article 48.8) recognise the need for a harmonised CSD rule for the moment of entry of transfer orders into the system (for interoperable systems).

Implementation date From a legal/regulatory/market practice perspective: migration to T2S (depending on migration wave).

From a technical perspective: start of bilateral interoperability testing (depending on migration wave).

Monitoring actors HSG (via CASG and T2S NUGs).

Monitoring process The CASG’s gap analysis reports are the main monitoring tool for this harmonisation activity. The NUGs assist the ECB team in monitoring compliance and coordinating overall interaction with the relevant national markets.


27

SF I is currently defined in the rules of all designated securities settlement systems and the payments systems of the national central banks (as required by the Settlement Finality Directive). Looking at the domestic level, all T2S markets are compliant with SF I (in accordance with the Settlement Finality Directive). However, important divergences have been identified between these national rules across the T2S CSDs.24

In order to minimise legal risks in cross-CSD transactions as well as to create a level playing field, a single definition of the moment of entry of a transfer order into the system needs to be agreed upon and implemented by all T2S markets/CSDs. A harmonised rule will protect against the spillover effects of the insolvency of a participant in another CSD (linked CSD in T2S).

Activity status

T2S STANDARD:CSDs to define SF I in their systems as the moment of validation of a transfer order.

The CSDs using the T2S platform have agreed on a harmonised moment of entry of securities transfer orders into their respective systems: this will correspond to the moment of validation of the transfer order. This validation can take place either on the T2S platform or on the CSD legacy systems (for those CSDs offering domestic matching services). The standard implements the resolution made by the T2S CSD Steering Group (CSG) in December 2013.

The Eurosystem national central banks will define SF I in their systems (i.e. TARGET 2) as currently prescribed in the TARGET2 Guideline (i.e. SF I = SF II = SF III). The CSDs and the central banks in T2S are in the process of signing a collective agreement which introduces a single SF I rule for all systems (both CSD systems and central bank systems). This will require all systems to define SF I, in their rules, as the moment of validation of a transfer order.

The definition status is now marked in green for this activity. All CSDs in the T2S markets have agreed to define SF I in their systems as described above, thus ensuring harmonisation of rules at cross-border level. Harmonisation in the TARGET2-related systems is also ensured by the TARGET2 Guideline’s rule on SF I.

Furthermore, the T2S Community will investigate the topic in greater depth to assess whether any harmonisation is possible at T2S Community level, or at EU level, as regards the insolvency rules that deal with the treatment of instructions after declaration of SF I. The topic of CSD participants’ insolvency may also be covered in the European Commission’s capital markets union agenda and the work of the EPTF.

Compliance status of T2S marketsT2S market monitoring will be launched after the signature of the collective agreement by all national central banks and CSDs.


SETTLEMENT FINALITY I (MOMENT OF ENTRY) G X X

24 An ECSDA survey dated 24 October 2011 on settlement finality found that out of the 18 CSDs that participated in the survey, six CSDs consider the “point of entry” to be the moment in which the instruction (transfer order) is first received by the CSD, while 12 CSDs consider the “point of entry” to involve not only the receipt of an instruction, but also some form of validation (which varies among the CSDs). For more details, see http://www.ecsda.eu/site/uploads/tx doclibrary/2011_10_24_Outcome_ECSDA_Finality_Survey.pdf


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Monitoring

3.8 Settlement Finality II

Activity descriptionSettlement Finality II (SF II) is defined as the irrevocability of a transfer order (and not of the transfer of securities itself) according to the rules of a system designated under the Settlement Finality Directive. SF II is defined in and covered under:

• Settlement Finality Directive 98/26/EC, Art. 5 (1 and 2);• ESCB-CESR (2009) recommendations for SSSs (no 1 and 8);• CPSS-IOSCO (2012) principles for financial market infrastructures (no 1 and 8);• Regulation (EU) No 909/2014 (CSDR), 23 July 2014, Art. 39/2 and 48/8.

The aim of this activity is to adopt a harmonised rule for the moment when transfer orders become irrevocable, in order to eliminate the risk of transfer order revocation in a T2S cross-border environment.

The target date for T2S markets to comply with the agreed rule is their migration to T2S (depending on their migration wave).

Activity status

T2S STANDARD:No unilateral cancellation is possible after matching status is achieved in T2S.

The irrevocability of transfer orders in T2S is protected by the rule prohibiting the unilateral cancellation of instructions after matched status is achieved in T2S (see the T2S URD25).

CSDs should comply with the rule for the irrevocability of transfer orders as laid down in the T2S URD (i.e. no unilateral cancellation in T2S) by default, since there is no T2S functionality for unilateral cancellation after matching status is achieved in T2S. However, it is necessary to monitor that the CSDs’ regulatory environments, including their rules and procedures, are updated accordingly.

This is also in line with the T2S Framework Agreement (Art. 21, para. 4), according to which contracting CSDs must make all necessary arrangements in order to adopt a harmonised definition of the irrevocability of transfer orders.

Compliance status of T2S markets The AG has already assigned blue status to 15 T2S markets. The remaining eight T2S markets are assigned green status indicating that these markets will also be ready before their respective migration date.


SETTLEMENT FINALITY II (IRREVOCABILITY OF TRANSFER ORDERS) G G G

Implementation date As soon as possible after the signature of the collective agreement on SF I.

Monitoring actors HSG (T2S NUGs).

Monitoring process Survey of NUGs and CSDs carried out by the HSG.

25 Available at: http://www.ecb.europa.eu/paym/t2s/pdf/2015-02-18_urd_5_04.pdf


29

Information input: NUG survey, bilateral discussions and information from NUG chairpersons


Monitoring

3.9 Settlement Finality III

Activity descriptionSF III is defined as the irrevocability of transfers (bookings in CSD accounts) according to the rules of a system designated under the Settlement Finality Directive. While no rule for SF III is set out in the Settlement Finality Directive, it is defined in and covered under:

• ESCB-CESR (2009) recommendations for securities settlement systems (no 1 and 8);• CPSS-IOSCO (2012) principles for financial market infrastructures (no 1 and 8);• Regulation (EU) No 909/2014 (CSDR), 23 July 2014, Art. 39/3 and 48/8.

This activity focuses on ensuring that all T2S markets comply with the common rule on the unconditionality, irrevocability and enforceability of account entries (i.e. securities bookings) in T2S. Full compliance by all T2S markets with the common SF III rule is of utmost importance: non-compliance would undermine the legal certainty of bookings in T2S accounts. It would also represent a breach of the obligations stipulated in the T2S Framework Agreement.

This is also in line with the T2S Framework Agreement (Art. 21, para. 4), according to which contracting CSDs must make all necessary arrangements in order to recognise account entries are irrevocable.

The target date for T2S markets to comply with the agreed rule is their migration to T2S (depending on their migration wave).

Activity status

Implementation date T2S migration date (depending on migration wave).




SETTLEMENT FINALITY III (IRREVOCABILITY OF TRANSFER ORDERS) G G G

Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DK, EE, ES, FI, FR, GR (BOGS), IT, LU (VP LUX), MT, NL, RO

Green DE, HU, LU (LUX CSD), LT, LV, PT, SI, SK

Yellow None

Red None


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T2S STANDARD:According to Article 21, para. 4 of the T2S Framework Agreement, in order to facilitate legally sound, seamless cross-border DvP settlement, the regulatory/legal environments of the CSDs participating in T2S must recognise account entries in T2S as unconditional, irrevocable and enforceable.

This is particularly relevant in cases where accounts representing legal ownership rights are maintained by the CSD in its local legacy IT system, i.e. outside T2S. In these cases – and independently of the holding model followed by each market – harmonisation of settlement finality rules would ensure that bookings in accounts maintained in T2S are irrevocable, unconditional and enforceable.

Compliance status of T2S markets CSDs’ compliance has been monitored since the signing of the T2S Framework Agreement in 2012.

The AG has already assigned blue status to 11 T2S markets. A further 11 T2S markets have been assigned green status, indicating that full compliance is planned by migration. One market (DK) still has to clarify some regulatory issues prior to achieving full compliance.

Information input: bilateral discussions and information from NUG chairpersons


Monitoring

3.10 IT outsourcing (settlement services)

Activity descriptionThe outsourcing of settlement services to T2S requires approval by the relevant regulator, subject to the applicable national laws and regulations. In the past, the AG identified some national legislation/regulations in the EU which could be interpreted as either prohibiting or hampering outsourcing of settlement services.

Activity status





IT OUTSOURCING (SETTLEMENT SERVICES) G G B

Blue AT, BE (NBB-SSS), CH, ES, FI, GR (BOGS), IT, LU (LUX CSD), LU (VP LUX), MT, RO

Green BE (Euroclear), DE, EE, FR, HU, LT, LV, NL, PT, SI, SK

Yellow DK

Red None


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The matter is addressed in Article 30(5) of the CSDR, according to which CSDs are allowed to outsource their services to public entities and, in that case, are exempted from the requirements on outsourcing provided in the CSDR.

The AG launched a survey (July 2014) to obtain clarity, under the applicable national legislation and the new CSDR provisions, on whether and how participating CSDs in T2S would be able to outsource their services to T2S. Based on the feedback received from the T2S markets, the AG agreed to assign a blue compliance status to all T2S markets and thus to the harmonisation activity itself, since no obstacles were identified.

Compliance status of T2S marketsAll T2S markets achieved blue compliance status following the adoption of the CSDR.

Monitoring

3.11 Settlement discipline regime

Activity descriptionAt present, settlement fails26 are not subject to deterrent penalties in all EU markets and settlement discipline measures, when in place, differ widely between markets.

A harmonised settlement discipline regime is needed in T2S in order to avoid the risk of multiple, inconsistent or incompatible regimes that would create operational complexity, in particular for cross-CSD settlement. It is also needed at the EU level to ensure a level playing field and avoid the risk of “regulatory arbitrage”, i.e. the shift of volumes to markets with softer regimes and sanctions. Weak or non-harmonised settlement discipline regimes could also lead to a high number of failed transactions and might thus have an impact on financial stability.

In principle, the target date by which all T2S markets should have converged towards harmonised rules is their migration to T2S (depending on their migration wave). However, current regulatory developments in the EU (such as the CSDR level 2 legislation) combined with the complexity of implementation mean that, in practice, a harmonised settlement discipline regime will only be achievable for T2S markets after their migration to T2S.

Implementation date Already achieved


Monitoring process Given that the compliance status is blue across all T2S markets, no further monitoring is required.

Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DE, DK, EE, ES, FI, FR, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), LV, MT, NL, PT, RO, SI, SK

Green None

Yellow None

Red None

26 According to the CSDR, Art. 2(15), “settlement fail” means the non-occurrence of settlement, or partial settlement of a securities transaction on the intended settlement date, due to a lack of securities or cash and regardless of the underlying cause.


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Activity status

As a consequence of past initiatives by the European Central Securities Depositories Association (ECSDA) and the AG, which flagged the need for a level playing field with regard to settlement discipline, the issue has been on the EU’s post-trade harmonisation agenda for several years.

Regulation (EU) No 909/2014 (the CSDR) includes important provisions on the establishment of a harmonised settlement discipline regime in the EU. The related technical standards are expected to be adopted by the EU public authorities in summer 2016 in the context of the CSDR level 2 legislation.

The AG provided detailed contributions to ESMA’s consultations regarding the CSDR technical standards in February 201527 and August 201528.

The expected timeline of adoption and entry into force of the regulatory technical standards (i.e. after the full T2S migration cycle) means that CSD participants will, for the time being, continue operating within the existing regulatory discipline frameworks of the relevant issuer CSDs. The AG is of the opinion that the prospect of the forthcoming harmonised EU settlement discipline regime, coupled with the gradual increase in cross-border activity expected after the launch of T2S, will minimise any “regulatory arbitrage” risk. Another source of reassurance for the AG is the observation that current levels of settlement failures, both before and since the T2S launch, are still very low in all T2S markets.

Compliance status of T2S marketsMonitoring has not yet started.

Monitoring

3.12 Settlement cycles

Activity descriptionIn EU markets, the settlement cycle timeline for transferable securities executed on trading venues and settled in an securities settlement system used to range from T+3 to T+2. The existence of differing settlement cycles would have had no impact on the core settlement process in T2S since T2S is neutral in this respect and can accommodate different settlement cycles.

However, the establishment of a single settlement cycle in the EU was deemed crucial for T2S participants’ technical infrastructures in terms of rationalising back-office activities as well as managing cross-border corporate actions. The former non-harmonised practices rendered the management of cross-border corporate actions rather inefficient and costly, owing to the fact that the deadlines for instructing relevant messages laid down in the EU corporate actions market standards are based on the notion of the settlement cycle timeline.

Implementation date After migration to T2S is complete.

Monitoring actors ESMA/ESCB (in accordance with the CSDR).

Monitoring process To be defined by ESMA/ESCB (in accordance with the CSDR).

27 The AG’s response to ESMA can be found on the AG’s webpage. 28 Similarly, the AG’s response to ESMA‘s consultation on the buy-in process can also be found on the AG’s webpage.


SETTLEMENT DISCIPLINE REGIME Y X X

http://www.ecb.europa.eu/paym/t2s/governance/ag/html/index.en.html

http://www.ecb.europa.eu/paym/t2s/progress/pdf/ag/2015-08-05_submitted_ecb_t2s_ag_reply_to_esma_consultation_paper_on_buy-in_process.pdf


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Activity status

The CSDR (Art. 5) established a harmonised EU settlement cycle standard up to T+2.

Compliance status of T2S markets Almost all T2S markets achieved blue compliance status in October 2014, meaning that further monitoring is not required for this harmonisation activity. The Spanish market (equity segment) plans to move to a T+2 settlement cycle in Q2 2016, i.e. before its migration to T2S in September 2017.

Monitoring

CSD account structures

This topic covers the need for CSDs to offer account structures that make it possible to meet the T2S objective of efficient cross-CSD settlement.

From a T2S perspective, two harmonisation standards have been identified as essential for enabling and ensuring safe and efficient use of links in T2S. Both relate to omnibus accounts.

3.13 Availability of omnibus accounts

Activity descriptionThis activity aims to ensure that issuer CSDs offer omnibus accounts to their foreign participants (investor CSDs and intermediaries) so as to support the concept of CSD interoperability and cross-border settlement in (or even outside) T2S.

The unavailability of omnibus accounts for foreign CSD participants would jeopardise CSD interoperability and cross-CSD settlement, and in practice hinder market access for investor CSDs and foreign intermediaries. This would be against the T2S eligibility criteria for CSDs.29

29 For more information on the CSD eligibility criteria in T2S, please see http://www.ecb.europa.eu/ecb/legal/pdf/l_31920111202en01170123.pdf?5e8f3155d7feefb4ce9fce8e5888b176


SETTLEMENT CYCLES G G B

Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DE, DK, EE, FI, FR, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), LV, MT, NL, PT, RO, SI, SK

Green ES

Yellow None

Red None


Monitoring actors HSG (NUGs) and the competent authorities supervising trading venues.

Monitoring process Survey launched by the ECB team in June 2014. The survey was addressed to the T2S NUGs.

Given that the compliance status is blue practically across the board, no further monitoring is required after the Spanish market’s migration is completed.

http://www.ecb.europa.eu/ecb/legal/pdf/l_31920111202en01170123.pdf?5e8f3155d7feefb4ce9fce8e5888b176


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Activity status

T2S STANDARD:Issuer CSDs in T2S must offer omnibus accounts to their foreign participants (investor CSDs and intermediaries) to ensure interoperability and efficient cross-CSD settlement.

Compliance status of T2S marketsAll T2S markets have achieved blue compliance status, meaning that no further monitoring is required for this harmonisation activity.

Information input: HSG Survey and bilateral discussions.


Monitoring

3.14 Restrictions on omnibus accounts

Activity descriptionThe objective of this activity is to ensure that issuer CSDs, in addition to offering foreign participants the possibility to open omnibus accounts (see previous section), also provide appropriate services (e.g. related to withholding tax or proxy voting) on those accounts, as required by their participants. The unavailability of such services is usually replaced by mandatory account segregation rules in the issuer CSDs. These rules have to be propagated by investor CSDs and other intermediaries throughout the holding chain, including in the CSD link arrangements.

If appropriate services are not attached to omnibus accounts, it would represent an obstacle to CSD interoperability and cross-CSD settlement in (or even outside) T2S, as well as to market access for foreign intermediaries.

21 For more information on the CSD eligibility criteria in T2S, please see http://www.ecb.europa.eu/ecb/legal/pdf/l_31920111202en01170123.pdf?5e8f3155d7feefb4ce9fce8e5888b176.


AVAILABILITY OF OMNIBUS ACCOUNTS G G B

Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DE, DK, EE, ES, FI, FR, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), LV, MT, NL, PT, RO, SI, SK

Green None

Yellow None

Red None

Implementation date Already achieved.


Monitoring process Given that the compliance status is blue across the board, no further monitoring is required.


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This activity focuses on restrictions placed on the service offering of the issuer CSD by issuer market practices, and fiscal and regulatory obligations. The activity does not look at restrictions with respect to account structure that are placed on end investors, and their intermediaries, by regulatory authorities of the country of the investor.

T2S markets are to comply with this harmonisation standard by the time they migrate to T2S.

Activity status

T2S STANDARD:To make full interoperability, cross-CSD settlement and market access possible in T2S, issuer CSDs in T2S must provide appropriate services on omnibus accounts to foreign participants, as required by participants (e.g. withholding tax and proxy voting). These omnibus accounts should also include, as an option, holdings of domicile and non-domicile investors.

Compliance status of T2S marketsWhile omnibus accounts are offered in all T2S markets, as an option, to investor CSDs and foreign intermediaries, restrictions remain in some markets on the mandatory segregation per investor of all (or some) domicile investors’ holdings at CSD level.

T2S markets that still have restrictions on the use of omnibus accounts are assigned yellow compliance status. In these markets, the resolution of these issues depends on regulatory and/or legal changes. Despite this, these markets are not assigned red status because cross-CSD settlement and investor CSD services are still possible for non-domicile investors/intermediaries (though subject to restrictions).

The monitoring results in this report show that two additional T2S markets (FR and BE) impose mandatory account segregation rules on their foreign participants. In the absence of a European-wide agreement on issues such as withholding tax and registration procedures, these partially compliant statuses are expected to remain.

Information input: HSG surveys and bilateral discussions.


Monitoring


RESTRICTIONS ON OMNIBUS ACCOUNTS G G Y

Blue AT, BE (Euroclear), CH, DE, DK, EE, ES, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), LV, MT, NL, PT, RO, SI

Green None

Yellow BE (NBB SSS), FI, FR, SK

Red None





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3.15 Securities account numbers

Activity descriptionThe objective of this activity is for T2S CSDs to designate a harmonised number for the securities accounts in T2S. The purpose is to build logic into the account numbers in order to facilitate identification of account holders and providers.

Compliance with the agreed standard must be achieved by all T2S markets in time for their migration to T2S (depending on their respective migration wave). CSDs should nonetheless be able to participate in T2S testing using the agreed numbering standard.

Activity status

T2S STANDARD:In securities account numbering, CSDs must use a four-digit BIC to identify parties of CSDs, plus 31 digits of free text.

Compliance status of T2S marketsBased on the information provided by the T2S NUGs, in addition to all of the markets that have already migrated, BE (NBB-SSS) and FI are also operating in full compliance. The remaining T2S markets have established plans for achieving full compliance by the time of their migration to T2S.

Monitoring

3.16 Cash account numbers

Activity descriptionThe objective of this activity is for T2S cash account providers to designate a harmonised number for the dedicated cash accounts in T2S. The purpose is to build logic into dedicated cash account numbering in order to facilitate identification of account holders and providers.

Compliance with the agreed standard must be achieved by all T2S markets in time for migration to T2S (depending on their respective migration wave). T2S markets should nonetheless be able to participate in bilateral interoperability testing, multilateral testing and community testing using the agreed standards.


SECURITIES ACCOUNT NUMBERS G G G

Blue BE (NBB-SSS), CH, FI, GR (BOGS), IT, MT, RO

Green AT, BE (Euroclear), DE, DK, EE, ES, FR, HU, LT, LU (LUX CSD), LU (VP LUX), LV, NL, PT, SI, SK

Yellow None

Red None


Monitoring actors HSG (T2S CSG).



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Activity status

T2S STANDARD:The dedicated cash account numbering standard includes 34 characters (one to designate the cash account, two for the country, three for the currency code, 11 for the BIC and 17 characters of free text for the account holder).

Example: CFREURBANKFRPPXXXMAIN-DCA-ACCOUNT CDEEURBANKDEFF123DCA CLIENT ALPHA

Compliance status of T2S marketsBased on the information provided by the T2S NUGs, nine T2S markets are already in full compliance with the T2S standard. The remaining markets have established plans for achieving full compliance by the time of their migration to T2S.

Monitoring


CASH ACCOUNT NUMBERS G G G

Blue DE, GR (BOGS), DK, ES, FR, IT, MT, NL, PT, RO

Green AT, BE (Euroclear), BE (NBB-SSS), EE, FI, LT, LU (LUX CSD), LU (VP LUX), LV, SI, SK

Yellow None

Red None


Monitoring actors HSG (national central banks).

Monitoring process HSG survey with national central banks in May 2013 and subsequent information provided by the T2S NUGs.

Additional information received by the ECB team in the context of the client readiness monitoring process is also taken into account.


4.1 Location of securities accounts/conflict of law

Activity descriptionThe issue of the location of accounts/conflict of law refers to the law applicable to the transfer of securities and to CSD securities accounts. This harmonisation activity focuses on the second aspect. Clarity on the law applicable to securities accounts is important for T2S because the securities accounts in T2S remain legally attributed to the CSD, regardless of the physical location of the IT infrastructure.

The conflict of law topic may also be relevant for another post-trade harmonisation issue, namely the freedom of issuance. As put forward in the CSDR, issuers should have the right to issue their securities in non-domicile CSDs. This right may lead to an increase in the instances of conflicts of law, when non-domicile issuers decide to issue their securities in the issuer CSD.

Activity status

Although the Eurosystem and the T2S Community still support further harmonisation in this field, the AG came to the conclusion that this activity can continue to be pursued even after the launch of T2S.

Nevertheless, a harmonised framework should continue to be pursued and in this regard, possible EU legislation might be better placed to deliver harmonisation in this area, its scope not being limited to CSDs (but extending to other financial institutions involved in the issuance, trading and post-trading of securities). The Commission’s current capital markets union initiative could create the right momentum to find a solution to this long-standing issue.

Following its contribution to the CMU green paper consultation (13/05/2015)30, the AG ran a survey with the T2S NUGs in order to identify concrete examples of conflicts of law in the T2S markets. The findings of this survey show that although the T2S NUGs did not report any concrete cases, there are important legal divergences in national jurisdictions, namely different transposition of the Settlement Finality Directive and insolvency rules, recognition of the “renvoi” concept and national criteria for determining the “location of an account or an institution”.

The AG also agreed that, since the launch of T2S may lead to more visibility and a higher impact of specific conflicts of law, this survey may need to be repeated in a few years from now once users have more experience with T2S.

The CMU action plan recognises the need “to clarify which national law applies to any given cross-border securities transaction. To this end, the Commission plans to enhance and broaden existing rules in the field. A modernisation of the law is even more important in view of the expected increase in cross-border securities transactions stimulated by the launch of T2S.”31

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4 T2S harmonisation activities – priority 2

Priority 2 activities are not essential to ensure safe and efficient cross-CSD settlement in T2S, but they are key for enhancing the competitive environment and the efficiency of T2S, and could continue to be pursued after the T2S launch.

30 Available at: http://www.ecb.europa.eu/paym/t2s/progress/pdf/ag/20150513_ag_response_to_cmu_consultation.pdf31 See Section 6.1, page 23, of the CMU action plan, available at http://ec.europa.eu/finance/capital-markets-union/docs/ building-cmu-action-plan_en.pdf


LOCATION OF SECURITIES ACCOUNTS/CONFLICT OF LAW R X X


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Compliance status of T2S marketMonitoring has not yet started.

Monitoring

4.2 Corporate actions market standards

Activity descriptionThe Market Standards for Corporate Actions Processing were drawn up by an industry working group (the CAJWG) under the aegis of the European Commission’s CESAME2 group. They were endorsed by relevant industry bodies during the summer of 2009. A revised version of the standards was issued in 2012.

These market standards provide the basis for the T2S corporate actions standards (see Section 3.6). In turn, one of the guiding principles underpinning the market corporate actions standards is that they “are beneficial for the efficiency of T2S”.32

Following the second T2S harmonisation progress report (3 January 2012), the AG agreed that T2S markets should comply with the CAJWG standards. The status of markets’ compliance with the CAJWG standards is monitored by the CAJWG and the E-MIG.

Activity status

T2S STANDARD:T2S markets should comply with the market corporate actions standards defined by the CAJWG.

From a T2S perspective, the target date for compliance by T2S markets is migration to T2S (depending on their respective migration wave) since this is related to the compliance with the T2S corporate actions standards. T2S markets should nonetheless be able to participate in bilateral interoperability testing, multilateral testing and community testing in compliance with the corporate actions market standards.

Compliance status of T2S markets The Broad Stakeholders Group (BSG) and the E-MIG run a biannual survey on EEA markets’ compliance with the corporate actions market standards. Responsibility for the actual implementation of the standards by market participants rests at local level with the national market implementation groups (MIGs). Coordination and monitoring at European level is ensured by the BSG. Progress in implementing the standards is ultimately reported to the European Commission. The results are also shared with the T2S Programme Office and are the basis for assessing T2S markets’ compliance in the context of the T2S harmonisation progress reports.

32 For more information, see the relevant section of the website of the European Banking Federation.

Implementation date Pending potential EU legislation on securities law.

Monitoring actors Pending potential EU legislation on securities law.

Monitoring process Pending potential EU legislation on securities law.


CORPORATE ACTIONS MARKET STANDARDS (CAJWG) G G Y

http://www.ebf-fbe.eu/european-industry-standards/


Although the AG is not involved in maintaining or monitoring the corporate actions market standards, it receives information from the E-MIG on the T2S markets’ statistical compliance.

The compliance status assessment for the corporate actions market standards is based on a percentage implementation status and is assigned by the AG as follows: 0-40% implementation corresponds to a red status; 41-70% is given yellow status; 71-99% is green; and full compliance with no further monitoring required translates into blue.33 It should be clarified that the AG is not in a position to make a detailed analysis of the technical and regulatory barriers present in the T2S markets (as is the case with the T2S corporate actions standards analysis – see Section 3.6).

Only 19 T2S markets/CSDs responded to the 2015 E-MIG survey. For T2S markets (NBB SSS, LUX CSD, VP LUX, SK) that did not provide any response to the E-MIG survey, the compliance assessment has been changed to “R – No info”, based on a decision by the HSG. Out of the five wave 1 markets, only Italy and Greece (BOGS) were able to achieve full compliance with the standards by the time of their migration to T2S. For the other wave 1 markets, gradual progress towards full compliance with the standards can be observed. Moreover, there is increased awareness of the dependency between the two implementation processes (T2S and corporate actions market standards).

Information input: BSG/E-MIG Survey (2015). Markets for which September 2015 survey results are available are: AT, BE (Euroclear), CH, DE, DK, EE, ES, FI, FR, HU, IT, LT, LV, MT, NL, PT, RO and SI.

For detailed explanations per T2S market, please refer to Annex 4.

Monitoring

4.3 Place of issuance

Activity descriptionThis activity relates to the restrictions that are in place in national laws or market rules in EU countries as regards the place of issuance of securities. Such restrictions represent a barrier for issuers when choosing infrastructures and service providers.

This barrier to the freedom of choosing the issuer CSD does not directly affect T2S and it entails no operational/legal risks for the migration to or operation of the single platform. Nevertheless, it has an impact on the competition for issuer CSD services in the respective markets.34 It also constitutes a barrier to cross-border securities investment in the EU and to the creation of a single capital market in the EU.

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Blue GR (BOGS), IT

Green BE (Euroclear), CH, DE, DK, ES, FR, LV, MT, NL, PT

Yellow AT, EE, FI, RO

Red BE (NBB-SSS), HU, LT, LU (LUX CSD), LU (VP LUX), SI, SK

33 The E-MIG monitors and reports compliance with 68 prioritised standards (out of a total of 107 standards).34 This issue was raised by the Task Force on smooth cross-CSD settlement, the predecessor of the TFAX and XMAP, in its final report to the AG in June 2011, in particular in the section concerning access and interoperability issues. The task force’s report is available on the T2S website at http://www.ecb.int/paym/t2s/governance/ag/html/mtg14.en.html

Implementation date Relevant for T2S: migration to T2S (depending on migration wave).

Monitoring actors BSG (E-MIG).

Monitoring process BSG biannual surveys with MIGs.


41

Activity status

Provisions on the removal of barriers to choosing the place of issuance are included in the CSDR (Art. 49). The AG took note that the proposals for the CSDR implementing technical standards, published by ESMA on 28 September 2015, include provisions regarding the criteria for CSDs to assess issuer requests for access or for their securities to be recorded in the CSD’s systems.35 In order for the “receiving” CSD, and its competent authority, to refuse access to the CSD services, they should be able to establish that the “requesting” issuer does not comply with these requirements.36 The ESMA draft implementing technical standards also include the procedural requirements for refusal of access and the possibility to involve ESMA in this process.37

The AG has decided that the issue should be reassessed once the CSDR level 2 legislation is finally adopted by the EU authorities. This is due by summer 2016. T2S stakeholders will assess whether the green definition status will be achieved once the related level 2 legislation is in place, or whether further harmonisation work will be required to achieve this status.

The Commission’s CMU action plan (published on 30 September 2015) highlights the need to review the remaining Giovannini (or other new) barriers to cross-border clearing and settlement. Some of these barriers have an impact on the freedom of issuance topic and could be addressed in this context. The review is expected to be completed by the end of 2017.

Compliance status of T2S marketsMonitoring has not yet started.

Monitoring

4.4 Withholding tax procedures

Activity descriptionGiovannini barrier 11 relates to the domestic nature of withholding tax regulations in the EU and the resulting disadvantages for non-domestic intermediaries. It is usually the case that relief at source can only be granted with the help of an entity that has tax withholding responsibilities. National tax rules reserve tax withholding responsibilities for local intermediaries and thus “force” foreign intermediaries to use local fiscal agents.

35 See Annex II (Chapter XII, Section I, Article 88) to the Final Report on the draft technical standards under the CSDR, available at https://www.esma.europa.eu/sites/default/files/library/2015/11/2015-esma-1457_-_annex_ii_-_csdr_ts_on_ csd_requirements_and_internalised_settlement.pdf

36 According to the draft implementing technical standards, these criteria should establish whether the “requesting” issuer complies with the legal requirements of the “receiving” CSD. In addition, the issuer should guarantee that the securities have been constituted in a manner that enables the receiving CSD to ensure the integrity of the issue. Finally, the issuer must hold sufficient financial resources to fulfil its contractual obligations towards the CSD.

37 See Annex II (Chapter XII, Section 2, Article 89) to the Final Report on the draft technical standards under the CSDR, available at https://www.esma.europa.eu/sites/default/files/library/2015/11/2015-esma-1457_-_annex_ii_-_csdr_ts_on_ csd_requirements_and_internalised_settlement.pdf

Implementation date Pending CSDR level 2 legislation.

Monitoring actors European Commission and national regulators (pending CSDR level 2 legislation).

Monitoring process European Commission and national regulators (pending CSDR level 2 legislation).


PLACE OF ISSUANCE Y X X


42

As a consequence of this barrier:• the impact of tax relief procedures on an investment decision and its return can be significant,

meaning investors may be incentivised to invest locally in order to avoid dealing with complex and costly tax relief and reclaim procedures;

• remote access to issuer CSDs by foreign intermediaries may be discouraged since foreign intermediaries are at a disadvantage vis-à-vis local ones;

• the location of the issuer CSD could potentially be restricted to local CSDs.

This situation represents a burden for the industry and investors (both in and outside T2S markets). It penalises cross-border investment, disrupts post-trade processes, increases the cost of cross-border trading and is, ultimately, fundamentally incompatible with a single European securities market.

Following the report by the Clearing and Settlement Fiscal Compliance expert group (FISCO), in October 2009 the European Commission published its Recommendation on withholding tax relief procedures38, which outlines how EU Member States could make it easier for investors resident in one Member State to claim entitlements to relief from withholding tax on securities income (mainly dividends and interest) received from another Member State (relief at source). The Commission’s Recommendation also suggests measures to eliminate tax barriers for the securities investment activities of financial institutions. A Commission services study39 shows that, at present, the costs related to the current reclaim procedures are estimated at €1.09 billion annually, while the amount of foregone tax relief is estimated at €5.47 billion annually.

No substantial risks to T2S operations have been identified in the absence of a resolution on this topic. Nevertheless, the AG is of the opinion that further delays may have an impact on settlement efficiency and cross-border access issues in the affected markets.

Activity status

In 2013 T-BAG, the expert group created to follow up on the Commission’s Recommendation, issued its final report to the Commission regarding workable solutions to implement the principles outlined in the earlier Commission recommendation.40

During the course of 2014, the HSG ran a fact-finding exercise with the T2S NUGs to identify whether the recommendations made by T-BAG had been taken into consideration by the T2S markets (national authorities and market actors). The results showed that the implementation of T-BAG’s recommendations was not a priority for most of the T2S markets. In addition, a number of T2S NUGs responded that the recommendations required further work and needed to be revisited and updated.

The AG has agreed that any further initiatives in this area can only come from the EU public authorities (possibly a new legislative initiative by the new Commission). In this context, the AG welcomes the fact that the CMU action plan lists further work on withholding tax procedures as

38 See the European Commission‘s Recommendation (COM (2009) 7924 final).39 The study on “The Economic Impact of the Commission Recommendation on Withholding Tax Relief Procedures and the FISCO Proposals“ and other background documents related to fiscal compliance procedures are published on the Europa website and can be accessed via the following links: http://ec.europa.eu/internal_market/financial-markets/ clearing/compliance_en.htm; http://ec.europa.eu/taxation_customs/resources/documents/common/whats_ new/C(2009)7924_en.pdf40 The T-BAG report is available on the European Commission’s website.


WITHHOLDING TAX PROCEDURES R X X

http://ec.europa.eu/internal_market/financial-markets/docs/clearing/tbag/130524_tbag-report-2013_en.pdf


43

one of the priority areas for further action: “To encourage Member States to adopt systems of relief-at-source from withholding taxes and to establish quick and standardised refund procedures, the Commission will promote best practice and develop a code of conduct with Member States on withholding tax relief principles.”41

To build on this political momentum and further encourage Member States to simplify withholding tax procedures, the Commission is seeking to further demonstrate the economic impact of burdensome withholding tax procedures, which would reinforce the economic rationale for tackling the issue. In parallel, the Commission services are launching an exercise to determine what good practices in this area already exist in Member States and are starting to develop a code of conduct on withholding tax relief principles. The Commission has set the end of 2017 as a target for putting a best practice and/or code of conduct in place. The AG contributed to this exercise in March 2016 by collecting relevant stock-taking information from the T2S markets. Compliance status of T2S marketsMonitoring has not started yet.

Monitoring

4.5 Cross-border shareholder transparency and registration procedures

Activity descriptionThis activity covers the two connected areas of cross-border shareholder transparency and the registration procedures42 linked to the issuer CSD operating and regulatory frameworks.

Concerning shareholder transparency for registered securities, in most EU countries there are efficient models for identifying domestic shareholders. However, there is no harmonised European model for enabling issuers to identify their owners in a cross-border environment. Issuers have therefore highlighted that, as a consequence of increased cross-border activity in T2S, shareholder transparency issues might emerge across borders. A key concern is how to retrieve specific holders’ information via the omnibus account in CSD link arrangements. The AG agreed that the resolution of this issue should be pursued, but without affecting the timely delivery or the current scope of T2S services. Hence, this activity is considered as priority 2. One of the resolutions to be considered in future releases of T2S could potentially include a centralised solution via the T2S platform.

One determining aspect relating to the disclosure of shareholders is the registration rules and procedures within which the issuer CSD operates. Registration procedures for certain securities have long been recognised as one of the most difficult and complex areas for harmonisation in some jurisdictions. Procedures are usually based on long-standing legal and regulatory rules (e.g. regarding the owner of a registered instrument or the investor’s rights regarding the same asset). Registration processes, and the mechanisms used to transmit registration information, vary very considerably between European countries. They are particularly complex and can in some cases affect both the issuance/central safekeeping services of a CSD, as well as settlement services.

41 COM(2015) 468/30.9.2015, Action Plan on Building a Capital Markets Union, page 25.42 The registration procedure is the process of updating a register (managed by a registrar) that contains information on the identity (name, address, etc.) of shareholders in a company.

Implementation date To be defined.

Monitoring actors To be defined.

Monitoring process To be defined.


The AG agrees that if registration procedures remain non-harmonised, this may have a negative effect on the efficiency of cross-CSD settlement in T2S. It could also affect market access, which is particularly important for investor CSDs in T2S.

Activity status

This issue of shareholder transparency was addressed in the early stages of the T2S project by a dedicated T2S group (Task Force on Shareholder Transparency)43 set up by the AG in December 2009. The task force presented its final report to the AG in March 2011. The report included a description of possible decentralised and centralised technical models (one of the options being the T2S platform) for exchanging shareholder information on a cross-border basis. The conclusions of the task force were supported by the vast majority of the AG.

Leaving aside the centralised model for possible consideration for a future release of T2S, the AG used the suggestions contained in the report to invite a number of actors to work on possible decentralised solutions. Proposals put forward were: the creation of an ISO disclosure message standard; an amendment to the Transparency Directive; and a possible market practice for exchanging shareholders’ disclosure requests and responses, to be developed by the market via ECSDA. However, with the exception of ongoing work in the revision of the Shareholder Rights Directive, the relevant actors have not considered it to be a high priority and the business case potential is considered to be limited.

The AG members welcome the ongoing work on revising directive 2007/36/EC (to encourage long-term shareholder engagement)44 since the current draft seems to strengthen the legal framework for enabling the transmission of shareholders’ information across borders, including in a CSD link arrangement. The revised directive is expected to be adopted in 2016.

As far as the impact of heterogeneous registration procedures on cross-CSD settlement in T2S is concerned, the TFAX analysed this area in its 2012 report. One of the results of this work was the recommendation endorsed by the AG in February 2013 not to use T2S messages for passing on registration information. This standard is covered in Section 3.3.

However, the AG recognises that there are further important steps to be taken to achieve full harmonisation regarding how to manage registration procedures in T2S markets (especially in a cross-CSD context). Given the complexity and the regulatory/legal implications of the registration topic, the AG has raised it with the EPTG as well as in the context of its contribution to the Commission’s CMU initiative.

In 2013 the EPTG identified cross-border shareholder transparency, including the connected topic of registration procedures, as one of the main action points on its current agenda. A working group on registration and shareholder identification had been set up by the EPTG to work on the matter. The follow-up to this work is expected to be undertaken by its successor, the EPTF, provided that it is confirmed that this barrier is still relevant.

44

43 More information on the task force is available at http://www.ecb.europa.eu/paym/t2s/governance/ag/html/subtrans/ index.en.html44 More information on http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P8-TA-2015- 0257&language=EN


CROSS-BORDER SHAREHOLDER TRANSPARENCY AND REGISTRATION PROCEDURES

R X X

http://www.ecb.europa.eu/paym/t2s/governance/ag/html/subtrans/index.en.html

http://www.ecb.europa.eu/paym/t2s/governance/ag/html/subtrans/index.en.html

http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P8-TA-2015- 0257&language=EN

http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P8-TA-2015- 0257&language=EN


45

Compliance status of T2S marketsDefinition is not complete and no standards have been endorsed yet. Monitoring has therefore not yet started.

Monitoring

4.6 Market access and interoperability

Activity descriptionThe activity is fundamental for enhancing financial integration in the EU. It reflects the need for regulatory frameworks to allow CSDs to provide requesting parties (i.e. foreign and market participants, CSDs and other market infrastructures) with access to their services. It also reflects the need to provide a European framework of rules and procedures for granting or refusing this access.

The activity covers, for example, market practices or legislation that obligate or restrict the settlement of (stock exchange and/or central counterparty-cleared) transactions in a specific issuer CSD. The consequence for foreign investors, custodians and/or investor CSDs in such (issuer) markets is that access to settlement flows is restricted owing to the unfair competitive advantages established in those issuer markets. The restriction implies that entities wishing to offer settlement services on these securities need to become participants in the issuer CSD or central counterparty.

The issue has no direct impact on T2S settlement processes, but it is important for competition and CSD access conditions in T2S-relevant markets

Activity status

The CSDR includes important provisions regarding market access and interoperability (Art. 51-53). The AG took note that the proposals for the CSDR implementing technical standards published by ESMA on 28 September 2015 include provisions regarding the criteria for CSDs to assess access of “requesting parties” (i.e. CSD participants, other CSDs and other infrastructures) to their systems.45 If the “receiving” CSD, and its competent authority, refuse access to the CSD services, they should be able to establish that the requesting party does not comply with these requirements.46 The draft implementing technical standards also include the procedural requirements for refusal of access and the possibility to involve ESMA in this process.47

45 See Annex II (Chapter XII, Section I, Article 88) to the Final Report on the draft technical standards under the CSDR, available at https://www.esma.europa.eu/sites/default/files/library/2015/11/2015-esma-1457_-_annex_ii_-_csdr_ts_on_ csd_requirements_and_internalised_settlement.pdf46 According to the draft ESMA implementing technical standards, these criteria should establish whether the “requesting party” complies with the legal requirements for participation in the securities settlement system operated by the “receiving” CSD. The requesting party should also comply with the confidentiality and information requirements of the home Member State of the receiving CSD. Finally, the requesting party should hold sufficient financial resources and have the operational capacity to fulfil its contractual obligations towards the CSD.47 See Annex II (Chapter XII, Section 2, Article 89) to the Final Report on the draft technical standards under the CSDR, available at https://www.esma.europa.eu/sites/default/files/library/2015/11/2015-esma-1457_-_annex_ii_-_csdr_ts_on csd_requirements_and_internalised_settlement.pdf

Implementation date Pending EPTF and CMU outcome.

Monitoring actors Pending EPTF and CMU outcome.

Monitoring process Pending EPTF and CMU outcome.


MARKET ACCESS AND INTEROPERABILITY Y X X


The AG has decided that the issue should be reassessed once the CSDR level 2 legislation is finally adopted by the EU authorities. This is due by summer 2016.

T2S stakeholders will assess whether green definition status will be achieved once the related level 2 legislation is in place, or whether further harmonisation work will be required to achieve this status.

Compliance status of T2S marketsMonitoring has not started yet.

Monitoring

4.7 Securities amount data

Activity descriptionThis activity aims to address the absence of a standardised practice across all T2S markets for defining securities amount data (face value/nominal amount vs. quantity/units) in the trading, clearing and settlement chain.

The non-standardisation of securities quantity data has no impact on T2S settlement as long as only one rule is used for each ISIN in T2S (either nominal amount (FAMT) or quantity/units (UNIT)).48

However, the current practice in some markets may create difficulties for foreign entities (investor CSDs, custodians) that wish to offer services on securities in those markets.

The objective of this activity is to ensure that all T2S markets are aligned with the EU’s standard practice in time for migration to T2S (depending on their respective migration waves). T2S markets should nonetheless be able to participate in bilateral interoperability testing, multilateral testing and community testing using the agreed shared practice.

Activity status

T2S STANDARD:In line with the current standard market practice in the EU, T2S markets should define securities amount data by using nominal value for debt instruments and units for non-debt instruments (i.e. debt instruments in FAMT and equities in UNIT).

46

48 For each T2S settlement instruction, T2S verifies whether the type of settlement amount in the settlement instruction (face amount or number of units) matches the type of amount as defined for the given ISIN in the T2S static data. This makes it impossible for a T2S actor to instruct T2S both in nominal amount (FAMT) and units (UNIT) for the same ISIN. T2S actors should select in advance, and for a given ISIN, only one of these settlement amount types.

Implementation date Pending CSDR and level 2 legislation.

Monitoring actors Pending CSDR and level 2 legislation.

Monitoring process Pending CSDR and level 2 legislation.


SECURITIES AMOUNT DATA G G G


47

Compliance status of T2S markets Based on the information provided by the T2S NUGs, all T2S markets either comply fully with the standard or plan to do so by the time of their migration to T2S.

Information input: NUG survey and bilateral discussions


Monitoring

4.8 Portfolio transfer

Activity descriptionThe TFAX analysis49 revealed obstacles in the context of portfolio transfers50 requiring further harmonisation efforts in T2S markets. Currently, each T2S market has its own requirements in terms of the information to be provided by the delivering custodian to the receiving custodian during a portfolio transfer.

In view of increasing cross-border business and cross-border portfolio transfers, this is likely to lead to a high level of complexity in information gathering and maintenance for CSDs and CSD participants involved in portfolio transfers. In the T2S context, this would lead to the manifestation of additional complexities in terms of information gathering and maintenance for the involved actors.

The T2S Community has agreed, in line with the TFAX recommendation, that the information required by the receiving custodians should be harmonised to the extent possible to ensure smooth cross-CSD settlement.

Activity status

49 The TFAX report is available in the relevant section of the T2S website.50 Portfolio transfers (or book transfers) occur when a client changes custodian or bank.

Blue AT, BE (Euroclear), BE (NBB-SSS), CH, DE, DK, EE, ES, FI, FR, GR (BOGS), HU, IT, LT, LU (LUX CSD), LU (VP LUX), MT, NL, RO

Green LV, PT, SI, SK

Yellow None

Red None





PORTFOLIO TRANSFER Y X X

https://www.ecb.europa.eu/paym/t2s/progress/pdf/subadapt/report/2012-11-28_Report_of_the_TFAX.pdf


48

Following the AG Chairman’s letter to the European Banking Federation, the European Working Group on Portfolio Transfers (EWGPT) was set up in November 2014. Its objective is to define regional best market practices in T2S. The best practices will cover the following:

• descriptions and recommendations on the workflow and channel of information for portfolio transfer messages;

• data to be transmitted in these portfolio transfer messages;• how portfolio transfer messages should be populated.

The working group aims to finalise a proposal for a T2S standard by the second quarter of 2016. Thereafter, a consultation will be launched, involving the T2S markets, in coordination with T2S NUGs and the European Banking Federation.

Monitoring

Implementation date To be defined.

Monitoring actors To be defined.

Monitoring process To be defined.

Sixth T2S Harmonisation Progress Report I Annex 1: Methodology

49

The following methodology is used for compiling the deliverables of the HSG to the AG (progress report, T2S harmonisation list and status update dashboard).

Harmonisation activitiesA harmonisation activity is a task that needs to be completed in order to remove a barrier to smooth cross-CSD settlement in T2S markets. Some activities are grouped under broader areas.

ExampleArea: Legal harmonisationActivities: SF I, SF II, SF III, outsourcing, conflicts of law

Prioritisation of activitiesThe AG agreed to prioritise the T2S harmonisation work as outlined below.

Priority 1 activities are necessary to ensure efficient and safe cross-CSD settlement in T2S. The HSG and the ECB team should focus on these activities as first priorities for resolution and implementation prior to the markets’ migration to T2S.

The fact that an activity is assigned priority 1 does not imply that the HSG will be the key definition or monitoring actor (e.g. T2S ISO messages, legal harmonisation).

Priority 2 activities are not essential to ensure safe and efficient cross-CSD settlement in T2S, but they are key for the enhancement of the competitive environment and the efficiency of T2S, and could continue to be pursued after the markets’ migration to T2S.

Harmonisation phasesThere are three harmonisation processes/phases for each activity in the T2S harmonisation list: definition, monitoring and implementation. Each phase corresponds to a different aim/question.

Definition: This refers to the T2S (or, where relevant, wider European) standards/rules definition process. What are the standards and who is responsible for defining and endorsing them?

Monitoring: What is the monitoring framework and who are the actors responsible for monitoring T2S markets’ compliance with the harmonisation standards/rules?

Implementation: This phase/process refers to the T2S markets’ compliance with the relevant harmonisation standards. What is the process, and who ultimately needs to implement changes and adapt to the harmonisation standards/rules? What is the implementation status per T2S market?

Responsible actorsFor each process/phase, clear responsible actors and concrete deadlines are proposed.

• Definition actors: entities responsible for defining the standard (e.g. the AG supported by HSG/CASG in the case of the T2S corporate actions standards, T-BAG/Commission in the case of withholding tax procedures, CAJWG in the case of market corporate actions standards).

• Monitoring actors: entities responsible for monitoring that T2S markets are complying with the standard (e.g. the AG supported by HSG/CASG in the case of the T2S corporate actions standards, E-MIG in the case of the market corporate actions standards).

• Implementation actors: entities responsible for ultimately implementing changes and adapting to the standard (e.g. CSDs, their participants and perhaps regulators in the case of some T2S corporate actions standards).

Annex 1: Methodology


50

DatesA deadline for completion is set for each phase. In most cases, the deadline for compliance coincides with the migration of each market to T2S (depending on the respective migration wave). However, for most technical standards, T2S markets/CSDs are required to be able to participate in the interoperability testing phase, as per migration wave, abiding by the agreed rules and standards in the test environment.

T2S Markets should comply fully with all defined and monitored standards prior to their migration to T2S.

Status assessment A specific colour, based on a four-colour scheme, is displayed in the status update dashboard to reflect the progress in each process (definition, monitoring and compliance). These colours/statuses are agreed at the AG level, based on the proposals of the HSG (and the input of the T2S NUGs, CSDs and other reporting actors).

Table 7: Colour methodology in the different harmonisation processes

Colour Description

Compliance

The market has achieved full compliance with the harmonisation standard.

a. For technical standards (e.g. T2S ISO 20022 messages), this means that the T2S market is already operating according to the standard.

b. For regulatory/legal standards (e.g. T2S settlement finality rules), this means that the relevant regulation/legislation is already in place.

Further monitoring of the T2S market is no longer required.

Definition

The relevant stakeholder bodies (in or outside T2S) have defined and agreed/endorsed the standards for the harmonisation activity.

Monitoring

The monitoring actors (in or outside T2S) have defined and implemented a framework for monitoring and reporting progress on the T2S markets’ compliance with the harmonisation standard. The T2S markets report regularly to the responsible stakeholder bodies.

Compliance

1) There are changes still pending (technical, regulatory or legal) before the T2S market can achieve full compliance with the harmonisation standard, but no obstacles have been identified to achieving full compliance by the deadline.

and

2) The market has established a clear/detailed plan to implement the harmonisation standard and has publicly announced deadlines for full implementation.

Further monitoring of the T2S market is required.

GREEN

BLUE


51

Definition

Open issues remain concerning the definition and agreement of the standards for the harmonisation activity by the relevant stakeholder bodies (in or outside T2S). However, stakeholders have agreed a roadmap and an approach to resolving pending issues in order to achieve agreement on the standard.

Monitoring

The monitoring actors (in or outside T2S) have defined and implemented a framework for monitoring and reporting progress on the T2S markets’ compliance with the harmonisation standard. The T2S markets report to the monitoring bodies on an irregular basis.

Compliance

1) There are changes still pending (technical, regulatory or legal) before the T2S market can achieve full compliance with the given harmonisation standard, but obstacles have been identified which may threaten achievement of full compliance by the deadline.

or

2) The T2S market has issued a statement that it will implement the standard, but has not committed to concrete and publicly announced dates for implementation.


Definition

Relevant stakeholder bodies (in or outside T2S) have not reached an agreement on the definition of the standard and stakeholders have not agreed a roadmap or an approach to achieving agreement on the standard. Stakeholders have not agreed a formal plan to achieve compliance with the standards.

Monitoring

The monitoring stakeholders have not defined and/or not implemented a framework for monitoring and reporting progress on the T2S markets’ compliance with the harmonisation standard.

Compliance

1) The T2S market has not provided any information on its level of compliance with the standard.

or

2) The T2S market has decided not to (fully) comply with the standard.

or

3) There are changes still pending (technical, regulatory or legal) before the T2S market can achieve full compliance with the harmonisation standard and obstacles have been identified that have stopped the implementation plan of the market and/or will prevent its full implementation by the deadline.


Process not started yet

RED

YELLOW

X

It follows from Table 7 that only blue and red statuses apply to markets that have already migrated. This is due to the fact that green and yellow statuses refer, exclusively, to future implementation plans.

AG monitoring methodology51

The HSG only monitors T2S harmonisation activities for which the definition process is complete, i.e. a standard/rule/agreement has been defined and endorsed by the relevant actors. The definition may come from the AG (e.g. T2S corporate actions standards) or from EU authorities (e.g. the CSDR), but the AG ultimately endorses all T2S harmonisation standards. Only afterwards is the AG monitoring process, for the specific standard and all T2S markets, launched.

51 As agreed by the AG on 27 March 2012.


52

Once the definition process is complete (i.e. the AG endorses and assigns green status to the activity), the HSG – with the help of the ECB team – launches the monitoring process. The ECB team acts as the contact point or secretariat for this process. For some activities, this monitoring may be launched by external parties (e.g. the E-MIG in the case of the market corporate actions standards).

For each of the T2S harmonisation activities covered in this report, there is a section on monitoring. This section has three key elements:• the implementation date, which describes by when the standard/agreement needs to be

implemented by the T2S markets;• the monitoring actors, i.e. who is performing the monitoring process (e.g. ECB team, NUGs,

E-MIG);• the monitoring process, which describes what the process consists of (e.g. NUG surveys, CASG

surveys).

The information provided for individual T2S markets and activities may stem from more than one source. For example, T2S NUGs provided information on SF II and SF III, but this point was also covered by most T2S actors in their feasibility assessments sent to the ECB team prior to the launch of T2S. As shown in Diagram 1, the different input channels (NUG surveys, CASG/CAJWG surveys, bilateral contacts and synchronisation point (SP) reporting) feed into the different monitoring tools (T2S activities dashboard and T2S markets compliance table). The results are summarised in the T2S harmonisation progress reports published by the T2S AG on the ECB/T2S webpages.

Diagram 1: Information channels for monitoring T2S harmonisation

In the T2S harmonisation progress reports, the compliance statuses are presented by market (rather than by CSD). Compliance usually depends on national market practice, specificities or even regulation rather than on an individual CSD’s business model. In markets with more than one CSD, the name of the relevant CSD is used in order to flag differing progress in implementation.

In the case of market corporate actions standards, colours are assigned to T2S markets based on a statistical approach, as described in section 4.2.

33 As agreed by the AG on 27 March 2012.

Sixth T2S Harmonisation Progress Report I Annex 2: Monitored harmonisation activities per market

53

Table 8: Colour methodology in the compliance processes

Annex 2: Monitored harmonisation activities per market

Colour Description

The market has achieved full compliance with the harmonisation standard.

c. For technical standards (e.g. T2S ISO 20022 messages), this means that the T2S market is already operating according to the standard.

d. For regulatory/legal standards (e.g. T2S settlement finality rules), this means that the relevant regulation/legislation is already in place.

Further monitoring of the T2S market is no longer required.

1) There are changes still pending (technical, regulatory or legal) before the T2S market can achieve full compliance with the harmonisation standard, but no obstacles have been identified to achieving full compliance by the deadline.

and

2) The market has established a clear/detailed plan to implement the harmonisation standard and has publicly announced deadlines for full implementation.


1) There are changes still pending (technical, regulatory or legal) before the T2S market can achieve full compliance with the given harmonisation standard, but obstacles have been identified which may threaten achievement of full compliance by the deadline.

or

2) The T2S market has issued a statement that it will implement the standard, but has not committed to concrete and publicly announced dates for implementation.


1) The T2S market has not provided any information on its level of compliance with the standard.

or

2) The T2S market has decided not to (fully) comply with the standard.

or

3) There are changes still pending (technical, regulatory or legal) before the T2S market can achieve full compliance with the harmonisation standard and obstacles have been identified that have stopped the implementation plan of the market and/or will prevent its full implementation by the deadline.


As above, full compliance will not be achieved by the time of the market’s migration to T2S, but the NUG has agreed and provided a detailed action plan for full compliance by a specific date after migration to T2S.

GREEN

BLUE

RED

R- (DATE)

YELLOW


54

Tab

le 2

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: Co

mp

lian

ce s

tatu

s p

er T

2S m

arke

t (a

s at

18/

02/2

016)

Pri

ori

ty 1

P

rio

rity

2

T2

S

Mar

ket

s

1 T2S

mes

sag

es

ISO

200

22

2 T2S

mat

chin

g

field

s

3

Inte

ract

ion

w

ith

T2S

(R

egis

trat

ion

)

4

Inte

ract

ion

w

ith

T2S

(T

ax

pro

ced

ure

)

5

Sch

edu

le

of

sett

lem

ent

day

6

T2S

CA

st

and

ard

s

8 T2S

Sett

lem

ent

final

ity

II

9 T2S

Sett

lem

ent

Fin

alit

y III

10

Ou

tso

urc

ing

IT

(s

ettl

emen

t)

serv

ices

12

Sett

lem

ent

cycl

e

13

Ava

ilab

ility

o

f o

mn

ibu

s ac

cou

nts

14

Res

tric

tio

ns

on

o

mn

ibu

s ac

cou

nts

15

Secu

riti

es

acco

un

t n

um

ber

16 Cas

h

acco

un

t n

um

ber

18 CA

m

arke

t st

and

ard

s (C

AJW

G)

23

Secu

riti

es

amo

un

t d

ata

AT

GG

BB

GY

BB

BB

BB

GG

YB

BE

Euro

clea

rG

GB

BG

R -

?B

GB

BB

BG

GG

B

BE

– N

BB

-SSS

BB

BB

GG

BB

BB

BY

BG

R -

No

info

B

CH

BB

BB

R -

Mar

201

6B

BB

BB

BB

BN

AG

B

DE

GG

BB

GR

- ?

GG

BB

BB

GB

GB

DK

GG

BB

GG

BY

BB

BB

GB

GB

EEG

GB

BG

GB

GB

BB

BG

GY

B

ESG

GG

BG

GB

BB

GB

BG

BG

B

FIB

BB

BG

GB

BB

BB

YB

GY

B

FRG

GB

BG

R -

?B

GB

BB

YG

BG

B

GR

– B

OG

SB

BB

BB

BB

BB

BB

BB

BB

B

HU

GG

BB

GG

GG

BB

BB

GN

AR

B

ITB

BB

BB

R -

Dec

201

6B

BB

BB

BB

BB

B

LTG

GB

BG

GG

GB

BB

BG

GR

B

LU –

LU

X C

SDG

GB

BG

GG

BB

BB

BG

GR

- N

o in

foB

LU –

VP

LU

XG

GB

BG

GB

BB

BB

BG

GR

- N

o in

foB

LVG

GB

BG

YG

GB

BB

BG

GG

G

MT

BB

BB

BB

BB

BB

BB

BB

GB

NL

GG

BB

GR

- ?

BG

BB

BB

GB

GB

PT

GG

BB

GR

- Se

p 2

016

GG

BB

BB

GB

GG

RO

BB

BB

BR

- Fe

b 2

017

BB

BB

BB

BB

YB

SIG

GB

BG

GG

GB

BB

BG

GR

G

SKG

R -

?G

BG

GG

GB

BB

YG

GR

- N

o in

foG

T2S Harmonisation Progress Report I Annex 2: Monitored harmonisation activities per market

55

Table 4 [from Executive Summary]: Compliance status of T2S markets in the first migration wave (as at 18/02/2016)

Table 5 [from Executive Summary]: Compliance status of T2S markets in the second migration wave (as at 18/02/2016)

Table 9: Compliance status of T2S markets in the third migration wave (as at 18/02/2016)

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

CH B B B B R - Mar 2016 B B B B B B B B NA G B

GR – BOGS B B B B B B B B B B B B B B B B

IT B B B B B R - Dec 2016 B B B B B B B B B B

MT B B B B B B B B B B B B B B G B

RO B B B B B R - Feb 2017 B B B B B B B B Y B

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

BE Euroclear G G B B G R - ? B G B B B B G G G B

DK G G B B G G B Y B B B B G B G B

FR G G B B G R - ? B G B B B Y G B G B

LU-VP LUX G G B B G G B B B B B B G G R - No info B

NL G G B B G R - ? B G B B B B G B G B

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

BE – NBB-SSS B B B B G G B B B B B Y B G R - No info B

PT G G B B G R - Sep 2016 G G B B B B G B G G


56

Table 10: Compliance status of T2S markets in the fourth migration wave (as at 18/02/2016)

Table 11: Compliance status of T2S markets in the final migration wave (as at 18/02/2016)s

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

AT G G B B G Y B B B B B B G G Y B

DE G G B B G R - ? G G B B B B G B G B

HU G G B B G G G G B B B B G NA R B

LU-LUX CSD G G B B G G G B B B B B G G R - No info B

SI G G B B G G G G B B B B G G R G

SK G R - ? G B G G G G B B B Y G G R - No info G

Priority 1

Priority 2

T2S Markets

1


2

T2S matching

fields

3


(Registration)

4


(Tax procedure)

5

Schedule of

settlement day

6

T2S CA standards

8

T2S Settlement

finality II

9


10

Outsourcing IT


12

Settlement cycle

13

Availability of

omnibus accounts

14

Restrictions on

omnibus accounts

15


16

Cash account number

18

CA market

standards (CAJWG)

23

Securities amount

data

EE G G B B G G B G B B B B G G Y B

ES G G G B G G B B B G B B G B G B

FI B B B B G G B B B B B Y B G Y B

LT G G B B G G G G B B B B G G R B

LV G G B B G Y G G B B B B G G G G

Sixth T2S Harmonisation Progress Report I Annex 3: Non-compliance impact analysis

57

The tables below cover the T2S markets where there is at least one red compliance status for priority 1 standards (status: 18/02/2016): Belgium (Euroclear), Switzerland, Germany, France, Netherlands, Romania, Italy, Slovakia and Portugal.

Table 12: Summary of the AG’s impact analysis (status: 18/02/2016)

Annex 3: Non-compliance impact analysis

T2S standard

T2S market Compliance gap

NUG specified milestone and completion date

Status as of 18 February 2016

Remark

Schedule of settlement day

Switzerland Not meeting the correct sequence for processing of corporate actions events

Testing activities: 30 November 2015

Go-live in production:

28 March 2016

Testing was completed in November 2015

Activities are on track for final roll-out on 28 March 2016 as per the original plan.

Owing to low cross-CSD activity since joining T2S and the low “corporate action season” in Switzerland, settlement efficiency has not been affected.

T2S corporate actions standards

Germany No concept of “record date” exists in Germany

Implementation of “record date” in the German market: 1 January 2016

Although the German Parliament approved the necessary change in legislation in November 2015, the change will only enter into force on 1 January 2017.

Owing to the legislator’s decision, the record date will be implemented one year later than initially planned. This is still ahead of Clearstream’s migration in February 2017.

Germany No usage of “CUM” flag in market claim detection (MC standard no 7)

None Implementation date still not available

The German Market Practice Committee (MPC) agreed to monitor the handling and processing of the „CUM“ flag in other T2S markets and to further discuss with the Ministry of Finance whether or not to implement it a few months after the wave 4 migration (February 2017).

Germany No generation of market claims independently of the settlement of the underlying transaction (MC standard no 19)

None Implementation date still not available The German Market Practice Committee (MPC) is not in favour of adapting the current domestic practice for generating market claims to be in line with the T2S corporate actions standards.52

German NUG to provide the ECB team, as soon as possible, with the relevant statistics on the volumes that will be affected after the six-month period following the introduction of the “record date” and, based on that, to decide whether to comply with the T2S corporate actions standards on this.

52 The German market bases this decision on its interpretation of “irrevocable instructions” (matched instructions are not considered irrevocable as they can still be bilaterally cancelled).


58

T2S standard

T2S market Compliance gap NUG specified milestone and completion date


Remark

Germany Payments on market claims not on T2S Dedicated cash accounts (DCAs) and the management of securities fractions is not in line with the standards (MC standards no 9, 10, 11, 14 and 15; transformations standard no 11)

August 2017 The original deadline (March 2017) for compliance has been postponed to August 2017 owing to the change in Clearstream’s migration plan.

The non-compliance of the German market mainly relates to German ISINs.


Belgium (Euroclear Belgium)

Transformations will be detected but not generated by the CSD.

The CSD will not provide certain information (key dates necessary for for managing buyer protection)

Technical adaptations of Euroclear systems to fully implement CAJWG/CASG standards (Custody Service Evolution stream 6), potentially other measures.

31 March 2018

The ESES markets are planning to commit by June 2016 to have a solution in place before the corporate action season in 2018 (31/03/2018).


France Transformations will be detected but not generated by the CSD.

The CSD will not provide certain information (key dates necessary for for managing buyer protection)


The ESES markets are planning to commit by June 2016 to have a solution in place before the corporate action season in 2018 (31/03/2018)


Netherlands Transformations will be detected but not generated by the CSD.

The CSD will not provide certain information (Key dates necessary for managing buyer protection)


31 March 2018

The ESES markets are planning to commit by June 2016 to have a solution in place before the corporate action season in 2018 (31/03/2018)


Romania The Romanian market does not generate/raise corporate actions on flows for Romanian ISINs in T2S. (Need for changes in the secondary legislation)

Submission of new CSD rules to the national central bank and the Financial Supervisory Authority by June 2016.

Approval of the new rules planned for August 2016.

As per the revised implementation plan, there is a (4-6 month) delay for both these activities compared with the earlier plan. However, there is no delay in the original full compliance date of February 2017.


59

T2S standard



Remark


Romania The Romanian market does not generate/raise corporate actions on flows for Romanian ISINs in T2S. (Need for IT changes)

Finalisation of the CSD system requirements by March 2016.

Finalisation of the new settlement system module for corporate actions

processing by

August 2016.

Finalisation of internal system testing by Romanian CSD by October 2016.

Finalisation of user system testing by January 2016.

Overall full compliance date remains February 2017.

However, no buffer has been built into the implementation plans.


Italy Monte Titoli does not generate market claims (MC) and transformations for over-the-counter transactions (not fully compliant with MC standard 6 and transformations standard 3).

Implementation will require an IT change: December 2016.

Testing of technical solution to commence by end September 2016 and go live by end 2016

This case of non-compliance is estimated to have a medium overall impact on the T2S Community.

No user-friendly facility for CSD participants to manage the interdependence of settlement of market claims and the underlying transaction for on-exchange and CCP transactions (MC standard 23).

Implementation will require an IT change: December 2016.

Testing of technical solution to commence by end September 2016 and go live by end 2016

This case of non-compliance is estimated to have a medium overall impact on the T2S Community.

T2S matching fields

Slovakia In the CSD’s legacy matching engine, when processing transactions in securities held in co-ownership, the Slovakian market uses two matching fields in addition to those described in the UDFS.

No plans for compliance

No implementation plan available

No dates

This case of non-compliance is estimated to have a low overall impact on the T2S Community.


60

T2S standard



Remark


Portugal The Portuguese market will not generate market claims and transformations when processing one specific corporate action event (split with intermediate securities)

(MC and transformations standards)

Implementation will require IT changes and testing with the market.

4 September 2016

Testing of functionality for managing splits with intermediate securities: June - 1 July 2016

Community testing: 4 July- 1 September 2016

In production: 4 Sept 2016.


Key dates, needed to correctly process BP instructions, will be missing from the corporate actions announcements.

Implementation will require changes to be made by Interbolsa: end May 2016.

Interbolsa to migrate the necessary changes in its live system by the end of May 2016


Sixth T2S Harmonisation Progress Report I Annex 4: Detailed monitoring information per T2S market

61

Annex 4: Detailed monitoring information per T2S market

Co

mp

lian

ce

Sta

tus

Typ

e o

f im

ple

men

tati

on

gap

Imp

lem

en

tati

on

acto

r(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is

Ready for T2S testing

Fully opera

tional

accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

ess

age

sN

ot

com

plian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d0

6/0

2/2

01

7O

eK

BN

o b

arr

iers

id

en

tifi

ed

fo

r ach

ievin

g f

ull c

om

plian

ce

be

fore

mig

rati

on

to

T2

S.

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot

com

plian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d0

6/0

2/2

01

7O

eK

BN

o b

arr

iers

id

en

tifi

ed

fo

r ach

ievin

g f

ull c

om

plian

ce

be

fore

mig

rati

on

to

T2

S.

3. In

tera

ctio

n f

or

regis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

HSG

su

rve

y M

ay 2

01

3. R

egis

trati

on

in

form

ati

on

is

no

t tr

an

sfe

rre

d v

ia s

ett

lem

en

t m

ess

age

s

4. In

tera

ctio

n f

or

tax in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

HSG

su

rve

y M

ay 2

01

3. Tax in

form

ati

on

is

no

t tr

an

sfe

rre

d v

ia s

ett

lem

en

t m

ess

age

s

Mark

et

claim

s (2

8 s

tan

dard

s)7

%

Tra

nsf

orm

ati

on

s (1

3 s

tan

dard

s)0

%

Bu

ye

r p

rote

ctio

n (

18 s

tan

dard

s)3

9%

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

ys

20

11

an

d 2

01

2, SP

2 a

nd

b

ilate

ral in

pu

t.O

nly

bilate

ral ca

nce

llati

on

s are

po

ssib

le a

fte

r m

atc

hin

g

statu

s

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

curi

tie

s tr

an

sfe

rs.

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t.M

ark

et

alr

ead

y c

om

plie

s w

ith

th

e s

tan

dard

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT o

uts

ou

rcin

g.

12. Sett

lem

en

t cycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

Bilate

ral co

nfi

rmati

on

fro

m N

UG

. Fu

lly

com

plian

t si

nce

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s acc

ou

nts

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

20

13

HSG

su

rve

y a

nd

bilate

ral in

pu

t. F

ully

com

plian

t w

ith

Om

nib

us

acc

ou

nts

availab

ilit

y.

14. R

est

rict

ion

s o

n o

mn

ibu

s acc

ou

nts

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

20

13

HSG

su

rve

y a

nd

bilate

ral in

pu

t. N

o

rest

rict

ion

s o

n o

mn

ibu

s acc

ou

nts

.

15. Se

curi

tie

s acc

ou

nt

nu

mb

eri

ng

No

t co

mp

lian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d0

6/0

2/2

01

7O

eK

B

Info

so

urc

e:

HSG

su

rve

y o

n T

2S S

ecu

riti

es

acc

ou

nt

nu

mb

eri

ng, A

pri

l-‐M

ay 2

01

3 a

nd

Q3

20

13

CSD

sta

tus

gath

eri

ng t

em

pla

te

16. D

ed

icate

d c

ash

acc

ou

nt

nu

mb

eri

ng

No

t co

mp

lian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

dM

arc

h 2

01

6O

eN

BIn

fo s

ou

rce

: H

SG

su

rve

y o

n T

2S D

CA

nu

mb

eri

ng, A

pri

l-‐

May 2

01

3

Co

mp

lian

ce

Sta

tus

Typ

e o

f im

ple

men

tati

on

gap

Imp

lem

en

tati

on

acto

r(s)

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

sta

nd

ard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e o

f gap

is

(use

th

e d

rop

do

wn

li

st).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al

acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18. Co

rpo

rate

acti

on

s

CA

mark

et

stan

dard

s (6

8)

66

%Y

Fo

r so

me

sta

nd

ard

s th

ere

is

no

im

ple

me

nta

tio

n p

lan

as

mark

et

part

icip

an

ts h

ave

re

fuse

d t

o

follo

w t

he

mark

et

pra

ctic

e

Q2

20

16

06

/0

2/2

01

7

Au

stri

an

Co

rpo

rate

A

ctio

ns

Nati

on

al

Imp

lem

en

tati

on

G

rou

p (

CA

NIG

)

Info

so

urc

e:

BSG

/E-‐M

IG S

urv

ey (

Se

p 2

01

5).

45

(o

ut

of

68

) st

an

dard

s alr

ead

y m

et

-‐ 6

6%

co

mp

lian

ce.

So

me

of

the

sta

nd

ard

s th

at

we

re m

ark

ed

as

imp

lem

en

ted

earl

ier

are

in

dic

ate

d a

s p

art

ly

imp

lem

en

ted

in

th

is y

ear'

s ass

ess

me

nt,

bri

ngin

g d

ow

n

the

ove

rall c

om

plian

ce a

sse

ssm

en

t. N

o im

ple

me

nta

tio

n

date

availab

le f

or

stan

dard

s o

n 'd

istr

ibu

tio

ns

wit

h

op

tio

ns'

. Fo

r th

e r

est

of

the

no

n-‐i

mp

lem

en

ted

st

an

dard

s th

e im

ple

me

nta

tio

n d

ate

is

by N

ove

mb

er

20

16

at

the

late

st.

23. Secu

riti

es

am

ou

nt

stati

c d

ata

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral in

pu

t.Fu

ll c

om

plian

ce w

ith

Eu

rop

ean

mark

et

pra

ctic

e

Pri

ori

ty 2

6. Co

rpo

rate

acti

on

sT2S C

A s

tan

dard

s (5

9)

Info

so

urc

e:

2n

d C

ASG

gap

an

aly

sis

surv

ey 2

01

5,

Lo

w r

ate

of

ove

rall c

om

plian

ce. H

ow

eve

r, A

ust

rian

m

ark

et

has

com

mit

ted

to

co

mp

ly w

ith

all T2

S C

A

stan

dard

s b

y t

he

tim

e o

f it

s m

igra

tio

n t

o T

2S a

nd

has

pro

vid

ed

an

im

ple

me

nta

tio

n p

lan

. Th

e o

nly

un

cert

ain

ty

rem

ain

s w

ith

re

gard

s to

co

mp

lian

ce w

ith

mark

et

claim

s st

an

dard

13

re

gard

ing t

he

in

form

ati

on

flo

w b

etw

ee

n

the

iss

ue

r/is

sue

r age

nts

an

d t

he

Oe

KB

. It

is

no

t cl

ear

ye

t w

he

the

r th

is w

ill b

e in

tro

du

ced

on

tim

e.

Legal h

arm

on

isati

on

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

dard

s/ru

les

are

no

t fu

lfille

d,

ple

ase

pro

vid

e t

he t

imeta

ble

an

d

vari

ou

s m

ilest

on

es/

date

s in

th

e

imp

lem

en

tati

on

pla

n.

CSD

acco

un

t st

ructu

res

Fu

rth

er

co

mm

en

ts

T2S a

cco

un

ts

nu

mb

eri

ng

Q2

20

16

Majo

r te

chn

ical ch

an

ge

s/

Mark

et

pra

ctic

e c

han

ge

sC

SD

/ C

CP

, b

an

ks

an

d

Issu

ers

Su

b-‐a

cti

vit

yA

cti

vit

y

Y0

6/0

2/2

01

7

T2

S h

arm

on

isati

on

act

ivit

ies:

Au

stri

a

T2S m

ess

ages

5. T2S s

ch

ed

ule

of

sett

lem

en

t d

ay

No

t co

mp

lian

tG

Oe

KB

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

dard

s/ru

les

are

no

t fu

lfille

d,

ple

ase

pro

vid

e t

he t

imeta

ble

an

d

vari

ou

s m

ilest

on

es/

date

s in

th

e

imp

lem

en

tati

on

pla

n.

Pri

ori

ty 1

Acti

vit

yFu

rth

er

co

mm

en

ts

Info

so

urc

e:

20

14

NU

G s

urv

ey. O

eK

B s

che

du

le w

ill b

e

ad

ap

ted

to

T2

S S

che

du

le b

y F

eb

ruary

20

17

(m

igra

tio

n

to T

2S).

06

/0

2/2

01

7Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Su

b-‐a

cti

vit

y

Te

stin

g r

ead

ine

ss

ach

ieve

d


62

Compliance

Status

Type of

implementation

gap

Implementation

actor(s)

Indicates level of

com

pliance w

ith the

rele

vant

standards/rule

s

Green (G),

yellow (Y), red

(R), blu

e (B)

If the standards/rule

s are

not yet im

ple

mented,

ple

ase specificy w

hat the

type of gap is

Ready for T2S testin

gFully operatio

nal accordin

g to

the T2S standard

Rele

vant natio

nal

actors for

imple

metatio

n

1. T2S ISO 20022 m

essages

Not compliant

GStraight-‐forward to

implement

Testing readiness achieved

12/09/2016

Euroclear

Info source: SP2 and bilateral input.

Technical compliance for testing and full

compliance by m

igration

2. T2S m

andatory m

atching fields

Not compliant


implement


12/09/2016

Euroclear

Info source: SP2, White Paper and bilateral

input.

Matching rules that w

ill apply are those of

the T2S platform. Full compliance for

testing

3. Interaction for registration

Fully compliant

BN/A

N/A

N/A

N/A

Info source: M

ay 2013 HSG survey.

Registration information is not transferred

via settlement m

essages

4. Interaction for tax info

Fully compliant

BN/A

N/A

N/A

N/A

Info source: M

ay 2013 HSG survey. Tax

information is not transferred via

settlement m

essages

Market claim

s (28 standards)

46%

Major technical change

Transformations (13 standards)

23%


Buyer protection (18 standards)

0%

Other

8. Settlement Finality II: irrevocability and

enforceability transfer order

Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUGs surveys 2011 and

2012, SP2 and bilateral input.

EoC (BE) already complies w

ith only

bilateral cancellation after m

atching status.

9. Settlement Finality III: irrevocability of

securities transfers

Not compliant

GMay require regulatory

change

N/A

12/09/2016

Euroclear


2012, SP2 and bilateral input. Terms and

conditions w

ill be updated to implement

SFIII in T2S. This update w

ill have to be

presented and approved, where applicable,

by the Belgian regulator (national bank of

Belgium). No barriers identified in this

process.

10. Outsourcing IT (Settlement ) services

Fully compliant

BN/A

N/A

N/A

N/A

Info source: 2014 HSG survey on IT

outsourcing. No regulatory barrier for

outsourcing of settlement services by the

CSD to the Eurosystem.

12. Settlement cycles

Fully compliant

BN/A

N/A

N/A

N/A

Info source: Bilateral confirmation from

NUG. Fully compliant since 6 October 2014.

13. Availability of omnibus accounts

Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUGs survey and bilateral

input.

There are no issues w

ith omnibus accounts

availability for the ESES countries

14. Restrictions on omnibus accounts

Fully compliant

BN/A

N/A

N/A

N/A


input. No restrictions on usage of omnibus

accounts.

15. Securities account numbering

Not compliant


implement


12/09/2016

Euroclear

Info source: HSG survey on T2S Securities

account numbering, May 2013. No barriers

identified.

16. Dedicated cash account numbering

Not compliant


implement


March 2016

NBB

Info source: HSG survey on T2S DCA

numbering, April-‐ M

ay 2013. No barriers

identified.

Compliance

Status

Type of

implementation

gap

Implementation

actor(s)

Indicates level of

compliance with the

relevant

standards/rules

Green (G),

yellow (Y), red

(R)

If the standards/rules are not

yet implemented, please

specificy what the type of

gap is (use the dropdown


Fully operational according to the

T2S standard

Relevant national actors

for implemetation

18. Corporate actions CA m

arket standards (68)

78%

GMarket practice change

Not available

Not available

Euroclear

Info source: BSG/E-‐MIG Survey (Sep 2015).

53 (out of 68) standards already m

et,

showing some improvement from the last

assessment. Final im

plementation

expected w

ith Euroclear launch of Stream 6

-‐ after m

igration to T2S -‐ Sep 2016

23. Securities amount

static data

Fully compliant

BN/A

N/A

N/A

N/A


input.

There are no issues w

ith securities amount

data for the ESES countries

Not compliant

T2S accounts

numbering

T2S harmonisation activities: Belgium (Euroclear)

Priority 1

Straight-‐forward to

implement


Euroclear

5. T2S schedule of

settlement day

Activity

Sub-‐activity

Further comments

Implementation plan/date

If standards/rules are not fulfilled, please

provide the tim

etable and various

milestones/dates in the implementation plan.

T2S m

essages

12/09/2016

Info source: SP2 and bilateral input and

status gathering templates.

The ESES operational day w

ill be amended

to adhere to the tim

ing of T2S. T2S

accounting day w

ill be considered the

master day.

G R?



provide the tim

etable and various


Euroclear

Further comments

Notavailable

Not available

Priority 2

Activity

CSD account

structures

Info source: 2nd 2015 CASG gap analysis

survey and further NUG clarification. The

non-‐compliance affects some of the

transformation and buyer protection

standards. In particular, following

rescheduling of ESES m

arkets' migration to

T2S, there is still no compliance date

regarding the Euroclear Belgium’s segment

of the Belgian m

arket full compliance w

ith

the transformations and buyer protection

standards

Legal harmonisation

Sub-‐activity

6. Corporate actions

T2S CA standards (59)


6363

Compliance

Status

Type of implementation

gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G), yellow

(Y), red (R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional

accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO 20022 messages

Fully compliant

BN/A

N/A

N/A

N/A

Info source: Confirmation by BE NUG Chairperson that some of the

NBB-‐SSS participants are currently (as of 31.01.2015) using T2S

ISO20022 messages in their daily message interaction with NBB-‐SSS

2. T2S mandatory matching fields

Fully compliant

BN/A

N/A

N/A

N/A

Info source: NUG confirmation that the market is now fully

operational according to the T2S standards following implementation

of the new technical platform


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUG surveys 2013. Registration process is paper-‐

based. No need to include registration info in settlement messages.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUG surveys 2013. No additional information is

requested in settlement messages for tax processing

Market claims (28 standards)

93%

Market practice change


100%



0%




Fully compliant

BN/A

N/A

N/A

N/A


operational according to the T2S standards following the

implementation of the new technical platform in February 2015.


securities transfers.

Fully compliant

BN/A

N/A

N/A

N/A





Fully compliant

BN/A

N/A

N/A

N/A

Info source: 2014 HSG survey on IT outsourcing. No regulatory barrier

for outsourcing of settlement services by the CSD to the

Eurosystem.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: Bilateral confirmation from NUG. Fully compliant since 6

October 2014.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUGs survey and bilateral input.

NBB-‐SSS offers omnibus accounts.


Not compliant

YMarket practice change

Not available

Not available

NBB-‐SSS

Info source: Based on the HSG decision on 22/23 October 2015. NBB-‐

SSS requires participants to maintain two omnibus accounts based on

the tax exempt category of the investors; exempt and non-‐exempt

accounts. Investor CSDs and their participants are forced to

propagate this segregation further down the custody chain.


Fully compliant

BN/A

N/A

N/A

N/A





Not compliant

GStraight-‐forward to implement

Testing readiness

achieved

March 2016

NBB

Info source: HSG survey on T2S DCA numbering, April-‐ May 2013.

Sub-‐activity

Compliance

Status


gap

Implementation

actor(s)

Further comments

Indicates level of

compliance with the

relevant

standards/rules

Green (G), yellow

(Y), red (R)

If the standards/rules are not yet

implemented, please specificy what

the type of gap is (use the dropdown

list).


Fully operational

according to the T2S

standard


for implemetation

18. Corporate actions CA market standards (44)

Not available

R -‐ No info

Other

Not available

Not available

NBB -‐ SSS

Infosource:InformationonNBB-‐SSScomplianceisnotavailablein

the September 2015 E-‐MIG survey


static data

Fully compliant

BN/A

N/A

N/A

N/A


NBB-‐SSS is in line with the European market practice.

T2S harmonisation activities: Belgium (NBB-‐SSS)

Priority 1

T2S messages

5. T2S schedule of

settlement day

Testing readiness

achieved


If standards/rules are not

fulfilled, please provide the

timetable and various

milestones/dates in the

implementation plan.

28/03/16

Sub-‐activity

Activity

NBB-‐SSS

Straight-‐forward to implement

G

Further comments

Priority 2

Activity

Info source: 2nd CASG gap analysis survey 2015 and NUG clarification.

Theonlybarrierstofullcompliancewithmarketclaimsstandardsno

6and23are

additionalcontrolswhichNBB-‐SSSparticipants

requestedtohaveatsecuritiesaccountlevel.Nevertheless,the

Belgian market has a plan to fully comply by its migration to T2S.

Not compliant

CSD account

structures

Legal harmonisation

GBE NUG

28/03/16

Testing readiness

achieved


If standards/rules are not

fulfilled, please provide the

timetable and various

milestones/dates in the


T2S accounts

numbering

Info source: SP2, SP3 and bilateral input and 2014 NUG survey.

NBB-‐SSS will fully comply with the T2S schedule, whatever the final

timings agreed. However, NBB-‐SSS has raised concerns about the

short time period between EoD and SoD.




6464

Compliance

Status


gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith

the rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national

acto

rs for

imple

meta

tion

1 T2S ISO 20022 messages

Fully compliant

BN/A

N/A

N/A

N/A

Info source: Confirmation from the NUG

received post-‐migration to T2S.

2 T2S mandatory matching fields

Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A




100%

NA


100%

NA


100%

NA



Fully compliant

BN/A

N/A

N/A

N/A





Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A


N/A

N/A




N/A

N/A

N/A

N/A

N/A

N/A



Compliance

Status


gap

Implementation

actor(s)

Indicates level of

compliance with

the relevant

standards/rules

Green (G),

yellow (Y), red

(R)




list).


Fully operational according to the T2S

standard


for implemetation


94%



Final implementation date not

available

SIS

Info source: BSG/E-‐MIG Survey (Sep 2015).

64 (out of 68) standards already met.

Guaranteed participation date and buyer

protection deadline for mandatory

reorganisation with options and voluntary

reorganisation are partly implemented.


static data

Fully compliant

BN/A

N/A

N/A

N/A



Further comments

T2S harmonisation activities: Switzerland (SIX SIS)

Priority 1

T2S messages

5. T2S schedule of

settlement day


Info source: NUG response February 2016.

Testing activities have been successfully

completed. The code is ready for roll-‐out on 28

March 2016

Activity

Sub-‐activity

CSD account

structures

T2S accounts

numbering

R -‐ March

2016

Sub-‐activity

Legal harmonisation

Priority 2

Activity

Not compliant


If standards/rules are not fulfilled, please provide the

timetable and various milestones/dates in the

28 March 2016


N/A

N/A

Info source: 2nd CASG gap analysis survey 2015.

Since its migration to T2S, the Swiss market has

achieved full compliance with the T2S CA

standards

Further comments

N/A



B

SIS





6565

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s

)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

essage

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

dSe

pte

mb

er 2

01

6V

PIn

fo s

ou

rce

: SP

2 a

nd

bilate

ral in

pu

t.

VP

is p

lan

nin

g t

o f

ully c

om

ply

wit

h t

he

re

levan

t

T2

S s

tan

dard

by its m

igratio

n t

o T

2S.

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

dSe

pte

mb

er 2

01

6V

PIn

fo s

ou

rce

: SP

2 a

nd

bilate

ral in

pu

t. V

P is p

lan

nin

g

to

fu

lly c

om

ply

wit

h t

he

re

levan

t T

2S s

tan

dard

by

its m

igratio

n t

o T

2S.

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3. R

egis

tratio

n

info

rm

atio

n is n

ot p

art o

f th

e s

ettle

me

nt

instru

ctio

n

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3. Tax

info

rm

atio

n is d

ire

ctly

asso

cia

te

d w

ith

th

e

acco

un

t, h

en

ce

no

ne

ed

to

tran

sfe

r t

he

de

tails in

se

ttle

me

nt m

essage

Mark

et

cla

ims (

28 s

tan

dard

s)

21

%M

ajo

r t

ech

nic

al ch

an

ge

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

15

%M

ajo

r t

ech

nic

al ch

an

ge

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

Majo

r t

ech

nic

al ch

an

ge

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

In

fo s

ou

rce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

20

12

, SP

2 a

nd

bilate

ral in

pu

t.

Fu

ll c

om

plian

ce

wit

h T

2S S

F II ru

le

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

No

t c

om

plian

tY

CSD

ru

le/re

gu

lato

ry/le

gis

lativ

e

ap

pro

val

N/A

0

1/0

9/2

01

6Fin

an

stilsyn

et (

Dan

ish

Fin

an

cia

l Su

pe

rvis

ory

Au

th

orit

y)

In

fo s

ou

rce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

20

12

, SP

2 a

nd

bilate

ral in

pu

t f

ro

m t

he

DK

NU

G.

Tw

o n

ew

pro

vis

ion

s in

th

e V

P S

EC

UR

ITIE

S C

learin

g

Ru

les w

ill e

nsu

re

th

at s

ettle

me

nt in

T2

S w

ill b

e

un

co

nd

itio

nal, irre

vo

cab

le a

nd

en

force

ab

le u

nd

er

Dan

ish

law

. Th

e c

han

ge

s t

o t

he

Dan

ish

Se

cu

rit

ies

Trad

ing A

ct w

ill b

e s

en

t f

or c

on

su

ltatio

n in

D

ece

mb

er 2

01

5 a

nd

wit

h e

ntry in

to

fo

rce

on

Ju

ne

2

01

6. Th

e a

me

nd

me

nts w

ill b

e p

ut in

to

eff

ect

prio

r t

o t

he

mig

ratio

n o

f D

an

ish

marke

t t

o T

2S.

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT o

utso

urcin

g.

12

. S

ettle

me

nt c

ycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m N

UG

. Fu

lly

co

mp

lian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

dis

cu

ssio

ns.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

dis

cu

ssio

ns.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

2/0

9/2

01

6V

PIn

fo s

ou

rce

: H

SG

su

rve

y o

n T

2S S

ecu

rit

ies a

cco

un

t

nu

mb

erin

g, A

pril-‐

May 2

01

3. O

nly

Syste

m c

han

ge

s

are

re

qu

ire

d.

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

Syste

m c

han

ge

sN

/A

N/A

DK

NC

B

Info

so

urce

:Co

nfi

rm

atio

n f

ro

m t

he

Dan

ish

NU

G.

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s

)

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

sta

nd

ard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e o

f gap

is

(use

th

e d

rop

do

wn

li

st).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18

. C

orp

ora

te

actio

ns

CA

mark

et

sta

nd

ard

s (

68)

85

%G

Marke

t P

ractic

e C

han

ge

Te

stin

g r

ead

ine

ss a

ch

ieve

dSe

pte

mb

er 2

01

6V

P a

nd

Dan

ish

NU

GIn

fo s

ou

rce

: B

SG

/E-‐M

IG S

urve

y (

Se

p 2

01

5).

58

(o

ut o

f 6

8)

stan

dard

s a

lre

ad

y m

et.

23

. S

ecu

rit

ies a

mo

un

t

sta

tic

da

ta

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

dis

cu

ssio

ns.

Pri

ori

ty 2

No

t c

om

plian

tTe

ch

nic

al ch

an

ge

/m

arke

t

practic

e

Activ

ity

T2

S a

cco

un

ts

nu

mb

erin

g

Info

so

urce

: SP

2, b

ilate

ral in

pu

t a

nd

NU

G s

urve

y

20

14

. Fu

ll c

om

plian

ce

wit

h t

he

T2

S s

ch

ed

ule

. N

o

issu

es id

en

tif

ied

exce

pt t

he

ge

ne

ral co

nce

rn

s o

n

th

e E

nd

of

Day r

ep

ortin

g a

nd

Start o

f D

ay t

ime

p

erio

d.

6.

Co

rp

ora

te

actio

ns

T2

S C

A s

ta

nd

ard

s (

59

)

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

pro

vid

e t

he

tim

eta

ble

an

d v

ario

us m

ile

sto

ne

s/d

ate

s i

n t

he

im

ple

me

nta

tio

n p

lan

.

Le

ga

l h

arm

on

isa

tio

n

Su

b-‐a

ctiv

ity

Fu

rth

er c

om

me

nts

Info

so

urce

: 2

nd

CA

SG

gap

an

aly

sis

su

rve

y 2

01

5A

s p

art o

f th

e im

ple

me

ntatio

n p

lan

pro

vid

ed

by

DK

NU

G, V

P w

ill o

ffe

r a

n a

uto

mate

d C

A d

ete

ctio

n

so

lutio

n. A

cco

rd

ing t

o V

P, th

is s

olu

tio

n w

ill b

e

re

ad

y f

or c

om

mu

nit

y t

estin

g p

rio

r t

o T

2S

mig

ratio

n (

Se

pte

mb

er 2

01

6).

VP

an

d D

K N

UG

Se

pte

mb

er 2

01

6Te

stin

g r

ead

ine

ss a

ch

ieve

d

CS

D a

cco

un

t

stru

ctu

re

s

G

T2

S h

arm

on

isati

on

acti

vit

ies: D

en

mark

Pri

ori

ty 1

T2

S m

essa

ge

s

5.

T2

S s

ch

ed

ule

of

se

ttle

me

nt d

ay

Te

stin

g r

ead

ine

ss a

ch

ieve

dV

P a

nd

DK

NU

G

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

pro

vid

e t

he

tim

eta

ble

an

d v

ario

us m

ile

sto

ne

s/d

ate

s i

n t

he

im

ple

me

nta

tio

n p

lan

.Fu

rth

er c

om

me

nts

GSe

p-‐1

6

Activ

ity

Su

b-‐a

ctiv

ity


6666

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G), yellow

(Y), red (R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national

acto

rs for

imple

meta

tion

1. T2S ISO 20022 m

essages

Not compliant



06/02/2017

CBF

Info source: SP2 and bilateral input. Full compliance is

planned upon m

igration to T2S

2. T2S m

andatory m

atching fields

Not compliant



06/02/2017

CBF

Info source: SP2 and bilateral input. Full compliance is

planned upon m

igration to T2S


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013. Settlement

messages are not used for transmission of

registration information


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013. Settlement

messages are not used for passing on transmission of

tax information

Market claim

s (28 standards)

46%

Legislative change

Transform

ations (13 standards)

0%

Legislative change


94%




Not compliant


N/A

06/02/2017

CBF

Info source: T2S NUGs surveys 2011 and 2012, SP2

and bilateral input.

The bilateral cancellation (after m

atching) principle

will be introduced to the German m

arket upon

Clearstream's m

igration to T2S.



Not compliant


N/A

06/02/2017

CBF

Info source: HSG Survey on T2S settlement finality

rule III. Need for changes in the CSD rules. No

barriers have been identified by NUG. Full

compliance by m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: 2014 HSG survey on IT outsourcing.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: Bilateral confirmation from NUG. Fully

compliant since 6 October 2014.


Fully compliant

BN/A

N/A

N/A

N/A



Fully compliant

BN/A

N/A

N/A

N/A



Not compliant



06/02/2017

CBF

Info source: HSG survey on T2S Securities account

numbering, April-‐ May 2013. No barriers identified.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: List of cash and securities side DCPs as

published by DCPG and further confirmation from

the DE NUG

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Indicates level of

compliance with the

relevant

standards/rules

Green (G), yellow

(Y), red (R)




list).



standard


for im

plemetation



93%

GRegulatory/legislative change


06/02/2017

German M

IG

Info source: BSG/E-‐M

IG Survey (Sep 2015).


et. Clearstream

published on its w

ebsite the final version of BP

instruction template agreed by CAJW

G and T2S CASG

as w

ell as all the requirements of the m

arket and T2S

BP standards, including the agreed tim

eline.


static data

Fully compliant

BN/A

N/A

N/A

N/A


Activity

T2S accounts

numbering

CSD account

structures


Priority 2







Info source: 2nd CASG gap analysis survey 2015 and

NUG clarification

There is some improvement in the implementation

plan of the German m

arket.

The German NUG has reported that German

parliament passed the necessary legislative changes

in stock corporation law in November 2015, albeit

with implementation date 1.1.2017. The

implementation is expected to come into force right

in tim

e before DE m

igration to T2S in February 2017.

Implementation of the standards w

ith high impact

on the T2S Community (payment on T2S DCA

accounts and m

anaging of fractions) is scheduled

within six m

onths of Clearstream’s m

igration to T2S.

The German m

arket does not yet have a plan to

eventually comply w

ith the two remaining standards,

with negligible impact (“CUM” flag and generating of

MCs independently of settlement of the underlying

transaction). It m

ay draw up such plans only after

discussions w

ith the authorities and analysis of

volume developments after the introduction of the

record date.

CBF / national

authorities /

SWIFT format:

DESSUG

Sub-‐activity

Further comments

Legal harm

onisation

R?

at the latest 6 m

onths after CBF's

migration to T2S, i.e. August

2017

T2S harm

onisation activities: Germ

any

T2S m

essages

5. T2S schedule of

settlement day

Not compliant

Activity

Sub-‐activity

Further comments

Info source: SP2 and bilateral input and NUG survey

2014.

Plan and dates for full compliance w

ith T2S schedule

are available. M

inor operational issues relating to

specific ISINs processes do not affect overall

compliance w

ith the T2S schedule.


06/02/2017

Priority 1

Change of market practice

CBF




G


6767

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s

)In

dicate

s level of

com

pliance w

ith

the rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the

T2S sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

essage

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

8/0

9/2

01

7EC

SD

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t. 2

01

3 Q

2 s

tatu

s

gath

erin

g t

em

pla

te

. P

lan

s f

or f

ull c

om

plian

ce

by

mig

ratio

n d

ate

are

co

nfi

rm

ed

an

d n

o issu

es id

en

tif

ied

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

8/0

9/2

01

7EC

SD

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t. 2

01

3 Q

2 s

tatu

s

gath

erin

g t

em

pla

te

. P

lan

s f

or f

ull c

om

plian

ce

by

mig

ratio

n d

ate

are

co

nfi

rm

ed

an

d n

o issu

es id

en

tif

ied

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: In

fo s

ou

rce

: T2

S H

SG

su

rve

ys 2

01

3. Esto

nia

is

a d

ire

ct h

old

ing m

arke

t. Se

ttle

me

nt a

nd

re

gis

tratio

n

are

do

ne

base

d o

n o

wn

er in

form

atio

n a

sso

cia

te

d w

ith

th

e s

ecu

rit

y a

cco

un

t n

um

be

r, an

d s

ettle

me

nt

me

ssage

s d

o n

ot c

on

tain

re

gis

tratio

n in

form

atio

n.

Se

ttle

me

nt a

nd

re

gis

tratio

n t

ake

s p

lace

at t

he

sam

e

tim

e.

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: In

fo s

ou

rce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d t

o p

ass o

n t

ax

re

late

d in

form

atio

n

Mark

et

cla

ims (

28 s

tan

dard

s)

43

%

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

15

%

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y

an

d e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

20

12

, SP

2 a

nd

b

ilate

ral in

pu

t.

Th

e lo

cal se

ttle

me

nt s

yste

m s

up

po

rts t

he

sam

e

can

ce

llatio

n p

rin

cip

les a

s T

2S. M

atch

ed

in

stru

ctio

n

de

man

ds c

an

ce

llatio

n in

stru

ctio

ns f

ro

m b

oth

co

un

te

rp

artie

s.

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

No

t c

om

plian

tG

CSD

ru

les c

han

ge

N/A

18

/0

9/2

01

7EC

SD

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

20

12

, SP

2,

HSG

20

13

Su

rve

y o

n S

F III.

Th

e E

CSD

SSS R

ule

s a

re

pla

nn

ed

to

be

up

date

d a

llo

win

g

for t

he

fu

ll r

eco

gn

itio

n o

f th

e u

nco

nd

itio

nality,

irre

vo

cab

ilit

y a

nd

en

force

ab

ilit

y o

f th

e s

ettle

me

nt

pro

ce

sse

d o

n t

he

T2

S p

latfo

rm

(in

ste

ad

of

th

e E

CSD

syste

m)

an

d t

he

re

levan

t a

me

nd

me

nts t

o b

e e

nfo

rce

d

as o

f T2

S im

ple

me

ntatio

n. P

lan

s f

or f

ull c

om

plian

ce

co

nfi

rm

ed

an

d n

o issu

es id

en

tif

ied

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT o

utso

urcin

g.

12

. S

ettle

me

nt c

ycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m N

UG

. Fu

lly

co

mp

lian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral in

pu

t.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral in

pu

t.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

htfo

rw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

8/0

9/2

01

7EC

SD

Info

so

urce

: H

SG

su

rve

y o

n T

2S s

ecu

rit

ies a

cco

un

t

nu

mb

erin

g, A

pril 2

01

3. T2

S s

tan

dard

will b

e

imp

lem

en

te

d b

y m

igratio

n t

o T

2S

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

htfo

rw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

8/0

9/2

01

7Ee

sti P

an

kIn

fo s

ou

rce

: H

SG

su

rve

y o

n T

2S D

CA

nu

mb

erin

g, A

pril-‐

May 2

01

3

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s

)

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h

the

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

sta

nd

ard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e o

f gap

is

(use

th

e d

rop

do

wn

li

st).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S s

tan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18

. C

orp

ora

te

actio

ns

CA

mark

et

sta

nd

ard

s (

68)

47

%Y

Re

gu

lato

ry/le

gis

lativ

e C

han

ge

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

8/0

9/2

01

7N

UG

/M

IGIn

fo s

ou

rce

: B

SG

/E-‐M

IG S

urve

y (

Se

p 2

01

5).

32

(o

ut o

f 6

8)

stan

dard

s a

lre

ad

y m

et.

23

. S

ecu

rit

ies a

mo

un

t

sta

tic

da

ta

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral in

pu

t.

Pri

ori

ty 2

T2

S a

cco

un

ts

nu

mb

erin

g

Info

so

urce

: 2

nd

CA

SG

gap

an

aly

sis

su

rve

y 2

01

5.

No

ch

an

ge

s in

prim

ary le

gis

latio

n h

ave

be

en

id

en

tif

ied

an

d o

nly

am

en

dm

en

ts t

o t

he

CSD

ru

les w

ill b

e n

ee

de

d.

Co

mm

itm

en

t t

o a

ch

ieve

te

ch

nic

al co

mp

lian

ce

by Q

3

20

15

an

d im

ple

me

ntatio

n in

th

e r

ule

s o

f th

e C

SD

as o

f Q

1 2

01

7.

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

p

ro

vid

e t

he

tim

eta

ble

an

d v

ario

us

mil

esto

ne

s/d

ate

s i

n t

he

im

ple

me

nta

tio

n p

lan

.

MIG

CS

D a

cco

un

t

stru

ctu

re

s

Activ

ity

6.

Co

rp

ora

te

actio

ns

T2

S C

A s

ta

nd

ard

s (

59

)

Le

ga

l h

arm

on

isa

tio

n

Fu

rth

er c

om

me

nts

Te

stin

g r

ead

ine

ss a

ch

ieve

dG

Te

ch

nic

al, m

arke

t p

ractic

e a

nd

C

SD

ru

les

Su

b-‐a

ctiv

ity

18

/0

9/2

01

7

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

T2

S h

arm

on

isati

on

acti

vit

ies: Esto

nia

Pri

ori

ty 1

T2

S m

essa

ge

s

5.

T2

S s

ch

ed

ule

of

se

ttle

me

nt d

ay

EC

SD

Su

b-‐a

ctiv

ity

Fu

rth

er c

om

me

nts

26

/0

9/2

01

6N

ot c

om

plian

t

Activ

ity

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t a

nd

NU

G s

urve

y

20

14

. Te

ch

nic

al ad

ap

tatio

ns a

nd

am

en

dm

en

ts t

o r

ule

s

an

d r

egu

latio

ns o

f C

SD

are

re

qu

ire

d. N

o b

arrie

rs

ide

ntif

ied

an

d d

etaile

d p

lan

/ro

ad

map

is a

vailab

le f

or

carryin

g o

ut n

ece

ssary c

han

ge

s. Th

e f

ull c

om

plian

ce

, te

ch

nic

al an

d le

gal, w

ill b

e a

ch

ieve

d a

s o

f m

igratio

n t

o

T2

S (F

eb

ru

ary 2

01

7)

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

p

ro

vid

e t

he

tim

eta

ble

an

d v

ario

us

G1

8/0

9/2

01

7


6868

Co

mp

lian

ce

Sta

tus

Typ

e o

f im

ple

men

tati

on

gap

Imp

lem

en

tati

on

acto

r(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G), yellow

(Y), red (R), blu

e

(B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat th

e

type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

essage

sN

ot

com

plian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

chie

ve

d1

8/0

9/2

01

7Ib

erc

lear

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t.

Pla

ns/

date

s fo

r fu

ll c

om

plian

ce b

efo

re T

2S

mig

rati

on

are

co

nfi

rme

d a

nd

no

iss

ue

s id

en

tifi

ed

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot

com

plian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

chie

ve

d1

8/0

9/2

01

7Ib

erc

lear

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t.

Pla

ns/

date

s fo

r fu

ll c

om

plian

ce b

efo

re T

2S

mig

rati

on

are

co

nfi

rme

d a

nd

no

iss

ue

s id

en

tifi

ed

3. In

tera

cti

on

fo

r re

gis

trati

on

No

t co

mp

lian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

27

/0

4/2

01

61

8/0

9/2

01

7Ib

erc

lear

Info

so

urc

e:

T2

S H

SG

su

rve

ys

20

13

. Sp

eci

fic

pro

ced

ure

fo

r e

xch

an

gin

g r

egis

trati

on

in

form

ati

on

is

to b

e d

eve

lop

ed

. P

ost

-‐ES

mark

et

refo

rm, se

ttle

me

nt

inst

ruct

ion

s w

ill n

ot

be

use

d f

or

pass

ing o

n r

egis

trati

on

in

form

ati

on

. Th

ere

are

no

barr

iers

to

im

ple

me

nta

tio

n b

efo

re m

igra

tio

n t

o T

2S

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S H

SG

su

rve

ys

20

13

. Se

ttle

me

nt

me

ssage

s are

no

t u

sed

to

tr

an

sfe

r ta

x in

form

ati

on

Mark

et

cla

ims (

28 s

tan

dard

s)

46

%Lo

w r

an

k le

gis

lati

ve

ch

an

ge

/ T

ech

nic

al

chan

ge

s

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

46

%M

ajo

r te

chn

ical ch

an

ge

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

Man

ual B

P t

o b

e im

ple

me

nte

d

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

In

fo s

ou

rce

: T2

S N

UG

s su

rve

ys

20

11

an

d

20

12

, SP

2 a

nd

bilate

ral in

pu

t.N

o n

ee

d f

or

an

y c

han

ge

s fo

r co

mp

lian

ce

wit

h T

2S S

F II ru

le

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

In

fo s

ou

rce

: SP

2 a

nd

bilate

ral in

pu

t.N

o n

ee

d f

or

an

y c

han

ge

s fo

r co

mp

lian

ce

wit

h T

2S S

F III r

ule

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urc

ing.

12. Sett

lem

en

t cycle

sP

art

ly c

om

plian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

N/A

Q2

20

16

Co

mp

ete

nt

au

tho

rity

fo

r su

pe

rvis

ion

of

trad

ing v

en

ue

s

Info

so

urc

e:

20

14

HSG

su

rve

y o

n

sett

lem

en

t cy

cle

. Sp

an

ish

fix

ed

in

com

e

secu

riti

es

mark

ets

(p

ub

lic

an

d p

rivate

de

bt)

h

as

mig

rate

d t

o T

+2

on

06

/1

0/2

01

4. Fo

r Sp

an

ish

Sto

ck E

xch

an

ge

tra

nsa

ctio

ns

(main

ly

eq

uit

ies)

, fu

ll c

om

plian

ce is

pla

nn

ed

fo

r Q

2

20

16

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral

inp

ut.

Fu

ll c

om

plian

ce in

pla

ce.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral

inp

ut.

Fu

ll c

om

plian

ce in

pla

ce.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gN

ot

com

plian

tG

Str

aig

ht-‐

forw

ard

to

im

ple

me

nt

'Te

stin

g r

ead

ine

ss a

chie

ve

d1

8/0

9/2

01

7Ib

erc

lear

Info

so

urc

e:

HSG

su

rve

y o

n T

2S s

ecu

riti

es

acc

ou

nt

nu

mb

eri

ng, A

pri

l-‐ M

ay 2

01

3.

Imp

lem

en

tati

on

of

the

sta

nd

ard

is

part

of

ad

ap

tati

on

to

th

e n

ew

CSD

pla

tfo

rm

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

HSG

su

rve

y o

n T

2S D

CA

n

um

be

rin

g, A

pri

l-‐ M

ay 2

01

3. Fu

ll

com

plian

ce in

pla

ce.

Co

mp

lian

ce

Sta

tus

Typ

e o

f im

ple

men

tati

on

gap

Imp

lem

en

tati

on

acto

r(s)

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

), y

ell

ow

(Y

), r

ed

(R

)If

th

e s

tan

dard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e

of gap

is

(use

th

e d

rop

do

wn

lis

t).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18. Co

rpo

rate

acti

on

s C

A m

ark

et

sta

nd

ard

s (

68)

74

%G

So

me

sta

nd

ard

s w

ill re

qu

ire

majo

r te

chn

ical ch

an

ge

an

d o

the

r w

ill n

ee

d

regu

lato

ry c

han

ge

27

/0

4/2

01

6N

ot

availab

leIb

erc

lear

Info

so

urc

e:

BSG

/E-‐M

IG S

urv

ey (

Se

p 2

01

5).

50

(o

ut

of

68

) st

an

dard

s alr

ead

y m

et.

Fin

al

imp

lem

en

tati

on

will d

ep

en

d o

n w

he

n t

he

re

form

of

the

Sp

an

ish

Re

gis

try, C

leari

ng

an

d S

ett

lem

en

t Syst

em

co

me

s in

to e

ffe

ct.

23. Secu

riti

es

am

ou

nt

stati

c d

ata

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral

inp

ut.

T2

S h

arm

on

isati

on

acti

vit

ies: Sp

ain

(IB

ER

CLEA

R)

T2S m

ess

ages

5. T2S s

ch

ed

ule

of

sett

lem

en

t d

ay

No

t co

mp

lian

tStr

aig

ht-‐

forw

ard

to

im

ple

me

nt

18

/0

9/2

01

7

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

dard

s/ru

les

are

no

t fu

lfille

d, p

lease

pro

vid

e t

he

tim

eta

ble

an

d v

ari

ou

s m

ilest

on

es/

date

s in

th

e

Pri

ori

ty 1

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t an

d

NU

G s

urv

ey 2

01

4. P

lan

s/d

ate

s fo

r fu

ll

com

plian

ce c

on

firm

ed

an

d n

o iss

ue

s id

en

tifi

ed

GIb

erc

lear

Acti

vit

ySu

b-‐a

cti

vit

yFu

rth

er

co

mm

en

ts

27

/0

4/2

01

6

Pri

ori

ty 2

T2S a

cco

un

ts

nu

mb

eri

ng

6. Co

rpo

rate

acti

on

sT2S C

A s

tan

dard

s (5

9)

Info

so

urc

e:

CA

SG

gap

an

aly

sis

surv

ey 2

01

5.

Ch

an

ge

s in

le

ve

l 2

le

gis

lati

on

are

ne

ed

ed

to

fu

lly c

om

ply

wit

h t

he

sta

nd

ard

s fr

om

a

legis

lati

ve

pe

rsp

ect

ive

. Eve

n t

ho

ugh

th

e

rule

bo

ok w

as

alr

ead

y c

han

ge

d in

Ju

ne

2

01

5, im

ple

me

nta

tio

n o

f m

ost

sta

nd

ard

s w

ill ta

ke

pla

ce a

t th

e t

ime

th

e S

pan

ish

re

form

co

min

g in

to f

orc

e in

Q2

20

16

. A

fe

w

stan

dard

s w

ill o

nly

be

im

ple

me

nte

d a

s fr

om

mig

rati

on

of

Ibe

rcle

ar

to T

2S in

20

17

.

27

/0

4/2

01

6G

Su

b-‐a

cti

vit

y

Le

gis

lato

rs/

IBER

CLEA

R

Legal h

arm

on

isati

on

Fu

rth

er

co

mm

en

ts

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

dard

s/ru

les

are

no

t fu

lfille

d, p

lease

pro

vid

e t

he

tim

eta

ble

an

d v

ari

ou

s m

ilest

on

es/

date

s in

th

e

imp

lem

en

tati

on

pla

n.

18

/0

9/2

01

7

CSD

acco

un

t st

ructu

res

Acti

vit

y


6969

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n g

ap

Imp

lem

en

ta

tio

n

acto

r(s

)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy

what th

e type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

essage

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: N

UG

re

sp

on

se

20

15

. T

2S

ve

rsio

n o

f IS

O2

00

22

me

ssage

stan

dard

is

alr

ead

y im

ple

me

nte

d in

pro

du

ctio

n

en

vir

on

me

nt f

ro

m 1

De

ce

mb

er 2

01

4. Th

e

Fin

nis

h m

arke

t is a

lre

ad

y u

sin

g t

he

se

T2

S

me

ssage

s.

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: N

UG

re

sp

on

se

20

15

. T2

S

man

dato

ry m

atch

ing f

ield

s a

re

alr

ead

y

imp

lem

en

te

d in

pro

du

ctio

n e

nvir

on

me

nt

fro

m 1

De

ce

mb

er 2

01

4. Th

e F

inn

ish

marke

t

is a

lre

ad

y u

sin

g t

he

T2

S m

atch

ing f

ield

s.

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d t

o

tran

sfe

r r

egis

tratio

n in

form

atio

n

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d t

o

tran

sfe

r t

ax in

form

atio

n

Mark

et

cla

ims (

28 s

tan

dard

s)

0%

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

0%

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y

an

d e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

In

fo s

ou

rce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2 a

nd

bilate

ral in

pu

t. A

lre

ad

y

imp

lem

en

te

d (

Se

pt 2

01

2)

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y

of

se

cu

riti

es t

ran

sfe

rs.

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

In

fo s

ou

rce

: SP

2 a

nd

bilate

ral in

pu

t.

No

ne

ed

fo

r a

ny c

han

ge

s f

or c

om

plian

ce

w

ith

T2

S S

F III r

ule

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urcin

g.

12

. S

ettle

me

nt c

ycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m

NU

G. Fu

lly c

om

plian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsN

ot c

om

plian

t y

et

YLe

gal/

re

gu

lato

ry

re

ad

y f

or t

estin

g (

exce

pt s

pe

cif

ic

re

stric

tio

n)

No

t a

vailab

leN

atio

nal le

gis

lato

r

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut.

FI in

ve

sto

rs' (e

qu

itie

s)

ho

ldin

gs a

re

e

xclu

de

d f

ro

m t

he

om

nib

us a

cco

un

t

stru

ctu

re

. O

ngo

ing d

iscu

ssio

ns w

ith

th

e

Min

istry b

ut n

o p

lan

to

in

tro

du

ce

an

y

ch

an

ge

s is a

vailab

le.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: N

UG

re

sp

on

se

20

15

.Fu

lly

op

eratio

nal sin

ce

2 F

eb

ru

ary 2

01

5

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

8/0

9/2

01

7FI N

CB

Info

so

urce

: H

SG

su

rve

y o

n T

2S D

CA

n

um

be

rin

g, A

pril-‐

May 2

01

3 a

nd

fu

rth

er

bilate

ral cla

rif

icatio

n. FI N

CB

will o

pe

n D

CA

b

egin

nin

g 3

rd

mig

ratio

n w

ave

Su

b-‐a

ctiv

ity

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n g

ap

Imp

lem

en

ta

tio

n

acto

r(s

)

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

sta

nd

ard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy

wh

at

the

typ

e o

f gap

is

(use

th

e

dro

pd

ow

n lis

t).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18

. C

orp

ora

te

actio

ns

CA

mark

et

sta

nd

ard

s (

68)

59

%Y

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d0

1/0

5/2

01

6Eu

ro

cle

ar F

I

Info

so

urce

: B

SG

/E-‐M

IG S

urve

y (

Se

p 2

01

5).

40

(o

ut o

f 6

8)

stan

dard

s a

lre

ad

y m

et.

Fin

nis

h m

arke

t w

ill im

ple

me

nt m

an

ual

bu

ye

r p

ro

te

ctio

n a

nd

im

ple

me

ntatio

n w

ill

take

pla

ce

by F

eb

ru

ary 2

01

7.

Imp

lem

en

tatio

n o

f o

th

er s

tan

dard

s w

ill

take

pla

ce

by Q

2 2

01

6

23

. S

ecu

rit

ies a

mo

un

t

sta

tic

da

ta

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: N

UG

re

sp

on

se

20

15

. Fu

lly

op

eratio

nal sin

ce

2 F

eb

ru

ary 2

01

5

T2

S a

cco

un

ts

nu

mb

erin

g

Activ

ity

Su

b-‐a

ctiv

ity

Fu

rth

er c

om

me

nts

Fu

rth

er c

om

me

nts

Info

so

urce

: 2

nd

CA

SG

gap

an

aly

sis

su

rve

y

20

15

.Th

ere

is d

etaile

d p

lan

to

me

et t

he

stan

dard

s b

y Q

2 2

01

6. N

o t

ech

nic

al o

r

re

gu

lato

ry issu

es r

em

ain

.M

IG a

nd

Eu

ro

cle

ar F

I

Activ

ity

Te

stin

g r

ead

ine

ss a

ch

ieve

dG

No

t c

om

plian

t

Le

ga

l h

arm

on

isa

tio

n

Prio

rit

y 2

T2

S h

arm

on

isatio

n a

ctiv

itie

s: Fin

lan

d

Prio

rit

y 1

T2

S m

essa

ge

s

5.

T2

S s

ch

ed

ule

of

se

ttle

me

nt d

ay

G

Info

so

urce

: SP

3 a

nd

NU

G s

urve

y 2

01

4. N

o

barrie

rs t

o im

ple

me

ntatio

n. H

ow

eve

r,

th

ere

is a

n o

pe

n issu

e r

egard

ing issu

ers’

op

tio

ns t

o p

ro

vid

e liq

uid

ity f

or n

igh

t-‐t

ime

se

ttle

me

nt. D

iscu

ssio

ns a

re

on

go

ing w

ith

all

re

levan

t m

arke

t p

artic

ipan

ts.

Eu

ro

cle

ar F

ITe

stin

g r

ead

ine

ss a

ch

ieve

dStraig

ht-‐f

orw

ard

to

im

ple

me

nt

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

pro

vid

e t

he

tim

eta

ble

an

d v

ario

us m

ile

sto

ne

s/d

ate

s i

n t

he

im

ple

me

nta

tio

n p

lan

.

CS

D a

cco

un

t

stru

ctu

re

s

6.

Co

rp

ora

te

actio

ns

T2

S C

A s

ta

nd

ard

s (

59

)

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

pro

vid

e t

he

tim

eta

ble

an

d v

ario

us m

ile

sto

ne

s/d

ate

s i

n t

he

18

/0

9/2

01

7

Octo

be

r 2

01

6


7070

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f

imp

lem

en

ta

tio

n g

ap

Imp

lem

en

ta

tio

n

acto

r(s)

Indicates level of

com

pliance w

ith the

rele

vant

standards/rule

s

Green (G), yellow

(Y), red (R), blu

e

(B)


s are not

yet im

ple

mented, ple

ase

specificy w

hat the type of gap is


gFully operatio

nal accordin

g to

the T2S standard

Rele

vant natio

nal actors

for im

ple

metatio

n

1. T2S ISO

20022 m

essage

sN

ot c

om

plian

tG

Straig

ht-‐fo

rw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

2/0

9/2

01

6Eu

ro

cle

ar F

R

Info

so

urce

: S

P2

an

d b

ilate

ral in

pu

tFre

nch

NU

G h

as c

on

fir

me

d p

lan

an

d d

ate

s

fo

r f

ull c

om

plian

ce

prio

r t

o m

igratio

n t

o T

2S

2. T2S m

an

dato

ry m

atch

ing f

ield

sN

ot c

om

plian

tG

Straig

ht-‐fo

rw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

2/0

9/2

01

6Eu

ro

cle

ar F

R

Info

so

urce

: S

P2

an

d b

ilate

ral in

pu

tFre

nch

NU

G h

as c

on

fir

me

d p

lan

an

d d

ate

s

fo

r f

ull c

om

plian

ce

prio

r t

o m

igratio

n t

o T

2S

3. In

te

ractio

n f

or r

egis

tratio

nFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T

2S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d f

or

re

gis

tratio

n p

ro

ce

ss.

4. In

te

ractio

n f

or t

ax in

fo

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T

2S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d f

or

se

nd

ing t

ax r

ela

te

d in

fo

rm

atio

n.

Marke

t c

laim

s (

28 s

tan

dard

s)

43

%M

ajo

r t

ech

nic

al ch

an

ge

Tran

sfo

rm

atio

ns (

13 s

tan

dard

s)

31

%M

ajo

r t

ech

nic

al ch

an

ge

Bu

ye

r p

ro

te

ctio

n (

18 s

tan

dard

s)

0%

Oth

er

8. Se

ttle

me

nt F

inali

ty II:

irre

vo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rd

er

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T

2S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2 a

nd

bilate

ral in

pu

t.

Eo

C a

lre

ad

y c

om

plie

s w

ith

T2

S S

FII r

ule

(b

ilate

ral can

ce

llatio

n)

9. Se

ttle

me

nt F

inali

ty III

: ir

re

vo

cab

ilit

y o

f

se

cu

rit

ies t

ran

sfe

rs.

No

t c

om

plian

tG

CSD

ru

les c

han

ge

N/A

12

/0

9/2

01

6Eu

ro

cle

ar

FR

/R

egu

lato

r

Info

so

urce

: T

2S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2 a

nd

bilate

ral in

pu

t. Straig

ht-‐

fo

rw

ard

to

im

ple

me

nt b

efo

re

mig

ratio

n t

o

T2

S. Eu

ro

cle

ar F

ran

ce

will u

pd

ate

its

op

eratin

g r

ule

s a

cco

rd

ing t

o t

he

T2

S S

F III

ru

le a

nd

have

th

em

ap

pro

ve

d b

y t

he

Fre

nch

fin

an

cia

l m

arke

ts a

uth

orit

y. N

o

barrie

rs a

re

id

en

tif

ied

.

10. O

utso

urcin

g IT (

Se

ttle

me

nt )

se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo

so

urce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urcin

g.

12

. S

ettle

me

nt c

ycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfir

matio

n f

ro

m

NU

G. Fu

lly c

om

plian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

ts

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T

2S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. Fu

ll c

om

plian

ce

wit

h o

mn

ibu

s

acco

un

t a

vailab

ilit

y in

Fran

ce

14. R

estric

tio

ns o

n o

mn

ibu

s a

cco

un

ts

No

t c

om

plian

tY

Marke

t p

ractic

e c

han

ge

No

t a

vailab

leN

ot a

vailab

leEu

ro

cle

ar F

ran

ce

Info

so

urce

: B

ase

d o

n t

he

HSG

de

cis

ion

on

2

2/2

3 O

cto

be

r 2

01

5. Eu

ro

cle

ar F

R r

eq

uir

es

partic

ipan

ts t

o m

ain

tain

tw

o o

mn

ibu

s

acco

un

ts b

ase

d o

n t

yp

e o

f s

ecu

rit

ies

ho

ldin

gs; r

egis

te

re

d a

nd

no

n-‐re

gis

te

re

d

se

cu

rit

ies. In

ve

sto

r C

SD

s a

nd

th

eir

p

artic

ipan

ts a

re

fo

rce

d t

o p

ro

pagate

th

is

se

gre

gatio

n f

urth

er d

ow

n t

he

cu

sto

dy

ch

ain

.

15. Se

cu

rit

ies a

cco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

htfo

rw

ard

to

Im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

d1

2/0

9/2

01

6Eu

ro

cle

ar F

R

Info

so

urce

: H

SG

su

rve

y o

n T

2S s

ecu

rit

ies

acco

un

t n

um

be

rin

g, A

pril-‐ M

ay 2

01

3.

Fre

nch

marke

t p

lan

s f

or f

ull c

om

plian

ce

p

rio

r t

o m

igratio

n t

o T

2S.

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: L

ist o

f c

ash

an

d s

ecu

rit

ies s

ide

D

CP

s a

s p

ub

lish

ed

by D

CP

G a

nd

fu

rth

er

co

nfir

matio

n f

ro

m t

he

FR

NU

G

Su

b-‐a

ctiv

ity

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f

imp

lem

en

ta

tio

n g

ap

Imp

lem

en

ta

tio

n

acto

r(s)

Fu

rth

er c

om

me

nts

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t

stan

dard

s/ru

les

Gre

en

(G

), y

ell

ow

(Y

), r

ed

(R

)If

th

e s

tan

dard

s/ru

les a

re

no

t y

et

imp

lem

en

te

d, p

lease

sp

ecif

icy

wh

at t

he

typ

e o

f gap

is (u

se

th

e

dro

pd

ow

n lis

t).

Re

ad

y fo

r T

2S t

estin

gFu

lly o

pe

ratio

nal acco

rd

ing t

o

th

e T

2S s

tan

dard

Re

levan

t n

atio

nal acto

rs

for im

ple

me

tatio

n

18

. C

orp

ora

te

actio

ns

CA

marke

t s

tan

dard

s (

68)

72

%G

Majo

r t

ech

nic

al ch

an

ge

an

d

legal ch

an

ge

sN

ot a

vailab

leN

ot a

vailab

leFR

-‐M

IG

Info

so

urce

: B

SG

/E-‐M

IG S

urve

y (

Se

pte

mb

er

20

15

). 4

9 (

ou

t o

f 6

8) s

tan

dard

s a

lre

ad

y

me

t. Fin

al im

ple

me

ntatio

n e

xp

ecte

d w

ith

Eu

ro

cle

ar lau

nch

of S

tre

am

6 -‐

afte

r

mig

ratio

n t

o T

2S.

23

. S

ecu

rit

ies a

mo

un

t

sta

tic

da

ta

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T

2S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. Fu

lly c

om

plian

t w

ith

Eu

ro

pe

an

m

arke

t p

ractic

e

T2

S h

arm

on

isatio

n a

ctiv

itie

s: Fran

ce

T2

S m

essa

ge

s

5.

T2

S s

ch

ed

ule

of

se

ttle

me

nt d

ay

Prio

rit

y 1

Eu

ro

cle

ar F

R

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

p

ro

vid

e t

he

tim

eta

ble

an

d v

ario

us

mil

esto

ne

s/d

ate

s i

n t

he

im

ple

me

nta

tio

n

pla

n.

12

/0

9/2

01

6

CS

D a

cco

un

t

stru

ctu

re

s

Prio

rit

y 2

Activ

ity

T2

S a

cco

un

ts

nu

mb

erin

g

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

p

ro

vid

e t

he

tim

eta

ble

an

d v

ario

us

R?

Activ

ity

Le

ga

l h

arm

on

isa

tio

n

Su

b-‐a

ctiv

ity

Fu

rth

er c

om

me

nts

No

t a

vailab

le

Info

so

urce

: 2

nd

20

15

CA

SG

gap

an

aly

sis

su

rve

y a

nd

fu

rth

er N

UG

cla

rif

icatio

n. Th

e

no

n-‐co

mp

lian

ce

affe

cts s

om

e o

f t

he

tran

sfo

rm

atio

n a

nd

bu

ye

r p

ro

te

ctio

n

stan

dard

s. In

partic

ula

r, fo

llo

win

g

re

sch

ed

ulin

g o

f E

SES m

arke

ts' m

igratio

n t

o

T2

S, th

ere

is s

till n

o c

om

plian

ce

date

re

gard

ing t

he

Eu

ro

cle

ar F

ran

ce

’s s

egm

en

t

of t

he

marke

t f

or f

ull c

om

plian

ce

wit

h t

he

tran

sfo

rm

atio

ns a

nd

bu

ye

r p

ro

te

ctio

n

stan

dard

s

FR

-‐ M

IG6

. C

orp

ora

te

actio

ns

T2

S C

A s

ta

nd

ard

s (

59

)

Info

so

urce

: S

P2

an

d b

ilate

ral in

pu

tTh

e E

SES o

pe

ratio

nal d

ay w

ill b

e a

me

nd

ed

to

co

pe

wit

h t

he

tim

ing o

f T

2S. T2

S

acco

un

tin

g d

ay w

ill b

e c

on

sid

ere

d t

he

m

aste

r d

ay. G

en

eral co

nce

rn

ab

ou

t t

he

tim

e p

erio

d b

etw

ee

n T

2S E

nd

of d

ay a

nd

Start o

f D

ay.

Te

stin

g r

ead

ine

ss a

ch

ieve

dG

No

t a

vailab

le

Straig

ht-‐fo

rw

ard

to

im

ple

me

nt

No

t c

om

plian

t


7171

Compliance

Status


gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion


Fully compliant

BN/A

N/A

22/06/2015

BOGS

Info source: Confirm

ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

BOGS


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.


100%

N/ A

Transform


100%

N/ A


100%

N/ A



Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.



Fully compliant

BN/A

N/A

01/06/2015

BOGS


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

BOGS


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

22/06/2015

GR NCB


ation from the NUG

received post-‐m

igration to T2S.

Sub-‐activity

Compliance

Status


gap

Implementation

actor(s)

Further comments

Indicates level of

compliance with the

relevant

standards/rules

Green (G),

yellow (Y), red

(R)




list).



standard


for im

plemetation


100%

BN/A

N/A

N/A

N/A




et.


static data

Fully compliant

BN/A

N/A

22/06/2015

N/A


ation from the NUG

received post-‐m

igration to T2S.

T2S harm

onisation activities: Greece (BOGS)

Priority 1

22/06/2015

BOGS/GR-‐NUG


ation from the NUG

received post-‐m

igration to T2S.





N/A

Activity

Sub-‐activity

Further comments

Fully compliant

N/A

BOGS for MCs and

TRANS / GR-‐NUG for

BP

N/A

T2S messages

Priority 2

B B

5. T2S schedule of

settlement day





N/A

CSD account

structures

T2S accounts

numbering

Activity



Legal harm

onisation

Info source: CASG gap analysis survey 2015.

The Greek NUG has confirm

ed full

compliance with all applicable T2S m

arket

claim

s and transform

ations and buyer

protection standards on government debt

securities it issues and serves.


7272

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO 20022 m

essages

Not compliant

GStraight-‐forw

ard to implement


06/02/2017

KELER

Info source: SP2 and bilateral input. Full plan and

implementation dates for full compliance prior to m

igration to

T2S are provided

2. T2S m

andatory m

atching fields

Not compliant

GStraight-‐forw

ard to implement


06/02/2017

KELER

Info source: SP2 and bilateral input. Full plan and

implementation dates for full compliance prior to m

igration to

T2S are provided


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013. Settlement messages are

not used for passing on registration inform

ation.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013. Settlement messages are not

used for passing on tax-‐related inform

ation

Market claim

s (28 standards)

4%

Regulatory/legislative/

technical change

Transform


8%

Major technical/ m

arket

practice and legal change


6%

Market practice and legal

change



Not compliant

GCSD rules change

N/A

06/02/2017

KELER/Regulator

Info source: T2S NUGs surveys 2011 and 2012, SP2 and bilateral

input and NUG response.

Plans and dates provided. However, no legislative changes are

required. CSD rules change requires NCB approval. No barriers

are foreseen in the procedure to incorporate these changes into

the CSD rules.



Not compliant

GCSD rules change

N/A

06/02/2017

KELER/ Regulator

Info source: T2S NUGs surveys 2011 and 2012, SP2 and bilateral

input.

Plans and dates provided. However no legislative changes are

required. CSD rules change requires NCB approval. No barriers

are foreseen in the procedure to incorporate these changes into

the CSD rules.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: 2014 HSG survey on IT outsourcing.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: Bilateral confirm

ation from NUG. Fully compliant

since 6 October 2014.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUGs survey and bilateral input. No barriers

identified.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUGs survey and bilateral input. No barriers

identified.


Not compliant

GStraight-‐forw

ard to

implement.


06/02/2017

Keller

Info source: HSG survey on T2S securities account numbering,

April-‐ M

ay 2013. No barriers identified preventing full

compliance before m

igration to T2S.


N/A

N/A

N/A

N/A

N/A

N/A

At the m

oment, the Hungarian NCB does not plan to open DCAs

in T2S

Sub-‐activity

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Further co

mments

Indicates level of

compliance with the

relevant

standards/rules

Green (G),

yellow (Y), red

(R)




list).



standard


for im

plemetation



25%

RTechnical change and m

arket

practice change for some

standards


06/02/2017

KELER




et.

23. Secu

rities amount

static data

Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S NUGs survey and bilateral input. Full compliance

with the EU standard.

T2S harm

onisation activities: Hungary

Priority 1

Not compliant

T2S m

essages


Implementation plan/d

ate




Info source: SP2 and bilateral input and NUG Chairperson's

reponse and NUG survey of 2014.

CSD rules and procedures need to be amended, but there are no

regulatory obstacles to adhering to the T2S settlement day

schedule. No technical barriers identified for im

plementation.

Detailed plan available to achieve full compliance before

migration to T2S.

5. T2S sch

edule of

settlement day


Activity

Sub-‐activity

Further co

mments

KELER

GFebruary 2017

Priority 2

Legal harm

onisation

G

Info source: 2nd CASG gap analysis survey 2015.

Consultations with tax authorities to clarify w

ithholding tax

regim

e are ongoing. Other proposals for legislative changes have

been submitted by Keler to the authorities and no problems

have been identified that could prevent their adoption in the

legislation by the end of 2015. Detailed analysis and plan exist to

comply w

ith all standards from a technical perspective by 2016.

Full implementation is planned for KELER’s m

igration to T2S.

Activity

T2S accounts

numbering



Implementation plan/d

ate




CSD account

structures

KELER, regulator,

NUG

06/02/2017


7373

Co

mp

lia

nce

S

tatu

sT

yp

e o

f im

ple

me

nta

tio

n g

ap

Imp

lem

en

tati

on

a

cto

r(s)

Ind

ica

tes le

ve

l o

f co

mp

lia

nce

wit

h t

he

re

leva

nt

sta

nd

ard

s/r

ule

s

Gre

en

(G

), y

ell

ow

(Y

), r

ed

(R

), b

lue

(B

)

If t

he

sta

nd

ard

s/r

ule

s a

re n

ot

ye

t im

ple

me

nte

d, p

lea

se

sp

ecif

icy w

ha

t th

e

typ

e o

f ga

p is

Re

ad

y fo

r T2

S t

esti

ng

Fu

lly o

pe

rati

on

al a

cco

rdin

g t

o t

he

T2

S

sta

nd

ard

Re

leva

nt

na

tio

na

l a

cto

rs fo

r im

ple

me

tati

on

1. T2S ISO

20022 m

essage

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: C

on

firm

atio

n f

ro

m t

he

NU

G

re

ce

ive

d p

ost-‐m

igratio

n t

o T

2S.

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: C

on

firm

atio

n f

ro

m t

he

NU

G

re

ce

ive

d p

ost-‐m

igratio

n t

o T

2S.

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s d

o n

ot c

on

tain

an

y

re

gis

tratio

n in

form

atio

n.

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3 a

nd

b

ilate

ral in

pu

t. Se

ttle

me

nt m

essage

s d

o

no

t c

on

tain

an

y t

ax-‐r

ela

te

d in

form

atio

n.

Mark

et

cla

ims (

28 s

tan

dard

s)

93

%M

arke

t p

ractic

e c

han

ge

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

92

%M

arke

t p

ractic

e c

han

ge

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

10

0%

Oth

er

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y o

f tr

an

sfe

r o

rde

r Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2 a

nd

bilate

ral in

pu

t.

Fu

lly c

om

plian

t w

ith

T2

S S

F II ru

le

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

Fu

lly c

om

plian

tB

N/A

N/A

Jun

e 2

01

5N

/A

Info

so

urce

: C

on

firm

atio

n f

ro

m t

he

NU

G

re

ce

ive

d p

ost-‐m

igratio

n t

o T

2S.

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urcin

g.

12

. S

ett

lem

en

t cy

cle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m

NU

G. Fu

lly c

om

plian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. N

o b

arrie

rs id

en

ttif

ied

.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. N

o b

arrie

rs id

en

ttif

ied

.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: C

on

firm

atio

n f

ro

m t

he

NU

G

re

ce

ive

d p

ost-‐m

igratio

n t

o T

2S.

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: H

SG

su

rve

y o

n T

2S D

CA

n

um

be

rin

g, A

pril-‐

May 2

01

3. B

dI alr

ead

y

co

mp

lie

s fu

lly w

ith

T2

S s

tan

dard

.

Su

b-‐a

cti

vit

yC

om

pli

an

ce

S

tatu

sT

yp

e o

f im

ple

me

nta

tio

n g

ap

Imp

lem

en

tati

on

a

cto

r(s)

Fu

rth

er

co

mm

en

ts

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

), y

ell

ow

(Y

), r

ed

(R

)If

th

e s

tan

dard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e

of gap

is

(use

th

e d

rop

do

wn

lis

t).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18

. C

orp

ora

te a

cti

on

s C

A m

ark

et

sta

nd

ard

s (

68)

10

0%

BN

/A

N/A

N/A

N/A

Info

so

urce

: B

SG

/E-‐M

IG S

urve

y (

Se

p 2

01

5).

68

(o

ut o

f 6

8)

stan

dard

s a

lre

ad

y m

et

23

. S

ecu

riti

es

am

ou

nt

sta

tic d

ata

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. IT

marke

t c

om

plie

s f

ully w

ith

th

e E

U

stan

dard

CS

D a

cco

un

t st

ructu

res

Acti

vit

y

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

da

rds/

rule

s a

re n

ot

fulf

ille

d,

ple

ase

pro

vid

e t

he

ti

me

tab

le a

nd

va

rio

us

mil

est

on

es/

da

tes

in t

he

B

Pri

ori

ty 2

Fu

lly c

om

plian

tN

/A

T2

S a

cco

un

ts

nu

mb

eri

ng

Le

ga

l h

arm

on

isa

tio

n

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

da

rds/

rule

s a

re n

ot

fulf

ille

d,

ple

ase

pro

vid

e t

he

ti

me

tab

le a

nd

va

rio

us

mil

est

on

es/

da

tes

in t

he

Te

stin

g r

ead

ine

ss a

ch

ieve

d

Info

so

urce

: 2

nd

CA

SG

gap

an

aly

sis

su

rve

y

20

15

.Th

e Italian

marke

t h

as a

lre

ad

y m

igrate

d t

o

T2

S a

nd

all t

he

T2

S s

tan

dard

s o

n C

A

pro

ce

ssin

g a

re

co

mp

lie

d w

ith

exce

pt

marke

t c

laim

stan

dard

6 a

nd

tran

sfo

rm

atio

ns s

tan

dard

3 b

ecau

se

of

no

n-‐

ge

ne

ratio

n o

f m

arke

t c

laim

s a

nd

tran

sfo

rm

atio

ns f

or O

TC

tran

sactio

ns,

re

sp

ectiv

ely

, as w

ell a

s m

arke

t c

laim

stan

dard

23

re

gard

ing t

he

lack o

f p

ro

vis

ion

o

f a u

se

r-‐f

rie

nd

ly f

acilit

y t

o M

on

te

Tit

oli’s

p

artic

ipan

ts in

ord

er t

o e

nsu

re

th

at t

he

m

arke

t c

laim

is n

ot s

ettle

d p

rio

r t

o t

he

se

ttle

me

nt o

f th

e u

nd

erly

ing o

n-‐e

xch

an

ge

an

d C

CP

tran

sactio

ns. Th

ere

is a

de

ad

lin

e t

o

co

mp

ly w

ith

all C

A s

tan

dard

s b

y t

he

en

d o

f 2

01

6. Th

e Italian

marke

t's

no

n-‐c

om

plian

ce

is

be

ing a

sse

sse

d u

nd

er t

he

fram

ew

ork

agre

ed

by t

he

T2

S B

oard

fo

r im

pact

asse

ssm

en

t.

Mo

nte

Tit

oli a

nd

IT

NU

G6

. C

orp

ora

te a

cti

on

sT

2S

CA

sta

nd

ard

s (5

9)

R -‐

Dec

20

16

De

ce

mb

er 2

01

6

T2

S h

arm

on

isati

on

acti

vit

ies: It

aly

T2

S m

ess

ag

es

5.

T2

S s

ch

ed

ule

of

sett

lem

en

t d

ay

Pri

ori

ty 1

N/A

Su

b-‐a

cti

vit

yFu

rth

er

co

mm

en

ts

N/A

Acti

vit

y

Info

so

urce

: C

on

firm

atio

n f

ro

m t

he

NU

G

re

ce

ive

d p

ost-‐m

igratio

n t

o T

2S.

N/A


7474

Co

mp

lia

nce

S

tatu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

essage

sN

ot

com

plian

tG

Str

aig

htf

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

chie

ve

d1

8-‐S

ep

-‐17

LC

VP

D

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t. N

ew

IT

syst

em

fo

r LC

VP

D. P

lan

s an

d d

ate

s fo

r fu

ll

com

plian

ce b

efo

re m

igra

tio

n t

o T

2S h

ave

b

ee

n p

rovid

ed

.

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot

com

plian

tG

Str

aig

htf

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

chie

ve

d1

8-‐S

ep

-‐17

LC

VP

D

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t. N

ew

IT

syst

em

fo

r LC

VP

D. P

lan

s an

d d

ate

s fo

r fu

ll

com

plian

ce b

efo

re m

igra

tio

n t

o T

2S h

ave

b

ee

n p

rovid

ed

.

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

Bilate

ral co

nfi

rmati

on

fro

m t

he

N

UG

. Se

ttle

me

nt

me

ssage

s are

no

t u

sed

to

tr

an

smit

re

gis

trati

on

in

form

ati

on

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S H

SG

su

rve

ys

20

13

. Se

ttle

me

nt

me

ssage

s are

no

t u

sed

to

tr

an

smit

tax-‐r

ela

ted

in

form

ati

on

Mark

et

cla

ims (

28 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lati

ve

ch

an

ge

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lati

ve

ch

an

ge

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lati

ve

ch

an

ge

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r N

ot

com

plian

tG

CSD

ru

les

chan

ge

N/A

18

-‐Se

p-‐1

7LC

VP

D

Info

so

urc

e:

T2

S N

UG

s su

rve

ys

20

11

an

d

20

12

, SP

2 a

nd

bilate

ral in

pu

t an

d N

UG

C

hair

pe

rso

n's

re

spo

nse

.N

ew

dra

ft C

SD

ru

les

have

be

en

pro

vid

ed

fo

r re

gu

lato

ry a

pp

roval in

th

e b

egin

nin

g o

f 2

01

6. N

o le

gal/

regu

lato

ry b

arr

iers

id

en

tifi

ed

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

No

t co

mp

lian

tG

CSD

ru

les

chan

ge

N/A

18

-‐Se

p-‐1

7LC

VP

D

Info

so

urc

e:

T2

S N

UG

s su

rve

ys

20

11

an

d

20

12

, SP

2 a

nd

bilate

ral in

pu

t an

d N

UG

C

hair

pe

rso

n's

re

spo

nse

.N

ew

dra

ft C

SD

ru

les

have

be

en

pro

vid

ed

fo

r re

gu

lato

ry a

pp

roval in

th

e b

egin

nin

g o

f 2

01

6. N

o le

gal/

regu

lato

ry b

arr

iers

id

en

tifi

ed

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urc

ing.

12

. S

ett

lem

en

t cy

cle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

Bilate

ral co

nfi

rmati

on

fro

m

NU

G. Fu

lly c

om

plian

t si

nce

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral

inp

ut.

No

barr

iers

id

en

tifi

ed

.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral

inp

ut.

No

barr

iers

id

en

tifi

ed

.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gN

ot

com

plian

tG

Str

aig

htf

orw

ard

to

im

ple

me

nt.

N

o iss

ue

s fo

rese

en

Te

stin

g r

ead

ine

ss a

chie

ve

d1

8-‐S

ep

-‐17

LC

VP

D

Info

so

urc

e:

HSG

su

rve

y o

n T

2S s

ecu

riti

es

acc

ou

nt

nu

mb

eri

ng, A

pri

l-‐ M

ay 2

01

3. T2

S

stan

dard

will b

e in

tro

du

ced

in

pro

du

ctio

n

wit

h t

he

im

ple

me

nta

tio

n o

f n

ew

CSD

sy

ste

m. P

lan

s an

d d

ate

s h

ave

be

en

p

rovid

ed

.

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gN

ot

com

plian

tG

Str

aig

htf

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

chie

ve

d1

8-‐S

ep

-‐17

Ban

k o

f Lit

hu

an

ia

No

ob

stacl

e f

or

T2

S s

tan

dard

ad

op

tio

n. In

fo

sou

rce

: H

SG

su

rve

y o

n T

2S D

CA

nu

mb

eri

ng,

Ap

ril-‐

May 2

01

3. P

lan

an

d d

ate

s h

ave

be

en

p

rovid

ed

. Th

e w

ork

is

pro

gre

ssin

g a

cco

rdin

g

to p

lan

, n

o d

ela

ys

fore

see

n.

Su

b-‐a

cti

vit

yC

om

pli

an

ce

S

tatu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s)

Fu

rth

er

co

mm

en

ts

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

sta

nd

ard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e o

f gap

is

(use

th

e d

rop

do

wn

li

st).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18

. C

orp

ora

te a

cti

on

s C

A m

ark

et

sta

nd

ard

s (

68)

31

%R

Le

gal b

arr

ier,

Mark

et

pra

ctic

e

chan

ge

an

d c

han

ge

s in

CSD

ru

les

an

d r

egu

lati

on

sTe

stin

g r

ead

ine

ss a

chie

ve

d1

8-‐S

ep

-‐17

LC

VP

DIn

fo s

ou

rce

: B

SG

/E-‐M

IG S

urv

ey (

Se

p 2

01

5).

21

(o

ut

of

68

) st

an

dard

s alr

ead

y m

et

23

. S

ecu

riti

es

am

ou

nt

sta

tic d

ata

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urc

e:

T2

S N

UG

s su

rve

y a

nd

bilate

ral

inp

ut.

Fu

lly c

om

plian

t w

ith

WU

sta

nd

ard

.

T2

S h

arm

on

isati

on

acti

vit

ies: Lit

hu

an

ia

Pri

ori

ty 1

T2

S m

ess

ag

es

5.

T2

S s

ch

ed

ule

of

sett

lem

en

t d

ay

Te

chn

ical ad

ap

tati

on

s an

d C

SD

ru

le c

han

ge

N

ot

com

plian

t

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

da

rds/

rule

s a

re n

ot

fulf

ille

d,

ple

ase

pro

vid

e t

he

ti

me

tab

le a

nd

va

rio

us

mil

est

on

es/

da

tes

in t

he

A

cti

vit

yS

ub

-‐acti

vit

yFu

rth

er

co

mm

en

ts

Info

so

urc

e:

SP

2 a

nd

bilate

ral in

pu

t an

d

NU

G s

urv

ey. P

lan

an

d d

ate

s p

rovid

ed

. N

o

barr

iers

id

en

tifi

ed

.LC

VP

D2

6/0

9/2

01

6G

18

-‐Se

p-‐1

7

Se

pte

mb

er

20

17

Pri

ori

ty 2

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

da

rds/

rule

s a

re n

ot

fulf

ille

d,

ple

ase

pro

vid

e t

he

ti

me

tab

le a

nd

va

rio

us

mil

est

on

es/

da

tes

in t

he

Te

stin

g r

ead

ine

ss a

chie

ve

d

Info

so

urc

e:

2n

d C

ASG

gap

an

aly

sis

surv

ey

20

15

. N

o o

bst

acl

es

have

be

en

id

en

tifi

ed

to

co

mp

lyin

g f

ully b

y m

igra

tio

n d

ate

. A

cco

rdin

g t

o t

he

im

ple

me

nta

tio

n p

lan

, te

chn

ical im

ple

me

nta

tio

n w

ill ta

ke

pla

ce in

Q

3 2

01

5 w

ith

th

e s

tart

of

inte

rnal te

stin

g.

Th

is w

ill b

e f

ollo

we

d b

y T

2S t

est

ing. C

SD

ru

les

chan

ge

s w

ill ta

ke

eff

ect

as

of

mig

rati

on

to

th

e n

ew

syst

em

an

d a

s o

f m

igra

tio

n d

ate

to

T2

S (

Fe

b 2

01

7)

GLC

VP

D

T2

S a

cco

un

ts

nu

mb

eri

ng

CS

D a

cco

un

t st

ructu

res

Acti

vit

y

6.

Co

rpo

rate

acti

on

sT

2S

CA

sta

nd

ard

s (5

9)

Le

ga

l h

arm

on

isa

tio

n


7575

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO 20022 m

essages

Not compliant

GStraight-‐forw

ard to implement


06/02/2017

LUX CSD


2. T2S m

andatory m

atching fields

Not compliant

GStraight-‐forw

ard to implement


06/02/2017

LUX CSD


Lux CSD confirm

ed that there are no issues

with full compliance w

ith T2S m

andatory

matching fields


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013.

Registration inform

ation is not transferred

via settlement messages


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013. Tax

inform

ation is not transferred via

settlement messages

Market claim

s (28 standards)

54%

Straight-‐forw

ard to implement

Transform


0%

Straight-‐forw

ard to implement


94%

Straight-‐forw

ard to implement



Not compliant

GRegulatory/legislative change

N/A

06/02/2017

LUX CSD


2012, SP2 and bilateral input. Lux CSD w

ill

follow CBF instruction cancellation process.



Fully compliant

BN/A

N/A

N/ A

N/A

Info source: Survey on T2S settlement

finality rule III and NUG response. SFIII is

ensured via provisions in public

Luxembourg law


Fully compliant

BN/A

N/A

N/A


outsourcing.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: Bilateral confirm

ation from



Fully compliant

BN/A

N/A

N/A

N/A


input.


Fully compliant

BN/A

N/A

N/A

N/A


input.


Not compliant

GStraight-‐forw

ard to implement


06/02/2017

LUX CSD

Info source: HSG survey on T2S securities

account numbering, April-‐May 2013


Not compliant

GStraightforw

ard to Implement


March 2016

BCL


numbering, April-‐May 2013

Sub-‐activity

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Further comments

Indicates level of

compliance with the

relevant standards/rules

Green (G),

yellow (Y), red

(R)




list).



standard


for im

plemetation



Not available

R -‐ No info

Other

Not available

Not available

LUX CSD

Info

source:

Inform

ation

on

LUX

CSD

compliance

isnot

available

inthe

September 2015 E-‐M

IG survey


static data

Fully compliant

BN/A

N/A

N/A

N/A


input.

T2S harm

onisation activities: LUX CSD

Priority 1

LUX CSD

Info source: SP2 and bilateral input. No

issues foreseen in complying w

ith T2S

standards.

T2S m

essages





06/02/2017

Activity

Sub-‐activity

Further comments


GStraight-‐forw

ard to implement

5. T2S schedule of

settlement day

Not compliant

LUX CSD

CSD account

structures

Priority 2

Activity

T2S accounts

numbering





06/02/2017

Legal harm

onisation

Info source: 2nd CASG gap analysis survey

2015.

Compliance w

ith m

ore than half of the M

C

standards has been achieved. Where non-‐

compliance has been indicated w

ith certain

standards, LUX CSD has confirm

ed that only

a change in m

arket practice w

ould be

necessary. The standards will be adopted,

initially as a m

anual process, by September

2016, with the participation of Lux CSD in

T2S.



Not available

G


7676

Com

plia

nce

Stat

usTy

pe o

f im

plem

enta

tion

ga

pIm

plem

enta

tion

ac

tor(

s)In

dica

tes le

vel o

f co

mpl

ianc

e with th

e re

leva

nt

stan

dard

s/ru

les

Gre

en (G

), ye

llow (Y

), re

d (R

), bl

ue (B

)

If th

e st

anda

rds/

rule

s ar

e no

t yet

im

plem

ente

d, ple

ase sp

ecifi

cy w

hat

the ty

pe of g

ap is

Read

y fo

r T2S

test

ing

Fully

ope

ration

al acc

ordi

ng to

the T2

S st

anda

rdRe

leva

nt nat

iona

l act

ors

for i

mpl

emet

atio

n

1. T

2S IS

O 2

0022

mes

sage

sN

ot c

ompl

iant

GSt

raig

ht-‐f

orw

ard

to im

plem

ent

Test

ing

read

ines

s ac

hiev

edSe

ptem

ber

2016

VP

Lux

Info

sou

rce:

SP2

and

bila

tera

l inp

ut.

VP

is p

lann

ing

to u

se t

he T

2S IS

O 2

0022

sta

ndar

d fo

r in

form

atio

n m

anag

emen

t se

rvic

es in

line

wit

h U

DFS

2. T

2S m

anda

tory

mat

chin

g fi

elds

Not

com

plia

ntG

Maj

or t

echn

ical

cha

nge

Test

ing

read

ines

s ac

hiev

edSe

ptem

ber

2016

VP

Lux

Info

sou

rce:

SP2

and

bila

tera

l inp

ut. P

lans

and

dat

es fo

r fu

ll co

mpl

ianc

e ha

ve b

een

prov

ided

.

3. In

tera

ctio

n fo

r reg

istr

atio

nFu

lly c

ompl

iant

BN

/AN

/AN

/AV

P Lu

xIn

fo s

ourc

e: T

2S H

SG s

urve

ys 2

013.

Reg

istr

atio

n in

form

atio

n is

not

pa

rt o

f the

inst

ruct

ion

and

info

rmat

ion

abou

t re

gist

rati

on is

tak

en

dire

ctly

from

the

acc

ount

s

4. In

tera

ctio

n fo

r tax

info

Fully

com

plia

ntB

N/A

N/A

N/A

VP

Lux

Info

sou

rce:

T2S

HSG

sur

veys

201

3. T

ax in

form

atio

n is

dir

ectl

y as

soci

ated

wit

h th

e ac

coun

t, h

ence

no

need

to

tran

sfer

the

det

ails

in

set

tlem

ent

mes

sage

Mar

ket c

laim

s (2

8 st

anda

rds)

21%

Tran

sfor

mat

ions

(13

stan

dard

s)15

%

Buye

r pro

tect

ion

(18

stan

dard

s)0%

8. S

ettl

emen

t Fin

alit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Fully

com

plia

ntB

N/A

N/A

N/A

N/A

Info

sou

rce:

T2S

NU

Gs

surv

eys

2011

and

201

2, S

P2 a

nd b

ilate

ral

inpu

t.Fu

ll co

mpl

ianc

e w

ith

bila

tera

l can

cella

tion

aft

er m

atch

ing.

9. S

ettl

emen

t Fin

alit

y III

: irr

evoc

abili

ty o

f se

curi

ties

tran

sfer

s.

Fully

com

plia

ntB

N/A

N/A

N/A

N/A

Info

sou

rce:

Sur

vey

on T

2S s

ettl

emen

t fin

alit

y ru

le II

I and

NU

G

resp

onse

. SFI

II is

ens

ured

via

pro

visi

ons

in p

ublic

Lux

embo

urgi

sh

law

10. O

utso

urci

ng IT

(Set

tlem

ent )

ser

vice

sFu

lly c

ompl

iant

BN

/AN

/A

N/A

N

/A

Info

sou

rce:

201

4 H

SG s

urve

y on

IT o

utso

urci

ng.

12. S

ettl

emen

t cy

cles

Fully

com

plia

ntB

N/A

N/A

N/A

N/A

Info

sou

rce:

Bila

tera

l con

firm

atio

n fr

om N

UG

. Ful

ly c

ompl

iant

sin

ce

6 O

ctob

er 2

014.

13. A

vaila

bilit

y of

om

nibu

s ac

coun

tsFu

lly c

ompl

iant

BN

/AN

/AN

/AN

/AIn

fo s

ourc

e: T

2S N

UG

s su

rvey

and

bila

tera

l inp

ut.

14. R

estr

icti

ons

on o

mni

bus

acco

unts

Fully

com

plia

ntB

N/A

N/A

N/A

N/A

Info

sou

rce:

T2S

NU

Gs

surv

ey a

nd b

ilate

ral i

nput

.

15. S

ecur

itie

s ac

coun

t num

beri

ngN

ot c

ompl

iant

GSy

stem

cha

nges

Test

ing

read

ines

s ac

hiev

edSe

ptem

ber

2016

VP

Lux

Info

sou

rce:

HSG

sur

vey

on T

2S s

ecur

itie

s ac

coun

t nu

mbe

ring

, Apr

il-‐M

ay 2

013.

Sys

tem

cha

nges

are

req

uire

d.

16. D

edic

ated

cas

h ac

coun

t num

beri

ngN

ot c

ompl

iant

GSt

raig

htfo

rwar

d to

Impl

emen

tTe

stin

g re

adin

ess

achi

eved

Mar

ch 2

016

NCB

Info

sou

rce:

HSG

sur

vey

on T

2S D

CA n

umbe

ring

, Apr

il-‐M

ay 2

013.

BC

L to

com

ply

fully

.

Sub-‐

acti

vity

Com

plia

nce

Stat

usTy

pe o

f im

plem

enta

tion

ga

pIm

plem

enta

tion

ac

tor(

s)Fu

rthe

r co

mm

ents

Indi

cate

s lev

el o

f co

mpl

ianc

e w

ith

the

rele

vant

st

anda

rds/

rule

s

Gre

en (G

), ye

llow

(Y),

red

(R)

If th

e st

anda

rds/

rule

s are

not

yet

im

plem

ente

d, p

leas

e sp

ecifi

cy w

hat

the

type

of g

ap is

(use

the

drop

dow

n lis

t).

Read

y fo

r T2S

test

ing

Fully

ope

rati

onal

acc

ordi

ng to

the

T2S

stan

dard

Rele

vant

nat

iona

l act

ors

for i

mpl

emet

atio

n

18. C

orpo

rate

act

ions

CA m

arke

t sta

ndar

ds (6

8)N

ot a

vaila

ble

R -‐ N

o in

foO

ther

Not

ava

ilabl

eN

ot a

vaila

ble

VP

LUX

Info

sour

ce:

Info

rmat

ion

onV

PLU

Xco

mpl

ianc

eis

not

avai

labl

ein

the

Sept

embe

r 20

15 E

-‐MIG

sur

vey

23. S

ecur

itie

s am

ount

st

atic

dat

aFu

lly c

ompl

iant

BN

/AN

/AN

/AN

/AIn

fo s

ourc

e: T

2S N

UG

s su

rvey

and

bila

tera

l inp

ut.

Impl

emen

tati

on p

lan/

date

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e ti

met

able

and

var

ious

mile

ston

es/d

ates

in t

he

impl

emen

tati

on p

lan.Se

ptem

ber

2016

Sept

embe

r 20

16

CSD

acc

ount

st

ruct

ures

Prio

rity

2

Test

ing

read

ines

s ac

hiev

ed

Act

ivit

y

VP

Lux

G

Maj

or t

echn

ical

cha

nge

6. C

orpo

rate

act

ions

T2S

CA s

tand

ards

(59)

Lega

l har

mon

isat

ion

G

Mar

ket

prac

tice

T2S

acco

unts

nu

mbe

ring

Info

sou

rce:

2nd

CA

SG g

ap a

naly

sis

surv

ey 2

015.

VP

LUX

has

com

mit

ted

to fu

lly c

ompl

y w

ith

the

T2S

CA s

tand

ards

pr

ior

to it

s m

igra

tion

to

T2S

(Sep

t 20

16).

As

part

of i

ts p

lan,

VP

LUX

will

off

er a

n au

tom

ated

CA

det

ecti

on

serv

ice

to it

s pa

rtic

ipan

ts. T

he s

ervi

ce w

ill b

e re

ady

for

com

mun

ity

test

ing

in F

ebru

ary

2016

pri

or t

o m

igra

tion

of V

P LU

X to

T2S

.

5. T

2S s

ched

ule

of

sett

lem

ent

day

Not

com

plia

nt

T2S

harm

onis

atio

n ac

tivi

ties

: VP

LUX

Prio

rity

1

Test

ing

read

ines

s ac

hiev

edV

P Lu

xIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral i

nput

and

NU

G r

espo

nse.

Pl

ans

and

date

s fo

r fu

ll im

plem

enta

tion

hav

e be

en p

rovi

ded.

G

ener

al c

once

rn a

bout

the

End

Of D

ay r

epor

ting

and

Sta

rt O

f Day

ti

me

peri

od.

Act

ivit

ySu

b-‐ac

tivi

tyFu

rthe

r co

mm

ents

Impl

emen

tati

on p

lan/

date

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e ti

met

able

and

var

ious

mile

ston

es/d

ates

in t

he

T2S

mes

sage

s


7777

Co

mp

lian

ce

Statu

sTyp

e o

f im

ple

men

tatio

n

gap

Imp

lem

en

tatio

n

acto

r(s

)In

dicates level of

com

pliance w

ith the

rele

vant

standards/rule

s

Green (G),

yellow (Y), red

(R), blu

e (B)


s are

not yet im

ple

mented,

ple

ase specificy w

hat the

type of gap is


gFully operatio

nal

accordin

g to the T2S

standard

Rele

vant natio

nal

actors for

imple

metatio

n

1. T2S ISO

20022 m

essage

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

8-‐S

ep

-‐17

Latvia

CSD

So

urce

: b

ilate

ral in

pu

t a

nd

qu

arte

rly

se

lf

asse

ssm

en

t. P

lan

s t

o c

om

ply

fu

lly b

y

mig

ratio

n d

ate

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot c

om

plian

tG

Marke

t p

ractic

eTe

stin

g r

ead

ine

ss

ach

ieve

d1

8-‐S

ep

-‐17

Latvia

CSD

So

urce

: X

MA

P S

urve

y 2

01

5 a

nd

fu

rth

er

bilate

ral cla

rif

icatio

n f

ro

m t

he

NU

G o

n

ad

ap

tatio

n o

f in

itia

l re

gis

te

r t

ran

sactio

ns

acco

rd

ing t

o T

2S m

atch

ing s

pe

cif

icatio

ns.

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

So

urce

: b

ilate

ral in

pu

t. R

egis

tratio

n

info

rm

atio

n is n

ot p

asse

d t

hro

ugh

se

ttle

me

nt m

essage

s

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

So

urce

: b

ilate

ral in

pu

t. Tax-‐r

ela

te

d

info

rm

atio

n is n

ot p

asse

d t

hro

ugh

se

ttle

me

nt m

essage

s

Mark

et

cla

ims (

28 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lativ

e

ch

an

ge

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lativ

e

ch

an

ge

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

Marke

t p

ractic

e

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r N

ot c

om

plian

tG

Re

gu

lato

ry/le

gis

lativ

e

ch

an

ge

N/A

18

-‐Se

p-‐1

7Latvia

CSD

So

urce

: b

ilate

ral in

pu

t. Exis

tin

g r

ule

s n

ee

d

to

be

up

date

d a

nd

th

e s

am

e n

ee

ds

ap

pro

val fr

om

th

e m

arke

t a

s w

ell a

s t

he

re

gu

lato

r. H

ow

eve

r, n

o b

arrie

rs t

o

co

mp

lian

ce

have

be

en

id

en

tif

ied

.

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

No

t c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

N/A

18

-‐Se

p-‐1

7

Latvia

CSD

/FSA

So

urce

: SFIII su

rve

y a

nd

bilate

ral in

pu

t. C

SD

ru

les a

me

nd

me

nt a

nd

re

gu

lato

ry a

pp

ro

val

will take

pla

ce

be

fore

mig

ratio

n t

o T

2S.

Ho

we

ve

r, n

o b

arrie

rs t

o c

om

plian

ce

have

b

ee

n id

en

tif

ied

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urcin

g.

12. Settle

men

t c

ycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m

NU

G. Fu

lly c

om

plian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

So

urce

: b

ilate

ral in

pu

t

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

So

urce

: b

ilate

ral in

pu

t. Th

ere

are

no

re

stric

tio

ns r

ule

s r

egard

ing o

mn

ibu

s

acco

un

t in

Latvia

n C

SD

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

8-‐S

ep

-‐17

Latvia

CSD

So

urce

: b

ilate

ral in

pu

t a

nd

qu

arte

rly

se

lf

asse

ssm

en

t

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

8-‐S

ep

-‐17

Latvia

CB

Info

so

urce

: H

SG

su

rve

y o

n T

2S D

CA

n

um

be

rin

g, A

pril-‐M

ay 2

01

3

Su

b-‐a

ctiv

ity

Co

mp

lian

ce

Statu

sTyp

e o

f im

ple

men

tatio

n

gap

Imp

lem

en

tatio

n

acto

r(s

)Fu

rth

er c

om

men

ts

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t

stan

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

stan

dard

s/ru

les a

re

no

t

ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat t

he

typ

e o

f gap

is (u

se

th

e d

ro

pd

ow

n

Re

ad

y fo

r T

2S t

estin

gFu

lly o

pe

ratio

nal

acco

rd

ing t

o t

he

T2

S

stan

dard

Re

levan

t n

atio

nal acto

rs

for im

ple

me

tatio

n

18. Co

rp

orate a

ctio

ns

CA

mark

et

sta

nd

ard

s (

68)

82

%G

Majo

r t

ech

nic

al ch

an

ge

Te

stin

g r

ead

ine

ss

ach

ieve

d1

8-‐S

ep

-‐17

Latvia

CSD

Info

so

urce

: B

SG

/E-‐M

IG S

urve

y (

Se

pte

mb

er

20

15

). 5

6 (

ou

t o

f 6

8)

stan

dard

s a

lre

ad

y

me

t. So

me

of

th

e s

tan

dard

s w

ill re

qu

ire

C

SD

ru

le c

han

ge

s f

or im

ple

me

ntatio

n.

23. Secu

rit

ies a

mo

un

t

static

data

No

t c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

8-‐S

ep

-‐17

Latvia

CSD

So

urce

: b

ilate

ral in

pu

t a

nd

qu

arte

rly

se

lf

asse

ssm

en

t.

Prio

rit

y 2

So

urce

: b

ilate

ral in

pu

t a

nd

qu

arte

rly

se

lf

asse

ssm

en

t a

nd

NU

G s

urve

y 2

01

4.

Te

ch

nic

al ad

ap

tatio

ns a

nd

am

en

dm

en

ts in

th

e L

atvia

n C

SD

’s o

pe

ratio

nal ru

les a

re

re

qu

ire

d. N

o b

arrie

rs e

xis

t a

nd

co

mp

lete

p

lan

is a

vailab

le

6. Co

rp

orate a

ctio

ns

T2S C

A s

tan

dard

s (

59)

YTe

stin

g r

ead

ine

ss

ach

ieve

dLatvia

CSD

Info

so

urce

: 2

nd

CA

SG

gap

an

aly

sis

su

rve

y

20

15

. Fu

ll c

om

plian

ce

wit

h t

he

stan

dard

s is

pla

nn

ed

to

be

fin

alise

d a

t t

he

tim

e o

f m

igratio

n t

o T

2S in

Fe

bru

ary 2

01

7,

alt

ho

ugh

th

e m

ajo

rit

y o

f ch

an

ge

s w

ill b

e

imp

lem

en

te

d b

y Q

2 2

01

6.

Re

qu

ire

d c

han

ge

in

marke

t p

ractic

e a

nd

d

iscu

ssio

n is o

ngo

ing w

ith

CSD

partic

ipan

ts

on

ch

an

ge

s r

eq

uir

ed

at t

he

le

ve

l o

f C

SD

p

artic

ipan

t-‐c

usto

me

r.

Imp

lem

en

tatio

n p

lan

/d

ate

If s

tan

dard

s/ru

les a

re n

ot f

ulf

ille

d,

ple

ase p

ro

vid

e t

he t

imetab

le a

nd

18

-‐Se

p-‐1

7

18

-‐Se

p-‐1

7

CSD

acco

un

t

stru

ctu

res

T2S a

cco

un

ts

nu

mb

erin

g

Activ

ity

Legal h

arm

on

isatio

n

T2

S h

arm

on

isatio

n a

ctiv

itie

s: Latvia

Prio

rit

y 1

T2S m

essages

5. T2S s

ch

ed

ule

of

settle

men

t d

ay

No

t c

om

plian

tG

Majo

r t

ech

nic

al ch

an

ge

26

-‐Se

p-‐1

6Latvia

CSD

Su

b-‐a

ctiv

ity

Fu

rth

er c

om

men

ts

Imp

lem

en

tatio

n p

lan

/d

ate

If s

tan

dard

s/ru

les a

re n

ot f

ulf

ille

d,

ple

ase p

ro

vid

e t

he t

imetab

le a

nd

vario

us m

ilesto

nes/d

ates in

th

e

Activ

ity


7878

Compliance

Status


gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion


Fully compliant

BN/A

N/A

N/A

MSE


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

MSE


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.


100%

N/A

Transform


100%

N/A


100%

N/A



Fully compliant

BN/A

NA

NA

MSE


ation from the NUG

received post-‐m

igration to T2S.



Fully compliant

BN/A

NA

NA

MSE


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

MSE


ation from the NUG

received post-‐m

igration to T2S.


Fully compliant

BN/A

N/A

N/A

N/A


ation from the NUG

received post-‐m

igration to T2S.

Sub-‐activity

Compliance

Status


gap

Implementation

actor(s)

Further comments

Indicates level of

compliance with the

relevant

standards/rules

Green (G),

yellow (Y), red

(R)




list).



standard


for im

plemetation


82%

GOther


Not available

MSE




et


static data

Fully compliant

BN/A

N/A

N/A

N/A


input.

Priority 2

Activity

Malta CSD/ Stock

Exchange


2015 and further confirm

ation from the

NUG regarding full implementation of T2S

BP standards.

All the standards with regards to m

arket

claim

s and transform

ation were already

implemented when the M

altese CSD

migrated to T2S. Chapter 7 of the M

SE by-‐

laws has been amended to include the

buyer protection provisions.

N/A

B

T2S accounts

numbering

N/A





N/A

N/A

CSD account

structures

B

Legal harm

onisation

T2S harm

onisation activities: Malta

Priority 1


ation from the NUG

received post-‐m

igration to T2S.



T2S messages

MSE

N/A

Fully compliant

5. T2S schedule of

settlement day

Further comments




Activity

Sub-‐activity


7979

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s

)

Indicates level of

com

pliance w

ith the

rele

vant

standards/rule

s

Green (G),

yellow (Y), red

(R), blu

e (B)


s are not yet

imple

mented, ple

ase specificy w

hat

the type of gap is


gFully operatio

nal accordin

g

to the T2S standard

Rele

vant natio

nal actors

for im

ple

metatio

n

1. T2S ISO

20022 m

essage

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

2/0

9/2

01

6Eu

ro

cle

ar N

LIn

fo s

ou

rce

: SP

2 a

nd

bilate

ral in

pu

t.

Pla

ns a

nd

date

s f

or f

ull c

om

plian

ce

have

b

ee

n p

ro

vid

ed

.

2. T2S m

an

dato

ry m

atch

ing f

ield

sN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

2/0

9/2

01

6Eu

ro

cle

ar N

L

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t.

Pla

ns a

nd

date

s f

or f

ull c

om

plian

ce

have

b

ee

n p

ro

vid

ed

.

3. In

te

ractio

n f

or r

egis

tratio

nFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3. Th

ere

are

no

re

gis

te

re

d s

ecu

rit

ies in

th

e

Ne

th

erla

nd

s. R

egis

tratio

n in

form

atio

n is

no

t t

ran

sm

itte

d v

ia s

ettle

me

nt m

essage

s

4. In

te

ractio

n f

or t

ax in

fo

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d t

o

tran

sm

it t

ax-‐r

ela

te

d in

form

atio

n

Marke

t c

laim

s (

28 s

tan

dard

s)

43

%M

ajo

r t

ech

nic

al ch

an

ge

Tran

sfo

rm

atio

ns (

13 s

tan

dard

s)

23

%M

ajo

r t

ech

nic

al ch

an

ge

Bu

ye

r p

ro

te

ctio

n (

18 s

tan

dard

s)

0%

Oth

er

8. Se

ttle

me

nt F

inali

ty II:

irre

vo

cab

ilit

y

an

d e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rd

er

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2 a

nd

bilate

ral in

pu

t.

Eo

C E

SES a

lre

ad

y c

om

plie

s w

ith

bilate

ral

can

ce

llatio

n a

fte

r m

atch

ing.

9. Se

ttle

me

nt F

inali

ty III

: ir

re

vo

cab

ilit

y o

f

se

cu

rit

ies t

ran

sfe

rs.

No

t c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

N/A

12

/0

9/2

01

6Eu

ro

cle

ar N

L

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2 a

nd

bilate

ral in

pu

t. Se

em

s

straig

ht-‐f

orw

ard

to

ach

ieve

co

mp

lian

ce

b

ase

d o

n t

he

ESES s

et-‐u

p. R

egu

lato

ry

ap

pro

val is

re

qu

ire

d b

ut n

o o

bstacle

s

have

be

en

id

en

tif

ied

.

10. O

utso

urcin

g IT (

Se

ttle

me

nt )

se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urcin

g.

12

. S

ettle

me

nt c

ycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m

NU

G. Fu

lly c

om

plian

t s

ince

6 O

cto

be

r

20

14

.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

ts

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. Th

ere

are

no

issu

es w

ith

om

nib

us

acco

un

ts a

vailab

ilit

y f

or t

he

ESES c

ou

ntrie

s

14. R

estric

tio

ns o

n o

mn

ibu

s a

cco

un

ts

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut.

15. Se

cu

rit

ies a

cco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

htfo

rw

ard

to

Im

ple

me

nt

Te

stin

g r

ead

ine

ss

ach

ieve

d1

2/0

9/2

01

6Eu

ro

cle

ar N

LIn

fo s

ou

rce

: H

SG

su

rve

y o

n T

2S s

ecu

rit

ies

acco

un

t n

um

be

rin

g, A

pril-‐M

ay 2

01

3

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: Lis

t o

f cash

an

d s

ecu

rit

ies s

ide

D

CP

s a

s p

ub

lish

ed

by D

CP

G a

nd

fu

rth

er

co

nfi

rm

atio

n f

ro

m t

he

NL N

UG

Su

b-‐a

ctiv

ity

Co

mp

lia

nce

S

ta

tu

sT

yp

e o

f im

ple

me

nta

tio

n

ga

pIm

ple

me

nta

tio

n

acto

r(s

)Fu

rth

er c

om

me

nts

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t

stan

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

stan

dard

s/ru

les a

re

no

t y

et

imp

lem

en

te

d, p

lease

sp

ecif

icy w

hat

th

e t

yp

e o

f gap

is (u

se

th

e d

ro

pd

ow

n

list).

Re

ad

y fo

r T

2S t

estin

gFu

lly o

pe

ratio

nal acco

rd

ing

to

th

e T

2S s

tan

dard

Re

levan

t n

atio

nal acto

rs

for im

ple

me

tatio

n

18

. C

orp

ora

te

actio

ns

CA

marke

t s

tan

dard

s (

68)

75

%G

Majo

r t

ech

nic

al ch

an

ge

an

d

marke

t p

ractic

e c

han

ge

No

t a

vailab

leN

ot a

vailab

leEu

ro

cle

ar

Info

so

urce

: B

SG

/E-‐M

IG S

urve

y (

Se

p

20

15

).5

1 (

ou

t o

f 6

8)

stan

dard

s a

lre

ad

y m

et.

23

. S

ecu

rit

ies a

mo

un

t

sta

tic

da

ta

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. Th

ere

are

no

issu

es w

ith

se

cu

rit

ies

am

ou

nt d

ata f

or t

he

ESES c

ou

ntrie

s

T2

S h

arm

on

isatio

n a

ctiv

itie

s: th

e N

eth

erla

nd

s

Prio

rit

y 1

T2

S m

essa

ge

s

5.

T2

S s

ch

ed

ule

of

se

ttle

me

nt d

ay

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t.

Th

e E

SES o

pe

ratio

nal d

ay w

ill b

e a

me

nd

ed

to

co

pe

wit

h t

he

tim

ing o

f T2

S. T2

S

acco

un

tin

g d

ay w

ill b

e c

on

sid

ere

d t

he

m

aste

r d

ay.

Eu

ro

cle

ar N

LTe

stin

g r

ead

ine

ss

ach

ieve

dStraig

ht-‐f

orw

ard

to

im

ple

me

nt

GN

ot c

om

plian

t

Activ

ity

Su

b-‐a

ctiv

ity

Fu

rth

er c

om

me

nts

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

pro

vid

e t

he

tim

eta

ble

an

d

va

rio

us m

ile

sto

ne

s/d

ate

s i

n t

he

im

ple

me

nta

tio

n p

lan

.

12

/0

9/2

01

6

CS

D a

cco

un

t

stru

ctu

re

s

Activ

ity

R

Prio

rit

y 2

Le

ga

l h

arm

on

isa

tio

n

T2

S a

cco

un

ts

nu

mb

erin

g

6.

Co

rp

ora

te

actio

ns

T2

S C

A s

ta

nd

ard

s (

59

)

Info

so

urce

: 2

nd

20

15

CA

SG

gap

an

aly

sis

su

rve

y a

nd

fu

rth

er N

UG

cla

rif

icatio

n.T

he

n

on

-‐co

mp

lian

ce

aff

ects s

om

e o

f th

e

tran

sfo

rm

atio

n a

nd

bu

ye

r p

ro

te

ctio

n

stan

dard

s. In

partic

ula

r, fo

llo

win

g

re

sch

ed

ulin

g o

f ESES m

arke

ts' m

igratio

n

to

T2

S, th

ere

is s

till n

o c

om

plian

ce

date

re

gard

ing t

he

Eu

ro

cle

ar N

eth

erla

nd

’s

se

gm

en

t o

f th

e m

arke

t f

or f

ull

co

mp

lian

ce

wit

h t

he

tran

sfo

rm

atio

ns a

nd

b

uye

r p

ro

te

ctio

n s

tan

dard

s

Imp

lem

en

ta

tio

n p

lan

/d

ate

If s

ta

nd

ard

s/ru

les a

re

no

t f

ulf

ille

d,

ple

ase

pro

vid

e t

he

tim

eta

ble

an

d

va

rio

us m

ile

sto

ne

s/d

ate

s i

n t

he

No

t a

vailab

leN

L-‐M

IGN

ot a

vailab

le


8080

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Indicate

s level of

com

pliance w

ith the

rele

vant

sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to

the T2S sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO 20022 m

essages

Not compliant



28 M

arch 2016

Interbolsa


quarterly status gathering templates.

2. T2S m

andatory m

atching fields

Not compliant



28 M

arch 2016

Interbolsa


quarterly status gathering templates.


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013. No

registration details are sent via settlement

instructions


Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2S HSG surveys 2013 and

further bilateral clarifications. Tax-‐related

information is not passed on w

hile sending

settlement instructions

Market claim

s (28 standards)

75%

Technical change

Transform


54%

Other


0%

Manual BP to be implemented



Not compliant

GOperational and technical

change/ CSD rules change

N/A

28 M

arch 2016

Interbolsa/National

Regulator

Info source: NUG response (Oct 2014).

Technical change and CSD rule change.

Preparation for T2S: October 2014

(Technical change) -‐ Im

plemented for

testing. Full compliance is planned by M

arch

2016 (on the date of Interbolsa’s

migration).



Not compliant

GCSD rules change

N/A

28 M

arch 2016

Interbolsa/National

Regulator

Info source: Comments on 3rd progress

report (Jan 2013). CSD rules w

ill be

amended. No legal/regulatory change or

approval is needed.


Fully compliant

BN/A

N/A

N/A

N/A


outsourcing.


Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A


input. Omnibus accounts are available


Fully compliant

BN/A

N/A

N/A

N/A

Info source: HSG discussions (Feb 2015).

There are no restrictions on the omnibus

accounts that need to be propagated down

the settlement chain


Not compliant



28 M

arch 2016

Interbolsa


account numbering, April-‐M

ay 2013.

Implementation w

ill coincide w

ith system

adaptation to T2S


Fully compliant

BN/A

N/A

N/A

N/A


numbering, April-‐M

ay 2013

Sub-‐activity

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Further comments

Indicates level of

compliance with the

relevant

standards/rules

Green (G),

yellow (Y), red

(R)




list).


Fully operational according to

the T2S standard


for im

plemetation



91%

GMarket practice change and

Technical change


Not available

Interbolsa




et


static data

Not compliant

GMajor technical change


28 M

arch 2016

Interbolsa

Info source: T2S NUGs survey, bilateral

input and comments on 3rd progress

report (Jan 2013).

Interbolsa has a plan to change to EU

market practice prior to testing phase

Further comments

T2S harm

onisation activities: Portugal (Interbolsa)

Priority 1

Info source: SP2 and bilateral input and T2S

NUG survey. Adaptations are ongoing to

meet the T2S schedule and conditions by

migration to T2S. No barriers identified.

However, there is concern regarding the

short amount of tim

e between the EOD

and the beginning of NTS to process and

send to T2S the corporate actions

Straight-‐forward to implement



provide the tim

etable and various

Interbolsa

Activity

Sub-‐activity

T2S m

essages


2015 and information from NUG.

Full compliance w

ith standards w

ill be

achieved after m

igration of Interbolsa to

T2S by September 2016.

Interbolsa

5. T2S schedule of

settlement day

R -‐ Sep

2016

GTesting readiness achieved

28 M

arch 2016

Not compliant




04 September 2016

Legal harm

onisation



provide the tim

etable and various


T2S accounts

numbering

Priority 2

CSD account

structures

Activity


8181

Complia

nce

Status

Type of im

plemen

tation

gap

Implemen

tation

actor(s)

Indicate

s le

vel o

f co

mpliance

with the

rele

vant

standard

s/ru

les

Gre

en (G

),

yellow (Y

), red

(R), blu

e (B

)

If the sta

ndard

s/ru

les are

not ye

t im

ple

mente

d, p

lease

specificy

what

the typ

e of g

ap is

Ready fo

r T2

S te

stin

gFu

lly opera

tional a

ccord

ing to

the T2S

standard

Rele

vant national a

ctors

fo

r im

ple

meta

tion

1. T2S ISO 20022 m

essages

Fully compliant

BN/A

N/A

22/0

6/2

015

DC


ation from the NUG received post-‐m

igration to T2S.

2. T2S m

andatory m

atching fields

Fully compliant

BN/A

N/A

22/0

6/2

015

DC



igration to T2S.

3. In

teraction for registration

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.

4. In

teraction for tax info

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.

Marke

t claims (28 stan

dards)

0%

Marke

t Practice

Tran

sform

ations (13 stan

dards)

0%

Regu

latory/legislative chan

ge

Buye

r protection (18 standards)

0%

Technical

8. Settlement Finality II: irrevo

cability an

d

enforceab

ility tran

sfer order

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.

9. Settlement Finality III: irrevo

cability of

securities tran

sfers.

Fully compliant

BN/A

N/A

22/0

6/2

015

CSD



igration to T2S.

10. O

utsourcing IT (Se

ttlement ) services

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.

12. S

ettlem

ent cycles

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.

13. A

vailab

ility of omnibus accounts

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.

14. R

estrictions on omnibus accounts

Fully compliant

BN/A

N/A

22/0

6/2

015

N/A



igration to T2S.


Fully compliant

BN/A

N/A

22/0

6/2

015

CSD



igration to T2S.

16. D

edicated cash account numbering

Fully compliant

BN/A

N/A

22/0

6/2

015

Ban

ca Naţională a

Român

iei



igration to T2S.

Complia

nce

Status

Type of im

plemen

tation

gap

Implemen

tation

actor(s)

Indicates leve

l of

complian

ce with the

relevant

stan

dards/rules

Green (G

),

yellow (Y

), red

(R)

If the standards/rules are not ye

t im

plemented, p

lease specificy what

the typ

e of gap

is (u

se the dropdown

list).

Read

y for T2

S testing


stan

dard


for im

plemetation

18. C

orporate actions CA m

arke

t stan

dards (68)

60%

YMarke

t practice as well as

regu

latory chan

ges

31 October 2016

01/0

2/2

017

CSD

, Regu

lator, NCB

Info source: BSG

/E-‐M


41 (out of 68) stan

dards alread

y met

23. S

ecurities amount

static data

Fully compliant

BN/A

N/A

N/A

N/A

Info source: T2

S NUGs survey an

d bilateral input.

No issues with securities am

ount data in Roman

ia

Priority 2

Info source: 2nd CASG

gap

analysis survey 2015.

The Roman

ian m

arke

t was not compliant with the T2S CA standards by its

migration to T2S.

In October 2014 the RO T2S NUG provided an im

plementation plan for

achieving full compliance by Fe

bruary 2017.

The plan in

cluded detaile

d phases for technical and regu

latory chan

ges.

Howeve

r, the Roman

ian m

arke

t's im

plementation of these m

easures has

lagged behind the detaile

d plan, although

it cau

ght up somewhat w

ith

the plan in

September 2015, w

hen the necessary legislative chan

ges

were approve

d by the Roman

ian Finan

cial Supervisory Authority. The

Roman

ian m

arke

t provided an updated im

plementation plan at the end

of October 2015 w

hich aim

s to achieve

full compliance by the sam

e

dead

line: Fe

bruary 2017.

CSD

, Regu

lator, NCB

Fully compliant

5. T2S

sch

edule of

settlemen

t day

T2S acco

unts

numbering

Activity


T2S CA

standards (59)

Lega

l harmonisation

February 2017

Sub-‐activity

N/A

Implemen

tation plan/d

ate

If standards/rules are not fulfilled

, please provide the

timetab

le and various mile

stones/d

ates in

the

implemen

tation plan.

31 October 2016

R -‐ Feb

2017

Further commen

ts

Activity

Sub-‐activity

Further commen

ts

T2S harmonisation activities: Roman

ia

Priority 1

CSD

/NCB



igration to T2S.

B

Implemen

tation plan/d

ate

If standards/rules are not fulfilled

, please provide the

timetab

le and various mile

stones/d

ates in

the

implemen

tation plan.

N/A

22/0

6/2

015

T2S message

s

CSD account

structures


8282

Co

mp

lian

ce

Sta

tus

Typ

e o

f im

ple

men

tati

on

gap

Imp

lem

en

tati

on

acto

r(s)

Indicate

s level of

com

pliance w

ith the

rele

vant sta

ndard

s/rule

s

Gre

en (G),

yellow (Y), red

(R), blu

e (B)

If the sta

ndard

s/rule

s are

not yet

imple

mente

d, ple

ase specificy w

hat

the type of gap is


Fully opera

tional accord

ing to the T2S

sta

ndard

Rele

vant national acto

rs

for im

ple

meta

tion

1. T2S ISO

20022 m

essage

sN

ot c

om

plian

tG

Te

ch

nic

al

Te

stin

g r

ead

ine

ss a

ch

ieve

dFe

bru

ary 2

01

7K

DD

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t.

KD

D w

ill als

o im

ple

me

nt T

2S ISO

20

02

2

me

ssage

s w

he

re

re

levan

t f

or its

co

mm

un

icatio

n w

ith

T2

S, i.e

. fo

r p

ro

ce

sse

s

no

t d

on

e v

ia T

2S G

UI.

2. T2S m

an

dato

ry m

atc

hin

g f

ield

sN

ot c

om

plian

tG

Marke

t p

ractic

eTe

stin

g r

ead

ine

ss a

ch

ieve

dFe

bru

ary 2

01

7K

DD

Stan

dard

s a

re

im

ple

me

nte

d a

nd

in

use

in

te

st e

nvir

on

me

nt.

3. In

tera

cti

on

fo

r re

gis

trati

on

Fu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d f

or

tran

sm

issio

n o

f re

gis

tratio

n in

form

atio

n

4. In

tera

cti

on

fo

r ta

x in

foFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S H

SG

su

rve

ys 2

01

3.

Se

ttle

me

nt m

essage

s a

re

no

t u

se

d f

or

tran

sm

issio

n o

f tax in

form

atio

n

Mark

et

cla

ims (

28 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lativ

e/te

ch

nic

al ch

an

ge

Tra

nsfo

rmati

on

s (

13 s

tan

dard

s)

0%

Re

gu

lato

ry/le

gis

lativ

e/te

ch

nic

al ch

an

ge

Bu

ye

r p

rote

cti

on

(18 s

tan

dard

s)

0%

Oth

er

8. Se

ttle

me

nt

Fin

ali

ty II:

irr

evo

cab

ilit

y a

nd

e

nfo

rce

ab

ilit

y t

ran

sfe

r o

rde

r N

ot c

om

plian

tG

Re

gu

lato

ry c

han

ge

N/A

Fe

bru

ary 2

01

7K

DD

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2, statu

s g

ath

erin

g t

em

pla

te

s Q

2

20

13

an

d b

ilate

ral in

pu

t.

Un

ilate

ral can

ce

llatio

n a

fte

r ISD

is s

till

po

ssib

le b

ut K

DD

will co

mp

ly f

ully w

ith

SF II

ru

le p

rio

r t

o m

igratio

n t

o T

2S.

KD

D h

as t

o a

me

nd

KD

D's

op

eratio

ns r

ule

s

to

acco

mo

date

SFII r

eq

uir

em

en

ts. N

o

ob

stacle

s t

o r

egu

lato

ry c

han

ge

are

id

en

tif

ied

.

9. Se

ttle

me

nt

Fin

ali

ty III

: ir

revo

cab

ilit

y o

f se

cu

riti

es t

ran

sfe

rs.

No

t c

om

plian

tG

Le

gis

lativ

e c

han

ge

an

d

re

gu

lato

ry e

nd

orse

me

nt

N/A

Fe

bru

ary 2

01

7K

DD

/n

atio

nal

legis

lato

rs a

nd

re

gu

lato

rs

Info

so

urce

: T2

S N

UG

s s

urve

ys 2

01

1 a

nd

2

01

2, SP

2, statu

s g

ath

erin

g t

em

pla

te

s Q

2

20

13

an

d b

ilate

ral in

pu

t.

Pro

vis

ion

al re

gu

lato

ry a

pp

ro

val is

co

mp

lete

d. Le

gis

lativ

e c

han

ge

is p

en

din

g

for T

2S D

CA

se

ttle

me

nt, b

ut it s

ho

uld

be

straig

ht-‐f

orw

ard

. Fin

al re

gu

lato

r's

ap

pro

val

is a

lso

re

qu

ire

d. N

o o

bstacle

s a

re

id

en

itif

ied

.

10. O

uts

ou

rcin

g IT (

Se

ttle

me

nt

) se

rvic

es

Fu

lly c

om

plian

tB

N/A

N/A

N

/A

N

/A

In

fo s

ou

rce

: 2

01

4 H

SG

su

rve

y o

n IT

ou

tso

urcin

g.

12. Sett

lem

en

t cycle

sFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: B

ilate

ral co

nfi

rm

atio

n f

ro

m

NU

G. Fu

lly c

om

plian

t s

ince

6 O

cto

be

r 2

01

4.

13. A

vail

ab

ilit

y o

f o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. N

o issu

es.

14. R

estr

icti

on

s o

n o

mn

ibu

s a

cco

un

tsFu

lly c

om

plian

tB

N/A

N/A

N/A

N/A

Info

so

urce

: T2

S N

UG

s s

urve

y a

nd

bilate

ral

inp

ut. N

o issu

es.

15. Se

cu

riti

es a

cco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

dFe

bru

ary 2

01

7K

DD

Info

so

urce

: H

SG

su

rve

y o

n T

2S s

ecu

rit

ies

acco

un

t n

um

be

rin

g, A

pril-‐M

ay 2

01

3, Q

2

20

13

statu

s g

ath

erin

g t

em

pla

te

16. D

ed

icate

d c

ash

acco

un

t n

um

be

rin

gN

ot c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

dFe

bru

ary 2

01

7SI N

CB

Info

so

urce

: H

SG

su

rve

y o

n T

2S D

CA

n

um

be

rin

g, A

pril-‐M

ay 2

01

3. D

etaile

d

ro

ad

map

fo

r im

ple

me

ntatio

n is a

vailab

le

Su

b-‐a

cti

vit

yCo

mp

lian

ce

Sta

tus

Typ

e o

f im

ple

men

tati

on

gap

Imp

lem

en

tati

on

acto

r(s)

Fu

rth

er

co

mm

en

ts

Ind

icate

s le

ve

l o

f co

mp

lian

ce

wit

h t

he

re

levan

t st

an

dard

s/ru

les

Gre

en

(G

),

ye

llo

w (Y

), r

ed

(R

)

If t

he

sta

nd

ard

s/ru

les

are

no

t ye

t im

ple

me

nte

d, p

lease

sp

ecif

icy w

hat

the

typ

e o

f gap

is

(use

th

e d

rop

do

wn

li

st).

Re

ad

y fo

r T2

S t

est

ing

Fu

lly o

pe

rati

on

al acco

rdin

g t

o t

he

T2

S

stan

dard

Re

levan

t n

ati

on

al acto

rs

for

imp

lem

eta

tio

n

18. Co

rpo

rate

acti

on

s C

A m

ark

et

sta

nd

ard

s (

68)

22

%R

Majo

r t

ech

nic

al ch

an

ge

an

d

legis

lativ

e c

han

ge

4Q

20

16

Fe

bru

ary 2

01

7K

DD

/n

atio

nal

legis

lato

rs a

nd

re

gu

lato

rs

Info

so

urce

: B

SG

/E-‐M

IG S

urve

y (

Se

p 2

01

5).

15

(o

ut o

f 6

8)

stan

dard

s a

lre

ad

y m

et

23. Secu

riti

es

am

ou

nt

stati

c d

ata

No

t c

om

plian

tG

Straig

ht-‐f

orw

ard

to

im

ple

me

nt

Te

stin

g r

ead

ine

ss a

ch

ieve

dFe

bru

ary 2

01

7K

DD

Info

so

urce

: Q

2 2

01

3 s

tatu

s g

ath

erin

g

te

mp

late

T2

S h

arm

on

isati

on

acti

vit

ies: Slo

ve

nia

Pri

ori

ty 1

G

T2S m

ess

ages

KD

D

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

dard

s/ru

les

are

no

t fu

lfille

d, p

lease

pro

vid

e t

he

tim

eta

ble

an

d v

ari

ou

s m

ilest

on

es/

date

s in

th

e

imp

lem

en

tati

on

pla

n.

Acti

vit

y

Fe

bru

ary 2

01

7

Info

so

urce

: SP

2 a

nd

bilate

ral in

pu

t a

nd

2

01

4 N

UG

su

rve

y.

KD

D w

ill im

ple

me

nt t

he

T2

S s

ettle

me

nt

day s

ch

ed

ule

an

d T

2S c

ale

nd

ar a

nd

will

pro

vid

e its s

ervic

es a

cco

rd

ing t

o t

he

ne

ed

s

of

its u

se

rs. N

o b

arrie

rs id

en

tif

ied

Legal h

arm

on

isati

on

Su

b-‐a

cti

vit

yFu

rth

er

co

mm

en

ts

CSD

acco

un

t st

ructu

res

Te

ch

nic

al

Pri

ori

ty 2

6. Co

rpo

rate

acti

on

sT2S C

A s

tan

dard

s (5

9)

Acti

vit

y

G

T2S a

cco

un

ts

nu

mb

eri

ng

Imp

lem

en

tati

on

pla

n/d

ate

If s

tan

dard

s/ru

les

are

no

t fu

lfille

d, p

lease

pro

vid

e t

he

tim

eta

ble

an

d v

ari

ou

s m

ilest

on

es/

date

s in

th

e

Te

stin

g r

ead

ine

ss a

ch

ieve

d

No

t c

om

plian

t

Info

so

urce

: 2

nd

CA

SG

gap

an

aly

sis

su

rve

y

20

15

. Th

e S

love

nia

n T

2S N

UG

pla

ns t

o f

ully

co

mp

ly w

ith

th

e s

tan

dard

s b

y its m

igratio

n

to

T2

S in

Fe

bru

ary 2

01

7.

Majo

r le

gal re

form

was v

ote

d in

to

law

in

O

cto

be

r 2

01

5

5. T2S s

ch

ed

ule

of

sett

lem

en

t d

ay

KD

D/n

atio

nal

legis

lato

rs a

nd

re

gu

lato

rs

Fe

bru

ary 2

01

7Te

stin

g r

ead

ine

ss a

ch

ieve

d


8383

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Indicates level of

com

pliance w

ith the

rele

vant

standards/rule

s

Green (G),

yellow (Y), red

(R), blu

e (B)


s are not yet

imple

mented, ple

ase specificy w

hat

the type of gap is


gFully operatio

nal accordin

g to the T2S

standard

Rele

vant natio

nal actors

for im

ple

metatio

n

1. T2S ISO 20022 m

essages

Not compliant

GTechnical change


01/02/2017

CDCP

Info source: SP2 and bilateral input. Q2

2013 status gathering template

CDCP w

ill offer its m

embers

communication in line w

ith T2S ISO 20022

standards for selected CDCP services.

2. T2S m

andatory m

atching fields

Not compliant

RMarket practice change

Not available

Not available

CDCP

Info source: XMAP survey 2015. Transaction

code is a m

andatory m

atching field in order

to prevent incorrect intra-‐CSD m

atching of

e.g. ordinary OTC trade w

ith securities

transfer stemming from inheritance,

matching of instruction w

ith available

securities w

ith instruction w

ith pledged

securities, etc. This is applicable to all

transactions m

atched in the legacy system,

since it is a m

andatory m

atching field.


Not compliant

GTechnical change


01/02/2017

CDCP


Adaptation to the new practice w

ill result

from implementation of ISO20022

messaging standard


Fully compliant

BN/A

N/A

N/A

N/A


Settlement m

essages are not used for

transmission of tax information

Market claim

s (28 standards)

0%


0%


0%



Not compliant

GTechnical change

N/A

01/02/2017

CDCP

Info source: Status gathering templates and

NUG Chairperson's response. No legislative

changes are required based on the updated

legal analysis. The change required is part of

business requirements for reshaping the

internal IT system and there are no barriers

to implementation.



Not compliant

GTechnical change

N/A

01/02/2017

CDCP

Info source: Status gathering templates and

NUG Chairperson's response. No

requirement for any legislative change. The

change required is part of business

requirements for reshaping the internal IT

system and there are no barriers to

implementation.


Fully compliant

BN/A

N/A

N/A

N/A


outsourcing. W

ith the CSDR now being a

law, no barriers to outsourcing to public

entities remain.


Fully compliant

BN/A

N/A

N/A

N/A




Fully compliant

BN/A

N/A

N/A

N/A


input.


Not compliant

Ylegislative change

N/A

01/02/2017

CDCP

Info source: T2S NUGs survey, bilateral

input, SP3 feasibility assessment, Q2 2013

status gathering templates and NUG

response. Restrictions on SK investors

when CDCP acts as investor CSD. Currently

the CDCP is finalising a thorough, updated

legal analysis for adaptation of CDCP to T2S


Not compliant



01/02/2017

CDCP


account numbering, April-‐M

ay 2013


Not compliant



01/02/2017

National bank of

Slovakia


numbering, April-‐M

ay 2013. NCB plans full

compliance. Dates are provided.

Sub-‐activity

Compliance

Status

Type of im

plementation

gap

Implementation

actor(s)

Further comments

Indicates level of

compliance with the

relevant

standards/rules

Green (G),

yellow (Y), red

(R)




list).



standard


for implemetation



n/a

R -‐ no info

Not available

Not available

Not available

Slovakian Banking

Association


IG Survey (Jan 2014).

T2S team received no info from the E-‐M

IG

on Slovakia results. Separately, the NUG has

communicated the dates regarding the

testing and full implementation of the

standards


static data

Not compliant yet

GMarket practice change/

Technical change/ Legislative

change


01/02/2017

CDCP

Info source: T2S NUGs input. Legislative

change has already taken place.

Priority 2

5. T2S schedule of

settlement day

01/04/2016

01/02/2017

T2S accounts

numbering

G



tim

etable and various m

ilestones/dates in the



01/02/2017

Legal harmonisation

Activity

Not compliant




Market practice /technical

change /CSD rules change

CSD account

structures

T2S harmonisation activities: Slovakia

Priority 1

CDCP

Info source: SP2/SP3 and bilateral input

and NUG survey.

Plan for compliance before m

igration w

ith

the T2S schedule and calendar.


2015.

CDCP w

ill prepare the proposal for changes

to its rules of operation concerning M

C and

transformation standards by 31 December

2015 and concerning BP standards by 31

March 2016. Im

plementation of the

necessary technological changes into its

information systems w

ill be finalised by

CDCP deadline in November 2015. The

Slovakian m

arket is aware of the CDCP’s

plans and no obstacles to their

implementation have been identified.

G



tim

etable and various m

ilestones/dates in the


T2S m

essages

CDCP

Activity

Sub-‐activity

Further comments

Sixth T2S Harmonisation Progress Report I List of members of the T2S Advisory Group

8484

Annex 5: List of members of the T2S Advisory Group

The T2S Advisory Group (AG) provides advice to the Eurosystem on T2S-related issues to ensure that T2S is developed and implemented according to market needs. To this end, the AG is made up of representatives from all stakeholders, i.e. participating CSDs, banks and national central banks. In particular, the AG addresses T2S issues related to policy, pricing, governance and harmonisation in the field of securities settlement.

As far as harmonisation matters are concerned, the AG is supported by the HSG.

The AG’s mandate is available on the T2S website. The group’s meeting documents can also be downloaded from the website. The list of members is below.

Institution Name

Chair and Secretariat

European Central Bank Marc Bayle (Chairperson)

European Central Bank Meike Ströter (Secretary)

User members

Banco Santander Amadeo Lázaro Fernández

Bank of America Merrill Lynch John Whelan

BBVA Fernando García Rojo

BNP Paribas Alain Pochet

BNY Mellon James Cunningham

CACEIS Eric Derobert

CECA José-Luis Rebollo Palomero

Citi Richard Scavetta

Commerzbank Roland Kipper

Danske Bank Plc Tom S. Jensen

Danske Bank Plc Päivi Nyrhilä

Deutsche Bank Stephen Lomas

Deutsche Wertpapier Service Bank Mark Hoßdorf

Eurex Clearing Kay Schäfer

EuroCCP Albert-Jan Huizing

Goldman Sachs Isabelle Hennebelle

ICBPI Paolo Callegaro

ING Antoine Vonk

Intesa Sanpaolo Mario-Domenico Recchia

JP Morgan Diana Dijmarescu

Nordea Marianne Sørensen

Société Générale Eric de Gay de Nexon

Swedbank AS Elo Tempel

UBS Florentin Soliva

Unicredit Bank Austria AG Guenter Schnaitt


8585

CSDs

AS Eesti Väärtpaberikeskus (Estonia) Kristi Sisa

Bank of Greece Securities Settlement System (BOGS) Vicky Dellopoulou

Centrálny depozitár cenných papierov SR, a. s. (Slovakia) Dagmar Kopuncová

Clearstream Banking AG (Germany) Mathias Papenfuβ

Guido Wille

Karla Amend

Depozitarul Central S.A. (Romania) Silvia Buicanescu

Euroclear Belgium Michael Shipton

Euroclear Finland Oy Hanna Vainio

Euroclear France Brigitte Daurelle

Euroclear Nederland Philip Van Hassel

Iberclear – BME Group (Spain) Jesús Benito

Interbolsa (Portugal) Rui de Matos

KDD - Centralna klirinško depotna družba, d.d. (Slovenia) Davor Pavic

Központi Elszámolóház és Értéktár Zrt. – KELER (Hungary) György Dudás

Latvijas Centralais depozitarijs (Latvia) Indars Ašcuks

Lietuvos centrinis vertybinių popierių depozitoriumas (Lithuania) Mindaugas Bakas

LuxCSD S.A. (Luxembourg) Patrick Georg

Malta Stock Exchange Eileen Muscat

Monte Titoli S.p.A. (Italy) Mauro Dognini Paolo Carabelli

National Bank of Belgium Securities Settlement System (NBB-SSS) Marc Lejoly

NCDCP - Národný centrálny depozitár cenných papierov, a. s. (Slovakia)

Zuzana Libičová Andrej Sinicyn

Österreichische Kontrollbank Aktiengesellschaft (Austria) Georg Zinner

SIX SIS Ltd. (Switzerland) Urs Wieland

VP LUX S.á.r.l. (Luxembourg) Birger Schmidt

VP Securities A/S (Denmark) Niels Olsen

Central banks (Eurosystem)

European Central Bank Sylvain Debeaumont

Nationale Bank van België / Banque Nationale de Belgique Yvan Timmermans

Deutsche Bundesbank Katharina Tobiasch

Eesti Pank Mihkel Nômmela

Central Bank of Ireland John Geelon

Bank of Greece Vicky Dellopoulou

Banco de España Jesus Lopez Pedruelo

Banque de France Emanuelle Assouan

Banca d’Italia Fabrizio Palmisani

Central Bank of Cyprus George Nicolaou

Latvijas Banka Egons Gailitis


8686

Central banks (Eurosystem)

Lietuvos bankas Dainius Grikinis

Banque centrale du Luxembourg Pierre Thissen

Central Bank of Malta Sylvana Gatt

De Nederlandsche Bank Annemarie Hondius

Österreichische Nationalbank Hannes Hermanky

Banco de Portugal Fernando Chau

Banka Slovenije Simon Anko

Národná banka Slovenska Peter Holicka

Suomen Pankki Kirsi Ripatti

Central Banks (non-Eurosystem)

Danmarks Nationalbank Peter Restelli-Nielsen

Observers

T2S Board Pierre Beck

Ron Berndsen

Maria Tereza Cavaco

Yvon Lucas

Cristina Mastropasqua

Jochen Metzger

Michalis Michalopoulos

Michael Power

Luis Miguel Rodriguez Caramelo

Karsten Biltoft

Johannes Luef

Joël Mérère

European Association of Co-operative Banks Ilektra Zarzoura

Association for Financial Markets in Europe Stephen Burton

European Association of Clearing Houses Christoph Hemon

European Banking Federation Daniele De Gennaro

European Savings Bank Group Norbert Bielefeld

Federation of European Securities Exchanges Rainer Riess

European Securities and Markets Authority Alina Dragomir

European Commission Agata Malczewska

Eurosystem oversight function Fiona van Echelpoel

4CB Siegfried Vonderau

Lorenzo Giammò

María Teresa Arraez

Philippe Leblanc

www.harmonisation.t2s.eu