Third T2S Harmonisation Progress Report - Banco … · Third T2S Harmonisation Progress Report I Chapter Third T2S ... priority 1 13 3.1 T2S ISO 20022 messages 13 3.2 T2S matching

Third T2S Harmonisation Progress Report I Chapter

Third T2S Harmonisation Progress ReportT2S Advisory Group13 March 2013

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Third T2S Harmonisation Progress Report I Table of contents

Table of contents

1. Executive summary 5

2. Introduction 9

3. T2S harmonisation activities – priority 1 133.1 T2S ISO 20022 messages 133.2 T2S matching fields 153.3 Interaction with T2S (registration procedures) 173.4 Interaction with T2S (tax info requirements) 193.5 Interaction with T2S (CSD ancillary services) 203.6 T2S schedule for the settlement day and calendar 223.7 T2S corporate actions standards 243.8 Settlement Finality I 273.9 Settlement Finality II 293.10 Settlement Finality III 303.11 Location of securities accounts/conflict of law 323.12 IT outsourcing (settlement services) 343.13 Settlement discipline regime 363.14 Settlement cycles 383.15 Availability of omnibus accounts 393.16 Restrictions on omnibus accounts 403.17 Registration procedures 423.18 Cash account numbers 433.19 Securities account numbers 44

4. T2S harmonisation activities - priority 2 454.1 Corporate actions market standards 454.2 Place of issuance 474.3. Withholding tax procedures 484.4 Settlement-related tax procedures 494.5 Cross-border shareholder transparency 524.6 Market access and interoperability 564.7 Securities amount data 57

Annex 1: Methodology 59Annex 2: T2S Harmonisation List v. 3.1 63Annex 3: Harmonisation Activities Dashboard 75Annex 4: Monitored harmonisation activities per T2S market 79Annex 5: Detailed monitoring information per T2S market 81

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Third T2S Harmonisation Progress Report I Abbreviations

Abbreviations

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Countries (covered in the report)

AT Austria HU HungaryBE Belgium IT ItalyCH Switzerland LT LithuaniaDE Germany LU LuxembourgDK Denmark MT MaltaEE Estonia NL NetherlandsES Spain PT PortugalFI Finland RO RomaniaFR France SI SloveniaGR Greece SK Slovakia

Others

AG T2S Advisory Group BSG Broad Stakeholders GroupCAJWG Corporate Actions Joint Working GroupCASG (T2S) Corporate Actions Sub-groupCPSS Committee on Payment and Settlement SystemsCSD central securities depositoryCSG (T2S) CSD Steering GroupCSDR CSD RegulationDCA Dedicated cash account (in T2S)ECSDA European Central Securities Depositories AssociationE-MIG European Market Implementation GroupEPTG European Post Trade Group ESCB European System of Central BanksESMA European Securities and Markets AuthorityFISCO Clearing and Settlement Fiscal Compliance expert groupHSG (T2S) Harmonisation Steering GroupIOSCO Technical Committee of the International Organization of Securities CommissionsNUG (T2S) National User GroupPSSC Payment and Settlement Systems Committee SLL securities law legislationSP Synchronisation PointSSS securities settlement systemSFD Settlement Finality DirectiveT-BAG Tax Barriers Business Advisory Group TFAX Task Force on adaptation to cross-CSD settlement in T2ST2S team refers to the T2S team at the ECBUDFS T2S User Detailed Functional Specifications (v.1.21, 07/09/2012)URD T2S User Requirements Document (v.5.02, 07/09/2012)

Third T2S Harmonisation Progress Report I Executive summary

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The T2S harmonisation progress reports represent the key publications on the harmonisation work conducted in the context of the T2S project. The T2S Community, the Governing Council of the ECB and EU public authorities share the view that post-trade harmonisation, as part of the EU 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 the integration of the underlying infrastructure. The creation of T2S constitutes the Eurosystem’s most fundamental contribution to market infrastructure integration, and it is widely recognised that the technical harmonisation fostered by T2S, coupled with the legal and regulatory harmonisation agenda currently pursued by EU legislators, is a key ingredient for the creation of a single market for settlement services in Europe.

The harmonisation progress reports are published by the T2S Advisory Group (AG). Work is coordinated by the T2S team with the help and guidance of the T2S Harmonisation Steering Group (HSG), a dedicated substructure of the AG set up in 2011.1

The first two reports (issued in July 2011 and January 2012) concentrated on identifying the T2S-relevant harmonisation issues and the actors whose action is required to resolve those issues. Based on the findings of the first two reports, the third progress report focuses on monitoring the compliance of T2S markets with the post-trade standards that have been defined and endorsed by the T2S Community and the other relevant authorities so far. It is also worth noting that, following the signing of the T2S Framework Agreement and the T2S Currency Participation Agreement by CSDs and national central banks respectively, only the markets that have signed up for T2S are now involved and considered in T2S harmonisation activities.

The most important findings of the report are the following.

• There has been considerable progress with regard to the endorsed def inition of harmonisation standards, i.e. 15 out of a total of 26 activities standards are defined up to now, and 68% of the issues that are marked as first priorities (compared to 50% in the second report).

• Considerable progress can also be reported with regard to the harmonisation activities that are currently monitored by the AG, i.e. ten out of the total 26 harmonisation activities identified up to now, and 42% of the issues that are marked as first priorities (compared to 21% in the second report).2

• All T2S markets (comprising 22 CSDs) are now fully monitored to assess their compliance status with the harmonisation standards. There are well-established and agreed monitoring frameworks, deadlines and responsible actors for further action in these markets.

These findings represent a significant improvement compared with previous years, when despite the widespread agreement on the need for harmonisation among all relevant actors, it proved extremely difficult to achieve concrete commitments and to establish detailed and transparent measures. Conversely, there are now well-defined monitoring tools based on a “traffic light” approach, the results of which are annexed to this report (Annex 4). Despite the very good progress made, there are still significant steps ahead 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. First, the elimination of a number of post-trade harmonisation barriers is dependent on the progress in the current EU legislative initiatives in the field, in particular on the finalisation and adoption of the CSD Regulation (CSDR) and the

1 Executive summary

1 Read more about the AG and the HSG at http://www.ecb.europa.eu/paym/t2s/governance/ag/html/index.en.html and http://www.ecb.europa.eu/paym/t2s/governance/ag/html/hsg/index.en.html

2 For the full list of activities please refer to the Introduction.


securities law legislation (SLL), and on the clarification on how the possible financial transaction tax will be implemented in some EU countries. As stated in the ECB opinion on the CSDR dated 1 August 20123 and the AG letter to the European Commission dated 13 July 20114, the Governing Council of the ECB and the AG fully support a timely implementation of the CSDR and the related technical standards prior to the launch of T2S in 2015. The CSDR is expected to contribute to the removal of several key barriers, for example by harmonising the settlement period to T+2, introducing a single settlement discipline regime, solving the legal issues on CSDs’ outsourcing to public entities, and establishing market access rules and free choice regarding the place of issuance.

Second, another necessary step is to encourage increased cooperation between public and private entities as far as national regulation and legislation are concerned. Today, the implementation status of some of the EU or T2S harmonisation standards is suboptimal owing to outdated regulatory and/or legal frameworks at the national level (e.g. concerning night-time settlement, the record date for corporate actions, etc.). It is crucial that national public authorities, market infrastructures and market participants work together to adapt to the new harmonised standards, thus overcoming the current market fragmentation and promoting the idea of a single financial market for Europe. The new T2S infrastructure and its harmonisation agenda play a key role in this respect.

Summary of results Important results are presented in the report with reference to the ten harmonisation activities that were monitored in the context of the third progress report (see Annex 3).

First, a high degree of harmonisation emerged in two areas: the implementation process of the T2S ISO 20022 messages and the availability of omnibus accounts at issuer CSDs for foreign participants and investor CSDs. All T2S markets either are already compliant or have clear plans to achieve compliance before the launch of T2S, with no major barriers envisaged.

Second, very good progress has been identified in the following areas:• adaptation to a single list of T2S matching fields;• adaptation to the T2S opening days and timetable;• settlement finality aspects connected to the irrevocability of transfer orders and irrevocability

of transfers in T2S;• less restrictions in the use of omnibus accounts in the T2S markets;• adoption of EU market practice as regards the identification of securities amount data in

settlement instructions.

In 2013 the AG will further intensify its efforts to improve compliance with the agreed standards in the relevant T2S markets. Regulatory, legal and market practice barriers have been clearly identified in the non-compliant T2S markets.

Finally, compared with the second progress report, marginal progress can be reported in two topics from the T2S harmonisation list, namely in the compliance with T2S corporate action standards and with corporate action market standards (as defined by the CAJWG). Although in both areas there are already agreed and endorsed standards as well as a clear monitoring framework in place, regulatory and legal barriers in national markets may still impede national compliance and implementation.

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3 Available at http://www.ecb.int/ecb/legal/pdf/c_31020121013en00120031.pdf

4 Available at http://www.ecb.europa.eu/paym/t2s/progress/pdf/ag/mtg14/item-8-2-ag-chairman-finalletter-to-dg-market.pdf?92fc

http://www.ecb.europa.eu/paym/t2s/progress/pdf/ag/mtg14/item-8-2-ag-chairman-finalletter-to-dg-market.pdf?92fc


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Way forwardRegarding the way forward for fostering progress in the T2S agenda, work will intensify as the T2S testing and migration phases approach (to start in October 2014 and June 2015 respectively). In particular, the AG is planning the following actions during 2013.

• Monitoring will expand to the areas where standards have recently been defined, namely T2S securities and cash account numbering and best practices for interaction with T2S regarding registration procedures, tax information requirements and CSD ancillary services. Furthermore, it might be possible to start monitoring several new areas that are dependent on the CSDR, if the latter is adopted as scheduled in 2013. As usual, a survey will be conducted to assess the compliance of T2S markets with the T2S standards for the management of corporate actions on flows (planned for the second quarter of 2013).

• The HSG will work to prepare the Fourth T2S Harmonisation Progress Report, which will concentrate on monitoring the compliance of T2S markets with new standards and best practices defined by the T2S Community (planned for publication in early 2014).

• T2S will continue to contribute to the work of the European Post Trade Group (EPTG)5, established in 2012 as a joint initiative between the European Commission, the ECB, the European Securities and Markets Authority (ESMA), the Association for Financial Markets in Europe (AFME) and industry representatives. The HSG will ensure that a number of T2S-related issues which require wider attention outside T2S will be assessed in this forum.

The T2S Board6 regularly monitors the progress of the T2S harmonisation work stream. The ultimate goal for the AG is for all T2S markets to achieve full compliance with the priority 1 harmonisation activity standards as of start of testing and/or respective migration wave date.

Key findings of the Third T2S Harmonisation Progress Report

There has been good progress in terms of establishing harmonisation standards and monitoring processes in T2S markets since the second harmonisation progress report. Awareness and understanding of the relevant standards and methodologies has also improved within the T2S Community. However, further and intensive work is required in the following two key areas in the course of 2013: • progress and adoption of the relevant EU legislative initiatives (CSDR, SLL, clarification on

the financial transaction tax);• closer involvement of national authorities in removing regulatory and legal barriers.

5 For more information on the EPTG, please refer to the European Commission’s website at http://ec.europa.eu/internal_market/financial-markets/clearing/eptg_en.htm 6 For more information on the T2S Board, see http://www.ecb.europa.eu/paym/t2s/governance/prog_board/html/index.en.html

http://ec.europa.eu/internal_market/financial-markets/clearing/eptg_en.htm

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

Third T2S Harmonisation Progress Report I Introduction

The Third T2S Harmonisation Progress Report has been prepared by the HSG in line with its mandate. The HSG delivers a T2S harmonisation progress report to the AG on an annual or semi-annual basis, as required. The report is also delivered to the T2S Board, which presents some key results to the Governing Council of the ECB.

The first two reports, published in July 2011 and January 2012, focused primarily on fact-finding and definition activities, i.e. on identifying which post-trade harmonisation issues are relevant for T2S and how they should be prioritised in view of the T2S launch and markets’ migration to T2S. The definition process, although in itself a dynamic activity, is now largely stabilised.

Hence, the main purpose of the third report is to monitor progress of T2S markets’ compliance with the harmonisation standards that have already been agreed. During 2012 the T2S harmonisation work stream was based on the following approach for measuring this progress: first, monitoring only those harmonisation activities that could reasonably be measured and for which there was an endorsed standard; and second, using a transparent monitoring tool for presenting the status of compliance for each T2S market.

In this report, the HSG summarises the results of the monitoring of the T2S markets’ compliance as far as ten harmonisation activities are concerned (out of a total of 26 activities). Eight of the ten monitored activities are considered to be “priority 1” topics, i.e. they are among the harmonisation activities considered by the AG necessary to ensure the successful launch of T2S. 42% of the total priority 1 issues are now being monitored with concrete processes, actors and dates. In the second progress report, only five activities (3 of which were priority 1) were monitored by the HSG out of a total of 23.

Despite the considerable progress made since the previous reports, numerous activities cannot yet be monitored as they are dependent on the completion of the definition process in important post-trade issues. The ongoing initiatives in and outside T2S affect the completion of the standards definition process, e.g. the work of the CSD Coordination Group (CSG) and the EU legislative initiatives (the CSDR and SLL). In particular, the timely adoption of the CSDR and its impact on T2S were raised by the AG in its letter to the European Commission on 13 July 20117 as well as the ECB opinion on the CSDR dated 1 August 20128.

Unless a standard/rule/market practice is defined and endorsed by the relevant actors, monitoring its implementation is de facto not possible. As an example, the AG cannot monitor and report on whether the regulatory environments of T2S markets are in line with the EU’s harmonised settlement period (T+2) or the single settlement discipline regime until the CSDR is implemented and the subsequent adoption process of ESMA’s technical standards is complete.9

Following the signing of the T2S Framework Agreement with CSDs, this report exclusively covers T2S markets, i.e. markets where at least one CSD has signed the Framework Agreement. The compliance status is presented by market (rather than by CSD), given that compliance often depends on the national market practice, specificity or even regulation/legislation rather than the CSD’s business model.

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7 http://www.ecb.europa.eu/paym/t2s/progress/pdf/ag/mtg14/item-8-2-ag-chairman-finalletter-to-dg-market.pdf?92fc5915d8d452c4633a383c8fc96522 8 http://www.ecb.int/ecb/legal/pdf/c_31020121013en00120031.pdf 9 Regulation (EU) No 236/2012 of the European Parliament and of the Council on short selling provides rules on buy-in for cleared shares (see Art. 15), which can be considered to cover part of what is defined as the settlement discipline regime (the buying-in rules). The CSDR will complete the scope as regards instruments covered and preventive/disciplinary measures.

2 Introduction

http://www.ecb.europa.eu/paym/t2s/progress/pdf/ag/mtg14/item-8-2-ag-chairman-finalletter-to-dg-market.pdf?92fc5915d8d452c4633a383c8fc96522


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In terms of overall compliance status, the picture varies significantly across activities and across markets. In terms of activities, some standards are easier to implement than others and compliance is therefore more advanced (for instance, securities amount data standards vs. corporate actions standards). Similarly, some markets have made more progress than others in terms of compliance with standards or concrete plans for implementation and compliance (as shown in Annex 4). In terms of national market status assessment, the AG took into account that, as the T2S testing phase draws closer, lack of progress in terms of harmonisation entails a greater risk of suboptimal T2S adaptation for the national market in question.

The role of national authorities in assisting their markets to comply with the agreed standards is of paramount importance. Although the need for legal and regulatory changes has been reported as the main barrier to harmonisation, very often non-compliance is in fact due to a lack of willingness by national markets to move away from the current status quo.

T2S harmonisation listThe report addresses in detail a total of 26 activities, which are currently managed by the T2S team under the guidance of the HSG and the endorsement of the AG. They are based on AG agreements, HSG proposals, the work of AG substructures and analysis conducted by the T2S team. Some activities are grouped under broader areas, for instance T2S messages and legal harmonisation. The report provides the following information for each harmonisation activity:• a short definition of the activity;• the concrete objective of the activity;• the responsible monitoring actor(s); • the implementation deadline; • the monitoring process required, including interim deadlines prior to the implementation

deadline.

A concise overview of all these elements is also provided in Annex 2 (T2S harmonisation list).

Priority 1 activities Priority 1 activities are considered by the AG to be necessary to ensure the successful launch of T2S. The HSG and the T2S team should, in principle, focus on the following activities as first priorities: 1. T2S ISO 20022 messages;2. T2S matching fields;3. interaction with T2S (registration procedures);4. interaction with T2S (tax info requirements);5. interaction with T2S (CSD ancillary services);6. T2S schedule of the settlement day and calendar;7. T2S corporate actions standards;8. Settlement Finality I (moment of entry);9. Settlement Finality II (irrevocability of transfer order);10. Settlement Finality III (irrevocability of securities transfer);11. location of accounts/conflict of law;12. IT outsourcing;13. settlement discipline regime;14. settlement cycles;15. availability of omnibus accounts;16. restrictions on omnibus accounts;17. registration procedures; 18. cash account numbers;19. securities accounts numbers.


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Priority 2 activities Priority 2 activities are important harmonisation activities that are beneficial for the competition environment and efficiency of T2S but, strictly speaking, not necessary for the T2S launch. In most cases, the AG, with the help of the HSG and the T2S team, should only monitor progress in these activities at this stage.

Even for activities classified as Priority 2, the AG/HSG/T2S team have an interest in maintaining regular contact with the relevant actors, since these activities might bring substantial benefits to T2S operations in terms of the level playing field and competition conditions in cross-border settlement.

These activities are:20. corporate actions market standards;21. place of issuance;22. withholding tax procedures;23. settlement related tax procedures;24. cross-border shareholder transparency;25. market access and interoperability;26. securities amount data.

The report is structured as follows:• Section 3 provides updated information on priority 1 harmonisation activities;• Section 4 provides updated information on priority 2 harmonisation activities; • Annex 1 describes the methodology used for compiling the T2S harmonisation list, the

dashboard and the T2S markets’ compliance table;• Annex 2 is the T2S harmonisation list v.3.1, i.e. the key HSG harmonisation reference tool as well

as a deliverable for all AG meetings;• Annex 3 is a dashboard with an overview of the status of each T2S harmonisation activity;• Annex 4 is a table summarising the implementation status in all T2S markets for the ten

harmonisation standards monitored during the third report;• Annex 5 reports the detailed results of the monitoring exercise broken down by T2S market.

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

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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. The AG (via the T2S Sub-group on Message Standardisation10) and the 4CB are the main actors in this activity.

Activity statusT2S ISO messages are part of the technical specifications/requirements for the T2S actors’ interaction with the T2S services. T2S actors that do not comply with T2S ISO messages will not be able to participate in T2S testing. The full catalogue of ISO 20022 compliant messages for T2S (130 messages in total) is now part of UDFS v.1.2.1. Most of these messages will be ISO 20022 registered (after Eurosystem acceptance testing).

T2S markets’ compliance statusIn March 2012 the AG agreed that information included in the CSDs’ feasibility assessments (SP2 and SP311) should be used for monitoring markets’/CSDs’ implementation of the T2S ISO 20022 messages. All T2S markets have provided their plans as to how to implement the T2S ISO 20022 messages. No operational or regulatory barriers have been reported so far.

Information input: SP2 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 T2S harmonisation activities – priority 1T2S messages

Blue None

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

Yellow MT

Red None

Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing12

Monitoring actors T2S team, NUGs

Monitoring process SP2: 10/08/2012, feasibility confirmation by CSDs and national central banks

Compliance was monitored by the T2S team as part of the CSD/central bank feasibility assessment process (SP2).

SP3: Q2 2013, T2S Programme Plan comprehensiveness

The objective of this checkpoint is to verify that each T2S client has conducted an internal impact assessment for their own project plan (including harmonisation standards).

Other relevant dates

Based on the CSDs’ detailed adaptation plans, there will be specific checkpoints between SP2 and SP8.

The T2S NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.

10 For more information on the T2S Sub-group on Message Standardisation, please visit http://www.ecb.europa.eu/paym/t2s/governance/ag/html/substand/index.en.html

11 Synchronisation Points (SPs) are points in time at which the T2S programme is to reach specific objectives. 17 SPs are foreseen until T2S goes live in June 2015 and all participating CSDs have migrated to the new platform. The purpose is to monitor, at given time intervals, that the progress of all parties is in line with the T2S Programme Plan. More information on the T2S Programme Plan can be found at http://www.ecb.europa.eu/paym/t2s/progplan/html/index.en.html.

12 T2S Framework Agreement, Schedule 2, Annex 9. SP8: Start of bilateral interoperability testing (01/10/2014).

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


3.2 T2S matching fields

Activity descriptionThe objective of this activity is to agree on a single list of T2S matching fields and ensure their compliance with the matching standards put forward by the European Securities Forum (ESF) and the European Central Securities Depositories Association (ECSDA) in 2006.13

Activity statusThere is already a T2S standard in this area, i.e. the list of mandatory and non-mandatory T2S matching fields.14

However, T2S stakeholders are still discussing how to manage information which is currently covered under the non-mandatory matching fields: trade reference, client of delivering/receiving CSD participant and securities account of delivering/receiving party.

The AG has encouraged further work on the definition of a single T2S market practice for using the T2S non-mandatory (optional) matching fields. The AG also agreed that work on this issue should be initiated by the T2S team at a later stage, i.e. once harmonisation in other cross-CSD areas has made good progress and the CSDs’ adaptation plans have been stabilised.

During 2013 the HSG plans further work on this issue via its substructure, i.e. the successor to the TFAX forum.15

T2S markets’ compliance statusThe T2S team has received substantial information on the CSDs’ plans to adapt to the T2S matching fields requirements.

Most T2S markets have explicitly reported that they will fully comply with the T2S matching fields (green status).

However, some markets have been marked as red because they have reported major issues with the current T2S matching fields (i.e. matching fields of importance to them are missing from the T2S list of matching fields). Yellow status has been assigned to markets with no major issues relating to the T2S matching fields or with a workaround solution in place (or in plan) in the absence of a T2S matching field solution.



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13 ESF-ECSDA matching standards, 5 October 2006, available at http://w w w.ecsda.eu/site/uploads/tx _doclibrary/2006_10_05_ESSF_ECSDA_Matching_Standards.pdf. 14 See T2S UDFS (v.1.21, 07/09/2012), Section 1.6.1.2 for definitions and lists, available at http://www.ecb.europa.eu/paym/t2s/pdf/UDFS_v1_2_1.pdf?1e91fd88654af43bbbe310faff2c873115 The Task Force on adaptation to cross-CSD settlement (or TFAX) was mandated by the AG in 2011 to make proposals to the HSG and the AG on standard T2S processes and/or messaging fields to increase the efficiency of cross-CSD settlement for CSDs and their participants on a non-discriminatory basis.

Blue None

Green AT, BE (Euroclear), BE (NBB-SSS), CH, EE, ES, FR, GR (BOGS), HU, LT, NL, PT, RO, SI, SK

Yellow IT, MT

Red DE, DK, FI, LU (LUX CSD), LU (VP LUX)

http://www.ecsda.eu/site/uploads/tx_doclibrary/2006_10_05_ESSF_ECSDA_Matching_Standards.pdf

http://www.ecb.europa.eu/paym/t2s/pdf/UDFS_v1_2_1.pdf?1e91fd88654af43bbbe310faff2c8731


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Monitoring

3.3 Interaction with T2S (registration procedures)

Activity descriptionThe objective of this activity is to define T2S best market practice regarding the management of registration information in T2S markets. Today, divergent registration procedures at national level cause costs and inefficiencies in cross-border environments. The adoption of a homogeneous practice across all T2S markets would ensure that registration procedures do not interrupt straight-through processing nor hamper smooth cross-CSD settlement in T2S, affecting the system’s efficiency (e.g. by putting instructions on hold).

Activity statusThe issue was analysed by the TFAX, which delivered its final report to the AG in November 2012. The AG mandated the HSG to look into the findings of the final TFAX report and transform its recommendations, wherever appropriate, into T2S standards for further monitoring and follow-up. 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.16

The TFAX analysis showed that the possibility of using T2S messages to transmit registration data would raise several issues and increase complexity. In addition, based on the current T2S design, this solution would not be feasible in all settlement scenarios. The TFAX therefore recommended that no registration details should be exchanged using T2S messages.

Based on the HSG’s advice, on 6 February 2013 the AG endorsed the TFAX proposal as T2S best market practice.17 This recommendation has now been included in the T2S harmonisation list as one of the activities relating to T2S messages.

16 More details are available in the TFAX report, published on the T2S website at http://www.ecb.europa.eu/paym/t2s/progress/pdf/subadapt/report/2012-11-28_Report_of_the_TFAX.pdf?96abc3c9f629a307ee54752348fed9f2.

17 The HSG also took note of a number of additional issues that might be raised in future to other European forums like the EPTG. For example, the TFAX recommended that T2S actors should avoid account segregation for registration purposes in a T2S environment. The group also invited the HSG to discuss other possible solutions of a legal/regulatory nature beyond the technical and process-based approach taken by the TFAX. More specifically, the TFAX identified the following potential solutions: (1) the possibility of nominee registration; (2) linking the transfer of rights to settlement such that there is no post-settlement event questioning the transfer of rights; and (3) to abandon transaction-by-transaction registration completely. All of these options aim to increase the integration of registration and settlement as a means of ensuring the realignment of both processes.

Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing








NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.

http://www.ecb.europa.eu/paym/t2s/progress/pdf/subadapt/report/2012-11-28_Report_of_the_TFAX.pdf?96abc3c9f629a307ee54752348fed9f2


T2S markets’ compliance statusMonitoring by the HSG is planned to start within the first half of 2013.

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).

Activity statusIn its meeting in November 2012, the AG mandated the HSG to look into the findings of the final TFAX report and transform its recommendations, wherever appropriate, into T2S standards for further monitoring and follow-up.

The TFAX analysed the possibilities of interaction with T2S for local tax requirements and concluded that there is no technical and process-based solution to achieve efficient tax processing in the T2S environment. Hence, the task force recommended that, to avoid additional complexity and the emergence of confidentiality issues, no tax-related information should be included in T2S settlement messages (for either intra-CSD or cross-CSD transactions).

Based on the HSG’s advice, on 6 February 2013 the AG endorsed the TFAX proposal as T2S best market practice. This recommendation has now been included in the T2S harmonisation list as one of the activities relating to T2S messages.

In addition, the TFAX considered the impact that the (potential) introduction of new trade-related taxes (e.g. financial transaction tax) might have on cross-CSD settlement and recommended that such taxes should preferably not be collected at the settlement level or, if need be, that this should occur in a harmonised or T2S-compatible way. The AG or T2S Board may consider whether to raise this issue to the relevant EU authorities in view of the forthcoming financial transaction tax legislation (see also Section 4.4 on settlement-related tax procedures).


Monitoring

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Monitoring actors AG (through the HSG and NUGs)

Monitoring process HSG survey to be launched with the NUGs and the CSDs in the first half of 2013.





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3.5 Interaction with T2S (CSD ancillary services)

Activity descriptionThis activity covers specific CSD services that go beyond the “core CSD services” (i.e. notary function, settlement and safekeeping) and are therefore referred to as CSD “ancillary services” (e.g. repos, securities lending, “buy-sell back” processing and portfolio transfers).

Ancillary services are outside the current scope of T2S and will continue to be offered by CSDs to their participants directly, even after the launch of T2S. However, the set-up and range of such services could be affected by the CSDs’ adaptation to T2S.

The objective of this activity is to define T2S best market practice that allows for smooth cross-CSD interaction with T2S as regards CSD ancillary services.18

Activity statusIn its meeting in November 2012, the AG mandated the HSG to look into the findings of the final TFAX report and transform its recommendations, wherever appropriate, into T2S harmonisation activities for further monitoring and follow-up.

The TFAX analysed a number of issues regarding CSD ancillary services. In particular, it issued recommendations about portfolio transfers, bond stripping and reconstitution, classic repos, tri-party repos, securities lending and borrowing. Some of these recommendations have been translated into standards for the T2S harmonisation list, while others will be considered further by the HSG for potential follow-up with other European harmonisation actors. The recommendations below have now been included in the T2S harmonisation list under T2S messages as a new activity called “Interaction with T2S (CSD ancillary services)”:

• portfolio transfers – portfolio transfer information should be exchanged outside T2S (between custodians or via CSDs);

• bond stripping – reconstitution – CSDs should use T2S allegement messages to trigger validation of bond stripping/reconstitution instructions.

Based on the HSG’s advice, on 6 February 2013 the AG endorsed the TFAX proposal as T2S best market practice. This recommendation has now been included in the T2S harmonisation list as a new activity under T2S messages.


18 These services are usually mandatory services that parties active in that market are obliged to use, either directly (as an issuer CSD participant) or indirectly (as a client of a provider of settlement and custody services in the issuer CSD market). According to analysis by the Task Force on smooth cross-CSD settlement, the fundamental requirement from a T2S cross-CSD settlement perspective would be that these services should not be mandatory but voluntary and at the same time be available to all issuer CSD participants on a non-discriminatory basis. The reason is that mandatory participation in these ancillary services does not facilitate issuer CSD participation by non-domicile institutions. At the same time, it is important to note that some of these requirements may be based on CSD oversight concerns (securities lending, buy-ins) and cannot easily become optional. The work on the EU harmonised settlement discipline regime could affect harmonisation in some of these issues.


Monitoring

3.6 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 key harmonisation agreements in the T2S context19.

Activity statusThese issues were discussed with the CSDs and other T2S stakeholders during several workshops and bilateral meetings.

In the context of the CSDs’ feasibility assessments (SP2, summer 2012), the T2S team received information on the CSDs’ compliance with the T2S schedule for the settlement day and the T2S calendar.

T2S markets’ compliance statusSome T2S markets have explicitly reported that they will fully comply with the T2S times and opening days prior to their migration date (green status assigned). Yellow status is assigned to those markets which have identified operational constraints with some of the times in the T2S schedule for the settlement day, in particular with the start of night-time settlement. One T2S market has been assigned red status because it reported a major issue with the current T2S times.



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Blue None

Green AT, BE (Euroclear), CH, EE, ES, FR, IT, LT, LU (LUX CSD), NL, PT, SI, SK

Yellow BE (NBB-SSS), DE, DK, FI, GR (BOGS), HU, LU (VP LUX), MT

Red RO

19 The T2S User Requirements Document is available at http://www.ecb.int/paym/t2s/pdf/URD_v5_02.pdf?180e8dbe3f748526f68b3f7c700e7c85.

http://www.ecb.int/paym/t2s/pdf/URD_v5_02.pdf?180e8dbe3f748526f68b3f7c700e7c85


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Monitoring

3.7 T2S corporate actions standards

Activity descriptionThe AG decided in 2008 that it was necessary to establish a set of T2S standards to harmonise CSDs’ interaction with T2S as regards the settlement of corporate actions on flows (pending transactions).

Activity statusThe T2S Corporate Actions Sub-group (CASG) formulated a detailed list of T2S corporate actions standards on the basis of the high-level corporate actions market standards (as defined by the European Commission-sponsored CAJWG – see Section 4.1). The T2S corporate actions standards were approved by the AG in September 2009, and further updated in March 2011 and March 2012.16

In terms of definition and monitoring, work has progressed well since last year. Some editing updates to the buyer protection standards were approved by the AG in March 2012. Furthermore, the AG agreed that compliance with T2S corporate actions standards would only be monitored for T2S markets, i.e. markets in which a CSD has signed the T2S Framework Agreement.

The AG also agreed to improve the coordination process with the markets for completion of the CASG‘s annual gap analysis survey. A national coordinator was nominated for each market for this exercise by the chairpersons of the T2S NUGs. Nevertheless, ultimate responsibility for the timely response of the respective markets remains with the NUGs. Thanks to this improved procedure, responses from all T2S markets/CSDs were received in September 2012 (see Annex 4).

Compared with 2011 figures, the results show that the low rate of CSDs’/markets’ compliance has changed only marginally. The lack of progress in most markets is already a parameter that increases risk in the overall corporate actions implementation process, especially given that the time buffer for T2S testing and migration is getting shorter. A complete gap analysis report on the 2012 status was presented to the AG by the CASG Chairman on 28 November 2012.

As a result of some revisions in the underlying CAJWG standards, the T2S corporate actions standards may need to be further updated before the 2013 gap analysis survey (planned for the second quarter of 2013).


Monitoring actors NUGs and T2S team







The NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.

20 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.html.

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


T2S markets’ compliance statusAs part of its 2012 analysis, following the practice of last year, the CASG provided a “risk assessment” or “compliance status” for each market (green, yellow or red status) based on their current expectations as to whether the T2S standards will be implemented in full, with the appropriate quality, and in time for the launch of T2S. The status assessment took into account not only the current level of compliance with the standards, but also the change in compliance since last year, the severity of the barriers to implementation and the assessment of the national market’s commitment to implementing the standards. Particular weight was given to cases in which legal amendments were necessary. Furthermore, the CASG took into account that the T2S markets now have one year less to become compliant with the standards prior to T2S testing.

Green status is only assigned to markets that already had a high level of compliance (in 2012), and where no operational or regulatory obstacles are likely to hamper adaptation.

Yellow status is assigned to markets with a low level of compliance (in 2012) but with clear plans to achieve full compliance by SP8, and where no operational/regulatory obstacles are identifi ed.

Red status is assigned to markets with no information, very low compliance and/or major regulatory/legal changes required to achieve full compliance.

Information input: CASG gap analysis 2012


Figure 1: Three-year comparative results for T2S markets’ implementation of T2S corporate actions standards. No value means zero compliance or no information provided.

Source: CASG (2010-2012 survey data)

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Blue None

Green BE (Euroclear), FR, IT, NL, PT

Yellow BE (NBB-SSS), CH, ES, GR (BOGS), LU (LUX CSD), LU (VP LUX), RO, SI

Red AT, DE, DK, EE, FI, HU, LT, MT, SK


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Monitoring

Legal harmonisation

The legal harmonisation area comprises five activities that are clearly connected to already existing or ongoing international and EU legal harmonisation agreements/initiatives:

• Settlement Finality I (SF I): Moment of entry of transfer order into the system (Settlement Finality Directive, Art. 3);

• Settlement Finality II (SF II): Irrevocability of transfer order (Settlement Finality Directive, Art. 5);• Settlement Finality III (SF III): Irrevocability of securities transfers (ESCB-CESR recommendation 8

and CPSS-IOSCO principle 8);• location of securities accounts (also known as conflicts of law applicable): under consideration in

upcoming EU legislation (CSDR and SLL);• outsourcing of CSD services: under consideration in upcoming EU legislation (CSDR).

3.8 Settlement Finality I

Activity descriptionSF I is defined as the moment of entry of a transfer order into the system, or the moment when a transfer order is protected against insolvency procedures. SF I is defined in and covered under:• the Settlement Finality Directive - SFD (2009), Art. 3;• ESCB-CESR (2009) recommendations for SSSs (no 1);• CPSS-IOSCO (2012) principles for financial market infrastructures (no 1 and 8);• CSDR proposal (2012), Art. 36/3 and 45/a.

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.

SF I is currently defined in the rules of all designated SSSs (as required by the Settlement Finality Directive). Looking at the domestic level, all T2S markets are compliant with SF I (as per SFD). However, a single SF I rule has not yet been agreed across the T2S markets. 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).


Monitoring actors CASG, NUGs

Monitoring process The main monitoring process for this harmonisation activity will remain the CASG’s annual gap analysis survey of T2S markets.

SP2: 10/08/2012, feasibility confirmation by CSDs and national central banks








The Framework Agreement (Art. 21/para. 4) recognises the need for a harmonised CSD rule for the moment of entry of transfer orders into the system. The need for a harmonised rule – but not the rule itself – is also established by Art. 3(4) and 5(2) of the Settlement Finality Directive (2009) as well as the CSDR proposal (art 45(8)).

Activity statusIn June 2011 the AG agreed that the CSD Steering Group (CSG) should continue to work on the definition of such a rule in coordination with the legal experts from the T2S team. In addition, the CSDs’ compliance with the harmonised rules should be assessed on an ongoing basis against the obligation of compliance with the CSD eligibility criteria.

In July 2012 the HSG presented a first proposal for a T2S SF I rule to the CSG. The CSG is working on this issue in the context of its legal work stream. An SF I dedicated task force was set up by the CSG in November 2012, involving different categories of stakeholders and bringing together a variety of expertise. The task force is expected to submit its proposal to the CSG in the first quarter of 2013.21

This issue was also mentioned in the AG’s letter to the European Commission on the CSDR (in summer 2011). The future CSDR may include provisions on SF I, in particular requiring interoperable systems to put in place harmonised rules on SF I. However, the CSDR is not intended to provide such harmonised rules in general.

T2S markets’ compliance statusThere is a risk that no consensus/agreement will be found among CSDs on a single rule for defining the moment of entry of a transaction into the system on time. The time constraint is that, following the agreement with the T2S CSDs, monitoring and implementation processes have to be established in national markets. Regulatory and potentially legal changes may delay the whole process.

If this is not resolved before the launch of T2S, it could result in uneven protection of CSD participants against the risk of insolvency of participants in other CSDs (linked CSDs in T2S) or in lengthy and difficult legal assessments prior to the establishment of such links.

T2S market monitoring will be launched after agreement on the T2S SF I rule (expected in the first half of 2013).

Monitoring

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21 An ECSDA survey dated 24 October 2011 on settlement finality found that out of the 18 CSDs that participated in the survey, 6 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.

Implementation date T2S migration date (depending on migration wave)

Monitoring actors HSG/T2S team/NUGs/CSG

Monitoring process HSG dedicated survey with NUGs and CSDs. Also part of monitoring the CSDs’ adaptation plans to T2S (the T2S team’s client readiness monitoring).

http://www.ecsda.eu/site/uploads/tx_doclibrary/2011_10_24_Outcome_ECSDA_Finality_Survey.pdf


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3.9 Settlement Finality II

Activity descriptionSF II is defined as the irrevocability of a transfer order (and not of the transfer itself) according to the rules of the CSD. SF II is defined in and covered under:• Settlement Finality Directive (2009), 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);• CSDR proposal (2012), Art.36/3 and 45/8.

The aim of this activity is to adopt a harmonised definition of the irrevocability of transfer orders, in order to eliminate the risk of transfer order revocation in a T2S cross-border environment.

Activity statusThe irrevocability of transfer orders in T2S is protected through the rule prohibiting the unilateral cancellation of instructions after matched status is achieved in T2S (URD v5.0). According to the T2S Framework Agreement (Art. 21/para. 4), contracting CSDs shall make all necessary arrangements in order to adopt a harmonised definition of the irrevocability of transfer orders.

CSDs should comply with the rule for irrevocability of a transfer order 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. However, it is necessary to monitor that the CSDs’ regulatory environments, including their rules and procedures, are updated accordingly.

The definition process was finalised with the completion of the URD (no unilateral cancellation is possible in T2S after matching). Regarding the monitoring process, the NUGs survey conducted by the Task Force on smooth cross-CSD settlement in 2011 identified a number of issues, which are now being monitored.

The future CSDR may include provisions on SF II, in particular requiring interoperable systems to put in place harmonised rules on SF II. However, the CSDR is not intended to provide such harmonised rules in general.

T2S markets’ compliance statusT2S markets that are already compliant with the T2S SF II rule are assigned blue status. Green status indicates that markets will be ready before migration date. Finally,markets that are planning to comply before migration to T2S are assigned yellow status (reflecting the assumption that this usually requires a regulatory change).



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

Green BE (NBB-SSS), DE, LU (LUX CSD), PT, SI

Yellow CH, HU, LT, MT, SK

Red None


Monitoring

3.10 Settlement Finality III

Activity descriptionSF III is defined as the irrevocability of transfers (bookings in CSD accounts) according to the rules of the CSD. SF III is defined in and covered under:

• ESCB-CESR (2009) recommendations for SSSs (no 1 and 8);• CPSS-IOSCO (2012) principles for financial market infrastructures (no 1 and 8);• CSDR proposal (2012), Art. 36/4 and 45/8.

This activity focuses on ensuring that all T2S markets comply with the rule concerning the irrevocability of securities transfers in T2S. 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 have to recognise account entries in T2S as unconditional, irrevocable and enforceable.

Activity statusAccording to the T2S Framework Agreement, a contracting CSD shall make all necessary arrangements with regard to its operational processes to achieve the unconditionality, irrevocability and enforceability of settlements processed in T2S. This is particularly relevant in the case where the 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.

This issue was raised in the letter sent by the AG to the European Commission in summer 2011 regarding the CSDR. The future CSDR may include provisions on SF III, in particular requiring interoperable systems to put in place harmonised rules on SF III. However, the CSDR is not intended to provide such harmonised rules in general.

T2S markets’ compliance statusIn June 2011 the AG decided that, following the signing of the T2S Framework Agreement, the T2S team should undertake the task of monitoring the CSDs’ compliance with the established harmonised finality rule (T2S SF III rule).

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Monitoring actors HSG/T2S team/NUGs









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Blue status reflects that there is no need for further monitoring of compliance. Green status is assigned to the T2S markets where there is no need for a regulatory and/or legal change to be introduced in order to comply with the T2S SF III rule, although a change in the CSD rules is still required.

Yellow status reflects that the relevant T2S markets have carried out a thorough assessment and concluded that they will comply with the T2S SF III rule in time for their migration to T2S but that there is a need for a regulatory or legal change.



Monitoring

3.11 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 transfers of securities and the CSD securities accounts.22 For this harmonisation activity we focus 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.

A harmonised rule for the location of securities accounts must be clearly determined and compatible with the set-up of T2S so as to mitigate legal risk for CSD links in T2S. The lack of this harmonised rule would undermine the establishment and use of CSD links in the context of T2S.


Monitoring actors HSG/T2S team/NUGs/CSG



January 2013: All T2S markets responded in the HSG’s dedicated survey on SF III.






Blue AT, ES, FI

Green BE (Euroclear), BE (NBB-SSS), DE, CH, EE, FR, GR (BOGS), IT, LU (LUX CSD), MT, NL, PT, RO, SI

Yellow DK, HU, LT, LU (VP LUX), SK

Red None

22 Conflict of law also refers to the issue of creation of rights. Currently, not in all Member States securities accounts held within a CSD create rights to securities. However, this is not considered to be a constraint for the harmonisation of cross-border securities transfers.


The conflict of law topic may also be relevant for another post-trade harmonisation issue, namely the freedom of issuance. As proposed in the current draft of the CSDR, issuers should have the right to issue their securities in non-domicile CSDs. This right may increase the instances of conflicts of law.

Activity statusThe future SLL (a proposal for which is expected to be issued by the European Commission in the first half of 2013) and possibly also the proposed CSDR might provide a harmonised rule to solve this issue. The ECB commented in response to the consultations on both legal instruments, supporting the establishment of a harmonised rule. The issue was also mentioned in the AG’s letter to the European Commission in 2011.

Owing to the expected delay in the CSDR adoption process [as of the end of February 2013], the AG has assigned red status to the definition process for this harmonisation activity (see Annex 3).In addition, the TFAX report to the AG includes proposals for further harmonisation action in the area of ownership rights creation during the settlement process (credits in securities accounts). This topic may also be covered in the SLL.

T2S markets’ compliance statusMonitoring has not yet started.There is a risk that the harmonised rule might not be established in either of the European legislation acts (CSDR or SLL). Moreover, the SLL adoption process may not be complete by the time of the T2S launch. The T2S team is preparing a note on these risks for the HSG and the AG (to be delivered in the second quarter of 2013).

Monitoring

3.12 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. Some national legislation/regulations in the EU either prohibit or hamper outsourcing of settlement services.

Even if this does not seem to be the case for any of the T2S markets, it is important to ensure that all participating CSDs obtain regulatory approval before connecting to T2S.

The T2S Framework Agreement recognises that participation in T2S requires regulatory approval for CSDs. CSDs are therefore granted the specific right to terminate the Framework Agreement if such regulatory approval is ultimately refused by the relevant authorities.

Activity status The matter is addressed in the CSDR proposal by the European Commission, according to which CSDs are allowed to outsource their services to public entities and, in that case, are exempted from

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Implementation date T2S launch: June 2015

Monitoring actors HSG/T2S team

Monitoring process As part of monitoring the CSDs’ adaptation plans to T2S (the T2S team’s client readiness monitoring).

The NUGs should assist the T2S team in the monitoring exercise


25

the requirements on outsourcing provided in the CSDR. The ECB supported this proposal in its reply to the Commission’s consultation on the CSDR in August 2012.

This is a key issue for T2S, which was also highlighted in the AG’s letter to the European Commission in July 2011. It is important to ensure that the CSDR is adopted and implemented before T2S starts operations. Owing to the expected delay in the CSDR adoption process [status as of the end of February 2013], the AG has assigned a red status to the definition process of this harmonisation activity (see Annex 3).

T2S markets’ compliance statusMonitoring has not yet started.Compared with other legal harmonisation issues, the IT outsourcing topic gives less cause for concern for the launch of T2S, given that up to now T2S markets have not identified any regulatory or legal barriers to outsourcing certain CSD services to T2S.

Monitoring

3.13 Settlement discipline regime

Activity descriptionA 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 so-called “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 impact financial stability.

Activity statusAlso as a consequence of past initiatives of ECSDA and the AG that flagged the need for a level playing field with regard to settlement discipline, the issue has been on the EU agenda of post-trade harmonisation for several years.

A provision in this regard is included in the current CSDR proposal. The issue was raised by the AG in its July 2011 letter to the European Commission and was supported by the ECB in its opinion on the CSDR proposal.

Currently, Article 15 of Regulation (EU) No 236/2012 on short selling lays down rules on settlement discipline (i.e. buy-in for cleared shares). The future CSDR intends to broaden the scope of the settlement discipline measures as regards the instruments covered. Assuming that the general principle for an EU-wide settlement discipline regime is adopted in the CSDR, ESMA and the ESCB would then define the technical standards (level II legislation) for the consistent application of such a framework.

Owing to the expected delay in the CSDR adoption process [as of the end of February 2013], the AG has assigned red status to the definition process of this harmonisation activity (see Annex 3).


Monitoring actors T2S team

Monitoring process To be conducted as part of monitoring the CSDs’ adaptation plans to T2S once the CDSR is adopted.


The AG has asked the HSG to look into identifying best practices with regard to the settlement discipline regime for T2S markets. This is not to replace the forthcoming CSDR standards but to contribute to the work of ESMA in consultation with the ESCB in this area. The HSG will need to take the provisions of the regulation on short selling into account in the work planned in this area.

T2S markets’ compliance statusMonitoring has not yet started.Relevant measures might not be implemented by the time T2S goes live. Depending on the progress of the CSDR and the potential involvement of ESMA, in coordination with the ESCB, in establishing a regime for the EU, any possible delays in view of the T2S launch will need to be further assessed and reported to the AG.

Monitoring

3.14 Settlement cycles

Activity descriptionThe existence of differing settlement cycles has 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 will be crucial for T2S participants’ technical infrastructures in rationalising back-office activities as well as in managing cross-border corporate actions. This is due 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. The problem is that, in the EU markets today, this settlement cycle timeline ranges from T+3 to T+2, rendering the management of cross-border corporate actions rather inefficient and costly.

Activity statusIn the context of the CSDR consultation, the Harmonisation of Settlement Cycles Working Group (a group launched by the Commission and made up of industry representatives) recommended the harmonisation of settlement cycles in the EU, proposing a standard of T+2. The issue was also addressed by the AG in its letter sent to the European Commission in July 2011.

France has already endorsed a T+2 rule, but national implementation is postponed in view of the establishment of an EU-wide rule.

The T+2 rule is now part of the current text of the CSDR. Owing to the expected delay in the CSDR adoption process [as of the end of February 2013], the AG has assigned red status to the definition process of this harmonisation activity (see Annex 3).

The AG has mandated the HSG to look into the possibility of T2S markets adopting a T+2 rule in view of migration to T2S, independently of the CSDR adoption process. The Federation of European Securities Exchanges (FESE) should also be consulted on this topic.

26


Monitoring actors ESMA/ESCB (according to the CSDR)

Monitoring process To be defined by ESMA/ESCB (according to the CSDR)


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T2S markets’ compliance statusMonitoring has not yet started.Depending on the follow-up actions by EU legislators (relating to the CSDR), any possible delays in view of the T2S launch will need to be further assessed and reported to the AG.

Monitoring

CSD account structures

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

A substantial number of the TFAX recommendations focus on this area and follow-up work is expected by the HSG during 2013.

The issue was also addressed by a dedicated group set up by the Association for Financial Markets in Europe (AFME), which presented its findings to the AG in March 2012. The group’s paper elaborated on the rationale of CSD account structures that use omnibus securities accounts and of structures using more segregated accounts.23

Sections 3.15 and 3.16 do not cover all of the identified activities relating to the CSD account structures requirements and could potentially be expanded in the next harmonisation progress report.

3.15 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. In short, the activity is based on the recognition that cross-border settlement is not realistically possible without the availability, at least as an option, of the omnibus account concept in all T2S markets.

Activity statusThis topic was added to the T2S harmonisation list as a priority 1 activity in September 2011, as agreed by the AG.

T2S markets’ compliance statusDuring 2012 the T2S team received information via the T2S NUGs on the relevant T2S markets. All T2S markets achieved blue compliance status in January 2013, meaning that further monitoring is not required for this harmonisation activity (for the given T2S markets).

Implementation date T2S launch date: June 2015

Monitoring actors National regulators – (potentially AG/HSG if outside the CSDR provisions)

Monitoring process To be defined by national regulators

23 The full paper is available at http://www.ecb.int/paym/t2s/progress/pdf/ag/mtg17/item-7-1-afme-csd-account-structure-final-report-19-mar-2012.pdf?1c798a51f336d23231938bd6c4a50c65.




Monitoring

3.16 Restrictions on omnibus accounts

Activity descriptionThe objective of this activity is to ensure that issuer CSDs, in addition to offering foreign participants the possibility of opening omnibus accounts (see Section 3.15), also provide appropriate services on those accounts, 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.

The issue of the restrictions on the use of CSD omnibus accounts is closely linked to the omnibus account availability topic described in the previous section. The unavailability of appropriate services attached to omnibus accounts represents an obstacle to CSD interoperability and cross-CSD settlement in (or even outside) T2S as well as to market access for foreign intermediaries.

Activity statusThe two issues named “availability of omnibus accounts” and “restrictions on omnibus accounts” were treated together as a single activity in previous reports. Following a proposal from the HSG, in November 2012 the AG decided to consider the mere availability of omnibus accounts and the presence of restrictions on the use of those accounts as two separate activities.

T2S markets’ compliance statusDuring 2012 the T2S team received information via the T2S NUGs on the compliance status of T2S markets. While in all T2S markets omnibus accounts are offered to investor CSDs and foreign

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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, PT, RO, SI, SK

Green None

Yellow None

Red None


Monitoring actors HSG, T2S team, NUGs







The NUGs’ survey on the topic took place during 2012.

Due to blue compliance status across the board, no further monitoring is required.


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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).



Monitoring

3.17 Registration procedures

Activity descriptionLocal registration procedures may have an impact on cross-CSD T2S settlement efficiency. For example, they may lead to instructions being put on hold in T2S prior to release for settlement.

Activity statusAs mandated by the AG in September 2011, the TFAX worked on identifying whether there is a possibility of establishing a standardised way to interact with T2S services or of making use of specific fields in T2S messages in order to avoid the settlement inefficiencies associated with local registration procedures. The TFAX contacted the NUGs on the matter in the first quarter of 2012.

One of the results of this work is the recommendation endorsed by the AG in February 2013 not to use T2S messages for passing on registration information. This is now considered T2S best market practice, as explained in Section 3.3.

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

Green None

Yellow FI, PT, SK

Red None









The NUGs’ survey on the topic took place during 2012.


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 cross-CSD contexts). The follow-up work is being monitored by the HSG and will be raised with the relevant actors outside T2S (e.g. EPTG and ESMA).

T2S markets’ compliance statusMonitoring has not yet started.There is no risk for the launch of T2S in the event that harmonisation is not achieved on time in this area. However, in some T2S markets, settlement processes could be inefficient and costly, especially for cross-CSD settlement business.

Monitoring

3.18 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 (DCAs) in T2S, rather than using the sequential number provided by the T2S system specification. The purpose is to build logic into DCA numbering in order to facilitate identification of account holders and providers.

Activity statusIn 2012 the T2S Community – in particular the cash-side actors – asked for the possibility of harmonised cash account numbers. The AG agreed to this request and encouraged the CSG to explore the possibility of following a similar approach with regard to the number assigned to securities accounts held by CSDs in T2S (see Section 3.19).

A change request was raised and approved by the T2S Community in order to enable national central banks to define the DCA account number in T2S. In June 2012 the T2S team prepared a note on the technical requirements of such a number and asked the PSSC to come up with a harmonised proposal. The same was done with the CSG for the securities side.

In November 2012 the AG endorsed the PSSC proposal for the DCA account numbering standard. The standard includes 34 characters (1 to designate the cash account, 2 for the country, 3 for the currency code, 11 for the BIC and 17 characters of free text for the account holder).

Examples: CFREURBANKFRPPXXXMAIN-DCA-ACCOUNT CDEEURBANKDEFF123DCA CLIENT ALPHA

T2S markets’ compliance statusA first monitoring survey by the HSG in coordination with the national central banks is planned for the second quarter of 2013.

30


Monitoring actors To be added (after consultation with EPTG in the first half of 2013)

Monitoring process To be added (after consultation with EPTG in the first half of 2013)


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Monitoring

3.19 Securities account numbers

Activity descriptionThe objective of this activity is for CSDs to designate a harmonised number for the securities accounts in T2S, rather than using the sequential number provided by the T2S system specification. The purpose is to build logic into the account numbers in order to facilitate identification of account holders and providers.

Activity statusUpon request by the cash side of the T2S Community, a change request was raised and approved to adopt harmonised numbers for both DCAs and securities accounts in T2S. The T2S team prepared a note on the technical requirements of such a number and asked the PSSC (for the cash side) and the CSG (for the securities side) to come up with a harmonised proposal.

The CSG proposal was endorsed by the AG in November 2012. The T2S standard requires CSDs to use BIC 4 digits to identify parties of CSDs plus 31 digits of free text.

T2S markets’ compliance statusA first monitoring survey by the HSG in coordination with the T2S CSDs is planned for the second quarter of 2013.

Monitoring



Monitoring process Other relevant dates

Based on the CSDs’ detailed adaptation plans, there will be specific checkpoints between SP2

and SP8.

The T2S NUGs should assist the T2S team in monitoring compliance and coordinating the

overall interaction with the relevant national markets.

Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing)

Monitoring actors HSG, T2S team, ESCB

Monitoring process HSG, T2S team, ESCB

Third T2S Harmonisation Progress Report I T2S harmonisation activities - priority 2

4.1 Corporate actions market standards

Activity descriptionThe market standards on corporate actions on stocks (settled balances) were finalised in October 2009 by the European Commission-sponsored CAJWG. The standards were subsequently endorsed by the relevant forums and industry associations (CESAME2, the European Banking Federation, European Issuers, etc.).

These market standards provide the basis for the T2S corporate actions standards (i.e. a market/CSD would need to comply with the corporate actions market standards in order to comply with the T2S standards). Although T2S is not involved in maintaining or monitoring the corporate actions market standards, the AG keeps the issue on its radar for information purposes.

Activity statusThe Broad Stakeholders Group (BSG) and the European Market Implementation Group (E-MIG) run a biannual survey on EEA markets’ compliance with the corporate actions market standards. In 2012 the E-MIG agreed to update its methodology and reprioritise monitoring of 68 corporate actions standards, as reflected in the second half of the 2012 exercise (see the next section).

Seven T2S markets, covering eight CSDs, did not participate in the November 2012 survey (BE (NBB-SSS), GR (BOGS), LU (LUX CSD and VP LUX), HU, LT, MT, SK). However, this may reflect the scope of coverage in the E-MIG survey exercise, as it is not clear whether some CSDs, e.g. the national central bank CSDs, were involved in the national MIG surveys.24

The final deadline for comprehensive implementation of the standards was set for 2013, but this is now considered to be unrealistic. However, a number of markets agreed to present plans to remove all items currently marked as “not implemented” by the next E-MIG workshop in June 2013.

T2S markets’ compliance statusIt seems that the 2012 surveys show increased awareness of the dependency between the two implementation processes (T2S and market standards).

However, it was noted that there remain some problematic issues in some major markets. For example, the implementation of record date and payment date for cash distributions may require legislative action in some markets.

The compliance status assessment for the corporate actions market standards is based on a percentage implementation status and is assigned by the T2S team as follows: 0%-40% implementation designates red compliance status; 41%-70% is given yellow status; 71%-99% is green; and full compliance with no further monitoring required translates into blue. It should be clarified that neither the T2S team nor the T2S CASG 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 3.7).

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4 T2S harmonisation activities - priority 2

24 The BSG is working towards ensuring reporting by the countries (MT and SK) which do not have a national MIG yet. HU and LU CSDs will provide input in the 2013 surveys. Contacts are being taken to improve communication between, on the one hand, NBB-SSS and BOGS and, on the other hand, their respective national MIG.


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Information input: BSG/E-MIG Survey (2012).

For detailed explanations per T2S market, please refer to Annex 5.

Monitoring

4.2 Place of issuance

Activity descriptionFreedom of choosing issuer CSD

This 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 does not directly affect T2S and it entails no operational/legal risks for the launch and operation of the single platform. Nevertheless, it has an impact on the competition for issuer CSD services in the respective markets.

Activity statusThe issue was raised by the Task Force on smooth cross-CSD settlement, the predecessor of the TFAX, in its final report to the AG in June 2011, in particular in the section concerning access and interoperability issues.25

Provisions in the direction of removing barriers to choosing the place of issuance are already part of the draft CSDR. The AG has expressed its support in this matter (see the AG’s letter to the European Commission of June 2011).

The HSG decided that the issue should be reassessed once the CSDR is adopted. Owing to the expected delay in the CSDR adoption process [as of the end of February 2013], the AG has assigned a red status to the definition process of this harmonisation activity (see Annex 3).

T2S markets’ compliance statusMonitoring has not yet started.No substantial risks for the T2S launch have been identified, but failure to resolve the issue may have an impact on the competition environment in which T2S actors will operate.

Blue None

Green AT, BE (Euroclear), DE, DK, ES, IT, NL, PT

Yellow CH, EE, FI, FR

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

Implementation date Broad Stakeholders Group (BSG) date: 2013

Relevant for T2S: SP 8: 01/10/2014, start of bilateral interoperability testing

Monitoring actors HSG/T2S team, BSG and E-MIG

Monitoring process BSG semi-annual surveys with MIGs.

25 The Task Force’s report is available on the T2S website at http://www.ecb.int/paym/t2s/governance/ag/html/mtg14.en.html.

http://www.ecb.int/paym/t2s/governance/ag/html/mtg14.en.html


Monitoring

Tax procedures

Two of the barriers to efficient cross-border clearing and settlement identified by the Giovannini Group, namely barriers 11 and 12, relate to fiscal compliance procedures.26

The issues linked to these barriers were further explored by the European Commission’s Clearing and Settlement Fiscal Compliance expert group (FISCO). FISCO produced a “Fact-finding study on fiscal compliance procedures related to clearing and settlement within the EU” in 2006 and a second report in 2007 on “Solutions to fiscal compliance barriers related to post-trading within the EU”. This led to the Commission’s recommendation in this regard in October 2009.27

4.3 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. Withholding tax relief at source can only be granted with the help of an entity that has tax withholding responsibilities. However, often the national tax rules reserve tax withholding responsibilities for local intermediaries and thus “force” foreign intermediaries to use local fiscal agents. As a consequence: i) remote access may be prevented; ii) foreign intermediaries are at a disadvantage vis-à-vis local ones; and iii) the location of the issuer CSD could potentially be restricted to local CSDs.

Following the FISCO report, in October 2009 the European Commission published the Recommendation on withholding tax relief procedures, 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 (withholding tax 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 study shows that, at present, the costs related to the current reclaim procedures are estimated at €1.09 billion annually, whereas the amount of foregone tax relief is estimated at €5.47 billion annually.

The objective of the T2S harmonisation activity is to monitor compliance with the Commission’s October 2009 Recommendation on withholding tax procedures in all T2S markets and CSDs.

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Monitoring actors European Commission and national regulators (pending CSDR)

Monitoring process European Commission and national regulators (pending CSDR)

26 Giovannini Group, Second report on EU clearing and settlement arrangements, Brussels, April 2003, p. 11. The findings of this Giovannini report regarding obstacles resulting from tax procedures are reflected within the Commission’s Communication on “Clearing and settlement in the EU – The way forward”, COM(2004) 312 final, under heading “3.2. Taxation issues”.

27 The Commission‘s Recommendation (COM (2009) 7924 final), the underlying 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.pdf

http://ec.europa.eu/taxation_customs/resources/documents/common/whats_new/c(2009)7924_en.pdf


35

Activity statusThe Commission’s Recommendation was an important step forward in trying to overcome fiscal barriers in the post-trade environment. The provision of withholding tax relief at source as recommended by FISCO has been a continuous process since 2009, with 22 Member States currently providing relief at source.

In 2010 an expert group (the Tax Barriers Business Advisory Group, or T-BAG) was created to follow up on the Commission’s Recommendation from a business perspective and also to work on the identification of any other remaining fiscal barriers affecting the post-trade environment.

T-BAG is expected to issue its final report to the Commission in 2013, including recommendations for further action. The Commission, namely DG Taxation and Customs Union (DG TAXUD) and DG Internal Market and Services (DG MARKT), will assess the feasibility of the recommendations and consider the next regulatory steps.

Regarding this topic’s implications for T2S, the ECB’s T2S team shared with the European Commission all available information gathered by the Task Force on smooth cross-CSD settlement in 2011.

The TFAX also analysed local tax procedures that may affect settlement instructions in T2S in its work on standardised T2S interaction (see Section 3.4).

T2S markets’ compliance statusMonitoring has not started yet.No substantial risks for the T2S launch have been identified. Nevertheless, should no resolution be found on the matter, there may be an impact on settlement efficiency in the affected markets.

Monitoring

4.4 Settlement-related tax procedures

Activity descriptionSettlement-related tax procedures, whether they relate to transaction taxes or to other taxes, have the potential to create operational complexity, in particular with relation to cross-CSD settlement in T2S. Giovannini barrier 12 is related to national provisions that require that taxes on securities transactions be collected via local settlement systems. According to the reports by the Giovannini Group (2001) and CESAME (2008), any provisions requiring that taxes on securities transactions be collected via local settlement systems should be removed in order to ensure a level playing field for domestic and foreign investors.

T2S harmonisation activity 3.4 covers part of this activity, namely the provision of transaction-related information that would allow for correct tax processing at the point of settlement.

Activity statusGiovannini barrier 12The fact-finding study on fiscal compliance procedures related to clearing and settlement in the EU, published by FISCO in 2006, identified no less than 11 jurisdictions in the EU with more or less


Monitoring actors ESMA and national regulators

Monitoring process ESMA and national regulators


problematic transaction tax procedures as far as the elimination of the Giovannini barriers and the promotion of the Internal Market were concerned. However, according to the Commission services, the urgent problems related to Giovannini barrier 12 and transaction tax procedures appear now, in general, to have successfully been solved.

Regarding this topic’s implications for T2S, the T2S team shared with the European Commission all relevant information gathered by the Task Force on smooth cross-CSD settlement in 2011.

Financial transaction tax Another noteworthy element in the area of transaction tax procedures is the possible introduction of a “common system of financial transaction tax” in 11 EU markets.

On 22 January 2013 the EU Council adopted a decision authorising 11 Member States (DE, FR, AU, BE, PT, SI, GR, IT, ES, SK, EE) to proceed with the introduction of a financial transaction tax through “enhanced cooperation”28. This decision followed the favourable vote for this procedure given by the European Parliament on 12 December 2012 and by a majority of EU finance ministers on 21 January 2013. Accordingly, on 14 February 2013 the Commission published a proposal for the introduction of a financial transaction tax in 11 EU Member States, defining the substance of the enhanced cooperation.

The HSG will need to investigate with T2S NUGs whether the procedures relating to the financial transaction tax, which in principle concern the trading layer, are nevertheless part of the settlement process, i.e. whether tax information needs to be communicated via T2S settlement instructions or not.

Other settlement-related tax issuesAs an outcome of the TFAX report, a number of tax-related issues and processes were identified as affecting settlement efficiency at the cross-CSD level (and in T2S). These issues relate to the management of tax information within the settlement instructions and the tax-related segregation of accounts at the CSD level. The HSG will raise these issues in the context of the EPTG’s work since harmonisation standards in these areas cannot be agreed and endorsed at the T2S Community level (without prior approval of the relevant public authorities).

T2S markets’ compliance statusMonitoring has not yet started.No substantial risks for the T2S launch have been identified. Nevertheless, should no resolution be found on the matter, there may be an impact on settlement efficiency in the affected markets.

Monitoring

36


Monitoring actors National and EU regulators

Monitoring process National and EU regulators

28 For further information, visit http://ec.europa.eu/taxation_customs/taxation/other_taxes/financial_sector/index_en.htm.


37

4.5 Cross-border shareholder transparency

Activity descriptionIn most EU countries there are efficient models for identifying domestic shareholders. However, there is no common European model for enabling issuers to identify their owners in a cross-border (and T2S) holding.

Activity statusThis issue was addressed by a dedicated group (Task Force on Shareholder Transparency)29 set up by the AG in December 2009. The task force, mandated to analyse shareholder visibility in view of fostering market harmonisation and European integration, presented its final report to the AG in March 2011. The report included a description of decentralised and centralised technical models for exchanging shareholder information on a cross-border basis, as well as the following proposals:

• a proposal for a disclosure request/response message standard to be considered by the ISO community;

• a proposal to amend the Transparency Directive to facilitate exchange of shareholder information on a cross-border basis;

• a proposal for market practices for exchanging shareholders’ disclosure requests and responses (including an arrangement for cooperation between CSDs).

The conclusions of the task force were supported by the vast majority of the AG. Since March 2011 the following developments have taken place.

• The ISO Maintenance Committee discussed the request for the disclosure standard in August 2011. It was agreed that these messages should be built as new ISO 20022 messages. However, the consultation carried out at the time did not present a strong enough business case for the creation of dedicated messages to address shareholder transparency issues. Hence, no progress has been made in this area.

• As mentioned by the Commission services in the context of the HSG’s work, the legal amendments proposed by the T2S task force may be considered by the Commission in the context of the SLL rather than the Transparency Directive.

• Regarding the market standards for sharing shareholder data, ECSDA clarified to the HSG that further work on these proposals is not a priority for the Association’s agenda.

The issue is included in the EPTG’s action list. In the second quarter of 2013, an EPTG substructure is expected to reactivate the work done by the T2S task force on this matter.

T2S markets’ compliance statusDefinition is not complete and no standards have been endorsed yet. Monitoring has therefore not yet started.

No risks for T2S settlement efficiency and launch have been identified.

Monitoring

Implementation date Pending EPTG outcome

Monitoring actors Pending EPTG outcome

Monitoring process Pending EPTG outcome

29 More information on the task force is available at 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


4.6 Market access and interoperability

Activity descriptionThe activity covers 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 impact on T2S settlement processes, but it is important for competition and CSD access conditions in T2S-relevant markets.

Activity statusAt the moment, the key initiative in this area is the CSDR which covers the market access topic and provides for additional technical standards at level 2 legislation. Owing to the expected delay in the CSDR adoption process [as of the end of February 2013], the AG has assigned a red status to the definition process of this harmonisation activity (see Annex 3).

T2S markets’ compliance statusShould restrictions on market access remain by the time of the T2S launch, this will result in limited competition and choice for market participants and infrastructures in the T2S framework.

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 for each ISIN in T2S only one rule is used (either nominal amount (FAMT) or quantity/units (UNIT)).30

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

The current standard market practice in the EU is to use nominal value for debt instruments and units for non-debt instruments (i.e. debt instruments in FAMT and equities in UNIT).

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Implementation date Pending EPTG outcome

Monitoring actors Pending EPTG outcome

Monitoring process Pending EPTG outcome

30 For each T2S settlement instruction, T2S will verify 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 would make it impossible for a T2S actor to instruct T2S both in nominal amount (FAMT) and units (UNIT) for the same ISIN. One of these settlement amount types only must be selected in advance for each ISIN.


39

The objective of this activity is to ensure that all T2S markets are aligned with the EU’s standard practice. Activity statusIn September 2011 the AG agreed: i) to add the issue to the T2S harmonisation list; ii) to support the definition of a harmonised practice for all T2S markets; and iii) to escalate the issue to the NUGs and, if required, to national regulators.

T2S markets’ compliance statusThere seem to be only a few exceptions to the standard market practice in the EU. However, if this issue is not resolved prior to the T2S launch, it may result in failed T2S validation of the settlement instructions related to the markets that are not aligned to the EU standard.

Blue implementation status is assigned to T2S markets that are already compliant with EU market practice. Green status reflects non-compliance at the moment, but that there is a plan in place for achieving compliance prior to the T2S testing phase (SP8 – October 2014). Yellow reflects compliance by the migration date, but some market practice or regulatory change has still to be agreed/introduced in the national market.



Monitoring




Compliance was monitored by the T2S team as part of the CSD/central bank feasibility

assessment process (SP2).


The objective of this checkpoint is to verify that each T2S client has conducted an internal

impact assessment for their own project plan (including harmonisation standards).


Based on the CSDs’ detailed adaptation plans, there will be specific checkpoints between SP2

and SP8.

The NUGs should assist the T2S team in monitoring compliance and coordinating the overall

interaction with the relevant national markets.

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

Green PT

Yellow FI, SK

Red None

Third T2S Harmonisation Progress Report I Annex 1

Annex 1: Methodology

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. Some activities are grouped under broader areas.

ExampleArea: Legal harmonisation Activities: SF I, SF II, SFIII, outsourcing, conflicts of law

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

Priority 1: Activities necessary for a successful launch of T2S. The HSG and T2S team focus their resources in these activities. 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 beneficial for the market, but not necessary for the launch of T2S. The HSG and AG only monitor progress in these activities.

Even for activities classified as priority 2, the AG/HSG/T2S team have an interest in maintaining regular contact with the relevant actors, since these activities might bring substantial benefits to T2S operations (e.g. tax procedures).

Harmonisation phasesThere are three harmonisation processes/phases for each activity/issue in the T2S harmonisation list in Annex 2: 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 them?

Monitoring: What is the monitoring framework and who are the actors responsible for monitoring that T2S actors comply 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?

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 CASG in the case of the T2S corporate actions standards)

• Monitoring actors: entities responsible for monitoring that T2S actors are complying with the standard (e.g. the AG supported by CASG in the case of the T2S 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 the T2S corporate actions standards)

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Colour Description

BLUECompliance

The T2S market has achieved full compliance with the harmonisation standard. Further monitoring of the market is no longer necessary regarding the specific harmonisation activity.

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

The T2S market has established a plan to implement the harmonisation standard, and the steps required to implement the harmonisation standard are on schedule. There are no major technical, regulatory or legal barriers to overcome (no changes in regulations/laws or major technical adaptations), but the market must still undertake activities to implement the harmonisation standard. For example, there may be a need to introduce changes in the rules of the CSD and this may require the approval of the national regulator, but no obstacles have been identified in the process so far and there are clear and public dates for implementation.

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 resolve pending issues 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 irregularly to the monitoring bodies.

Compliance

The T2S market has a plan to implement the harmonisation standard. There are technical, regulatory or legal barriers to overcome in order to achieve compliance (need for changes in rules/laws or major technical adaptations). For example, it may not be clear whether regulatory approval is required or there are publicly announced dates for implementation.


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DatesA deadline for completion is set for each phase (i.e. an SP for most technical standards, and the T2S launch date/migration date for legal harmonisation items).

Status assessmentA 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).

GREEN

YELLOW


Monitoring methodology31

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 endorsement may come from the AG (e.g. T2S corporate actions standards) or from EU authorities (e.g. the CSDR).

Once the definition process is complete, the HSG – with the help of the T2S team – launches the monitoring process. The T2S harmonisation team acts as the contact point or secretariat for this process.

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 (e.g. SP8 – Oct 2014);

• the monitoring actors, i.e. who is performing the monitoring process (e.g. T2S team, NUGs);• the monitoring process, which describes what the process consists of (e.g. NUG surveys, CASG

surveys, T2S actors’ feasibility assessments).

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 T2S team. As shown in Diagram 1, the different input channels (NUG surveys, CASG/CAJWG surveys, bilateral contacts and SP reporting) feed into the different monitoring tools (dashboard and market implementation tool), and are finally summarised in the AG’s Harmonisation Progress Report.

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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 and an approach to achieve 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

The T2S market does not have a roadmap to implement the harmonisation standard, or is facing a significant delay in its plan to implement the harmonisation standard. The T2S market will not be able to implement the required scope by the deadline if it does not undertake measures to resolve open issues, and/or to introduce major technical, regulatory and/or legal changes. Typical examples are technical changes or market practices that may have changes in national legislation and regulation as prerequisites.

Furthermore, any T2S market not reporting on its compliance with the harmonisation standard, or not participating in a relevant monitoring process, receives a red status.

31 As agreed by the AG on 27 March 2011.

RED


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Diagram 1: Information channels for monitoring T2S harmonisation

In this report, the compliance status is presented by market (rather than by CSD). Compliance usually depends on national market practice, specifi cities or even regulation rather than on the CSD’s business model. In markets with more than one CSD, the name of the relevant CSD is used in order to fl ag diff ering progress in implementation.


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Act

or: A

G (S

ub-g

roup

on

Mes

sage

Sta

ndar

disa

tion)

, 4CB

Del

iver

y d

ate:

Sep

tem

ber

201

2 (U

DFS

v1.

2.1)

Stat

us: C

OM

PLET

E.Th

e fu

ll ca

talo

gue

of IS

O

2002

2-co

mpl

iant

T2S

mes

sage

s (1

30 m

essa

ges

in to

tal)

is n

ow

part

of U

DFS

v1.

2.1

(Sep

tem

ber

2012

).

Act

or: N

UG

s, T

2S te

am

Stat

us: C

ompl

ianc

e w

as

mon

itore

d by

the

ECB’

s T2

S te

am a

s pa

rt o

f the

CSD

/cen

tral

ba

nk fe

asib

ility

ass

essm

ent

proc

ess

(SP2

32).

Mon

itorin

g w

ill

cont

inue

in th

e co

ntex

t of S

P3

and

until

SP8

.

Act

or: C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

T2S

mar

kets

’ fea

sibi

lity

asse

ssm

ents

(SP2

) sho

w th

at

plan

s ar

e in

pla

ce to

ach

ieve

a

high

leve

l of c

ompl

ianc

e by

the

test

ing

phas

e.

2T2

S m

atch

ing

field

sTo

agr

ee o

n a

sing

le li

st o

f T2S

m

atch

ing

field

s.A

ctor

: AG

(T2S

team

, HSG

, TFA

X)D

eliv

ery

date

: Sep

tem

ber 2

012

(UD

FS v

1.2.

1)St

atus

: CO

MPL

ETE.

Furt

her w

ork

on th

e us

e of

no

n-m

anda

tory

fiel

ds to

be

initi

ated

in 2

013.

Act

or: N

UG

s, T

2S te

am

Stat

us: C

ompl

ianc

e w

as

mon

itore

d by

the

ECB’

s T2

S te

am a

s pa

rt o

f the

CSD

/cen

tral

ba

nk fe

asib

ility

ass

essm

ent

proc

ess

(SP2

).

Act

or: C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

Mon

itorin

g w

ill c

ontin

ue in

the

cont

ext o

f SP3

and

unt

il SP

8.

The

AG

app

rove

d op

tiona

l m

atch

ing

field

s (M

arch

201

1).

Wor

k on

har

mon

ised

mar

ket

use

of T

2S o

ptio

nal m

atch

ing

field

s w

ill s

tart

onc

e CS

Ds

have

fin

alis

ed a

dapt

atio

n pl

ans.

The

CS

D fe

asib

ility

ass

essm

ents

sh

owed

that

ther

e is

alre

ady

a go

od le

vel o

f com

plia

nce.

3In

tera

ctio

n w

ith

T2S

(loca

l reg

istr

atio

n pr

oced

ures

)To

day,

div

erge

nt n

atio

nal

regi

stra

tion

rule

s an

d pr

actic

es

crea

te c

osts

and

ineffi

cien

cy in

th

e m

anag

emen

t of t

he

regi

stra

tion

proc

ess

and

the

rela

ted

info

rmat

ion

in c

ross

-bo

rder

env

ironm

ents

.

To d

efine

and

impl

emen

t T2S

be

st m

arke

t pra

ctic

e re

gard

ing

the

man

agem

ent o

f reg

istr

atio

n in

form

atio

n in

T2S

mar

kets

.To

ens

ure

that

regi

stra

tion

proc

edur

es d

o no

t int

erru

pt

stra

ight

-thr

ough

pro

cess

ing

in

T2S

and

do n

ot h

ampe

r sm

ooth

cr

oss-

CSD

sett

lem

ent i

n T2

S.

Act

or: A

G (T

FAX,

HSG

)D

eliv

ery

date

: 6 F

eb 2

013

(the

A

G e

ndor

sed

the

mar

ket

prac

tice

prop

osed

by

TFA

X)St

atus

: CO

MPL

ETE.

The

AG

agr

eed

that

T2S

se

ttle

men

t sho

uld

not b

e us

ed

as a

mea

ns o

f pas

sing

re

gist

ratio

n de

tails

.

Act

or: A

G (

HSG

, NU

Gs)

St

atus

: To

star

t with

in fi

rst h

alf

of 2

013.

HSG

to la

unch

sur

vey

with

N

UG

s an

d CS

Ds.

Act

or: T

2S m

arke

ts, C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

TFA

X an

alys

is s

how

ed th

at

pass

ing

regi

stra

tion

data

via

T2

S im

plie

s co

mpl

exiti

es a

nd

confi

dent

ialit

y is

sues

and

in

addi

tion

it is

not

pos

sibl

e in

all

sett

lem

ent s

cena

rios.

4In

tera

ctio

n w

ith

T2S

(tax

re

quir

emen

ts)

Ow

ing

to d

iver

gent

nat

iona

l ru

les

on in

form

atio

n re

quire

men

ts a

nd in

form

atio

n flo

ws

rela

ted

to tr

ansa

ctio

n ta

x,

the

man

agem

ent o

f fisc

al

serv

ices

cro

ss-b

orde

r is

cost

ly

and

ineffi

cien

t.

To d

efine

and

impl

emen

t T2S

be

st m

arke

t pra

ctic

e fo

r the

m

anag

emen

t of t

rans

actio

n ta

x in

form

atio

n cr

oss-

bord

er.

Act

or: A

G (T

FAX,

HSG

)D

eliv

ery

date

: 6 F

eb 2

013

(the

A

G e

ndor

sed

the

mar

ket

prac

tice

prop

osed

by

TFA

X)St

atus

: CO

MPL

ETE.

The

AG

agr

eed

that

no

tax-

rela

ted

info

rmat

ion

shou

ld

be in

clud

ed in

T2S

set

tlem

ent

mes

sage

s (fo

r eith

er in

tra-

or

cros

s-CS

D tr

ansa

ctio

ns).

Act

or: A

G (H

SG, N

UG

s)St

atus

: To

star

t with

in fi

rst h

alf

of 2

013.

HSG

to la

unch

sur

vey

with

N

UG

s an

d CS

Ds.

Act

or: T

2S m

arke

ts, C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

TFA

X an

alys

is s

how

ed th

at

pass

ing

tax

info

rmat

ion

via

T2S

is c

ompl

ex a

nd h

as a

num

ber o

f dr

awba

cks.

32 S

P st

ands

for T

2S P

lann

ing

Sync

hron

isat

ion

Poin

t: m

ilest

ones

that

see

ks to

ens

ure

the

alig

nmen

t of t

he re

adin

ess

stat

us o

f a C

SD w

ith th

e T2

S Pr

ogra

mm

e Pl

an a

t key

sta

ges

of th

e pr

ojec

t by

dete

rmin

ing

whe

ther

the

stak

ehol

ders

del

iver

wha

t the

y ex

pect

from

eac

h ot

her a

t spe

cific

poi

nts

in ti

me.


45

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

5In

tera

ctio

n w

ith

T2S

(CSD

an

cilla

ry s

ervi

ces)

To d

efine

and

impl

emen

t T2S

be

st m

arke

t pra

ctic

e fo

r in

tera

ctin

g w

ith T

2S in

the

cont

ext o

f spe

cific

CSD

anc

illar

y se

rvic

es.

Act

or: A

G (T

FAX,

HSG

): 6

Feb

2013

(the

AG

end

orse

d th

e m

arke

t pra

ctic

e pr

opos

ed b

y TF

AX)

Stat

us: C

OM

PLET

E.A

G a

gree

men

t:Po

rtfo

lio tr

ansf

er in

form

atio

n to

be

exc

hang

ed o

utsi

de T

2S

(eith

er b

etw

een

cust

odia

ns o

r vi

a CS

Ds)

.CS

Ds

to u

se T

2S a

llege

men

t m

essa

ges

to tr

igge

r val

idat

ion

of b

ond

strip

ping

/re

cons

titut

ion

inst

ruct

ions

.

Act

or: A

G (H

SG, N

UG

s)St

atus

: To

star

t with

in fi

rst h

alf

of 2

013.

HSG

to la

unch

sur

vey

with

N

UG

s an

d CS

Ds.

Act

or: T

2S m

arke

ts, C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

6T2

S sc

hedu

le fo

r the

set

tlem

ent

day

and

cale

ndar

Div

erge

nt o

pera

ting

hour

s an

d de

adlin

es a

cros

s T2

S m

arke

ts.

To c

larif

y th

e de

tails

of t

he

sing

le T

2S s

ched

ule

for t

he

sett

lem

ent d

ay a

nd s

ingl

e ca

lend

ar p

er c

urre

ncy.

Act

or: A

G (T

2S s

ched

ule

wor

ksho

p)St

atus

: CO

MPL

ETE.

A d

etai

led

desc

riptio

n of

the

T2S

sche

dule

for t

he s

ettle

men

t da

y is

incl

uded

in U

DFS

v. 1

.2.1

(S

epte

mbe

r 201

2).

Act

or: N

UG

s, T

2S te

am

Stat

us: C

ompl

ianc

e w

as

mon

itore

d by

the

ECB’

s T2

S te

am a

s pa

rt o

f the

CSD

/cen

tral

ba

nk fe

asib

ility

ass

essm

ent

proc

ess

(SP2

). M

onito

ring

will

co

ntin

ue in

the

cont

ext o

f SP3

an

d un

til S

P8.

Act

or: C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

7T2

S co

rpor

ate

acti

ons

stan

dard

s To

defi

ne a

nd im

plem

ent

stan

dard

s for

CSD

s’ in

tera

ctio

n w

ith T

2S a

s reg

ards

the

sett

lem

ent o

f cor

pora

te a

ctio

ns

on fl

ows (

pend

ing

inst

ruct

ions

).

Act

or: A

G (C

ASG

)St

atus

: CO

MPL

ETE.

CASG

sta

ndar

ds w

ere

appr

oved

by

the

AG

in 2

009

(and

upd

ated

in

Mar

ch 2

011

and

Mar

ch 2

012)

.So

me

editi

ng u

pdat

es to

buy

er

prot

ectio

n st

anda

rds

wer

e ap

prov

ed b

y th

e A

G in

Mar

ch

2012

.

Act

or: C

ASG

, NU

Gs

Stat

us: C

ASG

sur

vey

(Sep

tem

ber

2012

) sho

wed

ther

e is

stil

l a lo

w

leve

l of c

ompl

ianc

e w

ith T

2S

corp

orat

e ac

tions

sta

ndar

ds

amon

g T2

S m

arke

ts/C

SDs.

Th

e ne

xt s

urve

y is

pla

nned

for

the

seco

nd q

uart

er o

f 201

3.

Act

ors:

CSD

sTa

rget

dat

e: S

P8 –

sta

rt o

f in

tero

pera

bilit

y te

stin

g (0

1/10

/201

4)

2012

sur

vey

resu

lts:

A

ll T2

S m

arke

ts re

plie

d. O

vera

ll co

mpl

ianc

e le

vels

rem

ain

sim

ilar t

o la

st y

ear,

i.e. s

till l

ow.

How

ever

, the

sur

vey

show

ed

incr

ease

d aw

aren

ess

of th

e st

anda

rds

and

a w

illin

gnes

s to

im

plem

ent t

hem

bef

ore

the

T2S

laun

ch.

Ow

ing

to s

ome

revi

sion

s in

the

unde

rlyin

g co

rpor

ate

actio

ns

mar

ket s

tand

ards

, the

T2S

co

rpor

ate

actio

ns s

tand

ards

m

ight

nee

d to

be

upda

ted

befo

re th

e ne

xt g

ap a

naly

sis.


46

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

8Se

ttle

men

t Fin

alit

y I:

mom

ent o

f en

try

of a

tran

sfer

ord

er in

to th

e sy

stem

(Set

tlem

ent F

inal

ity

Dire

ctiv

e, A

rt. 3

).D

iver

gent

rule

s fo

r defi

ning

SF

I ar

e st

ill in

pla

ce in

T2S

mar

kets

. A

har

mon

ised

rule

will

pro

vide

pr

otec

tion

agai

nst t

he s

pillo

ver

effec

ts o

f ins

olve

ncy

of

part

icip

ants

in o

ther

CSD

s (li

nked

CSD

s in

T2S

).

To a

gree

on

a co

mm

on S

F I r

ule

appl

icab

le fo

r all

CSD

s co

nnec

ted

to T

2S, a

nd to

en

sure

com

plia

nce.

Act

or: A

G (H

SG),

CSG

Del

iver

y da

te: S

econ

d qu

arte

r of

201

3St

atus

: IN

PRO

GRE

SS.

Art

. 21/

para

. 4 o

f the

T2S

Fr

amew

ork

Agr

eem

ent

indi

cate

s th

e ne

ed to

agr

ee o

n a

com

mon

rule

, but

doe

s no

t pr

ovid

e th

e ru

le.

See

also

the

Sett

lem

ent F

inal

ity

Dire

ctiv

e (2

009)

, Art

.3; E

SCB/

CESR

reco

mm

enda

tion

1 fo

r SS

Ss (2

009)

; CPS

S/IO

SCO

pr

inci

ples

1 a

nd 8

(201

2); C

SDR

prop

osal

(201

2), A

rt. 3

6/3

and

45/a

.Th

e fu

ture

CSD

R m

ay in

clud

e pr

ovis

ions

on

SFI,

in p

artic

ular

re

quiri

ng in

tero

pera

ble

syst

ems

to p

ut in

pla

ce h

arm

onis

ed

rule

s on

SFI

. How

ever

, the

CSD

R is

not

inte

nded

to p

rovi

de s

uch

harm

onis

ed ru

les

in g

ener

al.

Act

or: H

SG, T

2S te

am, N

UG

s,

CSG

Stat

us: N

ot y

et in

itiat

ed.

Act

or: N

atio

nal l

egis

lato

rs,

regu

lato

rs a

nd C

SDs

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)

The

HSG

sen

t a p

ropo

sal t

o th

e CS

G in

July

201

2. In

Nov

embe

r 20

12 th

e CS

G e

stab

lishe

d a

task

fo

rce

to a

gree

on

a ha

rmon

ised

st

anda

rd. A

pro

posa

l to

the

HSG

is

exp

ecte

d in

the

first

qua

rter

of

201

3.

9Se

ttle

men

t Fin

alit

y II:

irr

evoc

abili

ty o

f tra

nsfe

r ord

ers.

El

imin

atio

n of

the

risk

of

tran

sfer

ord

er re

voca

tion

(Set

tlem

ent F

inal

ity D

irect

ive,

A

rt. 5

).

To m

onito

r CSD

s’ c

ompl

ianc

e w

ith th

e tr

ansf

er o

rder

irr

evoc

abili

ty ru

le la

id d

own

in

the

URD

(in

T2S,

no

unila

tera

l ca

ncel

latio

n is

pos

sibl

e af

ter

mat

chin

g).

Act

or: A

G (H

SG),

T2S

team

, N

UG

sSt

atus

: CO

MPL

ETE.

Rule

incl

uded

in th

e T2

S U

RD.

Als

o co

vere

d in

the

T2S

Fram

ewor

k A

gree

men

t, A

rt. 2

1/pa

ra. 4

.Se

e al

so th

e Se

ttle

men

t Fin

ality

D

irect

ive

(200

9), A

rt. 5

; ESC

B/CE

SR re

com

men

datio

ns 1

and

8

for S

SSs

(200

9); C

PSS/

IOSC

O

prin

cipl

es 1

and

8 (2

012)

; CSD

R pr

opos

al (2

012)

, Art

. 36/

3 an

d 45

/8.

The

futu

re C

SDR

may

incl

ude

prov

isio

ns o

n SF

II, i

n pa

rtic

ular

re

quiri

ng in

tero

pera

ble

syst

ems

to p

ut in

pla

ce h

arm

onis

ed

rule

s on

SF

II. H

owev

er, t

he

CSD

R is

not

inte

nded

to p

rovi

de

such

har

mon

ised

rule

s in

ge

nera

l.

Act

or: T

2S te

am, N

UG

sSt

atus

: T2S

-rel

evan

t mar

ket

stat

us a

s of

201

1 w

as p

rese

nted

to

the

AG

in M

arch

201

2.

Com

plia

nce

was

mon

itore

d by

th

e T2

S te

am v

ia th

e N

UG

s an

d as

par

t of t

he C

SD/c

entr

al b

ank

feas

ibili

ty a

sses

smen

t pro

cess

(S

P2).

Mon

itorin

g w

ill c

ontin

ue

in th

e co

ntex

t of S

P3 a

nd u

p un

til S

P8.

Act

or: C

SDs,

regu

lato

rs

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)

Mos

t T2S

mar

kets

are

eith

er in

lin

e w

ith S

F II

or d

emon

stra

te a

cl

ear i

nten

tion

to a

dapt

to th

e T2

S ru

le.

How

ever

, it i

s im

port

ant t

o m

onito

r tha

t CSD

s’ re

gula

tory

en

viro

nmen

ts a

re u

pdat

ed

acco

rdin

gly


47

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

10Se

ttle

men

t Fin

alit

y III

: irr

evoc

abili

ty o

f sec

uriti

es

tran

sfer

s.

In o

rder

to fa

cilit

ate

lega

lly

soun

d, s

eam

less

cro

ss-b

orde

r D

vP s

ettle

men

t, CS

Ds

part

icip

atin

g in

T2S

mus

t re

cogn

ise

acco

unt e

ntrie

s in

T2

S as

unc

ondi

tiona

l, irr

evoc

able

and

enf

orce

able

.

To e

nsur

e co

mpl

ianc

e w

ith th

e T2

S SF

III r

ule

(i.e.

boo

king

s in

se

curit

ies

acco

unts

mai

ntai

ned

in T

2S a

re u

ncon

ditio

nal,

irrev

ocab

le a

nd e

nfor

ceab

le).

Act

or: C

SG, H

SG, T

2S te

amD

efini

tion

deliv

ery

date

: 201

1St

atus

: CO

MPL

ETE.

Es

tabl

ishe

d in

Art

. 21/

para

. 4 o

f th

e T2

S Fr

amew

ork

Agr

eem

ent.

See

also

ESC

B/CE

SR

reco

mm

enda

tions

1 a

nd 8

for

SSSs

(200

9); C

PSS/

IOSC

O

prin

cipl

es 1

and

8 (2

012)

; CSD

R pr

opos

al (2

012)

, Art

. 36/

3 an

d 45

/8.

The

futu

re C

SDR

may

incl

ude

prov

isio

ns o

n SF

III,

in p

artic

ular

re

quiri

ng in

tero

pera

ble

syst

ems

to p

ut in

pla

ce h

arm

onis

ed

rule

s on

SF

III. H

owev

er, t

he

CSD

R is

not

inte

nded

to p

rovi

de

such

har

mon

ised

rule

s in

ge

nera

l

Act

or: T

2S te

amSt

atus

: Com

plia

nce

was

m

onito

red

by th

e T2

S te

am a

s pa

rt o

f the

CSD

/cen

tral

ban

k fe

asib

ility

ass

essm

ent p

roce

ss

(SP2

), bu

t inf

orm

atio

n is

mis

sing

re

gard

ing

mos

t T2S

mar

kets

. Th

e H

SG ra

n a

surv

ey w

ith

NU

Gs

and

CSD

s (D

ec 2

012-

Jan

2013

) to

enha

nce

unde

rsta

ndin

g of

the

crite

ria fo

r SF

III c

ompl

ianc

e an

d en

sure

co

nsis

tent

mon

itorin

g.M

onito

ring

will

con

tinue

in th

e co

ntex

t of S

P3an

d un

til S

P8, a

s w

ell a

s vi

a N

UG

sur

veys

.

Act

or: N

atio

nal l

egis

lato

rs,

regu

lato

rs, C

SDs

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)no

dec

isio

n

11La

w a

pplic

able

/con

flict

s of

law

This

issu

e re

fers

to th

e la

w

appl

icab

le to

the

crea

tion

of

right

s an

d tr

ansf

ers

of

secu

ritie

s.

To c

lear

ly d

eter

min

e a

harm

onis

ed ru

le (c

ompa

tible

w

ith th

e se

t-up

of T

2S) f

or th

e lo

catio

n of

sec

uriti

es a

ccou

nts

in c

ross

-bor

der s

ettle

men

t, so

as

to m

itiga

te le

gal r

isk

for C

SD

link

arra

ngem

ents

(par

ticul

arly

in

T2S

).

Act

or: E

urop

ean

Com

mis

sion

, EU

legi

slat

ors,

ESM

AD

eliv

ery

date

: Mid

-201

3 (C

SDR

adop

tion)

and

firs

t hal

f of 2

013

(SLL

pro

posa

l)St

atus

: IN

PRO

GRE

SS.

This

issu

e w

ill b

e ad

dres

sed

by

the

SLL.

Par

ts o

f the

topi

c m

ight

al

so b

e in

clud

ed in

the

CSD

R.

Act

or: H

SG, T

2S te

amSt

atus

: Not

yet

initi

ated

. A

ctor

: Nat

iona

l leg

isla

tors

, re

gula

tors

and

CSD

s Ta

rget

dat

e: Ju

ne 2

015

(T2S

la

unch

)

Ow

ing

to th

e ex

pect

ed d

elay

in

CSD

R ad

optio

n, th

e A

G h

as

assi

gned

red

stat

us to

the

defin

ition

pro

cess

for t

his

activ

ity.

The

T2S

team

is p

repa

ring

a no

te to

the

HSG

and

the

AG

on

risks

for T

2S if

the

SLL

is n

ot

impl

emen

ted

befo

re th

e T2

S la

unch

(to

be d

eliv

ered

in th

e se

cond

qua

rter

of 2

013)

.Th

e TF

AX

repo

rt (2

012)

als

o in

clud

es p

ropo

sals

for f

urth

er

harm

onis

atio

n of

ow

ners

hip

right

s cr

eatio

n du

ring

the

sett

lem

ent p

roce

ss.


48

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

12IT

out

sour

cing

(set

tlem

ent

serv

ices

) Th

e ou

tsou

rcin

g of

set

tlem

ent

serv

ices

to T

2S re

quire

s ap

prov

al b

y th

e re

leva

nt

regu

lato

r, su

bjec

t to

the

appl

icab

le n

atio

nal l

aws

and

regu

latio

ns. S

ome

natio

nal

legi

slat

ion/

regu

latio

ns in

the

EU

eith

er p

rohi

bit o

r ham

per t

he

outs

ourc

ing

of s

ettle

men

t se

rvic

es.

To e

nsur

e th

at a

ll CS

Ds

are

gran

ted

auth

oris

atio

n on

tim

e fo

r the

T2S

laun

ch.

Act

or: E

urop

ean

Com

mis

sion

, EU

legi

slat

ors

Del

iver

y da

te: M

id-2

013

(CSD

R ad

optio

n)St

atus

: IN

PRO

GRE

SS.

A p

rovi

sion

is in

clud

ed in

the

Com

mis

sion

’s C

SDR

prop

osal

(a

utho

risin

g IT

out

sour

cing

by

CSD

s to

pub

lic e

ntiti

es).

Act

or: T

2S te

amSt

atus

: Not

yet

initi

ated

. A

ctor

: Nat

iona

l leg

isla

tors

, ES

MA

regu

lato

rs a

nd C

SDs

Ow

ing

to th

e ex

pect

ed d

elay

in

CSD

R ad

optio

n, th

e A

G h

as

assi

gned

red

stat

us to

the

defin

ition

pro

cess

for t

his

activ

ity.

So fa

r, no

T2S

mar

kets

hav

e id

entifi

ed a

ny re

gula

tory

or

lega

l bar

riers

to o

utso

urci

ng

cert

ain

CSD

ser

vice

s to

T2S

. H

owev

er, t

here

mig

ht b

e th

e ne

ed to

cla

rify

and

harm

onis

e so

me

CSD

s’ re

gula

tory

rule

s or

le

gisl

atio

n on

out

sour

cing

.

13Se

ttle

men

t dis

cipl

ine

regi

me

Broa

dly

defin

ed a

s th

e ag

reed

m

arke

t sta

ndar

ds (o

r pra

ctic

e)

to a

chie

ve ti

mel

y m

atch

ing

and

sett

lem

ent o

f sec

uriti

es

tran

sact

ions

and

to p

reve

nt/

redu

ce fa

ils.

To a

gree

on

a si

ngle

EU

se

ttle

men

t dis

cipl

ine

regi

me,

so

as to

ens

ure

a le

vel p

layi

ng fi

eld

for C

SDs

and

avoi

d re

gula

tory

ar

bitr

age.

Act

or: E

urop

ean

Com

mis

sion

, EU

legi

slat

ors,

ESM

A/E

SCB

Del

iver

y da

te: M

id-2

013

(CSD

R ad

optio

n)St

atus

: IN

PRO

GRE

SS.

The

prin

cipl

e of

est

ablis

hing

a

com

mon

fram

ewor

k is

par

t of

the

CSD

R pr

opos

al. E

SMA

/the

ES

CB w

ill p

rovi

de th

e re

late

d te

chni

cal s

tand

ards

.

Act

or: E

SMA

/ESC

B (a

ccor

ding

to

CSD

R pr

opos

al)

Stat

us: N

ot y

et in

itiat

ed.

Act

or: C

SDs

and

regu

lato

rs,

ESCB

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)

Ow

ing

to th

e ex

pect

ed d

elay

in

CSD

R ad

optio

n, th

e A

G h

as

assi

gned

red

stat

us to

the

defin

ition

pro

cess

for t

his

activ

ity.

14Se

ttle

men

t cyc

les

Ther

e is

no

harm

onis

ed

sett

lem

ent c

ycle

in E

urop

e (T

+3

and

T+2)

. Thi

s ha

s no

impa

ct o

n do

mes

tic tr

ansa

ctio

ns, b

ut d

oes

have

an

impa

ct o

n cr

oss-

CSD

tr

ansa

ctio

ns a

s re

gard

s al

igni

ng

reco

rd d

ates

and

mar

ket

dead

lines

whe

n m

anag

ing

and

inst

ruct

ing

corp

orat

e ac

tions

on

flow

s.

To in

trod

uce

a si

ngle

EU

-wid

e se

ttle

men

t cyc

le, s

ubst

antia

lly

impr

ovin

g th

e effi

cien

cy o

f co

rpor

ate

actio

ns m

anag

emen

t in

the

cont

ext o

f T2S

, and

fa

cilit

atin

g ra

tiona

lisat

ion

of

back

-offi

ce a

ctiv

ities

in g

ener

al.

Act

or: E

urop

ean

Com

mis

sion

(H

arm

onis

atio

n of

Set

tlem

ent

Cycl

es W

orki

ng G

roup

), EU

le

gisl

ator

sD

eliv

ery

date

: Mid

-201

3 (C

SDR

adop

tion)

Stat

us: I

N P

ROG

RESS

.Th

e H

arm

onis

atio

n of

Se

ttle

men

t Cyc

les

Wor

king

G

roup

reco

mm

ende

d an

EU

-wid

e T+

2 ru

le a

s pa

rt o

f its

re

spon

se to

the

CSD

R co

nsul

tatio

n.T+

2 (a

s a

min

imum

sta

ndar

d) is

pa

rt o

f the

CSD

R pr

opos

al.

Act

or: N

atio

nal r

egul

ator

s,

pote

ntia

lly A

G (H

SG)

Stat

us: N

ot y

et in

itiat

ed.

Act

or: N

atio

nal r

egul

ator

sTa

rget

dat

e: T

he c

urre

nt C

SDR

prop

osal

requ

ires

com

plia

nce

by 1

Jan

2015

.Fr

om a

T2S

per

spec

tive,

the

targ

et is

June

201

5 (T

2S la

unch

).

Ow

ing

to th

e ex

pect

ed d

elay

in

CSD

R ad

optio

n, th

e A

G h

as

assi

gned

red

stat

us to

the

defin

ition

pro

cess

for t

his

activ

ity.


49

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

15A

vaila

bilit

y of

om

nibu

s ac

coun

tsTh

e un

avai

labi

lity

of o

mni

bus

acco

unts

ser

vice

s fr

om th

e is

suer

CSD

doe

s no

t sup

port

the

conc

ept o

f int

erop

erab

ility

and

m

arke

t acc

ess

in (a

nd a

lso

outs

ide)

T2S

.

Issu

er C

SDs

to o

ffer i

nves

tor

CSD

s and

fore

ign

inte

rmed

iarie

s th

e po

ssib

ility

to o

pen

omni

bus

acco

unts

for c

ross

-CSD

se

ttle

men

t.

Act

or: A

GD

eliv

ery

date

: Sep

tem

ber 2

011

(AG

dec

isio

n)St

atus

: CO

MPL

ETE.

The

AG

agr

eed

on th

e ne

ed fo

r is

suer

CSD

s to

offe

r om

nibu

s ac

coun

t ser

vice

s to

fore

ign

part

icip

ants

.

Act

or: H

SG, T

2S te

am, N

UG

s St

atus

: CO

MPL

ETE.

A

sto

ck-t

akin

g ex

erci

se w

ith th

e N

UG

s w

as c

arrie

d ou

t in

Nov

embe

r 201

1, fu

rthe

r up

date

d in

the

first

qua

rter

of

2012

, and

pre

sent

ed to

the

AG

in

Mar

ch 2

012.

Com

plia

nce

was

als

o m

onito

red

by th

e T2

S te

am a

s pa

rt o

f the

CS

D/c

entr

al b

ank

feas

ibili

ty

asse

ssm

ent p

roce

ss (S

P2).

All

T2S

mar

kets

are

alre

ady

com

plia

nt. N

o fu

rthe

r m

onito

ring

need

ed.

Act

or: R

egul

ator

s, C

SDs

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)

16Re

stri

ctio

ns o

n om

nibu

s ac

coun

tsTh

e re

stric

tions

on

the

use

of

omni

bus

acco

unts

and

the

limite

d se

rvic

es a

vaila

ble

on

thes

e ac

coun

ts h

ampe

r the

co

ncep

t of C

SD in

tero

pera

bilit

y an

d cr

oss-

bord

er s

ettle

men

t in

(and

als

o ou

tsid

e) T

2S.

Issu

er C

SDs

to o

ffer,

in a

dditi

on

to th

e po

ssib

ility

to o

pen

omni

bus

acco

unts

, the

ap

prop

riate

ser

vice

s re

quire

d by

par

ticip

ants

(e.g

. w

ithho

ldin

g ta

x an

d pr

oxy

votin

g). O

mni

bus

acco

unts

sh

ould

als

o in

clud

e ho

ldin

gs o

f do

mic

ile a

nd n

on-d

omic

ile

inve

stor

s.

Act

or: A

GD

eliv

ery

date

: Sep

tem

ber 2

011

(AG

dec

isio

n)St

atus

: CO

MPL

ETE.

The

AG

agr

eed

on th

e ne

ed fo

r is

suer

CSD

s to

offe

r app

ropr

iate

om

nibu

s ac

coun

t ser

vice

s to

fo

reig

n pa

rtic

ipan

ts.

Act

or: H

SG, T

2S te

am, N

UG

sSt

atus

: Com

plia

nce

was

m

onito

red

by th

e T2

S te

am

prim

arily

via

the

T2S

NU

Gs

and

also

as

part

of t

he C

SD/c

entr

al

bank

feas

ibili

ty a

sses

smen

t pr

oces

s (S

P2).

Mon

itorin

g w

ill

cont

inue

in th

e co

ntex

t of S

P3

and

until

SP8

.Th

e N

UG

sur

vey

cond

ucte

d du

ring

2012

sho

wed

that

re

stric

tions

rem

ain

in s

ome

mar

kets

rela

ting

to th

e av

aila

bilit

y of

om

nibu

s acc

ount

s to

all

(prim

arily

dom

estic

) in

vest

ors.

Act

or: R

egul

ator

s, C

SDs

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)

Act

iviti

es 1

5 an

d 16

wer

e tr

eate

d to

geth

er a

s a

sing

le

activ

ity in

pre

viou

s H

SG re

port

s.

In N

ovem

ber 2

012

the

AG

ap

prov

ed th

e H

SG’s

pro

posa

l to

cons

ider

the

mer

e av

aila

bilit

y of

om

nibu

s ac

coun

ts a

nd

rest

rictio

ns o

n th

e us

e of

thos

e ac

coun

ts a

s tw

o se

para

te

sub-

item

s.


50

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

17Re

gist

rati

on p

roce

dure

sLo

cal r

egis

trat

ion

proc

edur

es

may

affe

ct c

ross

-bor

der

sett

lem

ent e

ffici

ency

in T

2S.

To a

chie

ve fu

ll ha

rmon

isat

ion

in

the

man

agem

ent o

f reg

istr

atio

n pr

oced

ures

in T

2S m

arke

ts.

Act

or: H

SG, E

PTG

, ESM

AD

eliv

ery

Dat

e:

Stat

us: I

N P

ROG

RESS

.Th

e H

SG w

ill fo

llow

up

on th

e TF

AX’

s an

alys

is a

nd in

volv

e ot

her h

arm

onis

atio

n fo

rum

s.

Cons

ulta

tion

with

the

EPTG

pl

anne

d fo

r the

firs

t hal

f of

2013

.

Act

or: T

o be

defi

ned

Stat

us: N

ot y

et in

itiat

ed.

Act

or: R

egul

ator

s, C

SDs

Targ

et d

ate:

T2S

mig

ratio

n da

te

(dep

endi

ng o

n m

igra

tion

wav

e)

18Ca

sh a

ccou

nt n

umbe

rsTo

des

igna

te a

har

mon

ised

nu

mbe

r for

DCA

s in

T2S

, rat

her

than

usi

ng th

e se

quen

tial

num

ber a

utom

atic

ally

pro

vide

d by

the

syst

em. T

his

will

faci

litat

e id

entifi

catio

n of

acc

ount

ho

lder

s an

d pr

ovid

ers.

Act

or: A

G, P

SSC,

T2S

team

Defi

niti

on d

eliv

ery

date

: 28

Nov

embe

r 201

2 (A

G a

ppro

val)

Stat

us: C

OM

PLET

E.Th

e A

G a

ppro

ved

the

PSSC

’s

prop

osal

on

cash

acc

ount

nu

mbe

rs in

T2S

.

Act

or: H

SG, T

2S te

am, E

SCB

Stat

us: N

ot y

et in

itiat

ed.

The

first

sur

vey

with

nat

iona

l ce

ntra

l ban

ks is

pla

nned

for t

he

seco

nd q

uart

er o

f 201

3.

Act

or: N

CBs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

19Se

curi

ties

acc

ount

num

bers

To d

esig

nate

a h

arm

onis

ed

num

ber f

or s

ecur

ities

acc

ount

s in

T2S

, rat

her t

han

usin

g th

e se

quen

tial n

umbe

r au

tom

atic

ally

pro

vide

d by

the

syst

em. T

his

will

faci

litat

e id

entifi

catio

n of

acc

ount

ho

lder

s an

d pr

ovid

ers.

Act

or: A

G, C

SG, T

2S te

amD

efini

tion

del

iver

y da

te: 2

8 N

ovem

ber 2

012

(AG

app

rova

l)St

atus

: CO

MPL

ETE.

The

AG

app

rove

d th

e CS

G’s

pr

opos

al o

n se

curit

ies

acco

unt

num

bers

.

Act

or: T

2S te

am, N

UG

s St

atus

: Not

yet

initi

ated

.Fi

rst s

urve

y w

ith C

SDs

plan

ned

for t

he s

econ

d qu

arte

r of 2

013.

Act

or: C

SDs

Targ

et d

ate:

SP8

– s

tart

of

inte

rope

rabi

lity

test

ing

(01/

10/2

014)

PRIO

RITY

2

20Co

rpor

ate

acti

ons

mar

ket

stan

dard

s In

dust

ry-e

ndor

sed

stan

dard

s on

pr

oces

sing

cor

pora

te a

ctio

ns

(on

stoc

k, i.

e. s

ettle

d ba

lanc

es).

Thes

e st

anda

rds

form

the

basi

s fo

r the

T2S

cor

pora

te a

ctio

ns

stan

dard

s.

T2S

mar

kets

/CSD

s to

im

plem

ent t

he c

orpo

rate

ac

tions

mar

ket s

tand

ards

(C

AJW

G s

tand

ards

).

Act

or: B

SG, E

-MIG

Del

iver

y da

te: O

ctob

er 2

009

Stat

us: C

OM

PLET

E.

Act

or: B

SG, E

-MIG

Stat

us: E

-MIG

sur

vey

in

Nov

embe

r 201

2:

re-p

riorit

isat

ion

of s

tand

ards

Act

or: C

SDs,

mar

ket p

artic

ipan

tsTa

rget

dat

e: T

he 2

013

targ

et

date

set

by

the

BSG

now

see

ms

unre

alis

tic.

From

a T

2S p

ersp

ectiv

e, th

e ta

rget

is S

P8 –

sta

rt o

f in

tero

pera

bilit

y te

stin

g (0

1/10

/201

4)

Seve

n T2

S m

arke

ts (e

ight

CSD

s)

did

not p

artic

ipat

e in

the

Nov

embe

r 201

2 E-

MIG

sur

vey.

Th

e su

rvey

sho

ws

an in

crea

sed

awar

enes

s of

the

depe

nden

cy

betw

een

impl

emen

tatio

n of

the

corp

orat

e ac

tions

mar

ket

stan

dard

s an

d th

e T2

S eq

uiva

lent

s.


51

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

21Pl

ace

of is

suan

ce

Free

dom

to c

hoos

e is

suer

CSD

. The

re a

re re

stric

tions

(in

natio

nal l

aw o

r mar

ket r

ules

) on

the

plac

e of

issu

ance

of

secu

ritie

s an

d co

nseq

uent

ly o

n th

e ch

oice

of

infr

astr

uctu

res/

serv

ice

prov

ider

s av

aila

ble

to is

suer

s. T

his

has

an im

pact

on

the

com

petit

ion

envi

ronm

ent i

n w

hich

T2

S w

ill o

pera

te.

To re

mov

e re

stric

tions

in

the

EU re

latin

g to

the

plac

e of

issu

ance

of

secu

ritie

s.

Actor

: Eur

opea

n Co

mm

issi

on,

EU le

gisl

ator

sD

eliv

ery

date

: Mid

-201

3 (C

SDR

adop

tion)

St

atus

: IN

PRO

GRE

SS.

Prov

isio

ns fo

r the

rem

oval

of

this

bar

rier a

re in

clud

ed in

the

prop

osed

CSD

R.

The

AG

’s le

tter

to th

e Co

mm

issi

on (J

une

2011

) and

th

e EC

B op

inio

n on

the

draf

t CS

DR

(Aug

ust 2

012)

sup

port

ed

this

pro

posa

l.

Act

or: E

urop

ean

Com

mis

sion

, nat

iona

l re

gula

tors

(pen

ding

CSD

R)St

atus

: Not

yet

initi

ated

.

Act

or: N

atio

nal

legi

slat

ors,

regu

lato

rs,

CSD

s Ta

rget

dat

e: Ju

ne 2

015

(T2S

laun

ch)

Ow

ing

to th

e ex

pect

ed

dela

y in

CSD

R ad

optio

n, th

e A

G h

as a

ssig

ned

red

stat

us

to th

e de

finiti

on p

roce

ss fo

r th

is a

ctiv

ity.

22W

ithh

oldi

ng ta

x pr

oced

ures

Gio

vann

ini b

arrie

r 11

Nat

iona

l rul

es im

posi

ng o

n fo

reig

n in

term

edia

ries

the

use

of a

loca

l fisc

al a

gent

to b

e gr

ante

d w

ithho

ldin

g ta

x re

lief a

t sou

rce

ham

per t

he c

reat

ion

of a

leve

l pla

ying

fie

ld fo

r dom

estic

and

fore

ign

acto

rs.

With

hold

ing

tax

proc

edur

es s

houl

d co

mpl

y w

ith th

e Co

mm

issi

on’s

Oct

ober

20

09 re

com

men

-dat

ion.

Act

or: E

urop

ean

Com

mis

sion

(T

-BA

G)

Del

iver

y da

te: O

ct 2

009

(Eur

opea

n Co

mm

issi

on’s

Re

com

men

datio

n), 2

013

(T-B

AG

fin

al re

port

)St

atus

: T-B

AG

is fo

llow

ing

up o

n th

e Co

mm

issi

on’s

re

com

men

datio

n an

d co

nsid

erin

g an

y ot

her

rem

aini

ng fi

scal

bar

riers

aff

ectin

g th

e po

st-t

rade

en

viro

nmen

t.T-

BAG

’s fi

nal r

epor

t is

expe

cted

in

201

3.

Act

or: E

SMA

, nat

iona

l re

gula

tors

Stat

us: N

ot y

et in

itiat

ed.

Act

or: E

SMA

, nat

iona

l le

gisl

ator

sTa

rget

dat

e: Ju

ne 2

015

(T2S

laun

ch)

22 M

embe

r Sta

tes

now

pr

ovid

e w

ithho

ldin

g ta

x re

lief a

t sou

rce.

23Se

ttle

men

t-re

late

d ta

x pr

oced

ures

Se

ttle

men

t-re

late

d ta

x pr

oced

ures

cou

ld c

reat

e op

erat

iona

l com

plex

ity, i

n pa

rtic

ular

in re

latio

n to

cr

oss-

CSD

sett

lem

ent i

n T2

S.G

iova

nnin

i bar

rier 1

2N

atio

nal p

rovi

sion

s req

uirin

g th

at ta

x be

col

lect

ed v

ia lo

cal

syst

ems h

ampe

r the

cre

atio

n of

a le

vel p

layi

ng fi

eld

for

dom

estic

and

fore

ign

inve

stor

s.Fi

nanc

ial t

rans

actio

n ta

x Th

e Eu

rope

an C

omm

issi

on p

ublis

hed

on 1

4/02

/201

3 a

prop

osal

for t

he in

trod

uctio

n of

a c

omm

on fi

nanc

ial

tran

sact

ion

tax

syst

em in

11

EU M

embe

r Sta

tes (

DE,

FR,

AU

, BE

, PT,

SI,

GR,

IT, E

S, S

K, E

E).

Oth

er se

ttle

men

t-re

late

d ta

x is

sues

Oth

er is

sues

wer

e id

entifi

ed b

y th

e TF

AX (r

elat

ing

to th

e m

anag

emen

t of t

ax in

form

atio

n w

ithin

sett

lem

ent

inst

ruct

ions

and

the

tax-

rela

ted

segr

egat

ion

of a

ccou

nts a

t CS

D le

vel).

Proc

edur

es fo

r co

llect

ing

tran

sact

ions

ta

xes

shou

ld b

e ha

rmon

ised

in th

e EU

.To

ana

lyse

the

poss

ible

im

pact

on

T2S

of th

e in

trod

uctio

n of

a

finan

cial

tran

sact

ion

tax.

To ra

ise

othe

r pot

entia

l is

sues

to th

e EP

TG.

Act

or: E

urop

ean

Com

mis

sion

, na

tiona

l reg

ulat

ors

Stat

us: N

ot y

et in

itiat

ed.

Act

or: T

2S te

am, N

UG

s St

atus

: Not

yet

initi

ated

.Fi

rst s

urve

y w

ith C

SDs

plan

ned

for t

he s

econ

d qu

arte

r of 2

013.

Act

or: M

embe

r Sta

tes

(nat

iona

l le

gisl

ator

s)Ta

rget

dat

e: Ju

ne 2

015

(T2S

laun

ch)

Acc

ordi

ng to

the

Com

mis

sion

, any

urg

ent

prob

lem

s id

entifi

ed b

y FI

SCO

hav

e, in

gen

eral

, al

read

y be

en s

olve

d by

the

Mem

ber S

tate

s.T2

S ha

rmon

isat

ion

activ

ity

3.1.

4 co

vers

par

t of t

his

topi

c, (p

rovi

sion

of

tran

sact

ion-

rela

ted

info

rmat

ion

that

wou

ld

allo

w fo

r cor

rect

tax

proc

essi

ng a

t the

poi

nt o

f se

ttle

men

t).


52

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

24Cr

oss-

bord

er s

hare

hold

er

tran

spar

ency

Ther

e is

no

Euro

pean

mod

el fo

r en

ablin

g is

suer

s to

iden

tify

thei

r ow

ners

in a

cro

ss-b

orde

r (an

d T2

S) h

oldi

ng.

To d

efine

a E

urop

ean

mod

el fo

r th

e cr

oss-

bord

er e

xcha

nge

of

shar

ehol

der i

nfor

mat

ion.

Act

or: T

2S T

ask

Forc

e on

Sh

areh

olde

r Tra

nspa

renc

y,

SWIF

T, IS

O M

aint

enan

ce G

roup

, EP

TGD

eliv

ery

Dat

e: M

arch

201

1 (T

ask

Forc

e pr

opos

al) –

stil

l to

be

endo

rsed

by

the

AG

and

the

indu

stry

.St

atus

: IN

PRO

GRE

SS.

In M

arch

201

1 th

e m

ajor

ity o

f th

e A

G a

ppro

ved

the

final

pr

opos

als

of th

e Ta

sk F

orce

on

Shar

ehol

der T

rans

pare

ncy,

but

no

form

al e

ndor

sem

ent w

as

give

n.

In A

ugus

t 201

1 th

e IS

O

Mai

nten

ance

Gro

up a

ppro

ved

the

need

for s

hare

hold

er

disc

losu

re m

essa

ges

in IS

O

2002

2. B

ecau

se a

suffi

cien

t bu

sine

ss c

ase

was

not

put

fo

rwar

d, n

o pr

ogre

ss h

as b

een

mad

e.Th

e pr

opos

al fo

r leg

al

harm

onis

atio

n w

as s

hare

d w

ith

the

Euro

pean

Com

mis

sion

.Th

is to

pic

has

been

incl

uded

in

the

EPTG

’s li

st. A

n EP

TG

sub-

stru

ctur

e is

to b

e se

t up

in

the

seco

nd q

uart

er o

f 201

3 to

ad

dres

s th

e m

atte

r.

Act

or: P

endi

ng o

utco

me

of th

e EP

TG’s

wor

kSt

atus

: Not

yet

initi

ated

.

Act

or: T

o be

defi

ned

Targ

et d

ate:

A

cen

tral

ised

sol

utio

n in

T2S

is

not r

elev

ant f

or th

e T2

S la

unch

(p

ossi

bly

rele

vant

for t

he la

unch

of

T2S

ver

sion

2).

25M

arke

t acc

ess

and

inte

rope

rabi

lity

Des

pite

the

adop

tion

of th

e M

iFID

/Cod

e of

Con

duct

, the

re

are,

in p

ract

ice,

man

y pr

otec

tive

natio

nal b

arrie

rs in

pla

ce,

oblig

atin

g (o

r res

tric

ting)

the

sett

lem

ent o

f (st

ock

exch

ange

an

d/or

cen

tral

cou

nter

part

y-cl

eare

d) tr

ansa

ctio

ns in

a

spec

ific

issu

er C

SD.

To e

stab

lish

the

cond

ition

s fo

r fo

reig

n ac

tors

to a

cces

s th

e lo

cal m

arke

t at a

ll st

ages

of t

he

tran

sact

ion

chai

n (t

radi

ng,

clea

ring

and

sett

lem

ent)

.

Act

ors:

Eur

opea

n Co

mm

issi

on,

EU le

gisl

ator

s, E

SMA

Del

iver

y da

te: M

id-2

013

(CSD

R ad

optio

n)St

atus

: IN

PRO

GRE

SS.

CSD

R/EM

IR/M

iFID

all

cove

r so

me

high

-leve

l prin

cipl

es o

n m

arke

t acc

ess.

ESM

A w

ill w

ork

on le

vel 2

le

gisl

atio

n fo

r all

thes

e in

itiat

ives

.

Act

ors:

Pend

ing

CSD

RSt

atus

: To

be in

itiat

ed a

fter

pu

blic

atio

n of

the

final

CSD

R.

Act

ors:

ESM

ATa

rget

dat

e: Ju

ne 2

015

(T2S

la

unch

)

Ow

ing

to th

e ex

pect

ed d

elay

in

CSD

R ad

optio

n, th

e A

G h

as

assi

gned

red

stat

us to

the

defin

ition

pro

cess

for t

his

activ

ity.

Shou

ld re

stric

tions

on

mar

ket

acce

ss re

mai

n by

the

time

of

the

T2S

laun

ch, t

his

will

resu

lt in

lim

ited

com

petit

ion

and

choi

ce

for m

arke

t par

ticip

ants

and

in

fras

truc

ture

s in

the

T2S

fram

ewor

k.


53

Act

ivity

Obj

ectiv

eD

efini

tion

Mon

itori

ngIm

plem

enta

tion

Com

men

ts

26Se

curi

ties

am

ount

dat

aA

few

EU

mar

kets

dev

iate

from

th

e EU

sta

ndar

d m

arke

t pra

ctic

e of

usi

ng n

omin

al v

alue

for d

ebt

inst

rum

ents

and

uni

ts fo

r eq

uitie

s.In

T2S

it w

ill b

e po

ssib

le to

de

fine

only

one

opt

ion

for t

he

type

of s

ettle

men

t am

ount

dat

a fo

r eac

h IS

IN (e

ither

in u

nits

or

nom

inal

am

ount

).

To e

nsur

e th

at a

ll T2

S m

arke

ts

are

in li

ne w

ith E

U s

tand

ard

prac

tice

(i.e.

nom

inal

val

ue fo

r de

bt in

stru

men

ts a

nd u

nits

for

non-

debt

inst

rum

ents

).

Act

or: A

G (T

2S te

am, N

UG

s)D

eliv

ery

date

: Sep

tem

ber 2

011

(AG

dec

isio

n)St

atus

: CO

MPL

ETE.

Act

or: N

UG

s, T

2S te

amSt

atus

: A s

tock

-tak

ing

exer

cise

w

ith th

e N

UG

s w

as c

ondu

cted

in

the

first

qua

rter

of 2

012

and

pres

ente

d to

the

AG

in M

arch

20

12.

Com

plia

nce

was

mon

itore

d by

th

e T2

S te

am v

ia th

e N

UG

s an

d as

par

t of t

he C

SD/c

entr

al b

ank

feas

ibili

ty a

sses

smen

t pro

cess

(S

P2).

Mon

itorin

g w

ill c

ontin

ue

in th

e co

ntex

t of S

P3 a

nd u

ntil

SP8.

Act

or: N

atio

nal r

egul

ator

sTa

rget

dat

e: S

P8 –

sta

rt o

f in

tero

pera

bilit

y te

stin

g (0

1/10

/201

4)

A li

mite

d nu

mbe

r of m

arke

ts d

o no

t yet

com

ply

with

EU

mar

ket

prac

tice

(FI,

PT, P

L, S

K).

No

reso

lutio

n be

fore

the

T2S

laun

ch m

ay re

sult

in fa

iled

T2S

valid

atio

n of

inst

ruct

ions

re

late

d to

thes

e fo

ur m

arke

ts.


Annex 3: Harmonisation activities dashboard

Table 2 provides a high-level overview of the definition, monitoring and implementation status per T2S harmonisation activity. It is a summary of the T2S markets’ results as shown in Table 4 (Annex 4). For example, the green status assigned to almost all T2S markets in Table 4, gives a green status overall for activity 1 (T2S ISO 20022 messages) in Table 2.

Table 2. Status update per T2S harmonisation activity (status: 28/02/2013)

X: Process not started yet

54


Table 3. Definition and monitoring progress between second and third harmonisation progress reports

Definition and Monitoring Processes

N/A: not applicable for the relevant report. X: Process not started yet

Table 3 presents the developments in the definition and monitoring progress between the second and third harmonisation progress reports.

55


Definition processThe definition process has now been completed for 57% of the activities (15 out of a total of 26), compared with 39% at the time of the second harmonisation progress report (9 out of a total of 23). Looking at the priority 1 activities, 13 out of the 19 activities have now been completed (68%), compared with 7 out of 14 (50%) at the time of the second report.

Monitoring processThe monitoring process is now established for 38% of activities (10 out of a total of 26 activities) compared with 21% (5 out of a total of 23 activities) at the time of the second harmonisation progress report. Looking at the priority 1 activities, 42% (8 out of the 19) are now being monitored, compared with 21% (3 out of 14) at the time of the second harmonisation progress report.

56


57

Colour scheme for Annexes 4 and 5: A specific colour, based on a four-colour scheme, reflects the compliance status of each T2S market for the ten monitored activities detailed in this harmonisation progress report. The compliance status applies to the national market in general and not necessarily to the relevant CSD. However, there are some markets where more than one CSD exists, with differences in the level of compliance for each CSD.

Annex 4: Monitored harmonisation activities per market

Colour Description

The T2S market has achieved full compliance with the harmonisation standard. Further monitoring of the market is no longer necessary regarding the specific harmonisation activity.

The T2S market has established a plan to implement the harmonisation standard, and the steps required to implement the harmonisation standard are on schedule. There are no major technical, regulatory or legal barriers to overcome (no changes in regulations/laws or major technical adaptations), but the market still must undertake activities to implement the harmonisation standard. For example, there may be a need to introduce changes in the rules of the CSD and this may require the approval of the national regulator, but no obstacles have been identified in the process so far and there are clear and public dates for implementation.

The T2S market has a plan to implement the harmonisation standard. There are technical, regulatory or legal barriers to overcome in order to achieve compliance (a need for changes in rules/laws or major technical adaptations). For example, it may not be clear whether regulatory approval is required or there are publicly announced dates for implementation.

The T2S market does not have a roadmap to implement the harmonisation standard, or is facing a significant delay in its plan to implement the harmonisation standard. The T2S market will not be able to implement the standard to the extent required by the deadline if it does not undertake measures to resolve open issues, and/or to introduce major technical, regulatory and/or legal changes. Typical examples are technical changes or market practices that may require changes in national legislation and regulation.

Furthermore, any T2S market not reporting on its compliance with the harmonisation standard, or not participating in a relevant monitoring process, is given a red status.

GREEN

BLUE

RED

YELLOW


Tabl

e 4.

Com

plia

nce

stat

us p

er T

2S m

arke

t (St

atus

: 28/

02/2

013)

58

33 T

he s

tatu

ses

rega

rdin

g th

e co

mpl

ianc

e w

ith th

e m

arke

t CA

sta

ndar

ds (o

r CA

JWG

sta

ndar

ds) a

re b

ased

on

the

Nov

embe

r 201

2 su

rvey

resu

lts B

SG/E

-MIG

sen

t to

the

T2S

Team

(s

ee A

nnex

5 fo

r det

aile

d st

atis

tics

per T

2S m

arke

t).

Prio

rity

1Pr

iori

ty 2

T2S

Mar

kets

1

T2S

mes

sage

s IS

O 2

0022

2

T2S

mes

sage

s M

atch

ing

field

s

6

Sche

dule

for

sett

lem

ent

day

7

T2S

corp

orat

e ac

tion

s st

anda

rds

9 T2S

Sett

lem

ent

Fina

lity

II

10 T2S

Sett

lem

ent

Fina

lity

III

15

Ava

ilabi

lity

of

omni

bus

acco

unts

16

Rest

rict

ions

on

om

nibu

s ac

coun

ts

20

Corp

orat

e ac

tion

s m

arke

t st

anda

rds

(CA

JWG

)33

26

Secu

riti

es

amou

nt d

ata

AT

GG

GR

BB

BB

GB

BE

- E

uro

cle

arG

GG

GB

GB

BG

B

BE

– N

BB

-SS

SG

GY

YG

GB

BR

- N

o in

foB

CH

GG

GY

YG

BB

YB

DE

GR

YR

GG

BB

GB

DK

GR

YR

BY

BB

GB

EE

GG

GR

BG

BB

YB

ES

GG

GY

BB

BB

GB

FIG

RY

RB

BB

YY

Y

FRG

GG

GB

GB

BY

B

GR

– B

OG

SG

GY

YB

GB

BR

– N

o in

foB

HU

GG

YR

YY

B

BR

– N

o in

foB

ITG

YG

GB

GB

BG

B

LTG

GG

RY

YB

BR

– N

o in

foB

LU –

LU

X C

SD

GR

GY

GG

BB

R –

No

info

B

LU –

VP

LU

XG

RY

YB

YB

BR

– N

o in

foB

MT

YY

YR

YG

BB

R -

No

info

B

NL

GG

GG

BG

BB

GB

PT

G

GG

GG

GB

YG

G

RO

GG

RY

BG

BB

RB

SI

GG

GY

GG

BB

RB

SK

GG

GR

YY

BY

R -

No

info

YSu

mm

ary

28

/02/

2013

Gre

en: 2

1 Ye

llow

: 1

Red:

0

Gre

en: 1

5 Ye

llow

: 2

Red:

5

Gre

en: 1

3 Ye

llow

: 8

Red:

1

Gre

en: 5

Ye

llow

: 8

Red:

9

Blue

: 12

Gre

en: 5

Ye

llow

: 5

Blue

: 3

Gre

en: 1

4 Ye

llow

: 5

Blue

: 22

Yello

w: 0

Re

d: 0

Blue

: 19

Yello

w: 3

Re

d: 0

Gre

en: 8

Ye

llow

: 4

Red:

10

Blue

: 19

Gre

en: 1

Ye

llow

:2

Sum

mar

y

25/0

1/20

13G

reen

: 21

Yello

w: 1

Re

d: 0

Gre

en:1

5 Ye

llow

: 2

Red:

5

Gre

en: 1

1 Ye

llow

: 8

Red:

3

Gre

en: 4

Ye

llow

: 7

Red:

11

Blue

: 12

Gre

en: 3

Ye

llow

: 7

Blue

: 3

Gre

en: 1

1 Ye

llow

: 8

Blue

: 22

Yello

w: 0

Re

d: 0

Blue

: 19

Yello

w:3

Re

d: 0

Gre

en: 8

Ye

llow

: 4

Red:

10

Blue

: 19

Gre

en: 1

Ye

llow

: 2


59

Annex 5: Detailed monitoring information per T2S market

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

htfo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gOe

KBIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

htfo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gOe

KBIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

Mar

ket

clai

ms

(27

stan

dard

s)7%

Regu

lato

ry/l

egisl

ativ

e ch

ange

End

2013

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%M

ajor

tec

hnic

al c

hang

e

Buye

r pro

tect

ion

(18

stan

dard

s)39

%M

ajor

tec

hnic

al c

hang

e

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd b

ilate

ral

disc

ussio

ns.

OeKB

alre

ady

com

plie

s w

ith b

ilate

ral c

ance

llatio

n

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.No

nee

d fo

r any

cha

nges

for c

ompl

ianc

e w

ith T

2S S

F III

rule

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)72

%

GRe

gula

tory

/leg

islat

ive

Chan

geEn

d 20

13 fo

r mar

ket

clai

ms

Aust

rian

Corp

orat

e Ac

tions

Na

tiona

l Im

plem

enta

tion

Grou

p (C

ANIG

)

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.49

impl

emen

ted,

2 in

the

pro

cess

, 17

not

met

. La

ck o

f "re

cord

dat

e"

in A

T.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.Fu

ll co

mpl

ianc

e w

ith E

urop

ean

mar

ket

prac

tice

CSD

acco

unt

stru

ctur

es

OeKB

Mig

ratio

n to

T2S

No in

form

atio

n ye

tR

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns

Aust

rian

Corp

orat

e Ac

tions

Na

tiona

l Im

plem

enta

tion

Grou

p (C

ANIG

)

Stra

ight

forw

ard

to im

plem

ent

Prio

rity

1

Lega

l Har

mon

isatio

n

Prio

rity

2

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

) In

fo s

ourc

e: C

ASG

gap

anal

ysis

surv

ey 2

012.

Low

rate

of c

ompl

ianc

e an

d fe

w d

etai

ls on

impl

emen

tatio

n pl

an;

legi

slativ

e or

mar

ket

prac

tice

chan

ge re

quire

d fo

r int

rodu

cing

a R

ecor

d Da

te; l

egisl

ativ

e ch

ange

nee

ded

to a

ddre

ss t

he in

form

atio

n flo

w

betw

een

issue

rs/i

ssue

r age

nts

and

the

AT C

SD.

T2S

Harm

onisa

tion

Activ

ities

: Aus

tria

T2S

mes

sage

s

6. T

2S s

ched

ule

of

sett

lem

ent

day

Not

com

plia

nt y

etG


60

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of

gap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for i

mpl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

SP 8

: T2S

tes

ting

Euro

clea

rIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

. Fu

ll co

mpl

ianc

e fo

r tes

ting

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

G

Stra

ight

forw

ard

to im

plem

ent

SP 8

: T2S

tes

ting

Euro

clea

rIn

fo s

ourc

e: S

P2, W

hite

Pap

er a

nd b

ilate

ral d

iscus

sions

.M

atch

ing

Rule

s th

at w

ill ap

ply

are

thos

e of

the

T2S

pl

atfo

rm

Mar

ket

clai

ms

(27

stan

dard

s)48

%M

ajor

tec

hnic

al c

hang

e

Tran

sfor

mat

ions

(14

sta

ndar

ds)

29%

Maj

or t

echn

ical

cha

nge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Othe

r

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OK

B

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

EoC

alre

ady

com

plie

s w

ith b

ilate

ral c

ance

llatio

n

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

G

May

requ

ire re

gula

tory

cha

nge

Mig

ratio

n to

T2S

Euro

clea

rIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns. T

erm

s an

d Co

nditi

ons

will

be

upda

ted

to im

plem

ent

SFIII

in T

2S. T

his

upda

te w

ill ha

ve t

o be

pre

sent

ed a

nd a

ppro

ved,

whe

re a

pplic

able

, by

the

Bel

gian

Reg

ulat

or (

natio

nal B

ank

of B

elgi

um)

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

B

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.Th

ere

are

no is

sues

with

Om

nibu

s Ac

coun

ts a

vaila

bilit

y fo

r the

ESE

S co

untr

ies

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)78

%

GM

arke

t pr

actic

e ch

ange

No in

form

atio

n ye

tIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

53 im

plem

ente

d, 1

5 in

the

pro

cess

of b

eing

im

plem

ente

d.

26. S

ecur

ities

am

ount

sta

tic

data

OK

B

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.Th

ere

are

no is

sues

with

sec

uriti

es a

mou

nt d

ata

for t

he

ESES

cou

ntrie

s

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

The

ESES

ope

ratio

nal d

ay w

ill be

am

ende

d to

cop

e w

ith

the

timin

g of

T2S

. T2S

acc

ount

ing

day

will

be

cons

ider

ed t

he M

aste

r day

.G G

Lega

l Har

mon

isatio

n

Deta

iled

impl

emen

tatio

n pl

an w

ith t

imel

ines

av

aila

ble

T2S

Harm

onisa

tion

Activ

ities

: Bel

gium

(Eu

rocl

ear)

Prio

rity

1

Stra

ight

forw

ard

to im

plem

ent

Mig

ratio

n to

T2S

Euro

clea

r

MIG

6. T

2S s

ched

ule

of

sett

lem

ent

day

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Not

com

plia

nt y

et

T2S

mes

sage

s

Prio

rity

2

CSD

acco

unt

stru

ctur

es

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.M

IG is

act

ive

and

good

pro

gres

s is

bein

g m

ade,

in

coop

erat

ion

with

oth

er E

SES

mar

kets

; som

e st

anda

rds

requ

ire a

maj

or t

echn

ical

cha

nge

but

none

legi

slativ

e ch

ange

.


61

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y)

, re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

et

G

Stra

ight

forw

ard

to im

plem

ent

Q4 2

014

NBB

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

NBB-

SSS

will

fully

com

ply

with

ISO

2002

2 fr

om p

hase

1 (

Q4 2

014)

of t

heir

adap

tatio

n to

T2S

. It

will

also

pro

vide

con

vers

ion

serv

ices

to

its p

artic

ipan

ts (

from

150

22 t

o 20

022)

as

from

pha

se 2

(m

igra

tion

to T

2S)

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

t

Q4 2

014

NBB

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns. N

o m

ajor

issu

es w

ith T

2S m

atch

ing

field

s.NB

B-SS

S w

ill im

plem

ent

in Q

4 20

14 t

he T

2S m

atch

ing

rule

s

Mar

ket

clai

ms

(27

stan

dard

s)0%

Maj

or t

echn

ical

cha

nge

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%M

ajor

tec

hnic

al c

hang

e

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Othe

r

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

GNo

t co

mpl

iant

yet

but

no

regu

lato

ry

chan

ge is

requ

ired

Q4 2

014

NBB

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

and

bila

tera

l disc

ussio

ns.

NBB-

SSS

plan

s to

fully

com

ply

with

SF

II as

of l

aunc

h of

the

ir ne

w p

latf

orm

(Q4

201

4)

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

etG

Not

com

plia

nt y

et b

ut n

o re

gula

tory

ch

ange

is re

quire

dQ2

201

5NB

BIn

fo s

ourc

e: b

ilate

ral d

iscus

sions

. NB

B-SS

S co

nfirm

ed t

hat

ther

e is

no n

eed

for

regu

lato

ry c

hang

e of

app

rova

l for

ach

ivin

g co

mpl

ianc

e w

ith T

2S S

F III

rule

.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

NBB-

SSS

offe

rs o

mni

bus

acco

unts

.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

aR

- no

info

Othe

rNo

info

rmat

ion

yet

NBB

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.T2

S Te

am re

ceiv

ed n

o in

fo fr

om E

MIG

on

NBB-

SSS

resu

lts.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.NB

B-SS

S is

in li

ne w

ith t

he E

urop

ean

mar

ket

prac

tice.

Y

NBB

Inve

stig

atio

ns o

n ne

w

soft

war

e st

arte

d

capa

city

issu

e

NBB

Y

T2S

Harm

onisa

tion

Activ

ities

: Bel

gium

(NB

B-SS

S)

Prio

rity

1T2

S m

essa

ges

6. T

2S s

ched

ule

of

sett

lem

ent

day

Q4 2

014

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Not

yet

sure

tha

t it

sha

ll al

way

s be

pos

sible

to

gene

rate

the

cor

pora

te a

ctio

ns b

efor

e th

e fir

st c

ycle

of t

he n

ight

tim

e se

ttle

men

t .

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Prio

rity

2

Lega

l Har

mon

isatio

n

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

stan

dard

sar

em

etat

the

mom

ent,

but

corp

orat

eac

tion

type

and

volu

me

expe

cted

tobe

limite

don

NBB-

SSS

ISIN

s(g

over

nmen

tse

curit

ies)

.Fu

rthe

rmor

e,in

trod

uctio

nof

new

soft

war

eis

inpr

ogre

ssw

hich

shou

ldre

solv

ein

cons

isten

cyw

ithth

est

anda

rds

byDe

cem

ber 2

014.

Not

com

plia

nt y

et

CSD

acco

unt

stru

ctur

es


62

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .xl

s

1

Activ

itySu

b-ac

tivity

Com

plian

ce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Imple

men

tatio

n Pla

n/Da

teIm

plem

enta

tion

Acto

r(s)

Furth

er C

omm

ents

Indica

tes

level

of

com

plian

ce w

ith th

e re

levan

t st

anda

rds/

rules

Gree

n (G

), ye

llow

(Y),

red

(R)

If th

e st

anda

rds/

rules

are

not

yet

im

plem

ente

d, p

lease

spe

cificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rules

are

not

fulfi

lled,

plea

se

prov

ide th

e tim

etab

le an

d va

rious

m

ilest

ones

/dat

es in

the

imple

men

tatio

n pla

n.

Relev

ant n

atio

nal a

ctor

s fo

r im

plem

enta

tion

1 T2

S IS

O 20

022

mes

sage

sNo

t com

plian

t yet

GSt

raig

ht fo

rwar

d to

imple

men

tSP

8: T

2S te

sting

SIS

Info

sour

ce: S

P2 a

nd b

ilate

ral d

iscus

sions

. Eur

oCSD

will

send

/rec

eive

mes

sage

s to

/fro

m T

2S in

ISO

2002

2 XM

L m

essa

ge s

tand

ards

.

2 T2

S m

atch

ing fi

elds

Not c

ompli

ant y

etG

Stra

ight

forw

ard

to im

plem

ent

SP 8

: T2S

test

ingSI

SInf

o so

urce

: SP2

and

bila

tera

l disc

ussio

ns.

Mark

et c

laim

s (2

7 st

anda

rds)

37%

Stra

ight

forw

ard

to im

plem

ent

Swiss

MIG

Tr

ansf

orm

atio

ns (1

4 st

anda

rds)

14%

Stra

ight

forw

ard

to im

plem

ent

Buye

r pro

tect

ion

(18

stan

dard

s)

0%Ma

rket

pra

ctice

cha

nge

9. S

ettle

men

t Fina

lity

II: irr

evoc

abilit

y an

d en

forc

eabi

lity

trans

fer o

rder

No

t com

plian

t yet

YPla

n to

ada

pt to

T2S

SF

II rule

No in

form

atio

n ye

tSI

S

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

and

bi

later

al dis

cuss

ions

.Al

read

y m

atch

ed O

TC-tr

ansa

ctio

ns c

an b

e un

ilate

rally

ca

ncell

ed. S

tock

exc

hang

e tra

nsac

tions

can

not b

e ca

ncell

ed

at a

ll (no

t eve

n bi

later

ally)

. Int

entio

n to

ada

pt to

T2S

pr

actic

e

10. S

ettle

men

t Fina

lity

III: ir

revo

cabi

lity

of s

ecur

ities

tra

nsfe

rs.

Not c

ompli

ant y

etG

Chan

ge o

f CSD

rules

Migr

atio

n to

T2S

SIS

Info

sou

rce:

HSG

SF

III su

rvey

.St

raig

htfo

rwar

d ch

ange

of C

SD ru

les

15. A

vaila

bilit

y of

om

nibus

acc

ount

s

OKB

Fully

com

plian

tN/

AN/

AInf

o so

urce

: T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

CSD

omnib

us a

ccou

nt w

ill be

use

d by

SIS

for c

ross

CSD

se

ttlem

ent i

n T2

S. M

ultipl

e om

nibus

acc

ount

s m

ay b

e re

quire

d pe

r tec

hnica

l issu

er C

SD

16. R

estri

ctio

ns o

n om

nibus

acc

ount

sOK

BFu

lly c

ompli

ant

N/A

N/A

Info

sour

ce: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

20. C

orpo

rate

Act

ions

CA

mar

ket s

tand

ards

(68)

49%

YSt

raig

ht fo

rwar

d to

imple

men

tNo

vem

ber 2

012

SIS

Info

sour

ce: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

33 s

tand

ards

alre

ady

met

, 8 in

the

proc

ess

of b

eing

met

an

d 27

not

met

at a

ll

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plian

tN/

AN/

AInf

o so

urce

: T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

on S

ecur

ities

Am

ount

Dat

a

Lega

l Har

mon

isatio

n

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59)

Nove

mbe

r 201

3

T2S

Harm

onisa

tion

Activ

ities

: Swi

tzer

land

(SIX

SIS

)

Prio

rity

1

Prio

rity

2

T2S

mes

sage

s

6. T

2S s

ched

ule o

f se

ttlem

ent d

aySt

raig

ht fo

rwar

d to

imple

men

t

Info

sour

ce: S

P2 a

nd b

ilate

ral d

iscus

sions

. SIS

will

oper

ate

a sc

hedu

le wh

ich w

ill be

in lin

e wi

th th

at o

f T2S

. SI

S wi

ll hav

e its

own

cale

ndar

. It w

ill be

up

on a

ll day

s of

ope

ratio

n of

T2

S.

Y

Info

sour

ce: C

ASG

gap

analy

sis s

urve

y 20

12.

Good

imple

men

tatio

n pla

n ex

ists

howe

ver t

imely

im

plem

enta

tion

may

be

jeop

ardis

ed d

ue to

con

tinue

d dis

cuss

ions

in th

e Sw

iss m

arke

t. Al

l non

-fulfi

lled

stan

dard

s de

emed

stra

ight

forw

ard

to im

plem

ent;

stan

dard

s ar

e st

rong

ly su

ppor

ted

by th

e MI

G an

d NU

G.

Migr

atio

n to

T2S

CSD

acco

unt s

truct

ures

GSI

SNo

t com

plian

t yet


63

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n A c

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for i

mpl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

et

GSt

raig

ht fo

rwar

d to

impl

emen

t

SP 8

: T2S

tes

ting

CBF

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

RM

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

CBF

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Serio

us is

sues

with

mat

chin

g fie

lds

in T

2S. P

endi

ng p

rogr

ess

on C

R an

d HS

G w

ork

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

) M

arke

t cl

aim

s (2

7 st

anda

rds)

52%

Legi

slativ

e ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

50%

Legi

slativ

e ch

ange

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Mar

ket

prac

tice

chan

ge

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

GSt

raig

ht fo

rwar

d to

impl

emen

t

Mig

ratio

n to

T2S

CBF

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

and

bila

tera

l di

scus

sions

.Th

e bi

late

ral c

ance

llatio

n pr

inci

ple

will

have

bee

n in

trod

uced

to

the

Germ

an m

arke

t By

the

Cle

arst

ream

mig

ratio

n da

te in

T2S

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

Mig

ratio

n to

T2S

CBF

Info

sou

rce:

Sur

vey

on T

2S s

ettle

men

t fin

ality

rule

III.

Need

for

chan

ges

in t

he C

SD ru

les

only

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)76

%

GRe

gula

tory

/leg

islat

ive

chan

geIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

52 s

tand

ards

alre

ady

met

, 3 in

the

pro

cess

of b

eing

met

and

13

not

met

at

all.

Maj

or is

sue

is th

e la

ck o

f "re

cord

dat

e".

26. S

ecur

ities

am

ount

sta

tic

d ata

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

T2S

Harm

onisa

tion

Activ

ities

: Ger

man

y

T2S

mes

sage

s

6. T

2S s

ched

ule

of

sett

lem

ent

day

Not

com

plia

nt y

et

Prio

rity

1

Chan

ge o

f mar

ket

prac

tice

CBF

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.De

clin

ing

rate

of c

ompl

ianc

e sin

ce la

st y

ear.

Legi

slativ

e ch

ange

is

requ

ired

for i

ntro

duci

ng a

Rec

ord

Date

in G

erm

an m

arke

t. Fu

rthe

rmor

e th

e im

plem

enta

tion

of t

his

chan

ge is

unc

erta

in a

nd

may

not

be

on t

ime.

DESS

UG/N

atio

nal

auth

oriti

es

Y

No in

form

atio

n ye

tR

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

No m

ajor

issu

e w

ith t

imin

g of

T2S

Sta

rt o

f Day

. Iss

ues

rela

ting

to

spec

ific

ISIN

s ne

ed t

o be

exa

min

edM

igra

tion

to T

2S

Lega

l Har

mon

isatio

n

CSD

acco

unt

stru

ctur

es

Prio

rity

2


64

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n A c

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

t

SP 8

: T2S

tes

ting

VP

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

VP is

pla

nnin

g to

use

sta

ndar

ds s

peci

fied

in t

he T

2S IS

O 20

022

info

rmat

ion

man

agem

ent

serv

ices

of t

he U

DFS

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

RM

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

VPIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

. VP

has

repo

rted

a k

ey is

sue

with

the

lack

of c

erta

in in

form

atio

n in

the

T2S

mat

chin

g pr

oces

s

Mar

ket

clai

ms

(27

stan

dard

s)0%

Maj

or t

echn

ical

cha

nge

No in

form

atio

n ye

tTr

ansf

orm

atio

ns (

14 s

tand

ards

)0%

Maj

or t

echn

ical

cha

nge

No in

form

atio

n ye

tBu

yer p

rote

ctio

n (1

8 st

anda

rds)

0%M

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd

bila

tera

l disc

ussio

ns.

Full

com

plia

nce

with

T2S

SF

II ru

le

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

Y

CSD

rule

/Reg

ulat

ory

cha

nge

Mig

ratio

n to

T2S

VP In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd

bila

tera

l disc

ussio

ns.

Two

new

pro

visio

ns in

the

VP

SECU

RITI

ES C

lear

ing

Rule

s w

ill en

sure

tha

t se

ttle

men

t in

T2S

will

be u

ncon

ditio

nal,

irrev

ocab

le

and

enfo

rcea

ble

unde

r Dan

ish la

w.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)78

%G

Mar

ket

Prac

tice

Chan

gePl

an t

o be

agr

eed

upon

Buye

r pro

tect

ion

grou

pIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

53 s

tand

ards

alre

ady

met

, 6 in

the

pro

cess

of b

eing

met

and

9

not

met

at

all

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

stan

dard

sar

ecu

rren

tlym

etan

dth

eex

act

impl

emen

tatio

npl

anha

sye

tto

besp

ecifi

ed.

Furt

herm

ore,

the

proc

ess

toim

plem

ent

the

stan

dard

s ha

s no

t be

en in

itiat

ed.

T2S

Harm

onisa

tion

Activ

ities

: Den

mar

k

Prio

rity

1T2

S m

essa

ges

6. T

2S s

ched

ule

of s

ettle

men

t da

yM

igra

tion

to T

2SVP

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns. C

hang

es o

f se

ttle

men

t da

y in

ord

er t

o co

mpl

y w

ith T

2S s

ettle

men

t da

y se

t-up

. Co

ncer

ns o

n th

e En

d of

Day

repo

rtin

g an

d St

art

of D

ay

time.

Not

com

plia

nt y

etY

CSD

acco

unt

stru

ctur

es

R

Dani

sh M

IG

Prio

rity

2

Lega

l Har

mon

isatio

n

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)


65

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d,

plea

se p

rovi

de t

he t

imet

able

and

va

rious

mile

ston

es/d

ates

in t

he

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gEC

SDIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gEC

SDIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.

Mar

ket

clai

ms

(27

stan

dard

s)0%

Fisc

al is

sues

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%fis

cal i

ssue

s

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Mar

ket

Prac

tice

Chan

ge

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OK

B

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd b

ilate

ral

disc

ussio

ns.

The

loca

l set

tlem

ent

syst

em s

uppo

rts

the

sam

e ca

ncel

latio

n pr

inci

ples

as

T2S

mat

ched

inst

ruct

ions

dem

and

canc

ella

tion

inst

ruct

ions

from

bo

th c

ount

erpa

rtie

s.

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

not

com

plia

nt y

et

G

Stra

ight

forw

ard

to im

plem

ent

ECSD

mig

ratio

n to

T2S

ECSD

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

, HSG

201

3 Su

rvey

on

SF II

I.Th

e EC

SD S

SS R

ules

are

pla

nned

to

be u

pdat

ed a

llow

ing

for t

he fu

ll re

cogn

ition

of t

he u

ncon

ditio

nalit

y, ir

revo

cabi

lity

and

enfo

rcea

bilit

y of

th

e se

ttle

men

t pr

oces

sed

on t

he T

2S p

latf

orm

(in

stea

d of

the

ECS

D pl

atfo

rm)

and

the

rele

vant

am

endm

ents

to

be e

nfor

ced

as o

f m

igra

tion

to T

2S.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)50

%

Y

Mar

ket

Prac

tice

Chan

geDu

ring

2012

Mar

ket

part

icip

ants

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.34

sta

ndar

ds a

lread

y m

et, 2

1 in

the

pro

cess

of b

eing

met

and

9 n

ot

met

at

all.

No m

arke

t pr

actic

e in

dist

ribut

ions

with

opt

ions

26. S

ecur

ities

am

ount

sta

tic

d ata

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

GSt

raig

ht fo

rwar

d to

impl

emen

t

MIG

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

stan

dard

scu

rren

tlym

et,

and

whi

leth

ere

are

conc

rete

plan

sto

impl

emen

tth

est

anda

rds

and

thei

rim

plem

enta

tion

isco

nsid

ered

mos

tlyst

raig

htfo

rwar

dto

achi

eve,

ther

ear

est

illiss

ues

tobe

reso

lved

with

tax

aut

horit

ies.

T2S

Harm

onisa

tion

Activ

ities

: Est

onia

Prio

rity

1T2

S m

essa

ges

6. T

2S s

ched

ule

of

sett

lem

ent

day

ECSD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Not

com

plia

nt y

etSP

8: T

2S t

estin

g

A de

taile

d im

plem

enta

tion

plan

is

unde

r disc

ussio

n w

ith t

he m

arke

t pa

rtic

ipan

ts.

CSD

acco

unt

stru

ctur

es

Prio

rity

2

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Lega

l Har

mon

isatio

n

R


66

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n A c

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

pl

ease

spe

cific

y w

hat

is th

e ty

pe o

f gap

If

stan

dard

s/ru

les

are

not

fulfi

lled,

ple

ase

prov

ide

the

timet

able

and

var

ious

m

ilest

ones

/dat

es in

the

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gIb

ercl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gIb

ercl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Mar

ket

clai

ms

(27

stan

dard

s)59

%Re

gula

tory

/leg

islat

ive

chan

ge

Tran

sfor

mat

ions

(14

sta

ndar

ds)

57%

Maj

or t

echn

ical

cha

nge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Othe

r

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

In a

gree

men

t w

ith T

2S S

FII r

ule

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

OKB

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.No

nee

d fo

r any

cha

nges

for c

ompl

ianc

e w

ith T

2S S

F III

rule

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)72

%

GOt

her

Durin

g 20

12Ib

ercl

ear

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.49

sta

ndar

ds a

lread

y m

et, 1

2 in

the

pro

cess

of b

eing

m

et a

nd 7

not

met

at

all

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns. P

lans

for f

ull

com

plia

nce

with

T2S

Sch

edul

eIb

ercl

ear

GM

igra

tion

to T

2SSt

raig

ht fo

rwar

d to

impl

emen

t

IBER

CLEA

R

CSD

acco

unt

stru

ctur

es

Lega

l Har

mon

isatio

n

Prio

rity

2

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Go

od ra

te o

f com

plia

nce.

Leg

islat

ive

chan

ges

have

be

en im

plem

ente

d; h

owev

er, l

ower

leve

l leg

islat

ion

is ne

eded

to

fully

com

ply

with

the

sta

ndar

ds.

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

) Hi

gh L

evel

impl

emen

tatio

n pl

an e

xist

s bu

t no

t pr

ovid

ed y

et

Y

T2S

Harm

onisa

tion

Activ

ities

: Spa

in (

IBER

CLEA

R)

T2S

mes

sage

s

6. T

2S s

ched

ule

of

sett

lem

ent

day

Not

com

plia

nt y

et

Prio

rity

1


67

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gEu

rocl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

Rre

gula

tory

/leg

alpl

an e

xpec

ted

in Q

1 20

13Eu

rocl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Ther

e is

an

issue

with

the

on-

goin

g as

sess

men

t of

the

"re

gist

ratio

n ba

sis c

odes

" in

the

Fin

nish

mar

ket.

Need

to

be

disc

usse

d an

d ag

reed

with

the

nat

iona

l aut

horit

ies.

Mar

ket

clai

ms

(27

stan

dard

s)0%

Maj

or t

echn

ical

cha

nge

No in

form

atio

n ye

t

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%M

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Stra

ight

forw

ard

to im

plem

ent

No in

form

atio

n ye

t

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns. A

lread

y im

plem

ente

d (S

ept

2012

)

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

OKB

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.No

nee

d fo

r any

cha

nges

for c

ompl

ianc

e w

ith T

2S S

F III

rule

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsNo

t co

mpl

iant

yet

Y

Lega

l/re

gula

tory

No in

form

atio

n ye

tEu

rocl

ear

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

FI in

vest

ors'

(eq

uitie

s) h

oldi

ngs

are

excl

uded

from

the

om

nibu

s ac

coun

t st

ruct

ure.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)56

%

YSt

raig

ht fo

rwar

d to

impl

emen

tNo

info

rmat

ion

yet

Euro

clea

rIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

38 s

tand

ards

alre

ady

met

, 17

in t

he p

roce

ss o

f bei

ng

met

and

13

not

met

at

all.

26. S

ecur

ities

am

ount

sta

tic

data

Not

com

plia

nt y

et

Y

Lega

l/re

gula

tory

Durin

g 20

13Eu

rocl

ear

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

FIN

NUG

aggr

eem

ant

that

the

Fin

nish

mar

ket

will

mov

e to

use

the

Eur

opea

n pr

actic

e. P

endi

ng a

sses

smen

t on

w

heth

er le

gal c

hang

e is

requ

ired.

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

stan

dard

scu

rren

tlym

et.

Furt

herm

ore,

ther

ear

ede

pend

enci

esw

ithre

gard

sto

chan

ges

ofth

eta

xle

gisla

tion

and

the

exac

ttim

elin

efo

rth

eim

plem

enta

tion

plan

has

bee

n pr

ovid

ed.

Not

com

plia

nt y

et

MIG

and

Eur

ocle

ar

Euro

clea

rCa

paci

ty is

sues

with

T2S

tim

es

T2S

Harm

onisa

tion

Activ

ities

: Fin

land

Prio

rity

1T2

S m

essa

ges

6. T

2S s

ched

ule

of

sett

lem

ent

day

Y

CSD

acco

unt

stru

ctur

es

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Lega

l Har

mon

isatio

n

Prio

rity

2

SP 8

: T2S

tes

ting

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

No v

erifi

ed p

robl

ems

in im

plem

entin

g th

e sc

hedu

le o

f th

e T2

S se

ttle

men

t da

y an

d ca

lend

ar. E

oC F

I has

ho

wev

er c

once

rns

abou

t th

e tim

e av

aila

ble

betw

een

EoD

and

SoD

in T

2S.

R


68

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n A c

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for i

mpl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gEu

rocl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

nsFu

ll co

mpl

ianc

e

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gEu

rocl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Full

com

plia

nce.

Mat

chin

g Ru

les

that

will

appl

y ar

e th

ose

of t

he T

2S p

latf

orm

Mar

ket

clai

ms

(27

stan

dard

s)48

%M

arke

t pr

actic

e ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

29%

Maj

or t

echn

ical

cha

nge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Othe

r

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

.Eo

C al

read

y co

mpl

ies

with

T2S

SFI

I rul

e (b

ilate

ral

canc

ella

tion)

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

G

Stra

ight

forw

ard

to im

plem

ent

(incl

udes

regu

lato

ry c

hang

e)M

igra

tion

to T

2SEu

rocl

ear

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

. Str

aigh

t fo

rwar

d to

im

plem

ent.

Euro

clea

r Fra

nce

will

upda

te it

s op

erat

ing

rule

s ac

cord

ing

to t

he T

2S S

F III

rule

and

hav

e th

em

appr

oved

by

the

Fren

ch fi

nanc

ial m

arke

ts a

utho

rity.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

B

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.Th

ere

are

no is

sues

with

Om

nibu

s Ac

coun

ts a

vaila

bilit

y fo

r the

ESE

S co

untr

ies

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)50

%

Y

Maj

or t

echn

ical

cha

nge

Q4 2

012

and

Q4 2

013

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.34

sta

ndar

ds a

lread

y m

et, 3

2 in

the

pro

cess

of b

eing

m

et a

nd 2

not

met

at

all

26. S

ecur

ities

am

ount

sta

tic

data

OK

B

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.Th

ere

are

no is

sues

with

sec

uriti

es a

mou

nt d

ata

for t

he

ESES

cou

ntrie

s

Not

com

plia

nt y

et

Mig

ratio

n to

T2S

Euro

clea

rSt

raig

ht fo

rwar

d to

impl

emen

t

G G

CSD

acco

unt

stru

ctur

es

Prio

rity

2

Lega

l Har

mon

isatio

n

MIG

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Go

od c

ompl

ianc

e re

port

ed. M

IG is

act

ive

and

good

pr

ogre

ss is

bei

ng m

ade,

in c

oope

ratio

n w

ith o

ther

ESE

S m

arke

ts; s

ome

stan

dard

s w

ould

requ

ire m

ajor

tec

hnic

al

chan

ges

but

none

legi

slativ

e ch

ange

.

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

) De

taile

d im

plem

enta

tion

plan

with

tim

elin

es p

rodu

ced.

Som

e st

anda

rds

will

be im

plem

ente

d as

a

part

of t

he S

ingl

e Pl

atfo

rm;

othe

rs w

ill on

ly b

e im

plem

ente

d at

the

T2S

tim

efra

me.

T2S

Harm

onisa

tion

Activ

ities

: Fra

nce

T2S

mes

sage

s

6. T

2S s

ched

ule

of

sett

lem

ent

day

Prio

rity

1

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

nsTh

e ES

ES o

pera

tiona

l day

will

be a

men

ded

to c

ope

with

th

e tim

ing

of T

2S. T

2S a

ccou

ntin

g da

y w

ill be

co

nsid

ered

the

Mas

ter d

ay.


69

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emet

atio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

Gte

chni

cal c

hang

eSP

8: T

2S t

estin

gBO

GSIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

Gte

chni

cal c

hang

eSP

8: T

2S t

estin

gBO

GSIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.BO

GS w

ill ou

tsou

rce

its m

atch

ing

func

tion

to T

2S

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

) M

arke

t cl

aim

s (2

7 st

anda

rds)

30%

Othe

r

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%Ot

her

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Othe

r

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

Full

com

plia

nce

with

T2S

SF

II ru

le

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

G

Chan

ge in

the

CSD

rule

s (n

o re

gula

tory

ap

prov

al re

quire

d)By

31/

01/2

014

BOGS

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

.Th

e re

spec

tive

amen

dmen

t to

com

ply

with

T2S

SF

III ru

le, s

houl

d be

eff

ectu

ated

wel

l bef

ore

the

end

of t

he

Deve

lopm

ent

Phas

e (3

1/01

/201

4) o

f the

T2S

Pro

ject

.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

a

R - n

o in

foOt

her

No in

form

atio

n ye

tBO

GSIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

T2S

Team

rece

ived

no

info

from

EM

IG o

n BO

GS re

sults

.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

. No

issu

e.

T2S

mes

sage

s

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Co

rpor

ate

actio

n ty

pes

and

volu

mes

exp

ecte

d to

be

limite

d. B

OGS

has

com

mitt

ed t

o co

mpl

y w

ith t

he

stan

dard

s on

tim

e an

d se

es n

o sig

nific

ant

issue

s in

tha

t re

spec

t.

Othe

r

BOGS

T2S

Harm

onisa

tion

Activ

ities

: Gre

ece

(BOG

S)

Prio

rity

1

No in

form

atio

n ye

tBO

GSIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.A

num

ber o

f cha

lleng

es re

mai

n to

be

solv

ed (

e.g.

tim

ing

of Is

suer

's p

aym

ent

of c

oupo

ns)

Prio

rity

2

Y Y

6. T

2S s

ched

ule

of

sett

lem

ent

day

Impl

emen

tatio

n pl

an b

eing

pre

pare

d

CSD

acco

unt

stru

ctur

es

Not

com

plia

nt y

et

Lega

l Har

mon

isatio

n


70

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n A c

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

et

GSt

raig

ht fo

rwar

d to

impl

emen

tKE

LER

mig

ratio

n (Q

3 20

16)

KELE

R

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns. K

ELER

is c

urre

ntly

usin

g IS

O 15

022

stan

dard

s fo

r its

ext

erna

l com

mun

icat

ion.

Whe

n in

trod

ucin

g T2

S, t

he m

essa

ges

used

for t

he e

xter

nal c

omm

unic

atio

n w

ill co

mpl

y w

ith t

he IS

O 20

022

stan

dard

s.

ISO

2002

2 im

plem

enta

tion

is on

the

road

map

of K

ELER

(SM

P).

2. T

2S m

atch

ing

field

s

Not

com

plia

nt y

et

GSt

raig

ht fo

rwar

d to

impl

emen

tKE

LER

mig

ratio

n (Q

3 20

16)

KELE

R

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns. K

ELER

sha

ll im

plem

ent

T2S

mat

chin

g ru

les

i.e. i

dent

ifica

tion

thro

ugh

BIC1

1-co

des

and

a st

anda

rdiz

ed s

ecur

ities

acc

ount

st

ruct

ure.

New

T2S

-com

plia

nt s

yste

m im

plem

enta

tion

is on

the

road

map

of K

ELER

(S

MP)

.

Mar

ket

clai

ms

(27

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e Ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%M

ajor

Tec

hnic

al C

hang

eBu

yer p

rote

ctio

n (1

8 st

anda

rds)

0%M

arke

t Pr

actic

e Ch

ange

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

clom

plia

nt y

et

Y

Regu

lato

ry/l

egisl

ativ

e ch

ange

No in

form

atio

n ye

tKE

LER

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

and

bila

tera

l disc

ussio

ns.

Curr

ently

, uni

late

ral c

ance

llatio

n of

mat

ched

inst

ruct

ions

is p

ossib

le o

n th

e m

arke

t.Th

is to

pic

shal

l be

addr

esse

d to

the

rele

vant

regu

lato

rs fo

r disc

ussio

n, in

ord

er t

o co

mpl

y w

ith t

he h

arm

oniz

ed S

F II

rule

.

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

clom

plia

nt y

et

Y

Regu

lato

ry/l

egisl

ativ

e ch

ange

KELE

R M

igra

tion

in T

2S (

Q3 2

016)

KELE

RIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd b

ilate

ral d

iscus

sions

.Af

ter T

2S g

oes

live,

tra

nsac

tions

set

tling

in T

2S s

hall

be c

ompl

iant

with

the

SF

III ru

le t

hus

secu

ritie

s tr

ansf

ers

shal

l be

unco

nditi

onal

, irr

evoc

able

and

enf

orce

able

in

T2S.

Res

olut

ion

may

requ

ire re

gula

tory

act

ion

by n

atio

nal a

utho

ritie

s.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns. N

o iss

ue

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns. N

o iss

ue

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

aR

- no

info

Othe

rNo

info

rmat

ion

yet

KELE

RIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

T2S

Team

rece

ived

no

info

from

EM

IG o

n KE

LER

resu

lts.

26. S

ecur

ities

am

ount

sta

tic

d ata

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

. No

issue

.

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Maj

or re

stru

ctur

e of

cur

rent

KEL

ER t

imet

able

is re

quire

d, in

par

ticul

ar w

ith n

ight

tim

e se

ttle

men

t

6. T

2S s

ched

ule

of

sett

lem

ent

day

KELE

R m

igra

tion

(Q3

2016

)KE

LER

Y

CSD

acco

unt

stru

ctur

es

NUG

KELE

R m

igra

tion

(Q3

2016

)

Prio

rity

2

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Lega

l Har

mon

isatio

n

R

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.T2

S CA

sta

ndar

ds a

re c

urre

ntly

not

con

sider

ed a

s co

mm

on m

arke

t pr

actic

e in

Hu

ngar

y. K

ELER

(w

ith t

he in

volv

emen

t of

mar

ket

part

icip

ants

) ha

s an

alys

ed a

nd

unde

rsto

od t

he re

quire

men

ts. K

ELER

is n

ow p

repa

ring

the

impl

emen

tatio

n co

ncep

t on

mak

ing

the

Hung

aria

n m

arke

t pr

actic

e co

mpl

iant

with

T2S

CA

stan

dard

s an

d to

re

solv

e re

gula

tory

obs

tacl

es. R

esol

utio

ns re

quire

s ex

tens

ive

coor

dina

tion

with

na

tiona

l aut

horit

ies.

New

T2S

-com

plia

nt s

yste

m im

plem

enta

tion

is on

the

road

map

of K

ELER

(SM

P).

T2S

Harm

onisa

tion

Activ

ities

: Hun

gary

Prio

rity

1

Not

com

plia

nt y

et

T2S

mes

sage

s

Maj

or t

echn

ical

cha

nge


71

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n A c

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

pl

ease

spe

cific

y w

hat

is th

e ty

pe o

f gap

If

stan

dard

s/ru

les

are

not

fulfi

lled,

ple

ase

prov

ide

the

timet

able

and

var

ious

m

ilest

ones

/dat

es in

the

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for i

mpl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GCo

mpl

iant

SP 8

: T2S

tes

ting

Mon

te T

itoli

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

YM

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

Mon

te T

itoli

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Issue

with

lack

of a

spc

ific

mat

dhin

g fie

ld in

T2S

Mar

ket

clai

ms

(27

stan

dard

s)59

%Re

gula

tory

/leg

islat

ive

chan

ge

Tran

sfor

mat

ions

(14

sta

ndar

ds)

36%

Regu

lato

ry/l

egisl

ativ

e ch

ange

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

Fully

com

plia

nt w

ith T

2S S

F II

rule

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

not

com

plia

nt y

et

Gch

ange

of C

SD ru

les

Mig

ratio

n to

T2S

Mon

te T

itoli

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

. Com

plia

nce

requ

ires

only

ch

ange

of C

SD ru

les.

No

need

for r

egul

ator

y ch

ange

s.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)87

%

GSt

raig

ht fo

rwar

d to

impl

emen

t20

13Ita

lian

NUG

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.59

sta

ndar

ds a

lread

y m

et, 4

in t

he p

roce

ss o

f bei

ng

met

and

5 n

ot m

et a

t al

l

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

. No

issu

e.

G

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Go

od c

ompl

ianc

e re

port

ed. F

urth

erm

ore,

no

need

for

legi

slativ

e ch

ange

s ha

s be

en re

port

ed a

nd t

he It

alia

n m

arke

t is

com

mitt

ed t

o im

plem

ent

the

chan

ges

by t

he

time

Mon

te T

itoli

will

mig

rate

to

T2S.

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Issue

s w

ith T

2S N

ight

Tim

e Se

ttle

men

t tim

es

Mon

te T

itoli

and

Italia

n NU

G7.

Cor

pora

te A

ctio

nsT2

S CA

sta

ndar

ds (

59)

T2S

Harm

onisa

tion

Activ

ities

: Ita

ly

T2S

mes

sage

s

6. T

2S s

ched

ule

of

sett

lem

ent

day

Prio

rity

1

Mig

ratio

n to

T2S

CSD

acco

unt

stru

ctur

es

Prio

rity

2

Lega

l Har

mon

isatio

n

Not

com

plia

nt y

etM

onte

Tito

liSt

raig

htfo

rwar

d to

impl

emen

t

G

Impl

emen

tatio

n in

tend

ed w

ith T

2S g

oing

liv

e


72

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

htfo

rwar

d to

impl

emen

t SP

8: T

2S t

estin

gLC

VPD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

htfo

rwar

d to

impl

emen

t SP

8: T

2S t

estin

gLC

VPD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Mar

ket

clai

ms

(27

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%Re

gula

tory

/leg

islat

ive

chan

ge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

not

com

plia

nt y

et

Y

Regu

lato

ry/l

egisl

ativ

e ch

ange

By O

ctob

er 2

014

LCVP

DIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

LT C

SD (

LCVP

D) p

lans

to

adap

t its

bin

ding

rule

s in

line

w

ith T

2S.

To e

nsur

e ha

rmon

izat

ion

of C

SDL

regu

latio

ns w

ith t

he re

quire

men

ts o

f T2S

s by

201

4-10

-01

T2S

Syn

chro

niza

tion

Poin

t 8

- Rea

dy fo

r in

tero

pera

bilit

y Te

stin

g

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

not

com

plia

nt y

etY

Regu

lato

ry/l

egisl

ativ

e ch

ange

By O

ctob

er 2

014

LCVP

DIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

Sam

e as

SFI

I

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

a

R - n

o in

foM

arke

t pr

actic

e ch

ange

No in

form

atio

n ye

tLC

VPD

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.T2

S Te

am re

ceiv

ed n

o in

fo fr

om E

MIG

on

resu

lts.

26. S

ecur

ities

am

ount

sta

tic

d ata

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

. No

issu

e.

CSD

acco

unt

stuc

ture

s

Prio

rity

2

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Stra

ight

forw

ard

to im

plem

ent

Not

com

plia

nt y

etLC

VPD

R

Prio

r to

T2S

test

ing

GIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.M

igra

tion

to T

2S

Lega

l Har

mon

isatio

n

LCVP

D

T2S

Harm

onisa

tion

Activ

ities

: Lith

uani

a

Prio

rity

1T2

S m

essa

ges

6. T

2S s

ched

ule

of

sett

lem

ent

day

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

sta

ndar

ds a

re im

plem

ente

d. Im

plem

entin

g st

anda

rds

wou

ld re

quire

maj

or t

echn

ical

, mar

ket

prac

tice

and

legi

slativ

e ch

ange

s.


73

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f com

plia

nce

with

the

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

test

ing

phas

e (S

P8)

LUX

CSD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

RM

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

LUX

CSD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Serio

us is

sues

with

mat

chin

g fie

lds

in T

2S. P

endi

ng

prog

ress

on

CR a

nd H

SG w

ork

Mar

ket

clai

ms

(27

stan

dard

s)0%

Stra

ight

forw

ard

to im

plem

ent

LUX

CSD

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%St

raig

ht fo

rwar

d to

impl

emen

tLU

X CS

DBu

yer p

rote

ctio

n (1

8 st

anda

rds)

0%

Stra

ight

forw

ard

to im

plem

ent

LUX

CSD

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

GRe

gula

tory

/leg

islat

ive

chan

geM

igra

tion

to T

2SLU

X CS

D In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns. L

ux C

SD w

ill fo

llow

CBF

in

stru

ctio

n ca

ncel

latio

n pr

oces

s.

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

No in

form

atio

n ye

tLU

X CS

D In

fo s

ourc

e: S

urve

y on

T2S

set

tlem

ent

final

ity ru

le II

I

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

aR

- no

info

Othe

rNo

info

rmat

ion

yet

LUX

CSD

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

. T2S

Te

am re

ceiv

ed n

o in

fo fr

om E

MIG

on

LUX

CSD

resu

lts.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Th

e LU

X CS

D ha

s re

port

ed t

hat

it is

curr

ently

not

co

mpl

iant

with

the

CA

stan

dard

s bu

t se

es n

o pr

oble

m

in im

plem

entin

g th

em b

y th

e tim

e of

join

ing

T2S.

The

LU

X m

arke

t ha

s co

nfirm

ed t

hat

it w

ould

be

stra

ight

forw

ard

to im

plem

ent.

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Mig

ratio

n to

T2S

No in

form

atio

n ye

tYG

Stra

ight

forw

ard

to im

plem

ent

6. T

2S s

ched

ule

of

sett

lem

ent

day

CSD

acco

unt

stru

ctur

es

Prio

rity

2

Lega

l Har

mon

isatio

n

T2S

Harm

onisa

tion

Activ

ities

: Lux

embo

urg

(LUX

CSD

)

Prio

rity

1

LUX

CSD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

nsNo

issu

es fo

rese

en in

com

plyi

ng w

ith T

2S s

tand

ards

T2S

mes

sage

s

Not

com

plia

nt y

et


74

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

SP 8

: T2S

tes

ting

VPIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

. VP

is p

lann

ing

to u

se s

tand

ards

spe

cifie

d in

the

T2S

ISO

2002

2 in

form

atio

n m

anag

emen

t se

rvic

es o

f the

UDF

S

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

RM

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

VPIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

. ss

ues

with

the

lack

of c

erta

in in

form

atio

n in

the

T2S

mat

chin

g pr

oces

s

Mar

ket

clai

ms

(27

stan

dard

s)0%

Stra

ight

forw

ard

to im

plem

ent

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%St

raig

ht fo

rwar

d to

impl

emen

t

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Stra

ight

forw

ard

to im

plem

ent

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd b

ilate

ral d

iscus

sions

.Fu

ll co

mpl

ianc

e w

ith T

2s S

F II

rule

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

etY

Regu

lato

ry /

Lega

lM

igra

tion

to T

2SVP

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

and

bila

tera

l disc

ussio

ns.

Full

com

plia

nce

with

T2S

SF

III ru

le w

ill re

quire

regu

lato

ry le

gal c

hang

es

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

aR

- no

info

Othe

rNo

info

rmat

ion

yet

VPIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2). T

2S T

eam

rece

ived

no

info

from

EM

IG o

n VP

LUX

res

ults

.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

T2S

mes

sage

s

VP

Y

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Maj

or t

echn

ical

cha

nge

Y

T2S

Harm

onisa

tion

Activ

ities

: Lux

embo

urg

(VP

LUX)

Prio

rity

1

Mig

ratio

n to

T2S

VPIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

. Ch

ange

s of

set

tlem

ent

day

in o

rder

to

com

ply

with

T2S

set

tlem

ent

day

set-

up.

Conc

erns

on

the

EOD

repo

rtin

g an

d SO

D tim

e.

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.VP

LUX

has

repo

rted

tha

t it

is cu

rren

tly n

ot c

ompl

iant

with

the

CA

stan

dard

s bu

t se

es n

o pr

oble

m in

impl

emen

ting

them

by

the

time

of jo

inin

g T2

S. T

he L

UX m

arke

t ha

s co

nfirm

ed t

hat

it w

ould

be

stra

ight

forw

ard

to im

plem

ent.

6. T

2S s

ched

ule

of

sett

lem

ent

day

Not

com

plia

nt y

et

CSD

acco

unt

stru

ctur

es

Prio

rity

2

Mig

ratio

n to

T2S

Lega

l Har

mon

isatio

n


75

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

sta

ndar

ds/r

ules

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

etY

Othe

rNo

info

rmat

ion

yet

MSE

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Ther

e w

ill no

t be

maj

or im

plem

enta

tion

requ

ired

to a

dapt

to

the

T2S

mes

sage

s

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

YOt

her

No in

form

atio

n ye

tM

SEIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

. The

Mal

tese

CS

D do

es n

ot in

tend

to

use

any

addi

tiona

l fie

lds

to

thos

e us

ed b

y T2

S fo

r set

tlem

ent

proc

essin

g

No in

form

atio

n ye

tM

alte

se C

SD

Mar

ket

clai

ms

(27

stan

dard

s)70

%Re

gula

tory

/leg

islat

ive

Chan

ge

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%Re

gula

tory

/leg

islat

ive

Chan

ge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e Ch

ange

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

YRe

gula

tory

cha

nge

Mig

ratio

n to

T2S

MSE

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

. Ado

ptio

n of

T2S

SF

II p

rior t

o th

e re

leva

nt t

estin

g ph

ase

of M

igra

tion

Wav

e 1

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

G

Chan

ge o

f CSD

rule

s an

d re

gula

tory

ap

prov

alM

igra

tion

to T

2SM

SEIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.C

hang

e of

CSD

rule

s an

d re

gula

tory

app

rova

l onl

y. S

trai

ghtf

orw

ard

to im

plem

ent

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

Omni

bus

acco

unts

are

per

mitt

ed in

the

Mal

tese

mar

ket

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l di

scus

sions

.The

re a

re n

o re

stric

tions

att

ache

d to

the

om

nibu

s ac

coun

ts s

ervi

ces

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

aR

- no

info

Othe

rNo

info

rmat

ion

yet

MSE

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

. T2S

Te

am re

ceiv

ed n

o in

fo fr

om E

MIG

on

MSE

resu

lts.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.

Prio

rity

2

limite

d in

fo o

n im

plem

enta

tion

plan

s

T2S

mes

sage

s

6. T

2S s

ched

ule

of

s ett

lem

ent

day

No in

form

atio

n ye

tIn

fo s

ourc

e: C

ASG

gap

anal

ysis

surv

ey 2

012.

Good

com

plia

nce

with

mar

ket

clai

ms.

Som

e st

anda

rds

may

requ

ire le

gal o

r reg

ulat

ory

chan

ges

whi

ch

neve

rthe

less

are

con

sider

ed s

trai

ghtf

orw

ard

to

impl

emen

t.

CSD

acco

unt

stru

ctur

es

Othe

r

R

Not

com

plia

nt y

et

MSE

MSE

Lega

l Har

mon

isatio

n

T2S

Harm

onisa

tion

Activ

ities

: Mal

ta

Prio

rity

1

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Y


76

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

Not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

SP 8

: T2S

tes

ting

Euro

clea

rIn

fo s

ourc

e: S

P2 a

nd b

ilate

ral d

iscus

sions

.Fu

ll co

mpl

ianc

e

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gEu

rocl

ear

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Full

com

plia

nce.

Mat

chin

g Ru

les

that

will

appl

y ar

e th

ose

of t

he T

2S p

latf

orm

Mar

ket

clai

ms

(27

stan

dard

s)74

%M

ajor

tec

hnic

al c

hang

e

Tran

sfor

mat

ions

(14

sta

ndar

ds)

57%

Maj

or t

echn

ical

cha

nge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Othe

r

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OK

B

Fully

com

plia

ntN/

AN/

A In

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns.

EoC

ESES

alre

ady

com

plie

s w

ith b

ilate

ral c

ance

llatio

n

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

G

Stra

ight

forw

ard

to im

plem

ent

Mig

ratio

n to

T2S

Euro

clea

rIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns. S

eem

s st

raig

thfo

rwar

d to

ac

hiev

e co

mpl

ianc

e ba

sed

on t

he E

SES

set-

up. A

re

gula

tory

app

rova

l is

requ

ired.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

B

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral

disc

ussio

ns.

Ther

e ar

e no

issu

es w

ith O

mni

bus

Acco

unts

av

aila

bilit

y fo

r the

ESE

S co

untr

ies

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l di

scus

sions

.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)78

%

G

Mar

ket

prac

tice

chan

ge20

12Eu

rocl

ear

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.53

sta

ndar

ds a

lread

y m

et, 9

in t

he p

roce

ss o

f bei

ng

met

and

6 n

ot m

et a

t al

l

26. S

ecur

ities

am

ount

sta

tic

data

OK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l di

scus

sions

.Th

ere

are

no is

sues

with

sec

uriti

es a

mou

nt d

ata

for

the

ESES

cou

ntrie

s

T2S

Harm

onisa

tion

Activ

ities

: The

Net

herla

nds

Prio

rity

1T2

S m

essa

ges

6. T

2S s

ched

ule

of

sett

lem

ent

day

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

The

ESES

ope

ratio

nal d

ay w

ill be

am

ende

d to

cop

e w

ith t

he t

imin

g of

T2S

. T2S

acc

ount

ing

day

will

be

cons

ider

ed t

he M

aste

r day

.

CSD

acco

unt

stru

ctur

es

G

Prio

rity

2

Mig

ratio

n to

T2S

Stra

ight

forw

ard

to im

plem

ent

G

Not

com

plia

nt y

etEu

rocl

ear

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Ve

ry g

ood

and

incr

easin

g co

mpl

ianc

e re

port

ed.

Impl

emen

tatio

n pl

ans

do n

ot p

revi

ew n

eed

for

legi

slativ

e ch

ange

s an

d ar

e co

ordi

nate

d at

ESE

S le

vel.

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Lega

l Har

mon

isatio

n

MIG

Stan

dard

and

pro

cedu

re

shou

ld b

e im

plem

ente

d in

the

fr

ame

of H

DR b

y en

d 20

12

(nee

d of

impl

emen

tatio

n of

Ke

y Da

tes

prio

r).


77

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he

impl

emen

tatio

n pl

an.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gIn

terb

olsa

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gIn

terb

olsa

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

5

No in

form

atio

n ye

tIn

terb

olsa

Mar

ket

clai

ms

(27

stan

dard

s)85

%St

raig

ht fo

rwar

d to

impl

emen

tTr

ansf

orm

atio

ns (

14 s

tand

ards

)43

%St

raig

ht fo

rwar

d to

impl

emen

t

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Maj

or t

echn

ical

cha

nge

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

G

Stra

ight

forw

ard

to im

plem

ent

SP 8

: T2S

tes

ting

Inte

rbol

sa. R

egist

ratio

n w

ith

CMVM

.In

fo s

ourc

e: C

omm

ents

on

3rd

prog

ress

repo

rt (

Jan

2013

). A

men

dmen

ts w

ill on

ly re

gard

ope

ratio

nal r

ules

an

d pr

oced

ures

. The

pro

cess

will

be c

ondu

cted

and

co

ntro

lled

by In

terb

olsa

and

the

resu

lt re

gist

ered

with

in

CMVM

(Co

miss

ão d

o M

erca

do d

e Va

lore

s M

obiliá

rios

).

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

G

Stra

ight

forw

ard

to im

plem

ent

Mig

ratio

n to

T2S

Inte

rbol

saIn

fo s

ourc

e: C

omm

ents

on

3rd

prog

ress

repo

rt (

Jan

2013

). CS

D ru

les

will

be a

men

ded.

No

lega

l/re

gula

tory

ch

ange

or a

ppro

val i

s ne

eded

.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

Omni

bus

acco

unts

are

ava

ilabl

e

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsNo

t c

ompl

iant

yet

Y

Mar

ket

prac

tice

chan

geNo

info

rmat

ion

yet

Inte

rbol

sa

Info

sour

ce:

com

men

tson

3rd

prog

ress

repo

rt(J

an20

13).

The

Port

ugue

sela

wes

tabl

ishes

that

finan

cial

inte

rmed

iarie

sm

ust

segr

egat

eat

inve

stor

leve

lat

the

CSD

for h

oldi

ngs

of P

ortu

gese

fund

s

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)90

%

G

Mar

ket

prac

tice

chan

geNo

info

rmat

ion

yet

Inte

rbol

saIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2).

61 s

tand

ards

alre

ady

met

, 3 in

the

pro

cess

of b

eing

m

et a

nd 4

not

met

at

all

26. S

ecur

ities

am

ount

sta

tic

data

Not

com

plia

nt y

et

G

Maj

or t

echn

ical

cha

nge

SP 8

: T2S

tes

ting

Inte

rbol

saIn

foso

urce

:T2S

NUGs

surv

ey,b

ilate

rald

iscus

sions

and

com

men

ts o

n 3r

d pr

ogre

ss re

port

(Ja

n 20

13).

Inte

rbol

saha

sde

cide

dto

chan

geto

EUm

arke

tpr

actic

epr

ior t

o te

stin

g ph

ase

Inte

rbol

sa

6. T

2S s

ched

ule

of

sett

lem

ent

day

G

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

GNo

t co

mpl

iant

yet

Prio

rity

2

CSD

acco

unt

stru

ctur

es

T2S

mes

sage

s

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.Ve

ry g

ood

leve

l of c

ompl

ianc

e re

port

ed a

nd a

cle

ar

impl

emen

tatio

n pl

an is

on-

goin

g. A

min

or is

sue

is to

be

solv

ed w

ith t

ax a

utho

ritie

s to

be

fully

com

plia

nt.

Plan

on-

goin

g. C

ompl

ianc

e ex

pect

ed d

urin

g 20

13

Lega

l Har

mon

isatio

n

T2S

Harm

onisa

tion

Activ

ities

: Por

tuga

l (In

terb

olsa

)

Prio

rity

1

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Mig

ratio

n to

T2S

Inte

rbol

saSt

raig

ht fo

rwar

d to

impl

emen

t


78

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

st

anda

rds/

rule

s

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gDC

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

GSt

raig

ht fo

rwar

d to

impl

emen

tSP

8: T

2S t

estin

gDC

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns

Mar

ket

clai

ms

(27

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%Re

gula

tory

/leg

islat

ive

chan

geBu

yer p

rote

ctio

n (1

8 st

anda

rds)

0%Re

gula

tory

/leg

islat

ive

chan

ge

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2 a

nd b

ilate

ral d

iscus

sions

. Ful

ly c

ompl

iant

w

ith T

2S S

F II

rule

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

not

com

plia

nt y

etG

Stra

ight

forw

ard

to im

plem

ent

by J

une

2014

DCIn

fo s

ourc

e: c

omm

ents

on

3rd

prog

ress

repo

rt (

Jan

2013

). T2

S SF

III r

ule

com

plia

nce

will

requ

ire c

hang

e of

CSD

rule

s (b

ut n

o ch

ange

in re

gula

iton

or le

gisla

tion

is re

quire

d) a

lthou

gh

regu

lato

ry a

ppro

val i

s ne

cess

ary.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

Omni

bus

acco

unts

are

ava

ilabl

e

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)35

%R

Mar

ket

prac

tice

as w

ell a

s re

gula

tory

ch

ange

sDC

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.24

sta

ndar

ds a

lread

y m

et, 3

9 in

the

pro

cess

of b

eing

met

and

5 n

ot m

et a

t al

l.

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.No

issu

es w

ith s

ecur

ities

am

ount

dat

a in

Rom

ania

maj

or t

echi

ncal

cha

nge

6. T

2S s

ched

ule

of

sett

lem

ent

day

CSD

acco

unt

stru

ctur

es

Prio

rity

2

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

sta

ndar

ds a

re im

plem

ente

d. F

urth

erm

ore,

cha

nges

to

the

legi

slatio

n ar

e ne

eded

in s

ome

case

s. H

owev

er t

he C

SD h

as d

raw

n up

a d

etai

led

plan

for c

ompl

ianc

e by

mid

-201

4

DC, R

egul

ator

, NCB

T2S

Harm

onisa

tion

Activ

ities

: Rom

ania

Prio

rity

1

No in

form

atio

nDC

/NCB

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

Maj

or is

sue

with

ava

ilabi

lity

of n

ight

tim

e se

ttle

men

t

T2S

mes

sage

s

Not

com

plia

nt y

etR

Ther

e is

a cl

ear p

lan

for i

mpl

emen

tatio

n by

en

d of

201

3. R

egul

ator

y ch

ange

s ar

e ex

pect

ed t

o be

impl

emen

ted

in Q

1 20

13;

mar

ket

prac

tice

chan

ges

by Q

2 20

14;

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Lega

l Har

mon

isatio

n

Y


79

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

sta

ndar

ds/r

ules

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

s

not

com

plia

nt y

et

G

tech

nica

l

prio

r to

mig

ratio

n to

T2S

KDD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

KDD

will

also

impl

emen

t T2

S IS

O 20

022

mes

sage

s w

here

rele

vant

for i

ts c

omm

unic

atio

n w

ith T

2S, i

.e. f

or

proc

esse

s no

t do

ne v

ia T

2S G

UI.

2. T

2S m

atch

ing

field

sno

t co

mpl

iant

yet

Gte

chni

cal

prio

r to

mig

ratio

n to

T2S

KDD

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

As re

gard

s m

atch

ing,

KDD

will

intr

oduc

e T2

S m

atch

ing

field

s.

Mar

ket

clai

ms

(27

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%Re

gula

tory

/leg

islat

ive

chan

geBu

yer p

rote

ctio

n (1

8 st

anda

rds)

0%M

arke

t pr

actic

e ch

ange

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

G

Regu

lato

ry/l

egisl

ativ

e ch

ange

Mig

ratio

n to

T2S

KDD

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

.Un

ilate

ral c

ance

llatio

n af

ter I

SD is

stil

l pos

sible

but

KDD

w

ill co

mpl

y fu

lly w

ith S

F II

rule

prio

r to

mig

ratio

n to

T2S

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

not

com

plia

nt y

et

G

Legi

slativ

e ch

ange

and

regu

lato

ry

endo

rsem

ent

in 2

015

KDD/

natio

nal l

egisl

ator

s an

d re

gula

tors

Info

sou

rce:

T2S

NUG

s su

rvey

s 20

11 a

nd 2

012,

SP2

an

d bi

late

ral d

iscus

sions

.Pr

ovisi

onal

regu

lato

ry a

ppro

val i

s co

mpl

eted

. Le

gisla

tive

chan

ge is

pen

ding

for T

2S D

CA s

ettle

men

t, bu

t it

shou

ld b

e st

raig

ht fo

rwar

d. F

inal

rgul

ator

's

appr

oval

is re

quire

d to

o.

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)18

%

RM

ajor

tec

hnic

al c

hang

eNo

info

rmat

ion

yet

KDD

Info

sou

rce:

BSG

/E-M

IG S

urve

y (N

ovem

ber 2

012)

.12

sta

ndar

ds a

lread

y m

et, 1

6 in

the

pro

cess

of b

eing

m

et a

nd 4

0 no

t m

et a

t al

l

26. S

ecur

ities

am

ount

sta

tic

data

OKB

Fully

com

plia

ntN/

AN/

AIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

. No

issu

e.

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Lega

l Har

mon

isatio

n

Y

Ther

e is

a cl

ear p

lan

for i

mpl

emen

tatio

n by

en

d of

201

3

not

com

plia

nt y

et

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

sta

ndar

ds a

re im

plem

ente

d. L

egisl

ativ

e ch

ange

s as

w

ell a

s m

ajor

cha

nges

in m

arke

t pr

actic

e w

ill be

re

quire

d to

com

ply.

6. T

2S s

ched

ule

of

sett

lem

ent

day

KDD

CSD

acco

unt

stru

ctur

es

tech

nica

lM

igra

tion

to T

2S

Prio

rity

2

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

KDD

will

impl

emen

t T2

S se

ttle

men

t da

y Sc

hedu

le a

nd

T2S

Cale

ndar

and

will

prov

ide

its s

ervi

ces

acco

rdin

g to

th

e ne

eds

of it

s us

ers.

T2S

Harm

onisa

tion

Activ

ities

: Slo

veni

a

Prio

rity

1

G

T2S

mes

sage

s

KDD


80

Copy

of 2

013

Anne

x 5

- Mon

itorin

g of

10

harm

onisa

tion

activ

ities

in T

2S m

arke

ts_I

C .x

ls

1

Activ

itySu

b-ac

tivity

Com

plia

nce

Stat

usTy

pe o

f Im

plem

enta

tion

Gap

Impl

emen

tatio

n Pl

an/D

ate

Impl

emen

tatio

n Ac

tor(

s)Fu

rthe

r Com

men

ts

Indi

cate

s le

vel o

f co

mpl

ianc

e w

ith t

he

rele

vant

sta

ndar

ds/r

ules

Gree

n (G

), ye

llow

(Y

), re

d (R

)If

the

stan

dard

s/ru

les

are

not

yet

impl

emen

ted,

ple

ase

spec

ificy

wha

t is

the

type

of g

ap

If st

anda

rds/

rule

s ar

e no

t fu

lfille

d, p

leas

e pr

ovid

e th

e tim

etab

le a

nd v

ario

us

mile

ston

es/d

ates

in t

he im

plem

enta

tion

plan

.

Rele

vant

nat

iona

l act

ors

for

impl

emen

tatio

n

1. T

2S IS

O 20

022

mes

sage

sNo

t co

mpl

iant

yet

Gte

chni

cal c

hang

e

SP 8

: T2S

tes

ting

CDCP

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

CDCP

will

offe

r to

its m

embe

rs c

omm

unic

atio

n in

ISO

2002

2 St

anda

rds

for s

elec

ted

CDCP

ser

vice

s.

2. T

2S m

atch

ing

field

sNo

t co

mpl

iant

yet

Gte

chni

cal c

hang

e

SP 8

: T2S

tes

ting

CDCP

Info

sou

rce:

SP2

and

bila

tera

l disc

ussio

ns.

CDCP

will

alig

n al

gorit

hm fo

r mat

chin

g of

inst

ruct

ions

in

IS E

CP w

ith T

2S m

atch

ing

stan

dard

s, w

hile

we

have

to

stat

e th

at C

DCP

will

use

the

mat

chin

g sy

stem

in T

2S

(for

all

cros

s-bo

rder

tra

nsfe

rs o

r ins

truc

tions

sub

mitt

ed

by d

irect

ly c

onne

cted

CDC

P pa

rtic

ipan

ts in

T2S

) as

wel

l as

in IS

ECP

(fo

r int

ra-C

SD t

rans

fers

).

Mar

ket

clai

ms

(27

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

Tran

sfor

mat

ions

(14

sta

ndar

ds)

0%Re

gula

tory

/leg

islat

ive

chan

ge

Buye

r pro

tect

ion

(18

stan

dard

s)0%

Regu

lato

ry/l

egisl

ativ

e ch

ange

9. S

ettle

men

t Fi

nalit

y II:

irre

voca

bilit

y an

d en

forc

eabi

lity

tran

sfer

ord

er

Not

com

plia

nt y

et

Y

Regu

lato

ry/l

egisl

ativ

e an

d te

chin

cal

chan

ge M

igra

tion

to T

2SCD

CPIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns. C

DCP

shal

l elim

inat

e th

e di

ffer

ence

s in

mat

chin

g ru

les

in it

s op

erat

ions

but

le

gisla

tive

chan

ge is

requ

ired.

10. S

ettle

men

t Fi

nalit

y III:

irre

voca

bilit

y of

sec

uriti

es

tran

sfer

s.

Not

com

plia

nt y

et

Y

chan

ge in

CSD

rule

s M

igra

tion

to T

2SCD

CPIn

fo s

ourc

e: T

2S N

UGs

surv

eys

2011

and

201

2, S

P2

and

bila

tera

l disc

ussio

ns. C

hang

e in

the

rule

s of

the

CS

D. N

o ne

ed fo

r leg

islat

ive

chan

ge. F

urth

er

clar

ifica

tions

are

requ

ired

for t

he a

sses

smen

t of

any

po

tent

ial r

egul

ator

y ap

prov

al.

14. S

ettle

men

t Cy

cles

Info

sou

rce:

EU

CSDR

15. A

vaila

bilit

y of

om

nibu

s ac

coun

tsOK

BFu

lly c

ompl

iant

N/A

N/A

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

No is

sue

16. R

estr

ictio

ns o

n om

nibu

s ac

coun

tsNo

t co

mpl

iant

yet

Y

legi

slativ

e ch

ange

No in

form

atio

n ye

tCD

CPIn

fo s

ourc

e: T

2S N

UGs

surv

ey a

nd b

ilate

ral d

iscus

sions

.Re

stric

tions

on

SK in

vest

ors

whe

n CD

CP a

cts

as

Inve

stor

CSD

20. C

orpo

rate

Act

ions

CA

mar

ket

stan

dard

s (6

8)n/

aR

- no

info

No in

form

atio

n ye

tCD

CPIn

fo s

ourc

e: B

SG/E

-MIG

Sur

vey

(Nov

embe

r 201

2). T

2S

Team

rece

ived

no

info

from

EM

IG o

n CD

CP re

sults

.

26. S

ecur

ities

am

ount

sta

tic

data

Not

com

plia

nt y

et

Y

Mar

ket

prac

tice

chan

ge/

Tech

nica

l ch

ange

Mig

ratio

n to

T2S

CDCP

Info

sou

rce:

T2S

NUG

s su

rvey

and

bila

tera

l disc

ussio

ns.

Slov

akia

n m

arke

t w

ill co

mpl

y w

hen

CDCP

mig

rate

s to

T2

S

T2S

mes

sage

s

7. C

orpo

rate

Act

ions

T2S

CA s

tand

ards

(59

)

Mar

ket

prac

tice

chan

ge

R

T2S

Harm

onisa

tion

Activ

ities

: Slo

vaki

a

Prio

rity

1

CDCP

Info

sou

rce:

SP2

/SP3

and

bila

tera

l disc

ussio

ns.

CDCP

pla

ns fo

r ful

l com

plia

nce

with

T2S

sch

edul

e an

d ca

lend

ar

Info

sou

rce:

CAS

G ga

p an

alys

is su

rvey

201

2.No

sta

ndar

ds a

re im

plem

ente

d. N

ever

thel

ess,

the

CSD

ha

s a

clea

r pla

n to

impl

emen

t th

em w

ith c

oncr

ete

mea

sure

s an

d am

bitio

us d

eadl

ines

. Nee

d fo

r leg

islat

ive

chan

ges

has

been

iden

tifie

d in

add

ition

to

maj

or

chan

ges

in m

arke

t pr

actic

e.

G

CSD

acco

unt

stru

ctur

es

Prio

rity

2

Lega

l Har

mon

isatio

n

6. T

2S s

ched

ule

of

sett

lem

ent

day

No in

form

atio

n ye

tCD

CP

Mig

ratio

n to

T2S

Not

com

plia

nt y

et

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