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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.
Third T2S Harmonisation Progress Report I Executive summary
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
Third T2S Harmonisation Progress Report I Executive summary
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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
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
Third T2S Harmonisation Progress Report I Introduction
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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.
Third T2S Harmonisation Progress Report I Introduction
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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).
Third T2S Harmonisation Progress Report I T2S harmonisation activities – priority 1
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.
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.
12
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)
Third T2S Harmonisation Progress Report I T2S harmonisation activities – priority 1
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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
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.
NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.
Third T2S Harmonisation Progress Report I T2S harmonisation activities – priority 1
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).
T2S markets’ compliance statusMonitoring by the HSG is planned to start within the first half of 2013.
Monitoring
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Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
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.
Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
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.
Third T2S Harmonisation Progress Report I T2S harmonisation activities – priority 1
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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.
T2S markets’ compliance statusMonitoring by the HSG is planned to start within the first half of 2013.
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.
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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.
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.
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Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
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.
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.
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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).
Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
Monitoring actors NUGs and T2S team
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 SP3 and SP8.
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.
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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
For details on the compliance status colour methodology, please refer to Annex 1. For detailed explanations per T2S market, please refer to Annex 5.
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).
Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
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
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 NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.
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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).
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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).
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.
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
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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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Implementation date T2S migration date (depending on migration wave)
Monitoring actors HSG/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 NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.
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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.
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
3.11 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.
Implementation date T2S migration date (depending on migration wave)
Monitoring actors HSG/T2S team/NUGs/CSG
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).
January 2013: All T2S markets responded in the HSG’s dedicated survey on SF III.
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 NUGs should assist the T2S team in monitoring compliance and coordinating the overall interaction with the relevant national markets.
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.
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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
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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).
Implementation date T2S migration date (depending on migration wave)
Monitoring actors T2S team
Monitoring process To be conducted as part of monitoring the CSDs’ adaptation plans to T2S once the CDSR is adopted.
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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.
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Implementation date T2S migration date (depending on migration wave)
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.
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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
3.16 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
Implementation date T2S migration date (depending on migration wave)
Monitoring actors HSG, 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 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).
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
3.17 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
Implementation date T2S migration date (depending on migration wave)
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 NUGs’ survey on the topic took place during 2012.
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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.
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Implementation date T2S migration date (depending on migration wave)
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
Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
Monitoring actors T2S team, NUGs
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
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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.
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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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Implementation date T2S launch date: June 2015
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
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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
Implementation date T2S launch date: June 2015
Monitoring actors ESMA and national regulators
Monitoring process ESMA and national regulators
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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
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Implementation date T2S launch date: June 2015
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.
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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.
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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.
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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.
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
Implementation date SP 8: 01/10/2014, start of bilateral interoperability testing
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 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)
40
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.
Third T2S Harmonisation Progress Report I Annex 1
41
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
Third T2S Harmonisation Progress Report I Annex 1
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.
42
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 2012.
RED
Third T2S Harmonisation Progress Report I Annex 1
43
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.
Third T2S Harmonisation Progress Report I Annex 2
44
Annex 2: T2S harmonisation list v. 3.1A
ctiv
ityO
bjec
tive
Defi
nitio
nM
onito
ring
Impl
emen
tatio
nCo
mm
ents
PRIO
RITY
1
1T2
S IS
O 2
0022
mes
sage
sTo
defi
ne a
nd im
plem
ent t
he
T2S
ISO
200
22 m
essa
ges
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.
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 2
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
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 2
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).
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 2
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.
Third T2S Harmonisation Progress Report I Annex 3
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
Third T2S Harmonisation Progress Report I Annex 3
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
Third T2S Harmonisation Progress Report I Annex 3
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
Third T2S Harmonisation Progress Report I Annex 4
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
Third T2S Harmonisation Progress Report I Annex 4
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
.
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
)
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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.
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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.
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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).
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
Third T2S Harmonisation Progress Report I Annex 5
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
www.t2s.eu