CSD Identifier
16.8 Party Reference Data Model
16.8.3 Securities Account Reference Data 8
Securities Account 9
Reference ID T2S.16.590
Securities account reference data specify all information required for defining and processing a securities 10
account in T2S. In some direct holding markets, account operators open and close end-investor accounts 11
directly in the systems of the CSD. Securities accounts in T2S must be opened and closed through the CSD 12
to ensure the consistency and integrity of securities account reference data between the systems of the CSD 13
and T2S. This can be an automated process. When the CSD system opens an account, it will immediately 14
trigger the opening of the account in T2S. The same applies for the closing of an account.
15 16
Table 16-16 - List of Attributes for the Securities Account Entity 17
Attribute Description
Securities Account Identifier
This attribute shall define the unique technical identifier of a securities account in T2S.
System Entity Identifier This attribute shall specify the entity identifier of the CSD with which the party of the securities account has its contractual relationship. This attribute shall qualify the code type in order to ensure uniqueness for cases where a financial institution has a relationship with more than one CSD.
Attribute Description
Account Reference This data item shall provide the user with an optional text field to enter a description, name or reference.
Open/Close Status This attribute shall define the business status of the account. It shall determine the business processing allowed for the account in T2S. T2S shall not use this status field for temporarily restricting an account from settlement processing.
Opening Date This attribute shall specify the date as of which a securities account is legally opened by the CSD.
Closing Date This attribute shall specify the date as of which a securities account is legally closed by the CSD.
Market-Specific Restriction
This attribute shall specify the CSD-specific classification of the account, which determines the relevant rules for the processing the account in T2S.
Auto-collateralisation This data item is set to TRUE if the holdings of the securities account are available as collateral for the auto-collateralisation process.
The default setting is FALSE.
Hold/Release Default This attribute shall specify the default setting of specific securities settlement instructions received for the account (e.g. stock exchange trades from Frankfurt Stock Exchange).
Negative Position This attribute shall define whether the securities account can hold a negative position in a security. Certain types of CSD technical accounts, such as issuer accounts, must have the capability to store negative values.
T2S Account Type This attribute shall classify the account for the maintenance of CSD account links. It shall allow the following values:
- CSD participant account - CSD mirror account - Inter-CSD account
- T2S technical offset account (for direct holding markets) Securities Account
Access Privilege Identifier
This attribute shall specify the unique technical identifier of an access privilege in T2S that applies to the securities account.
1
Assignment of a new securities account to T2S dedicated cash accounts 1
Reference ID T2S.16.591
When an authorised T2S system user creates a new securities account, T2S shall require the user to assign 2
the securities account to one or more T2S dedicated cash accounts of at least one payment/settlement bank 3
that acts as its liquidity provider. T2S shall validate the primary BIC of the party holding the securities 4
accounts against the list of primary BICs that the payment/settlement bank has assigned to its T2S dedicated 5
cash accounts to ensure that the T2S system user only links securities accounts to eligible T2S dedicated cash 6
accounts. If the T2S system user assigns more than one T2S dedicated cash account to a securities account, 7
then the user must specify which T2S dedicated cash account T2S shall use as a default.
8 9
Diagram 16.6 – Cash Memorandum Balance Conceptual Linking Model for Securities Accounts 10
11
12 13 14 15
CMB Securities Account Link Set 16
Reference ID T2S.16.582
The CMB Securities Account Link Set entity shall define the group of credit memorandum balances that T2S 17
can use for securities settlement for an individual securities account. The entity shall define the date from 18
which the relationship between credit memorandum balances and the securities account is valid.
19 20
Table 16-17 – List of Attributes for the CMB Securities Account Link Set Entity 1
Attribute Description
Link Set Identifier This attribute shall specify the unique technical identifier of a set of credit memorandum balances, linked to a securities account.
Securities Account Identifier
This attribute shall define the unique technical identifier of the securities account.
Currency This attribute specifies the currency of the credit memorandum balance link set.
Valid From This attribute shall define the date from which the set of credit memorandum balance links is valid.
Valid To This attribute shall define the date to which credit memorandum balance links is valid.
2
Credit memorandum balance link entity 3
Reference ID T2S.16.650
The CMB Link entity specifies all the credit memorandum balances linked as of a given date to a securities 4
account of a T2S party.
5 6
Table 16-18 – List of Attributes for the Credit Memorandum Balance Link Entity 7
Attribute Description
Credit Memorandum Balance Link Identifier
This attribute shall specify the unique technical identifier of this entity.
Link Set Identifier This attribute shall specify the unique technical identifier of a set of credit memorandum balances, linked either to a T2S party or a securities account.
Credit Memorandum Balance Identifier
This attribute shall specify the unique technical identifier of the credit memorandum balance in T2S.
Default Credit
Memorandum Balance
This Boolean attribute shall specify whether the credit memorandum balance is the balance of the default T2S dedicated cash account for the securities account.
8
Party and Securities Account Relationship 1
Reference ID T2S.16.595
2
T2S shall support a Party Securities Account Relationship entity to specify a time-dependent relationship 3
between a T2S Party and a securities account. The purpose of the entity is to allow a CSD in T2S to transfer 4
the relationship of a securities account from one account operator/sub-custodian to another account 5
operator/sub-custodian within the CSD. For example, the functionality will enable a CSD to transfer the 6
relationship of an end-investor securities account from one account operator to another.
7
Table 16-19b - List of Attributes for Party Securities Account Relationship 8
Attribute Description
Relationship Identifier This attribute shall specify the unique technical identifier of an occurrence of a party to securities account relationship
System Entity Identifier This attribute shall specify the entity identifier of the CSD with which the party of the securities account has its contractual relationship. This attribute shall qualify the code type in order to ensure uniqueness for cases where a financial institution has a relationship with more than one CSD.
Party Identifier This attribute specifies the unique technical identifier of the T2S Actor with which the securities account has its relationship.
Securities Account Identifier
This attribute specifies the unique technical identifier of the securities account.
Valid From This attribute specifies the date from which the relationship between the T2S Actor and the securities account is valid.
Valid To This attribute specifies the date to which the relationship between the T2S Actor and the securities account is valid.
9
Setting Date Values 1
Reference ID T2S.16.596
When a T2S Actor opens a new securities account, T2S shall generate automatically the relationship between 2
securities account and party. T2S shall set value in the attribute Valid From to the opening date of the 3
securities account.
4
Specification of Mandatory Attributes 5
Reference ID T2S.16.597
When the CSD transfers the account relationship from one securities account operator/ sub-custodian to 6
another, the CSD must specify:
7
• the party identifier of the party from which the CSD wishes to transfer the securities account 8
relationship;
9
• the party identifier of the party to which the CSD wishes to transfer the securities account 10
relationship;
11
• the date as of which the CSD wishes to transfer the relationship;
12
• the new T2S dedicated cash account link set for the securities account;
13
• and the new securities account privilege of the new account operator.
14 15
Relationship Transfer of Linked Information 16
Reference ID T2S.16.598
A relationship transfer shall result in the simultaneous:
17
• closing of the old relationship by T2S setting the value in the attribute Valid To for the party from 18
which the CSD wishes to transfer the relationship to the date of the transfer;
19
• creation of the new relationship by T2S creating a new occurrence in Party Securities Account 20
Relationship entity for the party to which the CSD wishes to transfer the securities account 21
relationship;
22
• in the replacement of the T2S dedicated cash account link set of the old account operator / sub-23
custodian with the T2S dedicated cash account link set of the new account operator / sub-custodian;
24
• and the transfer of restrictions on the securities account or positions of that securities account to the 25
new account operator / sub-custodian.
26 27
Example: CSD A wishes to transfer the relationship of a securities account 1, opened 1 January 1997, as of 1 28
July 2008 from the party account operator 1 to the party account operator 2.
29 30
Before Transfer:
1
Relationship Identifier
System Entity Identifier
Party Identifier Securities Account Identifier
Valid From Valid To
123456 CSD A Operator 1 Securities Account 1
1 January 1997
-
2
After Transfer:
3
Relationship Identifier
System Entity Identifier
Party Identifier Securities Account Identifier
Valid From Valid To
123456 CSD A Operator 1 Securities Account 1
1 January 1997
30 June 2008
1234567 CSD A Operator 2 Securities Account 1
1 July 2008 -
4
Viewing positions prior to transfer 5
Reference ID T2S.16.599
With the transfer of the relationship to the new account operator/sub-custodian, the new account 6
operator/sub-custodian must be able to view those transactions and positions of the end-investor account that 7
existed in T2S prior to the transfer (e.g. positions, restrictions and settlement instructions).
8
16.8.4 T2S Dedicated Cash Accounts