Progress on AMI-SeCo Single Collateral Management Rulebook for Europe and Eurosystem Collateral Management System - July 2021

30.07.2021

As part of our regular communications, and further to Announcement C21016, Clearstream Banking¹ would like to update customers concerning the ongoing activities regarding the implementation of the AMI-SeCo Single Collateral Management Rulebook for Europe (SCoRE) Standards and Eurosystem Collateral Management System (ECMS).

SCoRE Standards ECMS Project status

The latest versions of the SCoRE Standards for Triparty Collateral Management, Corporate Actions and Billing were published and reviewed during Q2 2021. For Triparty Collateral Management and Billing the standards are now considered stable. For Corporate Actions however, it was agreed during the AMI-SeCo meeting of 24 June that more work is required to ensure finalisation of details. As a result, the Corporate Actions standards will now be presented in the next AMI-SeCo meeting planned for September 2021, and Clearstream will continue to work in the meantime within the Asset Services Expert Group to help finalise these standards.

The European Central Bank (ECB) has held further meetings have been with Tri-Party Agencies (TPAs) and Central Securities Depositories (CSDs) focussing on ECMS. In particular, User Testing plans have been shared and discussed and planning is progressing well. Clearstream continues to work closely with National Central Banks (NCBs), the ECB and other actors, to act in the best interest of its customers.

Clearstream Project status

Clearstream's readiness preparations for SCoRE, both as a CSD and a TPA, remain on track. Our in-depth analysis of all applicable SCoRE Standards is continuing, alongside our participation in the CMH Task Force Expert Groups, with the goal to identify all business requirements for our internal Triparty Collateral Management, Corporate Actions and Billing processesto comply with the standards. As mentioned, owing to the additional work required on the Corporate Actions standards, our own internal requirements, and therefore any impacts on our customers, cannot be finalised until those standards are stabilised.

We also continue to work towards ECMS specifications and are currently on track to achieve these targets according to plan. Many questions that have arisen, especially regarding Corporate Actions and ISO 20022 messages, are now resolved. However, ECMS compliance with the SCoRE Corporate Action standards is subject to the same ongoing work with the Asset Services Expert Group.

For Triparty Collateral Management, we would like to inform customers of specific changes coming for implementation in October 2022, as a result of the forthcoming harmonisation of Clearstream's collateral management platforms, including the gradual phase out of the CBF Xemac system with a full decommissioning by Q4 2023.

Additionally, we would like to inform customers about the impacts of this initiative, and how they can prepare for them, by communicating Collateral Mobility Preliminary Release Notes.

The document provided via the link above is relevant for customers of Clearstream Banking Frankfurt and Clearstream Banking Luxembourg, in particular when they are Eurex Repo participants or operating accounts for those active in the GC Pooling (GCP) market or using Xemac for margining towards Eurex Clearing (ECAG).

For Corporate Actions, the establishment of a resilient OneClearstream Asset Servicingacross the CSD and the ICSD is progressing as planned and further information will be made available towards end Q3 / start Q4 2021.

For Billing standards, further details regarding the proposed ISO 20022 message camt.077 were published and reviewed without major issues and we are now finalising our internal requirements. Clearstream is already compliant with all other Billing standards.

Our draft Internal Business Requirements for specific SCoRE and ECMS adaptations are progressing according to plan, notwithstanding the remaining work mentioned above. We now aim to publish details regarding customer impacts starting Q3 2021, with elements of Corporate Actions potentially extending into Q4.

ECB have drafted high level ECMS User Testing plans, around which both SCoRE and ECMS testing will be aligned. These plans indicate test participation for the whole ECMS community starting in Q2 2023, leaving a development window for any mandatory elements for our customers from Q3 2021 to Q2 2023. We continue to work with the NCBs and ECB on the refinement of these plans.

Your support by Clearstream

Should you have questions or require further information please contact [email protected], Clearstream Banking Client Services or your Relationship Manager.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

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