TARGET2-Securities (T2S): Generation of monthly T2S invoice - Update II

30.11.2022

Note: This Announcement, originally published on 2 August 2022 and updated on 30 September 2022, has been further updated to provide customers with the revised T2S timeline. Changes have been highlighted.

Clearstream Banking AG, Frankfurt¹ informed customers about the postponement of the T2S invoicing for the months July to November 2022.

Background

With the implementation of T2S Release 6.0 on 4 July 2022, a new software component for billing ("Billing Common Component") was deployed by T2S. During the test activities conducted for this new component, defects and incidents in the software were detected, which are being addressed by the European Central Bank (ECB). The aim wasto give the Central Securities Depositories (CSDs) and Central Banks the opportunity to successfully conduct comprehensive tests in the T2S environments before activating the software in production. These tests werenecessary to ensure that future T2S billing and invoicing can take place correctly.

Invoicing

Using the new Billing Common Component the invoices for the months of July to November 2022 will be processed in December 2022. The ECB published the below schedule for the generation of the invoices:

Billing month	Date
July 2022	1 December 2022
August 2022	5 December 2022
September 2022	7 December 2022
October 2022	9 December 2022
November 2022	13 December 2022

Although the changes in the procedure to create the invoicewill have adjustments for the billing in CBF, the impact on CBF customers is significantly limited. At present, CBF's invoicing process is largely independent of T2S billing. That is, CBF independently determines the data for invoicing on the basis of T2S instruction data available in its own systems. CBF only uses the information exclusively from T2S in two invoice items:

• CB02010DS Daytime settlement surcharge
  (charged when the instruction has been settled).
• CB02010TS30 Information services for customers acting in DCP mode
  (for T2S information services other than message copies sent by T2S to Clearstream Banking).

This means that forthe impacted billingmonths July to November 2022no amount couldbe determined for these items in the invoice.

CBF will commence recalculation of the relevant invoice items upon receipt of the T2S invoices. The concept for post-processing is to sequentially and independently process each invoice generated by T2S on a monthly basis, that the affected customers will each receive a statement for the associated billing month. With each billing run, additional actions are taken verifying the results. The objective is to create all outstanding invoice items by 20 December 2022 and subsequently bill them by year-end 2022.

Contact

For further information, please contact the Clearstream Banking Client Services or your Relationship Officer.

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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.