ESES Frequently Asked Questions
Testing
Q: Could you publish the list of Securities and relative COE selected for the tests?
A: The list of instruments used for the tests and the corporate events on all three segments can be found on Euroclear’s website at: https://www.euroclear.com/site/public/EF and follow the path: Euroclear France home / Initiatives / Plate-forme unique / Eses / Eses migration / Eses testing Newsletter (bottom of the page)
Q: How can we obtain fails during testing?
A: Euroclear France, Euroclear Belgium and Euroclear bank will create settlement accounts for all settlement participants to:
- 0 to receive fails
- 1000 to receive positions settled.
Euroclear Nederland will not initialise settlement participants’ balances. As a consequence, Members need to check their settlement balances and adjust the quantities down enough to allow positions to fail or to settle.
Q: Will the clearing test platform also be closed for 3 weeks in September to prepare the 2nd launch rehearsal?
A: The Clearing test platform should only be closed on the week of the 15 September to perform the preparations for the 2nd launch rehearsal.
Q: What is the purpose of the monitored tests?
A: LCH.Clearnet proposes to manage 4 monitored tests for all members to prepare the launch rehearsal and make sure that there will be a minimum of positions to check the transfers at the launch.
Q: Will Telekurs Financial also disseminate all the data related to the tests?
A: Members are encouraged to contact Telekurs themselves.
Q: The Lisbon Clearing segment is out of the scope for testing, what happens if trades are processed on this market?
A: You will receive a report detailing your activity on the Portuguese market; same as today on the test environment.
Q: As the date of the first launch rehearsal falls during the summer holidays, we have problems managing our resources, can the dates be changed?
A: No, LCH.Clearnet communicated the launch rehearsal dates several months ago, as soon as the information was externalised by Euroclear, leader of the ESES project, in order for Members to anticipate this potential problem.
Q: Are any specific tests foreseen by LCH.Clearnet on corporate events?
A: LCH.Clearnet will process the corporate events scheduled by Euroclear. Members are free to enter trades or positions to test them.
Q: Can extra corporate events be processed?
A: Extra corporate events can be processed if they are not in the list of the ones already scheduled.
Q: Are changes in the account structures being accepted during the test periods?
A: The black window period applicable to tests is such that no changes will be allowed 2 weeks before and 2 weeks after launch rehearsals. Only slight changes such as tuning of accounts could be accepted.
Q: Is testing on derivatives in the scope of testing?
A: Due to the small impact on Members, free optional tests could be envisaged. The Derivative testing platform is up and running and interconnected to the cash testing platform.
Account structures
Q: Are Clearing Members that settle in Euroclear France impacted?
A: Yes, there is an impact, all Clearing Members should be extended on all the clearing segments and must have a settlement solution in each market place (direct or settlement agent’s account) and will then have to check the account structure. There is also an impact due to the transfers of positions at the launch switch-over.
Q: Are Members charged differently depending on the number of DA in their account structures?
A: No, one or more DA does not make a difference of billing at LCH.Clearnet’s level.
Q: For Members settling in Euroclear Bank, can one delivery account in the account structure be possible?
A: Yes, Members can set up one or several delivery accounts linked to a settlement address independently of the settlement solution (EB or ESES).
Q: Is there a black window planned around the launch?
A: Black windows will follow the ones defined by Euroclear. No change accepted in the account structures 2 weeks prior and 2 weeks after launch.
Launch strategy
Q: Which rate of currency conversion is applied at the ESES migration?
A: This is the last official rate, the one published in the SPAN file on Friday evening before the migration.
Q: The Intended settlement date of a book entry is D+1 will the ISD be D+1 for the launch book entries?
A: When a book entry is created the ISD is set to D+1, this is the current behaviour. The ISD of the book entries created specially for the launch will take the original ISD of the position.
Q: Would it be possible to receive a report of positions before launch of ESES stream 3 to compare with the one received after the launch?
A: LCH.Clearnet will not provide such a report but we are willing to provide support to clients if needed.
Q: What are the Member impacts on files’ dissemination during the launch Week-end?
A: As there is no impact on PR3 files relative to theses projects, there will be some validation delay before dissemination is planned. The file would be sent at usual time on Friday evening plus the validation delay.
The dissemination of the SIF/BIF files will be done after Euroclear’s validation on the positions sent to settlement by LCH.Clearnet. At the time of the GMM, the expected time should be Saturday evening. Members are requested to integrate the files into their applications and give a feedback on the validation to LCH.Clearnet on the Sunday around noon.
Q: Could we have detailed specifications about the launch book entries?
A: Some specifications were given in the workshops presentations in April (available on our website). More details will be provided to Members in a specific document about the launch strategy with SIF files examples.
Q: Can LCH.Clearnet provide Members with the list of securities with their market and CSD of reference?
A: NYSE.Euronext has published the list of multi-listed securities with their markets of reference on its website and Euroclear did the same with the securities changing their CSD of reference.
Members reporting
Q: When the CSD of reference is in a different place than the market of reference, the SIF on the market of reference reports some positions to settle on another market place, why?
A: The SIF files report the activities carried out on a clearing segment on the same place as the trading one. In order to get all positions that settle on a same settlement platform, Members should collate the information from the three SIF files (Paris, Brussels and Amsterdam).
Q: What is the impact on the SIF file if only one DA is used?
A: All the positions of the Member will be aggregated inside a single settlement platform associated to the DA (sub header/sub footer section, records 00002 and 9997). More details will be provided to Members with SIF file samples.
Q: Can LCH.Clearnet provide the settlement agents with the positions to be settled?
A: This is not in the scope of the ESES/SOB projects. The settlement information is provided to Members. It is up to the clearing Member to inform its settlement agent.
Non Euro settlement
Q: Is non-Euro settlement part of the tests?
A: Yes, Settlement in Non Euro will be available on Euroclear Bank’s testing platform.
Corporate events
Q. Will the record, ex date principles also be applied on Corporate events on the OTC market?
A. Yes, the same principles are applied on the OTC market.
Q. Could the Payment Date be different from the Record Date + 1?
A. Yes, in case of market claim, the Payment Date can be different from the Record Date +1,
example: A market claim with RD = 28/09 , PD = 7/10 and with ISD= 7/10; in the SIF file, the information for this market claim will be:
A record 25 will be sent on 28/09 only,
A record 20 + a record 30 will be sent from 28/9 to 6/10.
In addition, if position on underlying securities linked to this market claim with ISD= 7/10, the position will be netted and a record 60 with the net position will be sent to the CSD on the 6/10 for settlement.
Q. Will mandatory distributions on Belgian securities be included in the liquidation amount as from the ESES phase 1 implementation?
A. Yes, the new COE management is applied on the three market places since November 2007.
Q. Is the 5011 message linked to the corporate application (NT/RT type) sent to members in real time?
A. Yes, this kind of trade creation will be sent as soon as they are created in the system.
Q. Why is there a reverse trade creation instead of a cancellation message?
A. The principle chosen aims to be compliant with accounting rules and Euroland COE harmonisation. Trade type is added for new trade (NT) and reverse trade (RT), this allows members to identify trades issued from market claims and transformation application.