LCH.Clearnet Ltd – CMS – Enhancement Weekend 27th September

Clearing Members are advised of the following enhancements to CMS.  These enhancements will be release to production on Saturday 27th September 2014.

Clearing Members should note that CMS will not be available whilst the software release is in progress.

• Cash Deposit Capacity enhancement

Further to the previous circular (3518), we can confirm that this enhancement will be released to production on Saturday 27th September.  Please see details of the enhancement at the following link here

• Securities STP for collateral settlement with Euroclear Bank

We are pleased to announce that movements of securities between LCH.Clearnet Ltd and Clearing Members for settlement at Euroclear Bank will now be processed STP.  This enhancement will ensure that movements of securities provided as collateral will settle quickly and efficiently.

Upon receipt of a SWIFT settlement confirmation from Euroclear Bank, LCH.Clearnet systems will immediately update the Clearing Member's securities balance on the relevant account at the clearing house.

To ensure STP Clearing Members are reminded that the settlement details input in CMS are used to generate LCH.Clearnet's settlement instruction.  Clearing Members must ensure that the correct account and settlement details are provided to avoid mismatching instructions, rejected instructions and settlement delays.

For information, the following are common errors on CMS instructions that must be avoided:

• Clearing Members must enter their own Euroclear Bank account code and not the account code of LCH.Clearnet;
• Clearing Member must ensure that details such as Trade Date and Settlement Date entered in CMS match exactly to the details of the settlement instruction entered in Euroclear Bank
• When instructing a movement of Italian securities, Clearing Members must enter a valid tax ID number for the beneficial owner.  The tax ID number should be set up and recognised by Euroclear Bank prior to input of instruction in CMS; and
• The field "Receiving/Delivering Party BIC" must be that of the counterparty and not Euroclear Bank's BIC address.

If you require assistance with in entering securities instructions, please contact Collateral Operations on:
+ 44 207 426 7593