CTM

CREST SETTLEMENT MESSAGES: IMPLEMENTATION GUIDE JUNE 24, 2020

Introduction Various participants (including CSDs, settlements agents, and national competent authorities) require the Place Of Trade information as part of post-trade operational processing. Table 1 outlines the update criteria.

Table 1 Euroclear UK & Ireland CSDR Additional Mandatory Criteria Area of Interest Description Category , Settlement, and Registration Summary Effective May 4, 2020, in line with CSDR matching requirements, Euroclear UK & Ireland (EUI) requires the use of additional mandatory field information within settlement instructions. General Impact Clients must update trade information to avoid delays in the settlement of their transactions. Action Required Clients should review settlement instructions and, where necessary, update them with the new information.

As a result of the upcoming change, CTM SWIFT MT541 and MT543 (MT54x) messages require the information described herein.

Implementation in CTM The Place of Trade is a composite, which contains an ISO Place Code and ISO Place Narrative. In CTM, clients can populate the Place of Trade and Transfer Type fields at the block as follows: l The ISO Place of Trade maps to the CTM Place of Trade, which is a composite containing the following: o PlaceCode, which indicates the location where a transaction takes places such as an exchange (EXCH). o PlaceNarrative, which provides one of the following: n Market Identifier Code (MIC) when PlaceCode indicates an exchange (EXCH) or n ISO Country Code for all other PlaceCode values. l The ISO Transfer Type maps to the CTM TypeOfTransactionIndicator. CREST Settlement Messages: Implementation Guide

Subscription Requirement The SBPT (Source Brokers Place of Trade) subscription allows investment managers to use broker/dealer-supplied values for Place of Trade when creating their MT54x messages since only the broker/dealer knows the correct execution venue. The Place of Trade is returned as part of the InfoSettlementResponse message when allocations have matched. place of trade values.

Examples of Exchange Trade Fields The following table shows examples of how to populate the CTM fields for trades to conform with the requirements.

Place of Trade Investment Manager Broker/Dealer Generated SWIFT Code

l Place Code EXCH EXCH

l Place Narrative MIC (example XLON) MIC (example XLON) MT54x Tag 94B Sequence B: :94B::TRAD//EXCH/MIC Transfer Type Investment Manager Broker/Dealer Generated SWIFT Code

l Type Of Transaction Indicator TRAD TRAD MT54x Tag 94B Sequence B: :22F::SETR/TRAD

Examples of XML Message and Trade Blotter Fields The following examples show the relevant fields in XML messages and the trade blotter. l XML example using Place of Trade at the MIC of XLON (London Exchange): EXCH XLON

l UI 3.0 (trade blotter) example in which Place of Trade is part of the L2 Matching Fields section:

2 CREST Settlement Messages: Implementation Guide

CREST Venue Codes Table 1.2 is a representative list of venue codes that relate specifically to the CREST Trade System of Origin (TSO), but is subject to change.

Table 1.2 CREST Venue Codes Venue Name Venue ID (MIC) SMARTPOOL XSMP BATS Europe BATE EQUIDUCT EXQT NEX Exchange Limited NEXX Swiss XSWX Irish Stock Exchange XDUB Atlantic Securities Market XATL Euronext Dublin XMSM Euronext Growth Dublin XESM ICE Futures Europe XLIF Instinet (Chi-x) CHIX Turquoise TRQX London Stock Exchange XLON EUREX Options XEUR UBS MTF XUBS Sigma X MTF SGMX International Prop Ex (IPSX) IPSX

CREST supports all the SWIFT MICs listed on https://www.iso20022.org/10383/iso-10383-market-identifier-codes (using the MIC not Operating MIC).

Using the Correct PlaceCode and PlaceNarrative for CREST To create correct PlaceCode and PlaceNarrative field values for CREST, note the following: l If you enter EXCH as PlaceCode, use a valid ISO 10383 SWIFT MIC for on-exchange transactions as the PlaceNarrative value. l Use the PlaceCode EXCH and the PlaceNarrative XOFF in either of the following two situations: o The broker/dealer executed an order across multiple exchanges from different counterparties for a single client -or- o The broker/dealer executed an order for off-exchange/over-the-counter transaction. Also, do not use the VARI and OTCO values in the PlaceCode field for CREST for the following reasons l VARI—The PlaceCode VARI is specifically reserved for CCP participants and must not be populated by broker/dealers in CTM to avoid settlement failure at CREST. Use EXCH and XOFF as described above. l OTCO—Note the following rationales for not using PlaceCode OTCO: o While CREST accepts PlaceCode OTCO, the accompanying PlaceNarrative causes downstream settlement failures within CREST. Use EXCH and XOFF as described above. o Outside CREST, only use OTCO for Off-Exchange transactions in the Singapore market that do not comply with the Singapore Direct Reporting Rule. For more information, see the Singapore Exchange Identification of On- and Off-Exchange Trades: Best Practices.

3 CREST Settlement Messages: Implementation Guide

Related Documents and Training For more information, see the following documents: l Common Reference Data l Settlement Services Reference: SWIFT MT541/543 and CSV Mapping You can find additional documents and training in the DTCC Learning Center, go to Institutional Trade Processing.

Changes in this Version of the Document This version of the document clarifies the usage requirements for submitting the PlaceCode and PlaceNarrative field values.

Questions? The DTCC Client Center provides general assistance and technical help. Visit www.dtcc.com/client-center to: l Enter a service request or check the status of an existing service request l Search the knowledge base l Obtain contact information

© 2020 DTCC. All rights reserved. DTCC, DTCC (Stylized), ADVANCING FINANCIAL MARKETS. TOGETHER, and the Interlocker graphic are registered and unregistered trademarks of The Depository Trust & Clearing Corporation. The services described herein are provided under the “DTCC” brand name by certain affiliates of The Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does not provide such services. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. Please see www.dtcc.com for more information on DTCC, its affiliates and the services they offer. Certain DTCC ITP LLC services are subject to regulation by the U.S. Securities and Exchange Commission (“SEC”) and are offered by DTCC ITP Matching (US) LLC (“DTCC Matching”), which is set out in SEC Release No. 34-44188; File No. 600-32; 66 FR 20494 (April 17, 2001). TradeSuite ID and CTM are services of DTCC Matching and are subject to SEC regulation when used for trades in which either the broker-dealer or its institutional customer is a U.S. entity and the securities in the trade are issued by a U.S. issuer. No other services offered by DTCC ITP LLC are regulated.

Publication Date: June 24, 2020 Publication Code: CT850 Service: CTM Title: CREST Settlement Messages: Implementation Guide

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