First workshop on the
Business Process Description
15.06.2011
Sample BPD
Intra-CSD Settlement
EUROPEAN CENTRAL BANK
T2S Programme Office
0
Overview
“What is “Intra-CSD Settlement?” – Process Definition
Transfer of securities between the securities accounts of participant(s) belonging to the same CSD
“Who are the Stakeholders?” – T2S Actors
CSD
CSD Participant(s)
Payment Banks & Central Banks (in case the settlement involves a cash leg)
“How does the process start?” – Trigger / Preconditions
A) In case CSD instructs T2S
CSD receives instructions from its CSD Participant or Third Parties (authorised by CSD
Participant)
B) In case CSD Participant(s) or Third Parties instruct T2S
CSD Participant receives instructions from its clients; or
Third Parties (e.g. CCP, stock exchanges) acting on behalf of CSD Participants receive
instructions
1
CSD
(Acc. Owner)
CSD Part.
Process Flow Diagram
Validate
Settlement
Instruction
Match
Settlement
Instruction
T2S.BPD.SETT.ICSD.01
T2S.BPD.SETT.ICSD.02
T2S Settlement
Services
Validation
Business
Validation
Service
T2S
T2S.SD.SETT.010
Initiate T2S Settlement
Manage Settlement Results
T2S.BPD.SETT.ICSD.03
Enrich
Settlement
Instruction
T2S.BPD.SETT.ICSD.04
Send
Instruction to
T2S
Receive
Status Advice
Receive T2S
Generated
Instruction
Matching
Matching
Service
T2S.SD.SETT.020
Receive
Confirmation
Settlement
Settlement
Allegement
Service
Settlement
Sequencing
Service
Settlement
Posting
Service
T2S.SD.SETT.030
T2S.SD.SETT.040
T2S.SD.SETT.050
T2S Information
Mgmt Services
Optimisation
Service
T2S.SD.SETT.060
Instruction
Recycling
Service
T2S.SD.SETT.080
Realignment
Service
Earm./Block./
Res. Service
CoSD
Service
T2S.SD.SETT.070
T2S.SD.SETT.120
T2S.SD.SETT.140
Status Mgmt
Service
(Acc. Owner)
CSD Part.
(Counterparty)
Receive
Settlement
Instruction
Copy
T2S.BPD.SETT.ICSD.05
Manage Settlement Results
T2S.BPD.SETT.ICSD.04
Receive
Status Advice
Receive T2S
Generated
Instruction
Receive
Confirmation
Receive and
Manage
Settlement
Allegement
T2S.BPD.SETT.ICSD.06
Payment
Bank
Central
Bank
CSD Part.
CSD
T2S.SD.INF.010
Receive
Notification
T2S.BPD.SETT.ICSD.07
Receive
Notification
T2S.BPD.SETT.ICSD.07
The process flow diagram covers both business scenarios:
CSD instructing T2S
CSD Participant instructing T2S
2
Process Flow Diagram
Progressive elaboration of the business process flow with step wise description
CSD
(Acc. Owner)
Validate
Settlement
Instruction
Match
Settlement
Instruction
T2S.BPD.SETT.ICSD.01
T2S.BPD.SETT.ICSD.02
Initiate T2S Settlement
T2S.BPD.SETT.ICSD.03
Enrich
Settlement
Instruction
Send
Instruction to
T2S
T2S Settlement
Services
T2S
CSD Part.
This slide will focus on the process initiation within the CSD and sequence of
steps up to the point of first communication to T2S
T2S Information
Mgmt Services
3
Process Flow Diagram
CSD
(Acc. Owner)
Validate
Settlement
Instruction
Match
Settlement
Instruction
T2S.BPD.SETT.ICSD.01
T2S.BPD.SETT.ICSD.02
T2S Settlement
Services
Validation
Business
Validation
Service
T2S.SD.SETT.010
T2S
CSD Part.
This slide will focus on the details of T2S services invoked as a result of the receipt of
a settlement instruction message (before the intended settlement date)
T2S Information
Mgmt Services
Initiate T2S Settlement
Manage Settlement Results
T2S.BPD.SETT.ICSD.03
T2S.BPD.SETT.ICSD.04
Enrich
Settlement
Instruction
Send
Instruction to
T2S
Receive
Status Advice
Matching
Matching
Service
T2S.SD.SETT.020
Receive T2S
Generated
Instruction
Settlement
Settlement
Allegement
Service
Settlement
Sequencing
Service
T2S.SD.SETT.030
T2S.SD.SETT.040
Realignment
Service
T2S.SD.SETT.070
Status Mgmt
Service
T2S.SD.INF.010
4
Process Flow Diagram
CSD
(Acc. Owner)
Validate
Settlement
Instruction
Match
Settlement
Instruction
T2S.BPD.SETT.ICSD.01
T2S.BPD.SETT.ICSD.02
T2S Settlement
Services
Validation
Business
Validation
Service
T2S.SD.SETT.010
T2S
CSD Part.
This slide will focus on the details of T2S services invoked on the intended settlement
date
T2S Information
Mgmt Services
Initiate T2S Settlement
Manage Settlement Results
T2S.BPD.SETT.ICSD.03
T2S.BPD.SETT.ICSD.04
Enrich
Settlement
Instruction
Send
Instruction to
T2S
Receive
Status Advice
Receive T2S
Generated
Instruction
Matching
Matching
Service
T2S.SD.SETT.020
Receive
Confirmation
Settlement
Settlement
Allegement
Service
Settlement
Sequencing
Service
T2S.SD.SETT.030
T2S.SD.SETT.040
Realignment
Service
T2S.SD.SETT.070
Instruction
Recycling
Service
T2S.SD.SETT.080
CoSD
Service
T2S.SD.SETT.140
Settlement
Posting
Service
T2S.SD.SETT.050
Earm./Block./
Res. Service
Optimisation
Service
T2S.SD.SETT.120
T2S.SD.SETT.060
Status Mgmt
Service
T2S.SD.INF.010
5
Process Flow Diagram
CSD
(Acc. Owner)
CSD Part.
This slide will focus on the details of communication with other stakeholders (e.g.,
CSD Participant, Payment Bank, etc)
Validate
Settlement
Instruction
Match
Settlement
Instruction
T2S.BPD.SETT.ICSD.01
T2S.BPD.SETT.ICSD.02
T2S Settlement
Services
Validation
Business
Validation
Service
T2S
T2S.SD.SETT.010
Initiate T2S Settlement
Manage Settlement Results
T2S.BPD.SETT.ICSD.03
T2S.BPD.SETT.ICSD.04
Enrich
Settlement
Instruction
Send
Instruction to
T2S
Receive T2S
Generated
Instruction
Receive
Status Advice
Matching
Matching
Service
T2S.SD.SETT.020
Receive
Confirmation
Settlement
Settlement
Allegement
Service
Settlement
Sequencing
Service
T2S.SD.SETT.030
T2S.SD.SETT.040
T2S Information
Mgmt Services
Realignment
Service
T2S.SD.SETT.070
Instruction
Recycling
Service
T2S.SD.SETT.080
CoSD
Service
T2S.SD.SETT.140
Settlement
Posting
Service
T2S.SD.SETT.050
Earm./Block./
Res. Service
Optimisation
Service
T2S.SD.SETT.120
T2S.SD.SETT.060
Status Mgmt
Service
(Acc. Owner)
CSD Part.
CSD
T2S.SD.INF.010
Receive
Settlement
Instruction
Copy
T2S.BPD.SETT.ICSD.05
Manage Settlement Results
T2S.BPD.SETT.ICSD.04
Receive
Status Advice
Receive T2S
Generated
Instruction
Receive
Confirmation
6
Process Flow Diagram
CSD
(Acc. Owner)
Validate
Settlement
Instruction
Match
Settlement
Instruction
T2S.BPD.SETT.ICSD.01
T2S.BPD.SETT.ICSD.02
T2S Settlement
Services
Validation
Business
Validation
Service
T2S
T2S.SD.SETT.010
T2S Information
Mgmt Services
Initiate T2S Settlement
Manage Settlement Results
T2S.BPD.SETT.ICSD.03
T2S.BPD.SETT.ICSD.04
Enrich
Settlement
Instruction
Send
Instruction to
T2S
Receive
Status Advice
Receive T2S
Generated
Instruction
Matching
Matching
Service
T2S.SD.SETT.020
Receive
Confirmation
Settlement
Settlement
Allegement
Service
Settlement
Sequencing
Service
T2S.SD.SETT.030
T2S.SD.SETT.040
Realignment
Service
T2S.SD.SETT.070
Instruction
Recycling
Service
T2S.SD.SETT.080
CoSD
Service
T2S.SD.SETT.140
Settlement
Posting
Service
T2S.SD.SETT.050
Earm./Block./
Res. Service
Optimisation
Service
T2S.SD.SETT.120
T2S.SD.SETT.060
Status Mgmt
Service
T2S.SD.INF.010
Payment
Bank
CSD Part.
This slide will focus on the details of communication with other stakeholders (e.g.,
CSD Participant, Payment Bank, etc)
Receive
Notification
T2S.BPD.SETT.ICSD.07
7
Settling
without
borders
8