ASI Workshop Bilateral Settlement Procedure 3

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ASI WorkshopBilateral SettlementProcedure 3

Paris 8th 9th March 2006
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Content

• Objective of the business scenario
• Optional connected mechanisms
• Successful business scenario
• Failure of the business scenario
• 4.1 Failure of the business scenario
  (disagreement)
• 4.2 Failure of the business scenario
  (insufficient liquidity)
• Filling of important fields of the exchanged
  messages
• Mapping of fields among different messages

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1. Objective of the business scenario

• AS perform a set of debits on PM accounts in
  return of others PM participants accounts in
  batch mode
• Also used to settle multilateral balances of an
  AS that has a SSP Technical Account
• AS first sends individual direct debit
  transactions to the SSP (credited on the AS
  Technical Account),
• Waits for positive notification for the
  settlement of the whole file
• Then sends a second file with individual credit
  transfer transactions (to be debited on the AS
  Technical Account)

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2. Optional connected mechanisms

• Information period
• Balances in the AS are pre-announced to collect
  the needed liquidity
• The Settlement Banks may express disagreement
  within the information period to avoid the
  settlement of erroneous balances

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2. Optional connected mechanisms (2)

• Settlement period ("till")
• Limited period of time allocated to the
  settlement by the AS, so as not to prevent or
  postpone the settlement of other operations
• If the whole set of transactions is not settled
  at the end of this period only the single
  operations not settled are rejected
• AS can modify (anticipate or postpone) the end of
  the settlement period before it has expired

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3. Successful business scenario
AS
Monitoring via ICM
Info All transactions successful
ASTransferInitiation
4
ASInitiationStatus
1
SSP
Information Period
Settlement Period
/910
3
ICM Broadcast
2
MT 900
SBs
Monitoring via ICM
7
4.1 Failure of the business scenario Case1
Disagreement
AS
3b
Monitoring via ICM
Info One transaction failed The rest settled
1
7
ASTransferInitiation
ASInitiationStatus
5
ICM Broadcast
Disagreement
Managing CB
3b
ICM
SSP
Information Period
Settlement Period
Revocation of transaction
4
/910
2
6
ICM Broadcast
5
ICM Broadcast
MT 900
3a
Disagreement
SBs
Monitoring via ICM
8
4.2 Failure of the business scenario Case 2
Insufficient liquidity
AS
Monitoring via ICM
Info One transaction failed The rest settled
1
ASTransferInitiation
ASInitiationStatus
6
SSP
Information Period
Settlement Period
ICM Broadcast (info concerning the queued
transaction)
MT 900
MT 910
ICM Broadcast
2
5
4
3
SBs
Monitoring via ICM
9
5. Filling of important fields of
ASTransferInitiation
ASTransferInitiation
10
6. Mapping of fields among different messages