1. Home
  2. News of OeKB CSD
20.06.2018

The European Central Bank (ECB) conducts annual T2S Insolvency Tests on the T2S customer test environment involving all participating CSDs and central banks, testing the process of an insolvency of T2S participants.

For this year the test was performed on Tuesday 22nd May, 2018.

Securities account holders of OeKB CSD were informed via mailing about the possibility to participate as a volunteer in the insolvency test.

OeKB CSD planned and organised the voluntary participation in the insolvency test.

Keypoints:

  • Date: 22nd May, 2018
  • Duration: 09:00 a.m. – 5:00 p.m.
  • Number of OeKB CSD participants: 2
  • Focus: Process for handling the insolvency of a OeKB CSD participant.
  • Procedure: The two volunteer participants of OeKB CSD were reported to the ECB in the test assumption as insolvent. OeKB CSD tested therefore all necessary T2S process sequences in accordance with the T2S policies – the OeKB CSD participants sent defined test cases. 
  • Test scenarios – Extract from the T2S Manual of Operations:
No. Description

Applicable rule for OeKB CSD
1 Transfer orders entered before the opening of insolvency proceedings.

No action to be taken (i.e. to be processed according to system rules).
2 Transfer orders entered after the opening of insolvency proceedings, which were matched on the T2S platform before the CSD/NCB becomes aware and for settlement on the same business day.

No action to be taken immediately. To be put on hold and cancelled if unsettled at the end of the day (i.e. bilateral cancellation applies).
3 Transfer orders entered after the opening of insolvency proceedings, which were matched on the T2S platform before the CSD/NCB becomes aware but for settlement later than on the day of insolvency.  To be put on hold and cancelled at the end of the day (i.e. bilateral cancellation applies).

To be put on hold and cancelled at the end of the day (i.e. bilateral cancellation applies).
4 Transfer orders entered after the opening of insolvency proceedings, which were not matched on the T2S platform by the time the CSD/NCB becomes aware. 

To be immediately cancelled by CSD/NCB (alternatively put on hold for a later cancellation.
5 Transfer orders entered after the moment the CSD/NCB becomes aware of insolvency proceedings upon request of the insolvency liquidator.

To be processed according to system rules.
6 Transfer orders entered after the moment the CSD/NCB becomes aware of insolvency proceedings without involvement of the insolvency liquidator.

To be rejected.
  • Outcome procedure: OeKB CSD performed all communication sequences of the T2S insolvency procedures with the ECB as well as the technical steps in T2S successfully.
  • Outcome test cases: The test cases of the volunteer participants were fulfilled according to the test assumption.

Insolvency of CSD/participants in T2S
SFD requirements: decision tree

Any questions? Please contact us!

Accounts & Settlement Service Center
T +43 1 53127-2020
settlement@oekb-csd.at