Further to London Stock Exchange Market Notice N4/13 issued on 2 December 2013, customers are provided here with information on the changes to the Customer Development Service (“CDS”) to assist in their preparations for the change of standard settlement cycle to T+2 for the majority of instruments on production from Monday 6 October 2014.
CDS Settlement Cycle Changes
The Intended Settlement Cycle for CDS order book executions will change to T+2 from start of trading on Monday 1 September 2014 for the following CDS trading services:
SETS
ETFS - Euroclear Bank settlement
SETSqx
International Order Book
Securitised Derivatives
Order book for Retail Bonds (Corporate)
Order book for Fixed Income Securities
Full details of the CDS segments impacted can be seen on the 2nd tab of Appendix 1.
End to End Member Testing Arrangements
London Stock Exchange’s CDS will be providing the opportunity for full end to end testing of the reduced T+2 standard settlement cycle for cleared SETS, SETSqx and International Order Book instruments during the following 2 periods:
· 1 September 2014 to 12 September 2014; and
· 22 September and 26 September 2014.
The 1st tab of Appendix 1 sets out the Euroclear UK & Ireland (EUI) settled securities that will be available for full end to end testing. CDS trades executed outside of this security list will be subject to rejection at EUI.
Members should note that due to EUI test environment processing deadlines, CDS trades will only be processed from end to end between 08:00 and 14:00 on each of the available days. Trades executed on CDS outside these times will be rejected by the CCPs and not passed on to EUI.
Members are encouraged to contact their CCP and EUI (where applicable) to confirm testing requirements.
EUI has set out full details of its Participant Acceptance Testing for UK and Irish securities in the EUI Operational Bulletin 2014-134.
CDS trades executed on the International Order Book will be sent to the CCP. Customers requiring onward validation to Euroclear Bank should contact the CCP directly.
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Service AnnouncementRelates to
Exchange(s)
— London Stock Exchange
Environment(s)
— Millennium Exchange Testing Environment
Type
— Customer Development Service
Product(s)
— Customer Testing Service
Additional Information
If you have any queries about this announcement please contact your Technical Account Manager on – 020 7797 3939 or .
An archive of previously issued service announcements is available in the technical library section of the Exchange's Internet site http://www.londonstockexchange.com/techlib
Customers are reminded that London Stock Exchange may broadcast test data from its Production environment at the weekends which should be discarded and not processed.
Customers are reminded that London Stock Exchange may extend or re-enter the Post Close session for instruments or segments in order to perform necessary end of day activities.
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